Boston Declares War on Delivery Drivers
Electric reefer truck revealed, Yelp restaurant data, congestion pricing in trouble
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Today:
Boston Cracking Down on 3PD Drivers
GreenPower Debuts Electric Reefer Truck
Chart Time | Teppanyaki, Not So Hot…
NY Gov Shivs Congestion Pricing
POLICY | Boston Cracking Down on “Alarming” 3PD Drivers
Beantown is battening down the hatches, as Boston Police Commissioner Michael Cox and Chief of Streets Jascha Franklin-Hodge have sent letters to Uber, GrubHub, and DoorDash executives, about what they call “The consistent failure of those operating on your behalf to abide by rules and regulations indicates a concerning lack of oversight and care in regard to public safety.” The 3PDs have until June 7 to formally respond, with the city looking to know more about about how the companies verify that drivers are using registered vehicles, what training materials workers receive, how safety violations are tracked, and how unapproved drivers are kept off the platforms. While the police department is ramping up police enforcement in the immediate term, the city is also contemplating larger legal changes that could make delivery operations more difficult, especially if bad courier behavior persists.
The Big Picture: Boston’s action comes as the delivery sector continues to find itself on its back foot, with a number of new regulatory constraints in the works. In California, the state Senate passed SB1490, which would require 3PDs to disclose more fees and give restaurants more opt out abilities. The bill now awaits passage from the state Assembly, while a similar law was also just enacted in Florida. In Jersey City, another just-adopted ordinance caps delivery fees at as low as 5-15%, depending on the circumstances.
VEHICLES | GreenPower Debuts Refrigerated Electric Van
SoCal-based GreenPower has introduced the EV Star REEFERX, a new all-electric refrigerated medium-duty delivery truck. Now available for orders, it features:
One piece box design
Multi-temperature zones
Reduced day-to-day vehicle upkeep through sanitation downtime
150 mile range and a payload capacity of up to 5,500 lbs.
Customization options for placement of doors and refrigeration unit
The Big Picture: Refrigerated vans — or reefer vans — are an important part of the middle and last mile supply chain, but so far have received limited love from the push towards electrification. While upfitters will make you a reefer version of popular electric trucks and vans from the likes of Ford and Mercedes, they’re generally not central to the OEMs’ offerings. This leaves an opportunity for startups like GeenPower; small competitors like Maxwell offer similar reefer vans as well.
CHART TIME | State of the Restaurant Industry
Yelp’s released new data on the state of the restaurant industry, noting that over the past year, overall openings are up 6%. Some categories, like dessert, are way up, while New American seems to be on the way out. Also notable is an increase in self-checkout tools like kiosks, as even fine dining establishments look to cut down on labor costs.
POLICY | NY Governor Looks to Kill Congestion Pricing
It’s a classic Lucy and Charlie Brown’s football moment, as New York Governor Kathy Hochul looks to kill NYC’s congestion pricing program, which was slated to go into effect in just a few weeks. The Gov isn’t citing some newfound technical concerns, or even a sop to disparate impact, but simply worries it’s bad politics as local politicos gear up for November. The tolls of up to $15 to enter Midtown and Lower Manhattan are badly needed to shore up the MTA, which had already been counting on the money to make repairs and improvements, given that the charges were supposed to start 6/30.
The Big Picture: While suburbanites had been grumbling about the charges, data from other cities with congestion pricing (London, Singapore…) shows that once they’re in effect, commuters come to appreciate their benefits. From the perspective of the last mile delivery sector, killing off congestion pricing would be a great setback, as the improvements to travel time, plus increased trip predictability, would more than offset any modest tolls. Even if the Governor doesn’t succeed in this last second gambit, the mere fact that she’s trying is a tragic blow to regulatory certainty and business predictability in the Tri-State Region.
A Few Good Links
The scrappy origin story of POS innovator Toast. Amazon union looks to affiliate with Teamsters. Grubhub exec talks loyalty platforms. Good 2 Go partners with Rusty Taco. Blaze Pizza moves nominal HQ to Atlanta as it plans East Coast push, but vast majority of employees work remote. FreshRealm takes over Wonder’s food prep ops. Grocer Giant Eagle expands retail media network. Sezzle takes BNPL model to supermarkets. Klarna turns profit, eyes IPO. Venture funding jumps in May. LoadUp launches reverse logistics arm. Uber and Albertsons partner on surplus food donations. RobotLAB launches tools to summon resto bots. Starbucks files patents in Russia, despite ending operations after Ukraine war began. SBE’s Sam Nazarian looks to be getting back into hoteling. Serve appoints David Goldberg to board. UK visa caps may harm startups. Volta Trucks founder raises €3.6m for new e-truck startup. New foodtech awards. Cruise is back in Dallas. How Phoenix became the playground for AVs. Homeplus Express, Korea’s second largest q-commerce operator, for sale.
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