Labor Ruling May Upend Delivery Business Models
Harbor Lockers, Ottnomy & Gatik shine at CES, Denny's + Franklin Junction, Aggregators ranked
Wow, while we’d love to jump straight to the cool new delivery hardware that’s debuting at CES, there’s a new rule out from the Department of Labor that may shake up the delivery industry’s labor models. Digest that before you get to your tech-flavored dessert!
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Today:
New Labor Rule May Upend Gig Biz Models
Denny’s Signs 250 Unit Deal w/ Franklin Junction
Chart Time | Food Aggregators Ranked
Harbor Lockers, Ottonomy, Gatik Unveil New Hardware
POLICY | Gig Workers May Be Reclassified Under New DoL Rule
The U.S. Department of Labor announced its final rule, under the Fair Labor Standards Act, to help workers and employers determine who is an employee and who is an independent contractor. The new ruling rescinds the 2021 Independent Contractor Rule and restores the multi-factor test used for decades prior. It will “help create a level playing field for businesses, protect workers from being denied the right to fair pay and affirm the vital role true independent contractors play in our economy by allowing them to thrive,” said acting labor secretary Julie Su, by expanding minimum wage, overtime pay, unemployment and Social Security benefits to millions of workers.
The Big Picture: The full text will be published on Wednesday and goes into effect March 11th. While some analysts think it will ding the gig platform’s labor models, especially as it empowers workers to sue if they believe they’re misclassified, the 3PDs and TNCs are projecting confidence. Uber stated it “…does not materially change the law under which we operate, and will not impact the classification of the over one million Americans who turn to Uber to earn money flexibly.” DoorDash is “…confident that Dashers are properly classified as independent contractors under the FLSA, and we do not anticipate this rule causing changes to our business.” Elsewhere, changes to gig work laws are having big effects: in NYC, not only are delivery workers earning nearly double, they appear to be behaving more safely on the streets as well.
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VIRTUAL KITCHENS | Denny’s, Franklin Junction Sign 250 Unit Deal
New year, new lease on life for ghost kitchens and virtual restaurants? Denny’s and Franklin Junction certainly hope so, as they just signed a deal to bring the latter’s brands to at least 250 U.S. Denny’s via its Host Kitchen platform, with a geographic exclusivity kicker. Franklin Junction also just expanded its partnership with iconic hotdog slanger Nathan’s Famous.
The Big Picture: The Denny’s — FJ tie-up builds off a 20-unit test by a franchisee, with Atlanta-based Franklin Junction beating out other virtual kitchen platforms. Denny’s has also doubled down on its in-house virtual brands, as it hopes to grow Banda Burrito nine-fold, while simultaneously servin’ up growth at The Burger Den and The Melt Down.
CHART TIME | World’s Top Food Aggregators
PYMNTS just updates its ranking of aggregator apps for the new year, looking at channel coverage, up-to-date downloads, monthly average users and sessions per user / avg. session length. Delivery Hero-owned Talabat remains king, while Uber Eats jumped two spots for second place, and Deliveroo fell to third. Just out of the top five, Instacart fell to sixth place.
AUTONOMY | Harbor Lockers, Ottonomy, Kodiak Shine at CES
Ahh, CES… where all the big tech companies make interesting announcements while their execs are trying to shake off a hangover on the golf course! Delivery locker player Harbor Lockers made a splash, as it announced its locker network is now open on an on-demand basis to any interested retailer, instantly giving brands a new delivery option that’s on track to be 25,000 units strong. But why make your customers come to the locker, when the locker can come to them? A second announcement, that the firm has teamed up with delivery bot player Ottonomy, promises just that. Not only does it increase the storage options for a delivery robot, it makes it easier for more brands to tap into PDDs as a last mile solution.
The Big Picture: There were a number of big AV announcements made at the trade show today, including a second fun one from Ottonomy: a coffee dispensing Ottobot brew, in conjunction with the brand Cooler Keg. Kodiak Robotics also revealed its sixth-gen Class 8 semi trucks, allowing it to launch commercial driverless deliveries in Texas by EOY. Given recent safety concerns in the AV space, the truck promises two or three backup systems for various critical components. On a more modular level, RoboSense also announced its new M Platform lidar sensors, with longer range and higher resolution.
A Few Good Links
Domino’s teases it will expand 3PD to all platforms, once UE exclusivity ends in July. FMCSA may hike reg fees 25%. Warehouse and logistics startup Flexe cuts 38% of staff. The Brass Tap plans food truck inspired menu expansion; is this news from a decade ago? Cracker Barrel offers DashPass members an early bite of its new Golden Carolina BBQ Tenders. T-Bell adds value items. Albertsons picks Criteo to enhance media network. Instacart ads adds Google Shopping integration. Gatik and Goodyear team up on tire intelligence for AVs.
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