Business Wars Food Delivery Wars | Just Deserts | 4
Jun 16, 2021
In July 2019, DoorDash rises above Grubhub but faces backlash for misusing driver tips. The intensity escalates as DoorDash and Uber team up against a California proposition threatening their business model. The pandemic hits, favoring food delivery giants, but questions arise about sustaining this growth. Strategies emerge as companies like Uber Eats and Grubhub adapt to the new landscape, while restaurants pivot to direct orders, seeking stronger customer connections amidst fierce competition and evolving challenges.
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DoorDash Tipping Controversy
- DoorDash's tipping model sparked outrage after a New York Times exposé revealed they used tips to offset guaranteed minimums, not to increase driver pay.
- This revelation damaged DoorDash's image, especially after a recent $600 million funding round.
DoorDash Acquires Caviar
- DoorDash acquired Caviar, a high-end delivery service, in August 2019.
- This acquisition aimed to expand DoorDash's reach into urban markets and complement its existing suburban focus on chain restaurants.
Uber Eats and Ghost Kitchens
- Uber Eats experimented with ghost kitchens in Paris, aiming to optimize delivery efficiency.
- These kitchens, lacking storefronts, focus solely on preparing delivery-friendly food.