Welcome to Gig Pulse: Your Weekly Digest of the Gig Economy | June 10
Hello and welcome to the inaugural edition of Gig Pulse, your premier weekly newsletter dedicated to bringing you the latest and most impactful news from the gig economy. Gig Pulse is here to keep you informed and ahead of the curve.
Each week, we’ll deliver a curated selection of news stories, in-depth analyses, and insightful commentary on the trends and developments shaping the gig industry. From policy changes and corporate moves to technological advancements and worker experiences, our goal is to provide a comprehensive overview that empowers you with the knowledge you need to navigate and succeed in this dynamic sector.
In this first edition, we cover pivotal updates including DoorDash’s response to proposed wage law changes, Lime’s groundbreaking partnership with the Squamish Nation, and Roadie’s new service for large deliveries. Plus, we’ll dive into the implications of Starbucks teaming up with Grubhub for delivery services.
Stay tuned, stay informed, and let Gig Pulse be your go-to source for all things gig economy.
Happy reading!
Rideshare News:
Uber CEO Dara Khosrowshahi urged Japan to allow rideshare drivers to work as independent contractors rather than under taxi companies, to address local labor shortages. At a Tokyo press conference, he noted that more people would become rideshare drivers if they could work flexibly. Despite partial lifting of the ridesharing ban in April, Japan’s adoption has been slow. Khosrowshahi praised the reforms as progress in transport options and driver opportunities but called for further flexibility and the removal of restrictions like set schedules and operational areas.
In other Uber news… the company reported a surprise profit of $394 million for the second quarter, a significant turnaround from a $2.6 billion loss in the same period last year. This includes the company’s first-ever quarterly operating profit, driven by strong growth in its mobility and delivery businesses, along with gains from its equity investments. However, Uber missed its revenue estimates.
With Lyft, Inc. potentially reaching a significant milestone, Simply Wall St. examined its future prospects. Despite having a market cap of $6.3 billion, Lyft posted a loss of $340 million last year and a trailing twelve-month loss of $184 million, indicating a narrowing gap towards breakeven. Investors are keen to know when Lyft will become profitable. According to 39 American transportation analysts, Lyft is expected to post its last loss in 2024 and achieve a profit of $14 million in 2025, reaching breakeven just over a year from now. Analysts predict the company will need to grow at an average annual rate of 70% to achieve this target. If growth is slower, profitability will be delayed.
According to Government Technology, U.S. bike-share operator, Lime, has selected Washington D.C. and Bloomington, Indiana, to share data and collaborate on expanding micromobility and equity in transportation. Lime will provide extensive data on trips, survey responses, and safety metrics to help these cities analyze and improve their biking infrastructure and overall transportation systems. This initiative aims to integrate technology, policy, and infrastructure to create modern transportation features like mobility hubs and streets designed for more than just cars.
Canada’s Squamish Nation residents on reserve land will soon have access to new transportation option. Lime has partnered with the Squamish Nation to introduce a fleet of electric vehicles to the community and nearby areas. This initiative follows Lime’s launches in West Vancouver two years ago and North Vancouver three years ago, and it represents the first collaboration between a First Nation and a shared micromobility service in Canada.
Meal and Food Delivery:
In a Retail Remix episode, Alex Weinstein, the Chief Digital Officer of Hungryroot discusses the company’s unique position in the digital grocery market, its focus on personalization and mobile app design, the use of behavioral data and zero-party insights for operations, and how AI helps tackle food waste and minimize environmental impact.
Daily Harvest partnered with Paccurate, an AI-driven cartonization platform to optimize the packing space for its frozen foods.
Starbucks and Grubhub have announced a partnership to offer delivery services to Starbucks customers in the U.S. Starbucks, previously the most searched merchant not available on Grubhub, will now provide the convenience of delivery through this collaboration. Starting in June, the service will be introduced in select markets in Pennsylvania, Colorado, and Illinois, with plans to expand nationwide to all 50 states by August 2024.
DoorDash has pledged to remove a $4.99 fee on consumer orders if Seattle passes a revised minimum wage law for delivery drivers. This fee was introduced in January to offset the costs of the city’s existing minimum wage law. The fee, along with a similar $5 charge by Uber Eats, led to decreased demand for both services. This resulted in fewer orders, prompting complaints from drivers and restaurant owners. In response, DoorDash and Uber lobbied heavily, leading Seattle City Council President Sara Nelson to propose new regulations in April to lower the minimum wage for drivers from $26.40 per hour to $19.97.
Shares of Iron Mountain Inc. (IRM) rose by 0.74% to $85.47 on Friday, despite a generally negative trading day where the S&P 500 Index fell by 0.11% to 5,346.99 and the Dow Jones Industrial Average dropped by 0.22% to 38,798.99. This marks the seventh consecutive day of gains for Iron Mountain Inc., and the stock reached a new 52-week high, surpassing its previous peak of $84.95 set on June 6th.
Three years after being acquired by UPS Inc., the crowdsourced delivery platform Roadie has introduced a service for “big and bulky” goods called RoadieXD. This new service enables efficient, same-day delivery by transporting products directly from retailers’ distribution centers via cross-dock facilities. RoadieXD facilitates the pick-up of full truckloads from customer distribution centers, reducing delivery time and handling. It supports the delivery of items up to 200 pounds and 12 feet in length, including pallets.
