Feb 6, 2018 - Technology

How delivery apps are gaining on the restaurant business

An Uber Eats delivery employee. Photo: Akio Kon / Bloomberg via Getty Images

Delivery apps may put your favorite restaurant out of business, per The New Yorker's Elizabeth Dunn, writing in the "Annals of Gastronomy."

The big picture: Brick-and-mortar retailers have been clobbered by the rise of e-commerce giants like Amazon. Delivery apps could prompt a similar implosion in the restaurant business.

  • "In 2016, delivery transactions made up about seven per cent of total U.S. restaurant sales. In a research report published last June, analysts at Morgan Stanley predicted that that number could eventually reach forty per cent of all restaurant sales, and an even higher percentage in urban areas and among casual restaurants."
  • "Companies like GrubHub maintain that the revenue they bring restaurants is 'incremental' ... exposing potential new customers who might convert to lucrative in-restaurant patrons."
  • Why it matters: "[A]s consumers use services like Uber Eats and Seamless for a greater share of their meals, delivery orders are beginning to replace some restaurants’ core business instead of complementing it."
  • What's next: At Sweetgreen, 40% of orders are "placed for pickup through a proprietary app, and the company is about to pilot a delivery service."

Go deeper

Ben Geman, author of Generate
7 mins ago - Energy & Environment

The climate stakes of the Supreme Court fight

Illustration: Aïda Amer/Axios

Ruth Bader Ginsburg's death and the battle over her vacant Supreme Court seat have real implications for energy and climate policy.

Why it matters: If President Trump replaces her, the court will likely become more skeptical of regulations that claim expansive federal power to regulate carbon under existing law, and perhaps new climate statutes as well.

Go deeper (2 min. read)Arrow
Dion Rabouin, author of Markets
20 mins ago - Economy & Business

The tech war between the U.S. and China escalates

Illustration: Aïda Amer/Axios

Economic tension between the U.S. and China continues to escalate but is shifting in focus — away from the tit-for-tat trade war and toward a more direct confrontation over the future of technology at the heart of the conflict between the world's two largest economies.

Why it matters: The battle between the U.S. and China was always about tech supremacy and the direct confrontation could result in an accelerated splintering of global supply chains and a significant reduction of international commerce.

Go deeper (2 min. read)Arrow
Mike Allen, author of AM
Updated 33 mins ago - Politics & Policy

Trump's next moves in Supreme Court fight

Photo: Peter Zay/Anadolu Agency via Getty Images

President Trump told "Fox & Friends" on Monday that he plans to announce his pick to replace Justice Ruth Bader Ginsburg on the Supreme Court on Friday or Saturday.

The state of play: Axios has heard that Trump's choices to succeed Justice Ruth Bader Ginsburg are down to two women, both federal appeals court judges. The frontrunners are Amy Coney Barrett of Chicago, the early favorite, and Barbara Lagoa, who is viewed as easier to confirm. The Senate confirmed Lagoa 80-15 last year, so many Democrats have already voted for her.

Go deeper (1 min. read)Arrow