Dec 6, 2019

Competition is getting fierce in food delivery

Dion Rabouin
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Data: YouGov; Chart: Axios Visuals

Food delivery apps look to have found a sweet spot as data shows more than a quarter (27%) of Americans spend up to $50 each month on delivery.

The big picture: Competition among delivery companies is getting serious as more sign exclusive agreements with restaurants, closing the door on competition.

What's happening: The number of Americans considering DoorDash has doubled since the beginning of the year, according to data from YouGov provided first to Axios. Americans’ awareness of DoorDash also has shot up dramatically this year from 35% in January to 63% in December.

  • That's been largely due to a $400 million investment from venture capital investors and the purchase of rival Caviar, which has allowed DoorDash to spend aggressively on ad campaigns and pursue exclusive delivery rights with The Cheesecake Factory, Chili’s, Wendy’s and Chipotle, among others.
  • Still, Uber Eats remains the dominant player when looking at which services Americans say they’d consider, while Grubhub still has the highest BrandIndex Awareness score, YouGov finds.

On the other side: Only around 2% of survey respondents said they would consider using Delivery.com, and just 5% said they would try Postmates.

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The gig economy hits roadblocks from state-level regulators

Illustration: Sarah Grillo/Axios

This week there was a pair of lower-level government roadblocks for the gig economy's path to profitability.

Driving the news: New Jersey fined Uber $649 million for years of back-taxes, including $119 million in interest, for allegedly misclassifying its drivers as independent contractors instead of as employees.

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DHL to introduce zero-emission electric delivery vans in U.S. in 2020

The DHL StreetScooter in Bonn, Germany in May. Photo: Rolf Vennenbernd/picture alliance via Getty Images

Global shipper DHL will begin rolling out its zero-emission StreetScooter electric vehicle fleet in the U.S. next spring, as the firm works to reduce greenhouse gas emissions, Reuters reported Monday.

Why it matters: Per the United Nations' Intergovernmental Panel on Climate Change, the transportation industry contributed to 14% of global greenhouse gas emissions in 2010 — and many delivery companies are working to get cleaner and greener by using electric vehicles.

Go deeperArrowNov 26, 2019
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Target, Amazon race for same-day shipping

Data: FactSet; Chart: Axios Visuals

Target and Amazon have different approaches to appease impatient customers who want same-day delivery.

The big picture: Target wants to fill more orders from its store inventory, which is cheaper than fulfillment centers. When it comes to same-day shipping, CEO Brian Cornell told CNBC yesterday that “90% of the cost goes away” when customers order online and pick up at a store, use curbside pickup or select shipping via Shipt for same-day delivery.

Go deeperArrowNov 21, 2019