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Uber Eats + Getir & Grubhub + Choice Hotels
3PD deactivation policies, Amazon stock tumbles
Today’s a big day for partnerships, with Getir and Uber Eats teaming up, while Grubhub lands a big deal with Choice Hotels. We also take a look at how the 3PDs could improve their deactivation processes.
Today’s newsletter is brought to you by the Curbivore conference.
Getir Scores Uber Eats Partnership
Grubhub Teams Up with Choice Hotels
Chart Time | Investors Scared off by Amazon FTC Action
Understanding 3PD Deactivation Deliberations
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QUICK COMMERCE | Getir’s Groceries Available on Uber Eats
Superfast deliverer Getir has signed a partnership with Uber Eats, making the startup’s groceries and 2,000+ SKUs available via the Uber app, starting in the U.K. market. Launches in Germany and the Netherlands are set to follow shortly. Fulfillment will be handled via Gorillas’ dark stores, which Getir acquired in December for $1.2 billion.
The Big Picture: After months of exiting markets, slashing valuations and cutting jobs, could this be the move that turns things around for Getir? While it sacrifices the direct customer relationship, it gets the company access to millions of Uber users, while letting it rationalize acquisition costs. For Uber, the deal adds to a network of other grocery providers now available in its app: Tesco and Waitrose in Britain, Carrefour in France, Galp in Spain. Overall, the groceries “new verticals” segment grew to $5 billion for the 3PD in Q1, up 35% YoY.
PARTNER | Curbivore Conference Brings Delivery Execs to LA
The Curbivore conference returns to LA: March 28 & 29, 2024. This event brings together the entire world of delivery and curbside commerce — speakers have included Uber’s Head of Grocery + Retail Fulfillment Products David Meers, Walmart’s VP of Spark Driver Platform Nav Chadha, Kitchen United CEO Michael Montagano, Pizzana Founder Candace Nelson, Business Insider Restaurant Correspondent Nancy Luna, Wonder Co-Founder Chad Lore, Yummy.com CEO Barnaby Montgomery, JOKR COO Aspa Lekka, Nextbite CEO Alex Canter, Serve Co-Founder MJ Chun and many more. $99 Early Bird tix available for a limited time!
3PD | Grubhub Partners with Choice Hotels
Choice Hotels International is partnering with Grubhub, bringing the delivery brand to the hotelier’s 500 participating locations. Hotels included in the deal are midscale and extended stay brands such as Comfort Inn, Sleep Inn, Clarion Pointe, Mainstay Suites and Everhome Suites. Through the hotel’s Choice Privileges loyalty system, guests will be able to order from Grubhub without having to pay delivery fees. “Offering $0 delivery fees with Grubhub enriches the guest experience at these participating hotels as it provides logistical and financial ease to guests seeking food delivery,” said Julie Purser, Choice’s VP of Loyalty Strategy and Membership Rewards.
The Big Picture: This follows a number of similar partnership by Grubhub; just last month it signed a deal for 120 Sonesta locations, while the year prior it inked a partnership with 500 Hilton Homewood Sweets. Competitors like DoorDash have deals with Wyndham, while Gopuff has Hyatt and Uber has Marriott Bonvoy. For Grubhub, this new partnership has the added benefit of getting each participating guest enrolled in a one-month free trial of Grubhub+, its loyalty subscription tool. More so than ads with Snoop Dogg, that’s a good way for it to claw back some marketshare.
CHART TIME | FTC Bites Off $52B of Amazon Market Cap
Evidently, the FTC lawsuit against Amazon is getting investors’ notice. While Bezos and Co have laid out a response disputing the government’s claims, the market seems to think Uncle Sam has a decent case. Yesterday the stock fell about 4% — wiping off about $52B in market cap — and today it’s down a further 1% or so.
3PD | Understanding Deliverers’ Deactivation Policies
Last fall, an Uber Eats courier was en route on a 10 minute trip, when the customer changed the destination to what would be a one hour drive. The courier asked Uber support if he could drop the order, and was assured he could do so without being negatively affected. A few days later, the courier’s account was deactivated, and the limited reasoning he could get was that his account was under investigation for “fraud.” Sadly this isn’t the only time this has happened, as Business Insider has collected the stories of eight Uber Eats, Instacart, DoorDash and Grubhub workers in similar situations. Each report minor transgressions that were out of their hands, followed by total banishment, comically vague rationales offered, and no dispute resolution process.
The Big Picture: Any system employing this many people is going to have some imperfections, but as gig work has become full time employment for many, having more safeguards would be beneficial for both counter-parties. Some of the infractions listed — such as being charged by the liquor store for more than the listed price in-app — are clearly out of the courier’s hands. If the 3PDs invested in more in a resolution process, it would be easier for them to see who had been unjustly deactivated. A pathway to such a model exists in Seattle, where the city recently passed a law that requires a human, not a computer, to review any deactivation appeal. Drivers also can’t be deactivated simply for refusing too many orders.
A Few Good Links
French delivery startup La Belle Vie acquires Frichti out of court-appointed receivership. NYC’s hottest “fake” steakhouse. Alibab’s logistics biz files for $1B+ IPO. Uber brings taxi cabs into fleet in LA. Feds mull 68 mph speed limit for trucks. FedEx tests trailer loading robots. Amazon expands packaging-free shipping; 11% of items shipped that way in 2022. KFC appeals to younger demo with Smash’d Potato Bowl. Instacart stock falls below listing price. Legacy fleets like Ryder look to EVs. Same-day delivery startup Gently expands exec team with former Amazon, SpaceX leadership. NShift reports that 50% of logistics worker time is spent on manual tasks. Teamsters applaud FTC suit.
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