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DoorDash is now delivering purchases from Facebook Marketplace
Category: Doordash in the News Author: admin Date: 23 hours ago Comments: 0
DoorDash is now delivering purchases from Facebook Marketplace

You might not have to pick up your local Facebook Marketplace purchases in the near future. Meta has confirmed to The Wall Street Journal that DoorDash is now handling Facebook Marketplace deliveries as part of an “early” partnership. Couriers will deliver orders that are small enough to fit in a car trunk and come from sellers up to 15 miles away, The Journal’s sources said, and should complete their dropoffs within 48 hours.

The feature is currently free to reel in customers, one tipster said. It’s not clear how Facebook and DoorDash would charge customers later on. The companies have been testing the offering in multiple US cities in recent months.

The reasoning for the team-up is reportedly simple. Meta has learned that Marketplace is one of the few Facebook features young people use when they’re not jumping to TikTok, according to the sources. DoorDash could help spur demand, particularly among younger users.

For DoorDash, the alliance could help reduce its dependence on restaurant orders. The company has already been delivering groceries and convenience store essentials for years. This would give DoorDash a steadier stream of income, and might help it compete with Uber Eats’ nationwide shipping service.

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Why delivery apps are dying
Category: Doordash in the News Author: admin Date: 4 days ago Comments: 0
Why delivery apps are dying

Apps like Uber, DoorDash and Just Eat are inarguably convenient, but they’ll need a new strategy to survive all of this nasty inflation

Vass Bednar is executive director of the Master of Public Policy in Digital Society program at McMaster University

Vass Bednar is executive director of the Master of Public Policy in Digital Society program at McMaster University

The so-called servant economy emerged in North America in 2008, in the aftermath of another recession. It was built on a simple, seductive premise: app-based delivery that relied on efficient algorithms and low-paid independent contractors, which together would offer cheaper prices than traditional competitors. Consumers, particularly young, busy urbanites, became increasingly dependent on companies like Uber for transportation, takeout, and delivery of essentials like medicine and clothing directly to their homes and workplaces.

This market has always been built on a shaky foundation. Companies like Uber, DoorDash and Just Eat are heavily subsidized by venture capital dollars that have long obscured what it actually costs them to provide these services. Case in point: Uber has rarely turned a profit in its 13 years of operation, despite raking in US$17.4 billion in revenue in 2021 alone.

Delivery apps experienced a huge surge in demand during the pandemic, but the national spike in food prices over the past few months has deterred consumers from their usual dinner-ordering habits: The average diner’s bill across restaurants, takeout and home delivery decreased by seven per cent in 2021, compared to 2020.

On-demand apps are now struggling to retain the cheap labourers they depend on for deliveries. The pay can be good: the average Uber driver in Vancouver makes about $24 an hour after expenses, which is about $9 higher than B.C.’s minimum wage. But drivers are growing weary of gig work’s lack of benefits and the unstable hours. They’re also burning out from algorithms that treat them more like robots than human beings. Drivers are penalized for declining too many deliveries—or for not accepting them fast enough. Predictably, they’re turning elsewhere for work. Uber and Lyft drivers in the U.S. were at 40 per cent below capacity in July of 2021. Similar shortages are cropping up in Canada.

Canadians are tightening their belts and staying home less often than they were during lockdown, and that’s spurring the servant economy’s decline. It’s crucial to find a better, more ethical alternative for our on-demand culture. One could be the creation of provincially run platforms that operate as centralized food-delivery services, accessible to restaurants and consumers alike. These could be funded with tax revenues and provide benefits and competitive salaries that the private sector would be forced to match. A service that’s administered and funded by the province also wouldn’t need to turn a profit for shareholders by artificially inflating its prices.

Such publicly run platforms aren’t here yet, but there is another promising development: mirroring the 30-minutes-or-less guarantees of pizza companies of yore, some apps are now competing to offload items faster than ever before. German delivery start-up Gorillas—which aims to deliver groceries within minutes—gives its riders guaranteed working hours, salaries above minimum wage, health insurance and paid vacations. There’s no reason a Canadian startup couldn’t do the same.


This is part of the Maclean’s Guide to the Economy, which appeared in the September 2022 issue. Read the rest of the package, order your copy of the issue, and subscribe to the magazine

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Earnings Results: DoorDash stock surges as it reports record food-delivery orders but larger loss than expected
Category: Doordash in the News Author: admin Date: 1 week ago Comments: 0
Earnings Results: DoorDash stock surges as it reports record food-delivery orders but larger loss than expected

DoorDash Inc. on Thursday reported continued growth in the second quarter, saying that its food-delivery business remains healthy despite economic uncertainty, but its loss was worse than what Wall Street expected.

DoorDash
DASH,
-1.32%,
which completed its acquisition of Finland-based Wolt in the second quarter, beat revenue and other expectations with its earnings report, though the delivery-platform company posted a bigger loss than expected.

Ravi Inukonda, vice president of finance, said in a Thursday interview with MarketWatch that it’s “a very tough macro environment out there, but we’re coming off a record quarter in terms of orders.”

Gross order value grew to $13.1 billion, exceeding analysts’ estimates of $12.84 billion. Total orders increased to 426 million, above the 419 million analysts expected.

Inukonda said he is confident that the company is well-positioned to deal with what he sees as softening consumer spending in the third quarter and the rest of the year, because DoorDash offers delivery from a range of categories that includes prepared food, convenience and more. In addition, he said he feels good about Wolt’s growth of 50% year over year, which he said is faster than its peers in the European region.

DoorDash shares surged more than 13% after hours, after rising more than 2% in the regular session to close at $81.29, near a three-month high. 

The company posted a loss of $263 million, or 72 cents a share, compared with a loss of $102 million, or 30 cents a share, in the year-ago period. DoorDash attributed $45 million of that loss to Wolt. Revenue rose to $1.6 billion from $1.24 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast a loss of $195 million, or 21 cents a share, on revenue of $1.52 billion. DoorDash does not provide adjusted earnings per share numbers, but some analysts estimate earnings on an adjusted basis.

Adjusted Ebitda was $103 million, lower than the $113 million in the same quarter last year, though above analysts’ expectation of $58 million. For DoorDash, Ebitda, or earnings before interest, taxes, depreciation and amortization, excludes other items such as legal costs related to ongoing issues over worker classification, tax-collection costs and costs related to an intellectual-property settlement.

For the third quarter, DoorDash expects adjusted Ebitda of $25 million to $75 million, and marketplace gross order value of $13 billion to $13.5 billion. Analysts on average were forecasting adjusted Ebitda of $51 million and gross order value of $13.19 billion, and a loss of 22 cents a share on revenue of $1.58 billion.

For the second time this year, DoorDash raised full-year guidance for gross order volume, to a range of $51 billion to $53 billion. On the high end, that beats analysts’ expectation of $52.37 billion.

Shares of DoorDash have fallen more than 45% so far this year, while the S&P 500 index
SPX,
-0.16%
has decreased about 13% over the same period.

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You May Already Be Eligible for Free DoorDash, Grubhub+, or Uber Eats Deliveries
Category: Doordash in the News Author: admin Date: 2 weeks ago Comments: 0
You May Already Be Eligible for Free DoorDash, Grubhub+, or Uber Eats Deliveries

Photo: Andrew Angelov (Shutterstock)

In a post-pandemic world, food delivery services like DoorDash, Uber Eats, and Grubhub have become ubiquitous. And even though we can go back out to restaurants now, it’s hard to deny the convenience of a warm, tasty dinner delivered straight to your door. In an effort to even further entice customers, a handful of the popular food delivery services offer premium memberships: DoorDash offers what they call a “DashPass,” Grubhub has the aptly named “Grubhub+,” and Uber Eats has a program called “Uber One.” While all three services cost $9.99 per month to subscribe, you might already have free access to one of them.

How to get DashPass for freeThe largest food delivery service in the United States, DoorDash offers a premium monthly membership called “DashPass” for $9.99 per month. But if you’re the holder of one of the 93 million issued Chase Credit cards, you can get the DashPass for free. As a Chase cardholder, you can redeem a free twelve month subscription to DashPass, which comes with no delivery fees on all orders from restaurants, grocery and convenience stores, plus an average of $5 saved per order on waived service and delivery fees.

You can also earn 5% credit on eligible DoorDash pick-up orders. Just remember to set a reminder on your calendar one year from enrolling; otherwise you’ll start getting charged for the service.

How to get Grubhub+ for freeI’m sure you’re already familiar with Grubhub, but are you familiar with Grubhub+? What sounds like the latest streaming service is actually a premium food delivery membership, which includes unlimited, free delivery on orders over $12, as well as perks and rewards, such as free food and order discounts.

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Typically $9.99 per month, you can get access to a free, one-year membership if you’re a member of Amazon Prime. If you want to activate this deal, go to amazon.com/grubhub and follow the instructions. And just in case you didn’t know, a Grubhub+ membership works with Seamless, too.

How to get Uber One for freeIn early 2022, Uber began offering a program called Uber One, in which their customers received 5% off all eligible rides and 5% off eligible delivery orders on food, grocery, alcohol, as well as unlimited free delivery on orders over $15 and grocery orders over $30, for a cost of $9.99 per month or $99.99 per year. If you’re intrigued by the offer but aren’t quite sold on signing up, a complimentary twelve-month membership is given to American Express card members.

The only catch is you need to use the aforementioned credit card as your payment method at checkout, but it’s an otherwise convenient perk if you’re already an AmEx customer. Just note that you will need to set a reminder for one year after your enrollment, otherwise you’ll start getting automatically charged for the service.

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