Tag Archives: DoorDash

California Court Affirms Right To Treat Uber And Lyft Drivers as Contractors

Uber Technologies Inc., Lyft Inc. and other companies scored a victory with a California court ruling that preserves their independent contractor model in the state and could boost their efforts to maintain that model elsewhere, The Wall Street Journal reported.

A state appeals court reversed a lower-court ruling that found a California ballot measure known as Proposition 22 illegal. Proposition 22, which passed in November 2020, allowed these companies to continue to treat their drivers as independent contractors.

According to the Wall Street Journal, Uber and others are in a global tug of war with regulators over whether and how to grant more benefits such as paid sick leave and health insurance to workers in the so-called gig economy, where apps distribute individual tasks to a poll of people whom companies generally regard as independent contractors.

California sued Uber and Lyft in 2020, saying they were in violation of a new state law that sought to reclassify their drivers as employees. A legal battle ensued, culminating in Proposition 22, in which Uber, Lyft, DoorDash Inc. and Instacart Inc. asked state voters to exempt them from the law. The companies spent a record amount of money for a California ballot measure, about $200 million.

The New York Times reported that the decision by three appeals court judges overturned the ruling late last year by a California Superior Court judge, who said the Proposition was “unenforceable.” It was a victory for companies like Uber, which use gig drivers to transport passengers and to deliver food, but does not pay costs that an employer would have to. Those costs can include drivers’ unemployment insurance, health insurance, and business expenses.

According to The New York Times, the appeals court ruling was not the final say. The Service Employees International Union, which, along with several drivers, filed a lawsuit challenging Proposition 22 in early 2021, is expected to appeal the decision to the California Supreme Court, which would then have several months to decide whether to hear the case.

The opponents of the proposition argued that the ballot measure was unconstitutional under several grounds. It set limits on the State Legislature’s ability to oversee workers’ compensation for gig drivers. It included a rule restricting them from collective bargaining that critics said was unrelated to the rest of the measure, and it set a seven-eights majority vote of the Legislature as a bar for passing amendments to the measure related to collective bargaining – a requirement that was considered nearly impossible to achieve.

CNBC reported that Proposition 22 created a set of criteria which determined whether ride-share drivers were employees or independent contractors. In practice, it exempted Uber and similar companies from following certain minimum wage, overtime, or workers compensation laws for hundreds of thousands of Californian rideshare drivers.

Instead, according to CNBC, the ballot measure required companies to provide compensation and healthcare “subsidies” based on “engaged” driving time, as well as the benefits, including safety training as “sexual harassment training.”

To me it sounds like Uber, Lyft, DoorDash, and Instacart are desperately trying to suppress drivers ability to form a union, (also known as “collective bargaining”). Unionization would require the large companies to provide drivers with the same types of benefits that other workers, who have unionized, would be expected to receive. It also make it harder for the big companies to fire them.

DoorDash Ends Partnership With Walmart

Business Insider reported that DoorDash is ending its years-long partnership with Walmart of delivering groceries and other products from stores to customers, people close to the matter said.

According to Business Insider, one person close to the situation who requested anonymity because the matter is confidential said DoorDash decided to stop working with the retail giant “as it was not longer mutually beneficial” and to “focus on its long-term customer relationships.” Their identity is known to Insider.

DoorDash sent Walmart a letter to terminate their partnership earlier this month, and gave a 30 day notice, which makes the termination effective in September, the person said.

Walmart posted the following in its Walmart Offers website: Walmart Inc. and DoorDash Inc. are ending their four-year delivery partnership. “We have agreed to part ways,” Walmart said in an email Friday. “We’d like to thank DoorDash for their partnership and support of our customers the past several years.”

A DoorDash spokesperson told TechCrunch in an email: “We’d like to thank Walmart for their partnership and are looking forward to continuing to build and provide support for merchants in the years ahead with our leading Marketplace and Platform offerings.”

What went wrong between DoorDash and Walmart? Business Insider wrote that Walmart is acquiring Delivery Drivers, Inc., the gig-labor management company behind Walmart’s Spark network for an undisclosed amount, a Walmart spokesperson confirmed to Insider.

According to Business Insider, DDI acquisition is the latest of several moves by Walmart to bring more of its logistics network in-house, including acquiring vendor management software firm Volt Systems in early August, last-mile peer-to-peer delivery app JoyRun in 2020, and same-day delivery startup Parcel in 2017.

Business Insider also wrote that The DDI acquisition has been in the works for months and is intended to simplify the driver experience with a single point of contact, according to a DDI spokesperson.

Earlier this month, TechCrunch reported that DoorDash has teamed up with Facebook Marketplace “to make that awkward exchange of items with a stranger a bit easier”. The company said DoorDash Drive, its business-to-business service that provides drivers to merchants through their own website or app, is now in the early stages of testing a service that will allow DoorDash drivers to pick up and drop off Facebook Marketplace items to customers.

In short, it appears that Walmart and DoorDash initially were good partners for each other. As time went by, each company decided to build itself up in an effort to move away from that partnership. Sometimes, things just don’t work out.

Facebook Marketplace And DoorDash Team Up

Drivers for DoorDash Inc., are delivering items that consumers purchase from Facebook Marketplace as part of a new partnership between the delivery app and Meta Platforms, Inc., The Wall Street Journal reported.

According to The Wall Street Journal, the deal is an attempt to get more people, especially younger ones, to use Meta-owned Facebook, according to a person familiar with the plan. For DoorDash, the partnership boosts its ambition to expand into delivering more than food.

The service lets Facebook users purchase and receive items from Marketplace without leaving their homes. It can deliver items that fit in a car trunk and are up to 15 miles away, people familiar with the plan said. Deliveries would be made within 48 hours, they said.

For Meta, the idea behind the partnership is to try and get young people to use Marketplace more often, according to the person familiar with its plans. Marketplace is a feature within Facebook that lets people sell new and used goods to one another.

The Guardian reported, in 2021, that Apple’s iOS 14.5 update included the App Tracking Transparency feature. As you may recall, the update included a setting that requires applications to ask users’ for consent before they are able to track their activity across other apps and websites. If users decline, then applications will not be able to access they unique user ID that they need to follow individuals as they live their digital lives.

The Wall Street Journal reported: Over the past two years, Meta has increased its efforts to expand e-commerce on its social-media apps because it would help it sell ads. The company lost ad revenue over the past year after Apple Inc. changed its privacy for iPhones and iPads. The changes, according to The Wall Street Journal, made it easier for people to stop apps from tracking their devices.

Personally, I think that it is good for consumers to be enabled to choose whether or not they want a specific app to track them. It is my understanding that the vast majority of Apple users opted-out of being tracked. In my opinion, it is unhealthy to base your company’s revenue entirely on the hopes that consumers will decide to allow you to track them across the internet.

In the two years since that happened, it appears that Meta is now hoping that the younger demographic it is trying to attract have forgotten about Facebook’s full-page add that appeared in The New York Times, The Wall Street Journal, and the Washington Post. In short, Facebook paid for the ads in an effort to spread misinformation about Apple’s App Tracking Transparency and Apple’s “nutrition label” that shows exactly what each app wants to track.

The Verge reported that it is still not exactly clear how many Marketplace users currently have the option for DoorDash deliveries, or how much it costs. It remains to be seen how many younger consumers want to order delivery through the Facebook and DoorDash partnership when they could just order food from DoorDash themselves.

DoorDash Added New Features To Their App

DoorDash announced that it has added new features to its app. This could be useful for people who tend to use DoorDash often.

According to DoorDash, new restaurant review features and lists empower consumers to order with confidence, saving thousands of hours annually of decision fatigue searching for what to eat.

The possibilities are endless, but scrolling on the app doesn’t have to be. Today, we are launching new ways to rate, review, and discover the best in every neighborhood while also celebrating and spotlighting our most loved restaurants on Door Dash.

Most Liked Items: Find trusted recommendations from locals at a glance with the “most liked” tags, rate new favorite dishes, and save over 400,000 hours annually, reducing decision fatigue when searching for what to eat.

After ordering on DoorDash, consumers can rate the items in their order by tapping a ‘thumbs up’ or ‘thumbs down’ icon. A restaurant’s three items with the highest numbers of ‘thumbs up’ ratings are displayed on the menu with a “most liked” tag.

Written Reviews: Read other customers’ valuable feedback or share your own recommendations directly in the app.

Public written reviews enable customers to explore detailed feedback and recommendations from their community to discover spots locals are loving directly on the DoorDash restaurant page, saving time toggling between multiple apps to research restaurant reviews.

Top 10 Lists: Peruse curated, dynamic lists that surface the most popular, trending and top-rated restaurants nearby from Top Breakfast Spots to Top New Restaurants.

Top 10 lists leverage DoorDash’s wealth of real-time data from consumer ratings and order volume to showcase the most popular, hottest, and best-rated restaurants to consumers nearby. These lists are dynamic and ever-evolving to further delight and inspire new choices of restaurants or dishes.

Most Loved All Stars: Find customer favorite restaurants that consistently make sure orders are right, on-time, and always delicious.

DoorDash is excited to celebrate top-rated local restaurants that go above and beyond for their customers’ online orders, time and time again with the launch of the Most Loved All Stars. Between the food, the service, and the delivery experience, creating a top-notch customer experience is no small feat.

All of this sounds good, and I can see where it would be useful to most people. Next, DoorDash should require all the restaurants on its app to provide a list of food allergens so people like me can make a safer choice about what to eat.