Your Weekly Digest of the Gig Economy | Week of July 1, 2024
Hello and welcome to 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.
In this edition… lots of news from Uber’s rideshare and alcohol delivery businesses, Grubhub and Instacart form new partnerships, and Lime Scooters gains a new client. We also discuss the latest news from Hop Skip Drive, Favor Delivery, Honor and Rover.
Happy reading!!
Rideshare news:
Uber has started locking New York City drivers out of its app during periods of low demand to counteract a minimum wage rule, with Lyft considering similar actions. This has caused some drivers’ wages to drop by as much as 50%. The six-year-old pay rule in New York requires companies like Uber and Lyft to pay drivers for idle time between rides. The lockouts, which began last month, aim to reduce the non-passenger time that drivers log and get paid for. Consequently, drivers now need to work longer hours to earn the same income as before.
Under a settlement announced by Massachusetts Attorney General Andrea Campbell, Uber and Lyft drivers will now earn a minimum of $32.50 per hour. The deal includes additional benefits and protections for the drivers. Additionally, Uber and Lyft will pay a combined $175 million to the state to resolve allegations of violating Massachusetts wage and hour laws, with most of this amount being distributed to current and former drivers.
HopSkipDrive will allow parents and families in Kansas City, Mo to book rides through its app this summer. Partnering with Kansas City school districts, HopSkipDrive offers secondary transportation from CareDrivers for summer school, camps, and other activities. CEO Joanna McFarland assures local families of the same trusted CareDrivers and safety standards relied upon by Kansas City schools. CareDrivers are experienced caregivers with at least five years of experience and undergo thorough screenings to ensure passenger safety.
Meal and Food Delivery:
Grubhub has partnered with Albertsons Companies, Inc. to offer delivery from nearly 1,800 Albertsons stores, including brands like Safeway, Vons, Jewel-Osco, Shaw’s, ACME, and Tom Thumb. Customers can place grocery orders through the Grubhub app and website. This collaboration aims to provide greater convenience and variety, allowing customers to receive fresh produce and household essentials delivered to their homes. Additionally, Albertsons stores will be available on Grubhub+, the loyalty program offering unlimited $0 delivery on eligible orders. This partnership marks Grubhub’s first national grocery collaboration following its partnership with Mercato.
Instacart has partnered with Price Chopper and McKeever’s Market & Eatery to introduce Caper Carts at select stores in Missouri. These AI-powered smart carts allow customers to scan items as they shop, manage their grocery budget in real-time, and skip the checkout line, making the shopping experience more efficient and enjoyable.
Uber is shutting down its alcohol delivery business, Drizly, three years after acquiring it for $1.1 billion. The decision is part of Uber’s strategy to focus on its core Uber Eats platform, integrating alcohol delivery within a single app that also includes food and groceries. Drizly will be closed by the end of March, with Uber applying Drizly’s operational insights to enhance its own alcohol delivery services, now available in 35 states and over 25 countries. Unlike other Uber services, Drizly provided technology for liquor stores to manage their own deliveries rather than using Uber’s delivery workers.
Favor Delivery, a Texas-based delivery app, has launched a campaign to donate up to 200,000 meals to Feeding Texas, the state’s largest hunger-relief organization. Through July 31, Favor will donate the equivalent of 10 meals for every completed delivery, providing an easy way for customers to help combat summer hunger in Texas. Feeding Texas comprises a network of 20 local food banks, and with $2.50 equaling 10 meals, the campaign’s total donation could reach up to $50,000.
Deliveroo’s shares surged after news emerged that the London-listed food delivery company had discussions with DoorDash regarding a potential takeover. DoorDash initiated talks last month, but negotiations stalled due to disagreements over valuation, according to Reuters sources. The discussions have since ended, and there are currently no active negotiations between the two rival firms. Deliveroo declined to comment on the matter, while DoorDash did not respond to requests for comment from MarketWatch. DoorDash’s interest reflects broader challenges facing food delivery firms amid a slowdown in business post-COVID-19, with customers increasingly opting for dine-in over take-out options.
Logistics, Travel, etc:
Uber’s freight hauling business is partnering with Aurora to use driverless trucks on routes between Dallas and Houston. This “long-term” deal builds on a three-year-old commercial pilot. Uber Freight, which connects truck drivers with shippers, will be one of Aurora’s first customers on this Texas route, launching later this year. Aurora, founded by former executives from Google, Uber, and Tesla, plans to deploy 20 fully autonomous trucks this year to haul goods for Uber Freight customers.
Honor plans to equip its top phones with an AI-powered Deepfake Detection feature. This tool will analyze frame-by-frame details such as eye contact, lighting, image clarity, and video playback to spot imperfections undetectable to humans. If inconsistencies are found, the tool will alert users with a popup warning of potential AI-manipulated content.
Baltimore’s transportation department has signed a one-year contract with Lime Scooters, starting July 1. Lime will deploy 1,500 scooters and 500 e-bikes as part of a new micromobility program. Lime, previously the top choice for shared e-bikes and e-scooters in the city, aims to provide a safe and organized service. The company had lost its previous contract due to permit violations.
