Uber, DoorDash, Lyft Win with Prop 22 Ruling
Michaels & Save A Lot Launch on DoorDash, Chipotle Q2, logistics funding
Wow, Friday again… let’s get straight to the stories, starting with a big policy win for the platform giants.
This week’s edition is brought to you by Gigs.
Today:
CA Supreme Court Rules Prop 22 Stays
DoorDash Launches Michaels, Save A Lot
Chart Time | Logistics Funding Falls
Chipotle’s Very Filling Q2
POLICY | CA Supreme Court Rules Prop 22 Constitutional
Delivery networks and rideshare providers alike notched a big victory, with California’s Supreme Court ruling that Proposition 22 is in fact constitutional. With that ruling in place, gig companies can continue operating as they have since the 2020 proposition passed, which effectively gave courier and TNC-related gig workers an exemption from AB5, while still guaranteeing workers certain pay and health benefit minimums.
The Big Picture: This challenge to Prop 22 had been pushed by the SEIU, with the union arguing that the particulars of the proposition, and whether it overly hamstrung the state legislature from its duties, was unconstitutional. Justice Goodwin Liu instead ruled the law “does not preclude the electorate from exercising its initiative power to legislate on matters affecting workers’ compensation,” and “does not itself restrict the Legislature’s authority to enact workers’ compensation legislation.” See DoorDash’s response here and Uber’s here.
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3PD | Michaels, Save A Lot Launch on DoorDash
DoorDash just celebrated two big new partners: arts and crafts retailer Michaels and discount grocer Save A Lot. Michaels brings 1,200 stores to the 3PD, and is the first brand in its category to appear in the DoorDash app. While Save A Lot has 750 stores across the rust belt and the south, its launch starts with just 400 stores.
The Big Picture: Participating Save A Lot stores will also support SNAP/EBT payment for on-demand delivery of eligible items, which is a good fit both for the store’s general customers, as well as a growing user base on DD overall. Since launching SNAP/EBT payment support last year, over 1.5 million consumers have now linked their cards to their DoorDash accounts. Both new retailers are celebrating their arrival on the 3PD with 30% off promos.
CHART TIME | Logistics Funding Falters
Bad news for the logistics industry, with funding waaay down last year. European startups look to be the worst affected, with India and North America holding up better.
FINANCE | Chipotle Posts Strong Q2
Tech-forward Chipotle just posted its Q2 financial results, and things are looking good for the Newport Beach-based burrito / bowl builder. Total revenue increased 18.2% to $3.0 billion, comparable restaurant sales increased 11.1%. Net income hit $455.7 million, up from $341.8M the year prior. All this good news drove the stock up about 3%.
The Big Picture: Chipotle achieved this growth a few ways, starting with improving its operating margin from 15.5% to 16.3%. Same store sales were up a healthy 11.1%, while the chain also opened 47 new restaurants, with 43 locations including its all-important Chipotlane. Digital sales hit 36.5% of total F&B rev, up from 35.3% the prior quarter. The company also noted it’ll be retraining employees to make sure serving sizes are more standardized.
A Few Good Links
Researchers share more nuance from their controversial findings that food delivery is killing off rideshare. Just Eat Takeaway.com pulls out of French market completely. Kroger-Albertsons merger temporarily halted. In this Chinese skyscraper, food couriers sub out the last (steep) mile to a whole second class of even giggier workers. VDC launches Linked Eats. DOT aids supply chain. Gopuff launches ad platform. Boxed.com relaunches. EV sales up 40% YoY at GM. Marco’s Pizza shows off new store design. Serve Robotics adds board directors. Shyft Group buys truck upfitters. SpeedX hits 35 million deliveries.
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