Breaking Down Uber's Offer to Acquire Grubhub During Coronavirus Pandemic

It's a new year, and that means new rules for delivery platforms such as DoorDash, Uber Eats, Grubhub and Postmates in California. The 'Fair Food Delivery Act of 2020,' which was signed into law this past September and took effect on January 1, requires third-party delivery platforms to have stated agreements in place with merchants to deliver food orders. This legislature was authored by Assemblywoman Lorena Gonzalez (D-CA), who has said that these food delivery platforms hurt businesses and consumers when operating under their own rules. Assemblywoman Gonzalez explains the problems restaurant owners were facing and why new rules needed to be put in place.

Waitr is a food delivery app that's taking a different approach to growth compared to competitors like DoorDash and Grubhub. Instead of starting in large, urban areas, Waitr deliberately sought to establish a presence in smaller towns and cities across the southeast. Adam Price, CEO of Waitr, joined Cheddar to discuss.

Food delivery platforms such as DoorDash, Uber Eats, Grubhub and Postmates have seen an increase in demand during the coronavirus pandemic. But when we turn the calendar to 2021, the rules will change in California. The "Fair Food Delivery Act of 2020' will go into effect January 1, which will require third-party delivery platforms to have stated agreements in place with merchants to deliver food orders. Following an article on the new law that appeared in the Wall Street Journal on December 26, the stock for food-delivery platforms, particularly DoorDash, whose shares dipped nearly 7% by the close of the following session. Laura Forman, Tech Columnist at the Wall Street Journal, who wrote that story, breaks down this law for us and explains why it is so significant for both delivery platforms and restaurants.