DoorDash, Uber Eats, Grubhub Sue NYC
Rivian up, Cava stays healthy, Prime Day lessons
It might be the end of the week, but there’s still plenty to get excited about, especially if you’re a lawyer! Read on for the juicy details in the battle of NYC vs the 3PDs.
Today:
3PDs Sue NYC
Rivian’s on a Roll
Chart Time | Checking in on Cava
Amazon’s Holiday Playbook
3PD | Delivery Giants Duke it Out Against NYC🥊
In a huge development yesterday evening, erstwhile competitors DoorDash, Uber and Grubhub have teamed up to sue the City of New York. The delivery platforms contend that the city’s new law, which would have delivery drivers make about $18 per hour starting July 12, is economically unjust. At the heart of the complaint is the contention that the Department of Consumer and Worker Protection (DCWP) research relied on selecting sampling, as opposed to accurately gauging the entire gig worker and merchant landscape.
The Big Picture: One of the biggest sticking points is over on-call time, which would have the 3PDs responsible for payment even when workers have nothing to do. While in some ways that sounds similar to the “earn by time” model DoorDash announced last week, the platforms argue it’s overly restrictive. Many couriers seem to be of that same mind, fearing that in response the job would become overly prescriptive, and not let them opt in and out when they felt like picking up a delivery or two.
VEHICLES | Rivian Looking for More Electric Van Customers
After a tough year, Rivian looks to be back on a roll, with the company’s stock having almost doubled over the past two weeks. Beyond increasing its electric pickup and SUV sales, the company has high hopes for finding more fleet customers for its head-turning electric cargo van.
The Big Picture: Last year Rivian missed its target of deploying 10,000 vans for Amazon, only hitting about 30% of the goal. In response, Amazon looked to lower its future orders, which sent both parties towards renegotiating the deal. Things have since improved, as there are now 5,000 Amazon Rivians on the road, including an initial deployment in Germany. The Irvine, CA-based company is also “in the final stages of negotiating, allowing us to sell the vehicle outside of the Amazon relationship to others” according to the CEO.
CHART TIME | Cava’s Calm Cruise
Technologists, finance bros, and foodies alike got all hot and bothered a few weeks back, when Cava’s IPO looked to reawaken a slumbering stock market. Now that the company’s been trading for a few weeks, we thought it was time to check back in and see if the enthusiasm has cooled as fast as falafels out for delivery. Seems like no - the stock appears to be holding up just fine!
MARKETING | When in Doubt, Make up a Holiday!
We’ve all heard people grumble that Valentine’s Day is “made up” just so the world can sell more roses and Sweethearts (maybe the chalk factory had some excess inventory to move…) But no holiday is as made up as Prime Day, Amazon’s special day where they try to break the delivery guy’s back. This year’s event is still a week away, but the media is already covering it like it turned out Santa is real. NBC is excited about discount lightbulbs! Women’s Health says load up on Apple Watches! CNET says don’t forget about tactical flashlights!
The Big Picture: Any retailer or restaurateur can take a page from Amazon’s playbook, and figure out a way to drum up customer excitement in an otherwise slow season. Evidently you can’t have too many holidays, since it also turns out today is “World Chocolate Day” - that’s a good enough occasion for Krispy Kreme to get people to care about chocolate glazed donuts…
Fun Fact: Those aforementioned Sweetheart candies were invented way back in 1847 (and taste like they’ve all been sitting in a warehouse since then.) Originally given out at weddings, they contained *witty* sayings like: "Married in pink, he will take a drink," "Married in White, you have chosen right," and "Married in Satin, Love will not be lasting." How clever…
A Few Good Links
7-Eleven honcho heads to Golden Corral. Papa John’s gets new CFO. 10,000 bridges at risk.
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