Uber is trying to find ways to bring back drivers in London while Uber Eats has reached profitability for the first time. Also, DoorDash is expanding their services to include nationwide deliveries. All this and more in this week’s roundup with senior RSG contributor Paula Gibbins.
Introducing Nationwide Shipping through DoorDash and Caviar, A New Way to Shop Local Favorites Near and Far (DoorDash)
Summary: Throughout the past year, DoorDash has expanded on the vision to deliver the best of every local neighborhood. Now, we are taking it one step further and expanding what it means to get the best of any neighborhood with the introduction of Nationwide Shipping on DoorDash and Caviar. Consumers can now order delicious meals and items from iconic restaurants and retailers across the country and have them delivered directly to their doorstep.
With Nationwide Shipping, consumers can order (or gift!) everything from sweet treats and savory meals, to flowers and fresh produce, with free delivery from anywhere in the nation in just a few days. With a wide variety of restaurants and shops across the country to choose from ranging from famed and well-known merchants like Carlo’s Bakery (Hoboken, NJ), Katz’s Delicatessen (New York, NY), Momofuku, Carbone Fine Food (New York, NY), and Get Maine Lobster (Portland, ME) to local heroes like Big Shakes Hot Chicken (Franklin, TN), Chocolate and the Chip (Los Angeles, CA) and more, there’s a perfect range of options for whatever you are craving.
Nationwide Shipping on DoorDash and Caviar opens the door to new neighborhoods and communities and invites consumers to try something new or share something nostalgic without ever actually having to leave home….
My Take: I’m sure they have a driver system in place, so this won’t be affecting current DoorDash delivery drivers, but it’s exciting for consumers. I know when I told my husband he immediately went on the app and started searching to see what things we can get delivered here.
I mean, that looks darn delicious. I could definitely do some damage with this option when I’m hungry. Granted, it would take a few days for the food to get to me, but…YUM!
Uber raises London prices by 10% in effort to lure back drivers (The Guardian)
Summary: Uber is to increase its rates by 10% in London in an attempt to lure drivers back on to its platform, as cab companies across the UK struggle to meet booming demand.
Customers using the ride-hailing app have faced longer waits and more cancellations from drivers cherry-picking jobs in recent weeks, as well as more surge pricing as requests exceed the numbers of cars available.
Many Uber and minicab drivers quit the sector during the Covid pandemic when lockdown rules caused jobs to dry up.
Public demand for taxis has grown in recent months, with social distancing eased and ever more people returning to nightlife, while some public transport networks have been cut.
Uber said the rise, which would come into effect in the capital from Thursday, was the first in its base rates since 2017 and would help avoid the fluctuations caused by frequent surge pricing if more drivers could be attracted back….
My Take: I may be making an assumption here, but I have to assume that raising the base rate for the passengers is also translating to a base rate raise for the drivers? Otherwise, how is this going to encourage drivers to come back?
DoorDash to acquire food delivery company Wolt (Tech Crunch)
Summary: On-demand delivery giant DoorDash announced Tuesday it was acquiring food delivery company Wolt in an all-stock deal valued at €7 billion, or $8.1 billion.
Talking about the acquisition, Tony Xu, co-founder and CEO of DoorDash said in a statement that the move “will accelerate our product development, bring greater focus to each of our markets and improve the value we provide to consumers, merchants, as well as Dashers and couriers around the world.”
Finland-based Wolt was founded in 2014 by Miki Kuusi, who, upon the deal closing, will run DoorDash International and report to Xu. The company has over 4,000 employees across 23 countries and its technology enables users to easily discover and receive food via its platform by selecting a restaurant, placing the order and hitting send….
My Take: Is DoorDash buying out everybody? According to Crunchbase data, this is the 6th acquisition DoorDash has made, and its second in 2021 alone. It seems like the end game is to keep only the top players in the game active—DoorDash, Grubhub and Uber Eats.
Just waiting for the next acquisition…
Motional and Lyft to Launch Fully Driverless Ride-Hail Service in Las Vegas in 2023 – Will Mark First City in Multimarket Deployment (Crweworld)
Summary: Motional, a global leader in driverless technology, and Lyft, Inc. (Nasdaq: LYFT) today announced the planned launch of a fully driverless public ride-hail service in Las Vegas, the first city in a multimarket deployment. Motional’s next-generation robotaxis, the all-electric Hyundai IONIQ 5-based robotaxi, will be available on the Lyft app in Las Vegas, starting in 2023. The deployment is part of a landmark partnership between Motional and Lyft announced last year.
The service will be the first time fully driverless cars for use in a ride-hailing service are available to the public in Nevada. Launched by Aptiv in 2018 and now as Motional, the company has operated a public self-driving service with Lyft in Las Vegas for over three years. The 2023 deployment represents a significant expansion, will use Motional’s next-generation robotaxi, and will be the first time passengers experience a fully driverless Lyft and Motional ride. With plans to launch in multiple markets, the service is also designed to be scalable and positions both Motional and Lyft to introduce millions of riders to driverless technology in the future….
My Take: Two years. Mark your calendars. We’ll be seeing robotaxis in two years in Vegas.
In two years will the world be ready for fully driverless vehicles? Will the roads be safer? Will the technology know when someone threw up in the vehicle so it can be immediately cleaned before picking up another passenger? Will it be able to maneuver construction zones and redirected routes? We’ll see in two years.
Uber Eats’ restaurant delivery reaches profitability for first time (Restaurant Dive)
Summary: Uber Eats’ core restaurant delivery business was profitable on an adjusted EBITDA basis for the first time ever in Q3 2021, Uber CFO Nelson Chai said during the company’s latest earnings call Thursday.
Its overall delivery adjusted EBITDA margin as a percentage of delivery gross bookings also approached breakeven compared to negative 1.2% in the second quarter, according to the company’s earnings release.
Uber Eats is reinvesting this profitability into new verticals, Chai said. The company, for example, launched a channel focused on baby and kids through a partnership with Bed Bath & Beyond and BuyBuy Baby, as well as niche brands like Yumi and Lalo….
My Take: So, what now? It was finally profitable for the first time ever. And, now they are going to continue making moves to remain profitable, which from the sounds of it includes eliminating the need for drivers as much as possible.
If you read the full article, it goes into what future plans entail including having robots handling short distance and small order deliveries.
What do you think of Uber Eats being profitable? Will it last? What does that mean for delivery drivers in the future?
-Paula @ RSG
