Product update
DoorDash launched a new Earn by Time feature that enables drivers to choose between getting compensated for each delivery or being paid an hourly flat rate. DoorDash also launched a safety feature that allows drivers to share their location with up to five contacts. (June 28, 2023; Entrepreneur )
Partnership
DoorDash partnered with Amazon Canada to offer a free one-year membership of the company's subscription service, DashPass, to Amazon Prime members. (June 06, 2023; Press release )
Grubhub has announced a partnership with Homewood Suites by Hilton to enable guests of nearly 500 Homewood locations to order food from offsite locations. (June 08, 2023; Press release )
Grubhub has extended its partnership with Amazon to enable Amazon Prime users to access Grubhub's subscription service "Grubhub+" for one more year. (June 28, 2023; Press release )
Industry news
HelloFresh is reportedly under investigation by the Commerce Commission of New Zealand, a government agency that enforces legislation related to fair trading due to customer complaints related to factors such as subscriptions, promotions, customer service, pricing, quality, and refunds. (June 09, 2023; 1News )
The city of New York announced plans to increase the minimum hourly rate paid for food delivery workers to USD 17.96, starting from July 2023 (from the current average hourly rate of ~USD 7.09). The city plans to further increase the rate to USD 19.96 per hour in April 2025. (June 11, 2023; CNN )
Mergers and acquisitions
Nextbite has announced the sale of its online ordering platform, Ordermark, to UrbanPiper, an India-based developer of an integrated order management solution. In the same week, Nextbite was acquired by Sam Nazarian. As a part of the deal, Nextbite will renamed "Nextbite by SBE" and will operate separately from C3's virtual brands. Nazarian will replace Nextbite CEO Alex Canter as head of the company. (June 13, 2023, Restaurant Dive , Restaurant Dive )
Management changes
Grubhub laid off 15% of its corporate workforce (~400 employees) in an effort to maintain competitiveness. (June 12, 2023, CNBC )
Olo laid off 11% of its workforce (81 employees) in a plan to strategically reorganize its business. It also announced the appointment of Joanna Lambert to the role of the company's chief operating Officer. (June 14; 2023, StreetInsider )
Uber announced plans to cease its food delivery operations in Italy and Israel in order to focus the company's efforts on markets with better opportunities for sustainable growth. (June 15, 2023; Benzinga )
Grab announced plans to lay off 1,000 staff (11% of the company’s workforce) in an effort to manage costs. ( Bangkok Post ; June 20, 2023)
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