DoorDash takes the lead in the food delivery wars as the landscape dramatically shifts in 2019

guest · Jan 19, 2020

DoorDash takes the lead in the food delivery wars as the landscape dramatically shifts in 2019
Digital food delivery sale have grown by 13% or more each of the past five years
January 17, 2020
https://www.cnbc.com/2020/01/17/doordash-took-the-lead-in-the-food-delivery-wars-in-2019.html

DoorDash’s rapid growth in 2019 allowed it to edge past Grubhub to become the leader in digital food delivery, according to data from analytics firm Second Measure.

Doordash captured a third of all digital food delivery sales in the U.S. market last year, Second Measure said. That put it on top of Grubhub, which had 32% of sales in the category. Uber Eats followed with a 20% share, and was trailed by Postmates, with 10%.

Doordash saw its sales grow by 143% year over year, creating a dramatic shift in the landscape from 2018, when GrubHub was the leader, with 43% of the market.
Digital food delivery is projected to grow into a $467 billion business over the next five years, a 31% increase, according to Morgan Stanley.
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The Villain Always Wins

By Second Measure’s estimations, DoorDash grew by 143 percent year over year in sales. What this means is that no matter how unethical the company has proven itself to be, it’s still making a killing.
To be clear, this has been the case for a while.

It’s possible that DoorDash’s success is due in part to the dizzying number of promotions the company runs, with another seemingly cropping up each week.

DoorDash has built its entire business on the exploited labor of its delivery couriers for whom it would rather invent new, convoluted pay models then offer a fair and honest wage.
To this point, multiple investigations by Gizmodo last year found that even after the company had overhauled its tip-skimming scheme, the company was still screwing workers over by messing with their per-delivery payouts.
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Rasheed187 · Jan 25, 2020

I always thought DoorDash was similar to HelloFresh, but it isn't. But anyway, I didn't like their website design.

guest · Apr 1, 2020

DoorDash begins offering convenience store delivery
DoorDash expands its delivery options
April 1, 2020
https://www.techspot.com/news/84657-doordash-begins-offering-convenience-store-delivery.html

The likes of Uber Eats, Amazon Prime Now (and plain old Amazon), and DoorDash have faced vastly increased demand over the past several weeks, and each company is struggling to adapt to the needs of customers. For DoorDash, that means expanding its business model to encompass more than just meal delivery.
Moving forward, the company will offer a more Amazon Prime Now-like delivery experience to its customers.

Starting right now, customers can use DoorDash to order products from over 1,800 convenience stores throughout the US. Available products include everything from sports drinks, snacks, and frozen meals to household essentials like hand sanitizer, toilet paper, Advil, and more. Some of the convenience store chains that will be supported are 7-Eleven, Wawa, Casey's General Store, and CircleK.

[...] DoorDash does offer a convenient "no-contact drop-off" delivery option to users.
Just sign into DoorDash on the web or through your mobile device and select the new "convenience" option. Within an hour or two of your order being placed, you should find your ordered products at your door.
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DoorDash: Bringing household essentials to your doorstep, offering convenience beyond food

We began piloting this offering earlier this year, and given the changes and challenges so many are facing in this moment, we accelerated the launch of our Convenience category to offer critical supplies during a time when delivery and pickup are vital to consumers’ wellbeing and to the health of our local communities.
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hawki · May 12, 2020

"Uber Technologies Inc. has made an offer to acquire food-delivery startup Grubhub Inc.

The companies are in talks about a deal and could reach an agreement as soon as this month..."

https://www.bloomberg.com/news/arti...keover-offer?sref=3zYETA5s&mod=article_inline

guest · May 17, 2020

U.S. Senator Klobuchar blasts Uber, Grubhub deal talks
May 17, 2020
https://www.reuters.com/article/us-...-blasts-uber-grubhub-deal-talks-idUSKBN22T0O4

U.S. Senator Amy Klobuchar on Sunday blasted merger talks between ride-hailing firm Uber Technologies Inc and online food delivery company Grubhub Inc, calling any deal bad for competition and consumers.

The two companies have discussed an all-stock combination, Reuters reported earlier this month. A merger would give Uber Eats’ money-losing food delivery service a leg up on market leader DoorDash at a time when the coronavirus pandemic has upended Uber’s business of shuttling people from place to place.

“If Uber takes over Grubhub it isn’t good for competition and it isn’t good for you,” the Democrat from Minnesota tweeted. “When big companies corner the market it usually means more for them and less for you, especially in a pandemic.”
Antitrust experts said any deal would likely win approval from regulators.
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guest · May 20, 2020

Four Democratic U.S. senators warn against Uber buying Grubhub
May 20, 2020
https://www.reuters.com/article/us-...arn-against-uber-buying-grubhub-idUSKBN22W30F

Four Democratic lawmakers, led by Senator Amy Klobuchar, wrote to antitrust enforcers on Wednesday to warn that plans by Uber Technologies Inc, owner of Uber Eats, to buy rival online food delivery company Grubhub Inc would “raise serious competition issues” in many cities.

In their letter, the lawmakers said the deal would give Uber and Grubhub 48 percent of the U.S. market, while Doordash would have 42 percent. A merged Uber Eats and Grubhub would have 79 percent of the market in New York, 68 percent in Boston, 65 percent in Miami, 60 percent in Chicago and 51 percent in Atlanta.

“We have been hearing about the exorbitant fees that these online delivery app companies charge to restaurants, which are then forced to pass these excessive costs on to consumers,” the lawmakers wrote.
“It is particularly troubling that this merger is being contemplated during a pandemic, when consumer demand has increased and when restaurants are more desperate for revenue than ever.”
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guest · May 20, 2020

“We have been hearing about the exorbitant fees that these online delivery app companies charge to restaurants, which are then forced to pass these excessive costs on to consumers,” the lawmakers wrote.
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Even If You're Trying To Avoid Grubhub By Calling Your Favorite Restaurant Directly, Grubhub Could Still Be Charging It A Fee
“If a customer calls to place a coffee order, we’re paying a $6.42 fee — for a coffee.”
May 15, 2020
https://www.buzzfeednews.com/article/venessawong/grubhub-phone-order-call-fee-coronavirus

Customers trying to avoid online delivery platforms like Grubhub by calling restaurants directly might be dialing phone numbers generated and advertised by those very platforms — for which restaurants are charged fees that can sometimes exceed the income the order generates. Restaurant owners and the New York City Council say the practice is further squeezing businesses already stretched thin by the coronavirus pandemic and the lockdowns.

“If a customer calls to place a coffee order, we’re paying a $6.42 fee — for a coffee,” Rafaela Negrao, co-owner of Gourmet Kitchen in Brooklyn and the “ghost kitchen” Palmito, told BuzzFeed News, explaining that she pays a flat fee per phone order. “You are paying for someone to drink your coffee. If you look at it that way, you see how much it hurts.”
This is a long-standing practice for Grubhub, which was founded in 2004 and charged a commission for phone orders before online ordering took off.

Grubhub charges that fee using an algorithm (which factors in a number of things, including the length of the call) — even, in some cases, when it did not result in an order.
But despite hiding in plain sight for years, that practice is now coming under fire from authorities.
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guest · Jun 6, 2020

Grubhub has two new suitors, Just Eat Takeaway and Delivery Hero, as Uber talks continue
June 5, 2020
https://www.cnbc.com/2020/06/05/gru...akeaway-and-delivery-hero-as-uber-stalls.html

Grubhub is fielding interest from at least two European food delivery companies as antitrust concerns have clouded the chances of an Uber acquisition, according to people familiar with the matter.
Netherlands-based Just Eat Takeaway.com and German company Delivery Hero have expressed interest in merging with Grubhub, according to people familiar with the matter, who asked not to be named because the discussions are private.

Grubhub, with a market valuation of about $5.4 billion, has been in talks with Uber on a sale. Those discussions are ongoing and may still result in a deal.
Grubhub is weighing multiple offers, some of which are all-stock and some that are both cash and stock, one of the people said. The company is mulling the right deal structure with potential buyers given market conditions and regulatory risks, two of the people said.
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guest · Jun 10, 2020

An Uber-GrubHub merger may not happen
June 10, 2020
https://edition.cnn.com/2020/06/10/tech/grubhub-just-eat-takeaway-uber/index.html

Weeks after reports that Uber was in discussions with Grubhub about a possible merger, a European food delivery company may be the one to pull off a deal with Grubhub.

Netherlands-based Just Eat Takeaway.com confirmed Wednesday that it's "in advanced discussions with Grubhub regarding an all-share combination."
CNBC and the Wall Street Journal are reporting that the deal could be struck as early as Wednesday, with CNBC reporting that Uber "is likely" to pull out over antitrust concerns, citing two people familiar with the matter.
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Just Eat Takeaway.com Nears All-Stock Deal for Grubhub

guest · Jun 10, 2020

mood said: ↑

An Uber-GrubHub merger may not happen June 10, 2020
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Updated article:
Uber lost out on its pursuit of Grubhub

Weeks after reports that Uber was in discussions with Grubhub about a possible merger, a Netherlands-based company, Just Eat Takeaway.com, confirmed Wednesday that it has struck a deal with Grubhub.
The all-stock deal values Grubhub at $7.3 billion. Its shares jumped 6% in after-hours trading.

The merger, which is subject to approval by the companies' shareholders and is anticipated to close early next year, will mark Just Eat Takeaway's entrance into the US. The company currently has operations in 23 countries.
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Engadget: Grubhub sells itself to Just Eat to create a food delivery giant

The food delivery world is about to get a bit smaller. Just Eat Takeaway.com (Just Eat to most people) is buying Grubhub in a deal worth $7.3 billion. The merger will create the largest online food delivery outlet outside of China, according to the companies, and will focus on US, UK, Germany and the Netherlands.
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guest · Jun 20, 2020

DoorDash is now valued at nearly $16 billion
June 18, 2020
https://edition.cnn.com/2020/06/18/tech/doordash-funding-valuation/index.html

DoorDash is getting a big boost in funding as demand for delivery services surges during the coronavirus pandemic.

DoorDash said Thursday that it has raised $400 million in new financing led by Durable Capital Partners and Fidelity, valuing the company at nearly $16 billion. The company was valued at $12.6 billion when it raised $600 million in May 2019.
The financing comes as the platform "has become ingrained in the lives of local communities as an essential service," said Henry Ellenbogen of Durable Capital Partners in a statement.
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It is unclear what the new financing might mean for DoorDash's plans to go public. The company announced in February that it had submitted confidential paperwork with the US Securities and Exchange Commission to go public.
DoorDash's business is not without its fair share of question marks, though.

DoorDash has also been criticized for a controversial tipping policy for delivery workers, where some tips contributed to their base pay. The policy, which has since been changed, is the subject of a lawsuit brought by DC Attorney General Karl Racine in November [...]
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guest · Jun 29, 2020

After losing Grubhub, Uber reportedly hails Postmates
June 29, 2020
https://techcrunch.com/2020/06/29/after-losing-grubhub-uber-reportedly-hails-postmates/

Uber has reportedly made an offer to buy food delivery service Postmates, according to The New York Times.
According to the Times, the talks are still ongoing and the deal could fall through.

For those that have been paying attention to Uber, this appetite is not new, albeit consistent. A little over a month ago, the ride-hailing company was reportedly pursuing an acquisition of Grubhub, another food delivery company. Grubhub was ultimately acquired by Just Eat Takeaway in a $7.3 billion deal, but only after the deal with Uber fell through over a variety of concerns.
If regulatory concerns were an issue, Postmates may make a better fit.

With a valuation of $2.4 billion, Postmates is significantly smaller than Grubhub. And while the company filed to go public nearly 16 months ago, it held off eventually citing “choppy market” conditions.
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guest · Jul 6, 2020

Uber to acquire Postmates delivery app in deal worth billions: report
July 6, 2020
https://www.zdnet.com/article/uber-to-acquire-postmates-delivery-app-in-deal-worth-billions-report/

Uber is reportedly on the verge of acquiring the Postmates delivery app in a deal valued at $2.65 billion.

People familiar with the matter told Bloomberg that the acquisition could be announced as soon as Monday.
The all-stock deal would keep Postmates CEO Bastian Lehmann at the helm of the delivery service, which may run as a separate business to Uber's own food and drink delivery service, Uber Eats

According to the publication, talks have been on-and-off for roughly four years, but it was only in the last week that a concrete offer was considered, and accepted after Uber approached Postmates. The Uber board of directors is thought to have approved the deal.
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guest · Jul 7, 2020

Uber launches grocery delivery in Latin America, Canada with U.S. to follow
Uber adds groceries to its growing food delivery options
July 7, 2020
https://www.reuters.com/article/us-...erica-canada-with-u-s-to-follow-idUSKBN2481LN

Uber Technologies Inc on Tuesday further expanded delivery offerings, launching an app-based grocery service in several Latin American and Canadian cities, with the United States to follow later this month.

The company’s latest foray into the delivery space is in partnership with Cornershop, a Chilean online grocery provider that Uber has held a majority stake in since October.
Customers in Canada’s Montreal and Toronto, eleven Brazilian cities, including Rio de Janeiro and Sao Paulo, four Chilean cities, Colombia’s Bogota and Peru’s Lima will be able to order groceries from local stores and chains through the Uber Eats app.

A launch in U.S. cities is expected later in July, beginning with regional merchants in Miami and Dallas, an Uber spokeswoman said.
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Uber: Introducing Grocery Delivery

Over the last six months, it’s become increasingly clear that grocery delivery is not only popular, but often a necessity. We expect to see this trend continue as people across the world look for new ways to save time and stay safe.

Today’s launch comes after much testing, and incredible consumer demand for deliveries from grocery and convenience stores on Uber, with orders increasing by 197% since March. In fact, we’ve partnered with more than 9,500 merchants to deliver groceries across 35 countries on Uber Eats.
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guest · Jul 16, 2020

Instacart is suing Uber's grocery delivery service Cornershop
July 16, 2020
https://edition.cnn.com/2020/07/16/tech/instacart-sues-uber-cornershop/index.html

Instacart is now waging a legal battle with Uber's Cornershop grocery service at a time when both companies are looking to capitalize on growing demand for food deliveries during the pandemic.

On Thursday, Instacart filed a lawsuit against Cornershop, a new grocery delivery competitor in the US, over allegedly stealing thousands of its copyrighted and licensed images, along with product descriptions and pricing data.

"Today, Instacart filed a lawsuit against Cornershop after the company failed to comply with a cease and desist demanding it stop stealing our catalog and using our misappropriated intellectual property," said Instacart in a statement to CNN Business.
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"Instacart is facing a new challenge in the US from a Chilean upstart, and it's unfortunate that their first move is litigation instead of competition," Uber spokesperson Noah Edwardsen said in a statement to CNN Business.

"Cornershop will be responding to this complaint but won't be deterred in bringing grocery delivery to more customers in the US."
In a blog post about the lawsuit, Instacart said: "While we welcome competition and innovation, what Cornershop is doing is illegal."
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guest · Jul 17, 2020

DoorDash inks deal with Walgreens to provide over-the-counter medicine and snack deliveries
Walgreens signed a similar deal with Postmates in April
July 16, 2020
https://www.theverge.com/2020/7/16/...ver-the-counter-medicine-and-snack-deliveries

On Thursday, DoorDash announced that it’s introducing on-demand delivery services from Walgreens to provide “everyday essentials” to your doorstep. Customers in Atlanta, Chicago, and Denver can now order over 2,300 items from the pharmacy chain, including over-the-counter medication, groceries, snacks, and beauty products.

f Walgreens isn’t your drugstore of choice, DoorDash announced a similar partnership with CVS in June, along with convenience store chains including 7-Eleven, Casey General Store, CircleK, and Wawa. You can also get Walgreens deliveries through Postmates, which signed a deal in April to deliver over-the-counter medication to your doorstep.
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To entice residents living in those participating cities to order “everyday essentials” from Walgreens, DoorDash is offering a 20 percent discount on their first order of $15 or more.
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guest · Aug 4, 2020

How food delivery upstarts are fighting the tyranny of Grubhub
August 3, 2020
https://www.fastcompany.com/90535459/how-food-delivery-upstarts-are-fighting-the-tyranny-of-grubhub

“The pandemic really just crushed us,” says Sean Li, cofounder of CaterCow, a platform that partners with restaurants to deliver big batch buffet-like food options primarily to offices and event spaces across eight major U.S. cities. [...].”
THE SORROWS AND STRUGGLES OF BIG FOOD DELIVERY
It’d be unfair to say that the major players in food delivery—Grubhub, DoorDash, UberEats, and Postmates—are totally thriving off the restaurant industry’s despair.

Grubhub and its competitors make money by taking around 15% to 30% commission (though this range can vary) from every order placed through its platform.
The apps also charge their users, a practice that’s become especially egregious; all of the big four are in the midst of a class-action lawsuit for charging excessive fees that get paid out by customers.
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FIXING A BROKEN BUSINESS MODEL
It’s one of the reasons why smaller, more localized delivery services have emerged with a new focus: to help restaurants market themselves, instead of charging hefty commissions. These newer services highlight Big Food Delivery’s shortcomings while gunning for a piece of the pie themselves.
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guest · Aug 5, 2020

DoorDash launches virtual DashMart convenience stores in select cities
August 5, 2020
https://www.slashgear.com/doordash-...convenience-stores-in-select-cities-05632276/

A handful of big cities are the first markets to offer DashMart, a new type of virtual convenience store from online delivery service DoorDash. The company describes DashMart as a sort of general store for many smaller, common items from brands and restaurants that you may otherwise have to order individually elsewhere, or as part of a larger multi-store order through DoorDash.

DoorDash is known for its personal delivery service, which involves gig economy workers picking up the items customers order from the stores of their choosing, then delivering them to the buyer.
Earlier this year, the company expanded its service to include convenience stores in addition to grocery stores, expanding the variety of items that customers can order.
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DoorDash: Introducing DashMart, a New Type of Convenience Store

In April, we launched the Convenience category on DoorDash, powered by partnerships with 7-Eleven, Walgreens, CVS, Wawa, and more.
For our merchant partners, we announced Main Street Strong in May, our commitment to helping restaurants on the road to recovery.

In support of both of these efforts, today we’re announcing the launch of DashMart stores nationwide. DashMart is a new type of convenience store, offering both household essentials and local restaurant favorites to our customers’ doorsteps.
DashMart stores are owned, operated, and curated by DoorDash.
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guest · Aug 6, 2020

UberEats data leaked on the dark web
August 4, 2020
https://securityaffairs.co/wordpress/106770/deep-web/ubereats-data-leaked-dark-web.html

Another day, another data breach made the headlines, this time the alleged victim is UberEATS.

UberEats is an American online food ordering and delivery platform launched by Uber in 2014.
During the process of darkweb and deep web monitoring, the Cyble Research Team came across a threat actor who leaked user records of UberEATS.

“During our research process, the Cyble Research Team got hold of some informative details related to this leak.” reads the post published by Cyble.
The experts analyzed 9 TXT files leaked by the threat actor which contained details of UberEATS delivery drivers, delivery partners, and customers. The leaked files also include login credentials of 579 UberEATS customers and details of 100 delivery drivers.
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Cyble: User Records of UberEATS Leaked on Darkweb

This online food ordering platform has been earning annual revenue of around $1.46 billion.
Overall, Uber has 105 investors, with 20 lead investors; SoftBank Vision Fund as the biggest investor. Some of Uber’s most notable investors-:

Details of 100 delivery drivers leaked by the threat actor, which includes information such as login credentials, full name, contact number, trip details, bank card details, account creation date.
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guest · Aug 6, 2020

Uber’s delivery business is now larger than ride-hailing
But it's still losing nine-figures every quarter
August 7, 2020
https://techcrunch.com/2020/08/06/ubers-delivery-business-is-now-larger-than-ride-hailing/

Uber reported its second-quarter earnings Thursday, and buried in the blizzard of less-than-rosy numbers is a stunning figure that illustrates how much the company has changed during the COVID-19 pandemic.

Uber’s delivery business — better known as Uber Eats — is now bigger than its original and core ride-hailing division, based on adjusted net revenue. Now, adjusted net revenue tells only a piece of this evolving Uber story. Income, or losses in the case of Uber’s delivery business, are also important.
Still, looking at the change of the past year, and specifically in the past two quarters, it’s clear that Uber’s strategy has shifted. And all eyes are on delivery.
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[...] As you can see, Uber’s food delivery business is doing far more gross dollars in transaction volume.
To be clear, ride-hailing isn’t going anywhere. It’s the dual focus of delivery and ride-hailing that Uber is counting on to get it through this rough patch of COVID-19 pandemic as well as fortify its revenue earning potential in more stable times.

“When travel restrictions lift we know the mobility trips rebound. If restrictions continue or need to be re-imposed our delivery business will compensate.”
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guest · Aug 15, 2020

California Puts DoorDash in Its Crosshairs
August 14, 2020
https://gizmodo.com/california-puts-doordash-in-its-crosshairs-1844729217

San Francisco District Attorney Chesa Boudin on Wednesday announced he filed a motion that would force DoorDash to reclassify delivery workers as employees rather than as independent contractors, a predatory wage system that greatly benefits gig economy employers at the expense of basic protections for the people who work for them.

“We are seeking an immediate end to DoorDash’s illegal behavior of failing to provide delivery workers with basic workplace protections,” Boudin said in a statement.
Boudin previously sued the company in June for “unlawfully classifying” its workers as contractors rather than full-time employees.

Those parasitic enterprises have since threatened to shut down their businesses in the state until November if they don’t get their way, a move that underscores the soulless cowardice of these companies during a goddamn pandemic.
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DoorDash also has a history of massaging data to further its own agenda.
The argument that employee classification hurts rather than helps its workers—despite the fact that they would have access to rights like overtime, sick leave, and a minimum wage—rings hollow considering the amount of money that DoorDash has dumped, along with its gig economy peers, into getting its way.

There are also problems with DoorDash’s logic that employee reclassification would detrimentally upend worker earnings. There’s certainly enough work: The pandemic has created an unprecedented demand for delivery, and business is booming [...]
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guest · Aug 18, 2020

Uber to operate food delivery even if rides business forced shut in California
August 17, 2020
https://www.reuters.com/article/us-...iness-forced-shut-in-california-idUSKCN25D2IV

Uber Technologies Inc (UBER.N) on Monday said it would continue operating its revenue-generating food delivery business Uber Eats even if its ride-hail business should be forced shut in California at the end of this week following a court order.

A company spokesman said Uber’s food delivery unit did not appear to be impacted by a lawsuit filed by California’s attorney general and a subsequent court order that would force Uber to treat its ride-hail drivers as employees.
Uber and smaller rival Lyft Inc (LYFT.O) said they would be forced to shut their ride-hailing operations in California if the court ruling goes into effect on Friday morning.
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Eats has been a boon to Uber during the pandemic as Americans stay home and many businesses and restaurants remain shut. Delivery orders in the second quarter more than doubled, while ride-hailing trip bookings, in the past responsible for nearly two-thirds of Uber’s revenue, were down 75% from last year.
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guest · Aug 20, 2020

DoorDash expands with on-demand grocery delivery
August 20, 2020
https://techcrunch.com/2020/08/20/doordash-grocery-delivery/

DoorDash is announcing that customers can now order groceries through the DoorDash app from partners including Smart & Final, Meijer and Fresh Thyme. Additional stores like Hy-Vee and Gristedes/D’Agnostino are supposed to be added in the next few weeks.

Through these partnerships, DoorDash says it has a delivery footprint covering 75 million Americans in markets like the San Francisco Bay Area, Los Angeles, Orange County, Sacramento, San Diego, Chicago, Cincinnati, Milwaukee, Detroit and Indianapolis.
DoorDash began delivering from a wide range of convenience stores earlier this year.
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“There’s no scheduling, no delivery slots, no day-long waits,” he said.
To achieve this, Hannon said DoorDash has created “deep partnerships and commercial relationships” with the grocery stores, coordinating on things like inventory management.

Hannon said these deliveries will be handled by “the same pool of Dashers” as restaurant delivery.

“DoorDash provides another convenient way for customers to get the value, selection and quality that Smart & Final offers, especially at a time when some are looking to limit trips outside their homes,” said Navin Cotton, Smart & Final’s director of digital commerce, in a statement.
“DoorDash’s on-demand grocery service is a nice addition to our online shopping options and with delivery in under an hour, we know Smart & Final customers are going to appreciate it.”
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DoorDash: Introducing On-Demand Grocery Delivery

Expanding our Grocery partnerships to bring more everyday essentials straight to your door
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guest · Aug 28, 2020

Instacart faces lawsuit from DC Attorney General over ‘deceptive’ service fees
August 27, 2020
https://techcrunch.com/2020/08/27/i...attorney-general-over-deceptive-service-fees/

Instacart is facing a lawsuit from Washington, D.C. Attorney General Karl A. Racine that alleges the company charged customers millions of dollars in “deceptive service fees” and failed to pay hundreds of thousands of dollars worth of sales tax. The suit seeks restitution for customers who paid those service fees, as well as back taxes and on interest on taxes owed to D.C.

The suit specifically alleges Instacart misled customers regarding the 10% service fee to think it was a tip for the delivery person from September 2016 to April 2018.

“Instacart tricked District consumers into believing they were tipping grocery delivery workers when, in fact, the company was charging them extra fees and pocketing the money,” Racine said in a statement.
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In a statement to TechCrunch, Instacart said customer transparency is important and that it currently discloses to customers that tips are separate from service fees. A spokesperson said Instacart also “clearly” indicates that service fees go toward its operations.

“Additionally, 100% of customer tips always go to Instacart shoppers who are providing an important essential service for customers,” the spokesperson said. “We believe the accusations made in this complaint are without merit. [...]”
This is not the first time Instacart has faced legal issues over its service fees. In 2017, Instacart settled a $4.6 million suit regarding claims that the company misclassified its personal shoppers as independent contractors, and also failed to reimburse them for work expenses.
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This lawsuit comes as Instacart is facing uncertainty in California over the way it classifies some of its shoppers and delivery people. Despite a new law going into effect in January that clearly lays out what type of workers should and should not be classified as independent contractors, Instacart has yet to classify its workers as employees.
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guest · Oct 10, 2020

Lyft dips toes into food delivery for first time
October 6, 2020
https://mashable.com/article/lyft-pink-grubhub-free-delivery/

On Tuesday, Lyft announced that its subscription plan, Lyft Pink, will now include perks from restaurant delivery app Grubhub. Lyft Pink subscribers — who pay $19.99 per month for Lyft discounts — will get access to Grubhub+ (and Grubhub-owned Seamless+) for free delivery on any orders on those apps as well as other promotions and offers.

Normally Grubhub+ has a separate subscription fee of $9.99 per month for unlimited free delivery. For Lyft Pink members that's rolled into the monthly plan with access to free delivery and other promotions at 200,000 restaurants on the food app.
That's on top of the existing Lyft Prink offerings.
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Uber added Uber Eats in 2014, and during the pandemic the company is relying on its food delivery business more than ever. Uber rides were down 85 percent at the start of COVID-19 shutdowns, but demand for food delivery shot up.

As ride demand remains below normal, Lyft is partnering with the very food delivery company Uber failed to acquire this summer. Uber ultimately bought another, albeit smaller delivery app, Postmates.
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