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Lyft Seeks Slice of Food Delivery Market

Lyft Seeks Slice of Food Delivery Market

Thursday, November 12th, 2020

Nabbing a slice of the food delivery pie is the name of the foodservice game. Lyft, like its competitor Uber, has taken note of this and is currently working on entering into this dynamic market.

John Zimmer, Co-Founder and President, Lyft“What we’re hearing from restaurants is they’re looking for a partner who will not charge 30 percent commission, but still offer delivery service,” Lyft President John Zimmer told Reuters in an interview ahead of the company’s third quarter earnings release, adding that the service would offer new income opportunities to drivers.

In the interview, Zimmer stated that the company was looking to enter what it considered an untapped market by offering a new format delivery service for restaurants without launching a full-fledged consumer-facing platform for food delivery. The news source states the new service would help make up for a 48 percent drop in quarterly revenue and a slow recovery of ride-hail demand.

Lyft is cutting itself a slice of the foodservice pie as it enters what it considers an untapped market by offering delivery services for restaurants without launching a full-fledged consumer-facing platform (Photo credit: Lyft)

Lyft announced a partnership with Grubhub in October that allows Lyft’s loyalty program members free restaurant delivery from Grubhub restaurants. While the company said it was in the “early days” of building such a business, the offer is aimed at undercutting the prices Uber, Grubhub, and other food delivery services charge restaurants for every order.

As the foodservice sector continues to evolve, which new competitors will arise? And how will delivery services drive innovation within the space? Deli Market News will continue to check in.