Uber, Grubhub, and DoorDash Under Scrutiny as the Industry Consolidates

Uber Technologies (NYSE:UBER) is buying Postmates and the ride-hailing businesses of BMW and Daimler, while Just Eat Takeaway.com is buying Grubhub (NYSE:GRUB). DoorDash previously acquired Caviar.

Yet as the third-party delivery and ridesharing industry consolidates, it is coming under closer scrutiny from politicians who view its practices as harmful to consumers and the restaurants they serve. More regulation of these businesses may be forthcoming.

Food delivery scooter rider

Image source: Getty Images.

Lining up against delivery

California just banned the practice of adding restaurants to third-party delivery apps that the services don’t have a relationship with. Restaurants that didn’t offer their own delivery service as a means of controlling the quality of their food were still finding their menus listed with the likes of DoorDash, Grubhub, or Uber anyway.

The services argued they were introducing new potential customers to the restaurants, but last month, Gov. Gavin Newsom of California signed into law

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DoorDash plans to hire 100 for Seattle engineering center led by ex-Uber and Microsoft director

(DoorDash Photo)

In the midst of a major shift to remote work across the tech industry, DoorDash is setting up an engineering center in Seattle, with plans to hire 100 engineers over the next year.

The food delivery company announced the news this week in a blog post by David Azose, who will head up the outpost. Azose spent three years with Uber in Seattle and was most recently director of engineering for the ride hailing company. Before that he spent more than nine years at Microsoft as a software developer and engineering manager.

“As someone who has worked at centralized headquarters and remote engineering offices I know first-hand what it takes to make this model thrive: a growth-oriented team given the autonomy to execute, along with end-to-end ownership of critical business initiatives which remain deeply connected to headquarters,” Azose wrote in his post.

DoorDash’s David Azose. (DoorDash Photo)


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DoorDash partners with California restaurant to build new brick-and-mortar location

Food delivery platform DoorDash has partnered with a restaurant for the first time to build a new brick-and-mortar store, the San Francisco Chronicle reported. Burma Bites, a spin off of Oakland, California-based Burma Superstar, was designed for delivery and takeout, and will offer versions of menu items from the parent restaurant as well as new items in environmentally-friendly to-go containers, DoorDash said. According to the Chronicle, all menu items are priced between $12 and $19.

a close up of a light

© Illustration by Alex Castro / The Verge

DoorDash did not disclose the amount of its investment in Burma Bites, but told The Verge in an email it has been working on the project for about a year. The restaurant was originally supposed to open in March, but that was delayed by the coronavirus pandemic.


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Georgie Thomas, head of regional merchant partnerships at DoorDash, said the company’s goal is “empowering restaurants with

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