Darden Restaurants, Olive Garden’s parent company, announced a two-year exclusive delivery partnership with Uber Technologies, a move that marks a significant departure from its long-standing opposition to third-party delivery. This decision is not only a response to Olive Garden’s recent financial performance—where same-store sales dropped 2.9% in the first quarter of 2024—but also a strategic attempt to regain traction in a challenging economic environment where consumer spending at sit-down restaurants has been slowing.

Listen to our deep dive into the world of unlimited breadsticks and Uber Eats delivery!

The partnership with Uber Eats will roll out in a limited capacity later this year and, if successful, will expand to Olive Garden’s more than 900 locations nationwide by May 2025. Notably, customers will be able to order their meals directly through Olive Garden’s website and app, while Uber Eats will handle the logistics of delivery. However, Olive Garden will not be available through the Uber Eats app itself, a decision that allows the chain to retain valuable customer data—a crucial asset in today’s competitive digital landscape.

A Surprising Turn for Olive Garden

For a long time, Olive Garden was a vocal holdout against third-party delivery services, even as competitors like Applebee’s and Chili’s embraced the trend. During the pandemic, when many restaurants were leaning into delivery to stay afloat, Olive Garden maintained its stance. Former Darden CEO Gene Lee famously said in 2019, “I don’t think we’re missing out on anything,” referring to third-party delivery.

The rationale behind this resistance was simple: Darden executives believed that third-party delivery would erode margins and diminish the customer experience. Darden’s current CEO, Rick Cardenas, echoed these concerns in December 2023, stating that adding third-party delivery hadn’t made a significant difference in the performance of its other concepts, such as LongHorn Steakhouse.

However, Cardenas has since shifted his perspective. “Guests have been asking us for home delivery options, and they continue to show they are willing to pay for the convenience,” Cardenas said in a statement. “As we continued to evaluate delivery, it was important for us to find a way to address this guest need state without disrupting the team member or guest experience and without compromising our competitive advantages and simple operating model.”

The Uber Advantage

One of the key reasons Darden chose to partner with Uber Eats is the company’s willingness to create a custom integration tailored specifically to Olive Garden’s needs. Cardenas highlighted Uber’s commitment to efficiency and speed at a national scale, as well as the seamless experience the integration will provide for both the restaurant and its customers.

“[Uber’s] investment in a custom integration, commitment to Olive Garden’s first-party delivery growth, and efficiency and speed at a national scale, made this exclusive partnership a clear choice,” Cardenas explained.

Sarfraz Maredia, Uber Eats’ vice president of delivery and head of Americas, added that delivery has become “a core expectation for consumers.” He noted that people expect the same quality experience whether they are dining in or receiving a meal at home. “We’re confident our teams can deliver on that promise together and continue to grow first-party delivery as a channel,” Maredia said.

Timing Is Everything

Olive Garden’s decision to embrace delivery comes as the company grapples with a difficult macroeconomic environment. Like many casual-dining chains, Olive Garden has been hit by a slowdown in customer traffic, particularly from lower-income consumers as inflation pressures continue to rise.

According to Black Box Intelligence, same-store traffic for casual-dining restaurants dropped 4.5% this year through early September, outpacing the broader restaurant industry’s decline of 3.3%. Darden’s same-store sales fell 1.1% across its portfolio, which includes brands like LongHorn Steakhouse and The Capital Grille, with Olive Garden seeing a steeper decline of 2.9%.

Darden’s response to this challenging market has been multifaceted. Last month, the company revived its iconic “Never-Ending Pasta Bowl” promotion, which offers all-you-can-eat pasta starting at $13.99. The promotion will run through November, a month longer than last year, as the company aims to bring customers back to its restaurants.

Despite these efforts, Cardenas has made it clear that the company will not resort to deep discounting or compromise its long-term financial health for short-term gains. “In this environment, we want to motivate guests to get back,” he said.

Positioned for Long-Term Success

With the partnership with Uber Eats, Olive Garden is positioning itself for long-term success in an increasingly delivery-focused market. Delivery orders will mirror in-store prices, with an average delivery fee of around $7 per order. Importantly, Darden expects profits on delivery orders to be comparable with its existing online carryout service, which has performed well in recent years.

The decision to move into delivery, while late compared to many of its peers, reflects a broader trend in the casual-dining sector where restaurants are being forced to adapt to changing consumer habits. As more customers prioritize convenience, Olive Garden’s move could help it win over new diners who prefer to enjoy their pasta and breadsticks from the comfort of home.

As the pilot rolls out later this year, all eyes will be on whether Olive Garden’s foray into delivery can turn the tide for the brand. If successful, the partnership with Uber could signal a new era for the iconic chain, one where breadsticks arrive not just at the table, but at your front door.

Disrupting Asset-Intensive Industries

The hallmark of the sharing economy is its ability to transform industries that were once defined by heavy capital investment and asset ownership. “Companies like Airbnb and Uber have revolutionized the business landscape by showing that it’s possible to thrive without owning the assets that are core to your service offering,” says James Sullivan, an analyst at Bain & Company. “By leveraging technology to connect supply with demand, they have created new markets with unparalleled scalability.”

Airbnb, for example, has grown into a global hospitality giant without owning a single hotel. Instead, it relies on its platform to connect property owners with travelers, facilitating a transaction that bypasses traditional hotel chains entirely. Similarly, Uber has disrupted the taxi industry by enabling private car owners to offer rides through its app, undercutting traditional taxi services.

The key to these companies’ success isn’t just their ability to innovate with technology but their capacity to flip asset-heavy business models on their heads. “It’s not just about reducing costs—it’s about creating an entirely new business model that scales with minimal capital investment,” says Sarah Goodman, CEO of a logistics startup. “For entrepreneurs, this is a game-changer, offering opportunities to enter industries that were previously capital-intensive with far less financial risk.”

The Evolution of Private Air Travel: Uber for Planes?

The sharing economy is also making inroads into luxury markets, including private air travel. With companies like NetJets offering fractional ownership of private planes, the possibility of a more Uber-like model for private jets is on the horizon. “The demand for private air travel is growing, and while we haven’t reached the point where there’s an Uber for planes, it’s not entirely far-fetched,” says David Wilson, founder of an aviation consultancy firm. “As with ridesharing, the challenge is reducing the overhead costs associated with ownership while meeting consumer demand for convenience and flexibility.”

While the cost and logistics of private air travel make it a more complex market to disrupt, the underlying principle remains the same—enabling access without ownership. Entrepreneurs in this space are exploring how to scale these models, but the challenge lies in balancing exclusivity with broader access. As Wilson notes, “Technology will be the driver, but the key will be finding a way to make the economics work at scale.”

Ghost Kitchens and Virtual Brands: A New Frontier for Restaurants

One of the most notable examples of the sharing economy’s impact is in the restaurant industry, where ghost kitchens have gained significant traction. These kitchens operate without a traditional dine-in option, focusing solely on delivery orders facilitated by apps like Uber Eats and DoorDash. “The rise of ghost kitchens is a direct result of the sharing economy’s emphasis on efficiency and flexibility,” says Rachel Matthews, a restaurant industry consultant. “By cutting out the need for physical dining spaces, restaurants can reduce overhead while reaching a larger customer base.”

A high-profile example of this model is Mr. Beast Burgers, a virtual brand launched by YouTube sensation Mr. Beast. Operating through ghost kitchens, Mr. Beast Burgers leverages existing kitchen infrastructure to fulfill orders, allowing the brand to expand rapidly without investing in traditional restaurant locations. “It’s a brilliant strategy,” adds Matthews. “By using ghost kitchens, brands can focus on scaling quickly while minimizing the financial risk typically associated with opening new locations.”

For business executives, ghost kitchens represent an opportunity to rethink how assets are utilized and to capitalize on shifting consumer preferences for convenience. As Matthews points out, “This isn’t just about food—it’s about the future of retail. Ghost kitchens show how asset-light models can work across industries, creating new revenue streams with minimal investment.”

Mobility and Urban Transformation: From Electric Scooters to Robotaxis

In urban areas, the sharing economy has revolutionized transportation through services like electric scooters and bike-sharing programs. “The idea of owning a car or even a bike is becoming less relevant for many city dwellers,” says Mark Phillips, VP of Urban Mobility at a major transportation firm. “People want convenient, affordable access to transportation without the hassle of ownership.” Companies like Lime and Bird have capitalized on this trend, offering electric scooters as a short-distance transportation option in cities worldwide.

What’s fascinating about this business model is its reliance on heavy physical assets—the scooters themselves—while still adhering to the principles of the sharing economy. “It’s a blend of asset-light and asset-heavy models,” explains Phillips. “The companies own the scooters, but users rent them on-demand, creating a seamless, tech-driven experience that meets the needs of today’s consumers.”

Looking to the future, the rise of autonomous vehicles—particularly self-driving robotaxis—could take this concept even further. “Robotaxis represent the next frontier in urban mobility,” says a leading AI researcher. “They combine cutting-edge technology with the sharing economy’s ethos of access over ownership.” The implications for transportation, logistics, and even urban planning are profound, as cities rethink how people move and live in increasingly crowded spaces.

Manufacturing and Traditional Industries: Adapting to the New Normal

While the sharing economy is often associated with tech-driven startups, its principles are beginning to seep into more traditional sectors like manufacturing. “Manufacturing may seem like an unlikely candidate for disruption by the sharing economy, but we’re already seeing changes in how assets are utilized,” says John Carter, CEO of a mid-sized manufacturing firm. “Subscription-based models for equipment and the rise of contract manufacturing are examples of how manufacturers are adapting to this new reality.”

For business executives in traditional industries, the lesson is clear: flexibility and adaptability are essential. “The old model of capital-intensive, asset-heavy operations is being challenged,” adds Carter. “Manufacturers need to think about how they can leverage technology to reduce costs and improve efficiency while meeting the evolving needs of their customers.”

The Importance of Customer-Centricity and Sales Innovation

At the core of the sharing economy is the customer. “Consumers today expect convenience, speed, and personalization,” says Emily Larson, a customer experience expert. “They’re not just buying products or services—they’re buying experiences.” For businesses operating in the sharing economy, this means designing customer journeys that are frictionless and intuitive, from the first interaction to the final purchase.

This customer-centric approach extends to sales and marketing strategies as well. “In a crowded market, differentiation is key,” says Michael Jordan, CMO of a digital marketing firm. “Your value proposition needs to be crystal clear, and you have to engage customers in a way that builds loyalty.” For executives and entrepreneurs, this means investing in sophisticated sales and marketing techniques, including personalized email campaigns, social media engagement, and data-driven targeting.

Larson adds, “The companies that succeed in the sharing economy are the ones that invest in building relationships, not just transactions. It’s about creating long-term value for the customer.”

Redefining Business for the Sharing Economy Era

The sharing economy has unleashed a new wave of business transformation, challenging traditional asset-heavy models and introducing revolutionary concepts across various sectors. As businesses like Airbnb, Uber, and Turo have proven, companies no longer need to own massive physical assets to generate significant value. Instead, these platforms leverage technology to turn existing assets—whether homes, cars, or other resources—into economic opportunities for individuals and enterprises alike.

“Airbnb didn’t need to own hotels to disrupt the hospitality industry,” says a senior industry expert. “What they did was tap into the unused potential of homes and spaces globally. Similarly, Uber transformed transportation by making every car a potential taxi.” These shifts illustrate how innovative thinking, coupled with tech-driven platforms, can redefine business models across sectors​

As companies look to thrive in this new landscape, personalization and customer experience remain key. Many successful sharing economy models, such as those in transportation or short-term rentals, have capitalized on delivering tailored, seamless experiences that meet customers’ needs in real-time. Forward-thinking organizations will also need to embrace similar strategies—using data and AI to anticipate consumer desires and offer relevant products or services with precision.

The rise of the sharing economy is more than just a business trend; it marks a fundamental shift in how value is created, exchanged, and experienced in the modern world. For business executives and entrepreneurs, embracing this paradigm will be crucial to staying relevant and competitive in the rapidly evolving marketplace. Whether it’s through leveraging idle assets, rethinking traditional industries, or building innovative platforms, the future belongs to those who can harness the power of the sharing economy.

The new “Restaurants” tab within Instacart provides customers with a user-friendly interface, enabling them to order from hundreds of thousands of Uber Eats restaurant partners across the U.S. The partnership marks a significant expansion for both companies, providing Uber Eats with greater access to suburban markets where Instacart has a strong foothold and giving Instacart customers even more dining options.

Expanding the Culinary Horizon

This new collaboration between Uber and Instacart expands both companies’ delivery horizons and broadens customers’ culinary landscape. By bringing Uber Eats’ extensive network of restaurant partners into the Instacart ecosystem, customers can now access a more diverse range of dining options.

“Whether it’s ingredients for a beloved family recipe, a prepared meal from a nearby grocer, or takeout from a favorite restaurant, customers can now get the food they want from the retailers and restaurants they love, all within the Instacart app,” said Simo.

For Uber, this partnership means that restaurant partners will benefit from an expanded customer base that includes millions of Instacart users who frequent suburban markets and are often families looking for convenient dining solutions. “The opportunity to put our brand and service in front of Instacart’s incredible customer base will be good for business and our restaurant partners,” Khosrowshahi emphasized.

Moreover, this integration will expose customers to new local and regional flavors they might not have encountered before. With Instacart’s focus on offering a broad selection of grocery and restaurant partners, the new “Restaurants” tab will curate a diverse array of options that suit different tastes and preferences.

“It’s about offering customers a holistic food experience. We’re giving them the power to seamlessly mix and match their grocery and restaurant needs, whether sourcing special ingredients for a home-cooked meal or indulging in their favorite takeout,” said Simo.

In addition, the partnership aims to support local eateries by increasing their visibility and providing new growth opportunities. “We believe that this collaboration will create new revenue streams for restaurants while allowing them to reach a broader audience through both Uber Eats and Instacart,” added Khosrowshahi.

Ultimately, Uber and Instacart’s partnership marks a pivotal moment in the food delivery industry. By combining their strengths, they’re reshaping how customers think about and approach their dining choices, providing a more integrated, user-friendly platform that meets the evolving needs of today’s consumers. The partnership promises to deliver a unique blend of convenience, variety, and quality, making it easier for customers to satisfy all their culinary desires from a single app.

Logistics and Customer Experience

Central to the success of the Uber and Instacart partnership is a seamless logistics operation and an intuitive customer experience. The integration of Uber Eats into the Instacart app promises to simplify the ordering process and deliver an effortless dining experience.

“The experience is an Instacart experience,” said Khosrowshahi. “We’re extending the technology that we’ve perfected at Uber, allowing customers to have a unified experience with a familiar interface.”

When customers open the Instacart app, they’ll find the new “Restaurants” tab, featuring a selection of nearby restaurants powered by Uber Eats. They can browse menus, place orders, and track their deliveries in real-time. While the look and feel remain consistent with the Instacart brand, the restaurant deliveries will be handled by Uber Eats couriers, leveraging Uber’s extensive network.

“Deliveries will be done by Uber couriers, who have enormous experience in doing restaurant deliveries,” explained Simo. “So once the order is placed, Uber handles the rest, ensuring that customers receive their meals swiftly and reliably.”

The revenue model is structured as a typical affiliate arrangement, where Instacart receives a fee for each order routed to Uber Eats. For customers, the fee structure remains consistent with Uber Eats pricing, providing transparency and predictability.

This collaboration is designed to enhance the value proposition for Instacart+ members, who will now enjoy $0 delivery on grocery and restaurant orders over $35. “It’s all about maximizing value for our members and delivering a seamless, high-quality experience,” said Simo.

To ensure a consistent quality of service, Uber Eats will also maintain its commitment to its restaurant partners, providing them with more business opportunities. “We want to deliver the best possible experience for our restaurant partners and couriers,” said Khosrowshahi. “Our goal is to create a win-win scenario where everyone benefits.”

Moreover, Uber Eats will continue to support its restaurant partners with marketing and advertising opportunities, helping them reach new customers through the expanded Instacart audience. “This partnership not only expands the reach of our restaurant partners but also offers them greater visibility through the joint branding on the Instacart app,” Khosrowshahi added.

By bringing their logistical expertise and customer-first philosophy to the partnership, Uber and Instacart are confident that this new collaboration will redefine how customers approach both grocery shopping and restaurant dining.

As Simo noted, “It’s about creating a holistic food ecosystem where customers can effortlessly move between groceries and restaurant meals, all within a single app, while benefiting from the best services that both Uber and Instacart have to offer.”

Business Model and Revenue Sharing

At the heart of Uber and Instacart’s strategic partnership lies a thoughtfully constructed business model designed to benefit both companies, their partners, and their customers. The collaboration is based on an affiliate fee arrangement, where Uber pays Instacart for each order routed through the new “Restaurants” tab on the Instacart app.

“It’s a typical affiliate fee model where Uber gives us a fee whenever we pass on an order to them,” explained Simo. “This allows us to enter restaurant delivery overnight with a large selection and good economics.”

While the financial specifics remain undisclosed, this structure creates a win-win scenario by expanding the reach of Uber Eats restaurant partners and providing a new revenue stream for Instacart. Instacart customers benefit from an expanded selection of dining options, while Uber Eats restaurants gain access to millions of potential new customers who are already shopping for groceries.

“It’s all about maximizing value for both our restaurant partners and our customers,” said Khosrowshahi. “With this partnership, we’re able to extend our leading restaurant selection to millions of families in suburban markets that use Instacart.”

Instacart+ members, the premium subscription tier of Instacart, stand to gain the most from this collaboration. They will receive $0 delivery on grocery and restaurant orders over $35, providing them with an additional incentive to explore restaurant options on the platform.

For gig workers, the collaboration opens up more opportunities to earn. Uber Eats couriers will handle all restaurant deliveries, leveraging their existing expertise in food delivery and expanding their customer base through the partnership. This aligns with Uber’s mission to create more earnings opportunities for its couriers while ensuring that restaurant deliveries remain swift and reliable.

“It’s about creating a consistent and seamless experience for both our restaurant partners and our couriers,” Khosrowshahi noted. “We’re confident that the high-quality Instacart customer base will deliver more business opportunities and tips for our couriers.”

The partnership also introduces a unified advertising ecosystem that will benefit both Uber and Instacart. Uber will maintain control over the restaurant ads displayed within the Instacart app, while Instacart will continue to handle grocery ads through its existing network. This ensures that both companies can independently pursue their advertising strategies while benefiting from a larger, engaged audience.

“Each company will continue to manage its own advertising network, but this partnership creates a holistic customer experience that will naturally increase engagement and drive more sales,” said Simo.

Ultimately, this partnership exemplifies how two strong competitors can find common ground and collaborate in areas that complement each other’s strengths. By combining Uber’s extensive restaurant network with Instacart’s leading position in online grocery shopping, the companies are positioned to redefine how customers approach grocery shopping and restaurant dining.

“It’s about leveraging each other’s strengths to create something truly special for our customers,” Simo emphasized. “Whether it’s a grocery delivery for the week or a restaurant meal for tonight, we want to be there for them every step of the way.”

Impact on the Competitive Landscape

The strategic alliance between Uber and Instacart has the potential to reshape the competitive landscape of the food delivery industry significantly. By combining their strengths, the two companies aim to challenge established leaders like DoorDash, Amazon, and Walmart, setting a new standard for customer convenience and service.

The collaboration effectively merges Uber’s extensive restaurant network with Instacart’s dominant presence in the online grocery delivery space, creating a powerful ecosystem that covers daily grocery needs and immediate dining desires. Dara Khosrowshahi, CEO of Uber, emphasized the partnership’s potential to disrupt the market, stating, “We are a threat to DoorDash, both independently and together. This is a highly competitive marketplace, and we believe our partnership will create new opportunities for growth.”

While DoorDash remains a formidable competitor, the Uber-Instacart partnership uniquely positions both companies to address customer needs more comprehensively. By offering a seamless grocery and restaurant delivery experience under one app, they tap into evolving consumer behaviors, particularly among families in suburban markets who value convenience and variety. The move will likely push other industry players to rethink their strategies, particularly in balancing customer engagement across different segments.

“Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery,” said Fidji Simo, CEO of Instacart. “This combination of grocery and restaurant options in a single app sets us apart and makes it even easier for customers to tackle all their food needs.”

In response, other major players like DoorDash and Amazon may seek to strengthen their existing grocery and restaurant delivery capabilities. DoorDash, which has already expanded into grocery delivery, could intensify its focus on the segment to maintain its market position. Similarly, Amazon might leverage its Whole Foods acquisition to integrate more restaurant options into its grocery delivery service.

Meanwhile, traditional grocery retailers like Walmart could feel increased pressure to innovate their online platforms, mainly to capture the growing consumer demand for convenience and seamless shopping experiences. With brick-and-mortar retailers increasingly entering the online delivery, partnerships similar to Uber and Instacart’s could become a new industry trend.

The collaboration also underscores a broader shift in the food delivery industry, where partnerships and consolidation are becoming increasingly common. By joining forces, Uber and Instacart aim to capitalize on each other’s customer bases, enhancing their reach and reducing customer acquisition costs while creating a unified, compelling value proposition.

Khosrowshahi expressed optimism about the strategic implications, emphasizing the complementary nature of the partnership: “This collaboration allows us to bring Uber Eats to a larger audience and helps our restaurant partners reach more customers than ever before.”

For Instacart, the partnership bolsters its competitive advantage, especially among its Instacart+ subscribers. “This is a win-win situation for both companies and their customers,” Simo emphasized. “We’re excited about the potential to deepen our engagement with existing customers and attract new ones through this partnership.”

As the two companies continue to roll out their joint initiative in the coming weeks, the food delivery industry will be watching closely to see how this partnership will influence consumer behavior and drive innovation across the sector.

Driving Growth and Innovation

The partnership between Uber and Instacart is poised to drive significant growth and innovation in the food delivery and online grocery sectors. By leveraging each company’s strengths and expanding their combined reach, Uber and Instacart are setting new standards for consumer convenience and redefining the competitive landscape.

For Uber, integrating restaurant delivery into Instacart’s platform offers a substantial opportunity to tap into a new customer base, particularly in suburban areas where Instacart has a strong presence. This collaboration aligns with Uber’s broader strategy to expand beyond its urban customer base and cater to a wider demographic. Dara Khosrowshahi highlighted this potential: “Families in the suburbs are a key demographic that Instacart serves well, and through this partnership, we believe we can offer them an even richer experience.”

Instacart, in turn, benefits from Uber’s extensive network of restaurant partners and delivery couriers. By incorporating Uber Eats’ expansive restaurant selection, Instacart can now offer customers a seamless experience for both grocery and restaurant deliveries within a single app. Fidji Simo, CEO of Instacart, emphasized the customer-centric approach, stating, “Our customers have been asking for a solution that integrates both groceries and restaurant delivery. By partnering with Uber Eats, we’re bringing them the best of both worlds.”

Furthermore, this partnership is designed to bolster both companies’ subscription services. Instacart+ members, who already enjoy benefits like free delivery on grocery orders, will now receive the added value of free restaurant delivery on orders over $35. This added incentive aims to deepen customer loyalty and attract new subscribers.

The strategic collaboration fosters technological innovation by creating a unified platform that merges restaurant and grocery deliveries. Uber’s expertise in developing a seamless, cross-functional platform has been instrumental in integrating the restaurant delivery tab into Instacart’s app, providing a consistent user experience that aligns with Instacart’s existing design. Khosrowshahi explained, “We’ve taken the technology we perfected at Uber and extended it in partnership with Instacart. The result is a user-friendly, seamless experience that serves both grocery and restaurant needs.”

Both Uber and Instacart see significant potential in data-driven innovation as well. With access to a broader range of customer data, both companies can refine their personalization algorithms, improve recommendations, and tailor promotions more effectively. This will likely result in increased customer engagement and higher order values.

Simo highlighted the role of data in driving innovation: “With our expanded customer insights, we can deliver more personalized experiences and recommendations, ultimately helping our customers discover new restaurants and products they love.”

In addition to the immediate benefits, the partnership lays the groundwork for future innovation and collaboration. By aligning their strategic interests, Uber and Instacart are well-positioned to explore new opportunities, such as integrating advertising solutions across platforms, launching new loyalty programs, and expanding into emerging markets.

As Khosrowshahi aptly said, “This is just the beginning of a strategic partnership that will drive long-term growth and create value for our customers, merchants, and couriers.”

As the partnership rolls out nationwide in the coming weeks, it will be closely watched as a potential model for future collaborations in the food delivery and online grocery spaces. By combining their resources and expertise, Uber and Instacart are enhancing their competitive edge and setting the stage for a new era of growth and innovation in the industry.

Ultimately, Uber and Instacart’s strategic partnership stands to reshape the food delivery industry by combining their strengths. With hundreds of thousands of restaurants now available to Instacart customers via Uber Eats and Uber expanding its reach into suburban markets, this collaboration promises to deliver a seamless, comprehensive food ordering experience that benefits consumers, restaurants, and couriers alike.

As Simo noted, “Through this partnership, Instacart customers now have access to both the best online grocery selection in the U.S. and restaurant delivery, making it even easier for them to tackle all their food needs from a single app.”

Matt Maloney, CEO of Grubhub, discusses with Jim Cramer on CNBC how Grubhub is in the business of driving growth for restaurants and is not just a logistics company:

The American Public Has Just Adopted Digital Ordering

This is our fifth anniversary of our IPO. The market now is ten times what I thought it was five years ago. It’s because the American public has just adopted digital ordering as their preferred way to engage with their local restaurants. We are not just marketing to Millennials. We are marketing on national television across all channels, all time zones, and hitting all segments. We just see that people realize that digitally ordering on their app or on their desktop is just easier.

Of course, our ad campaign is working. I wouldn’t have it on TV if it wasn’t working. You think about it this way. You know your LTV, your lifetime value of your customer, once they start ordering we know that they’re lifers. They’re on forever. We can make that revenue model and then we know how much it cost to put the ad on there. So yes, over time, as people see the ad, more and more it becomes less and less effective. But we’re nowhere near our LTV.

I have always been willing to be extremely aggressive investing in the future. Historically, I was bound by the amount of money I could invest. The reception of these communications just weren’t hitting the public and they weren’t working as well. Then around the third quarter of last year, we saw that we could spend way more than we had historically. I’m just talking about effectiveness. Spending it effectively. We came to the street on our third quarter earnings call and said we see opportunity and we are going long in the fourth quarter.

Yum Made $200 million Investment – They Believe in Our Story

People are going to say where’s the beef, the old Wendy’s commercial. They’re like show me the money. (We don’t have Wendy’s) but everyone talks to everyone in this industry. I think over time exclusivity is just not going to happen. (We have Yum) and Yum is the biggest restaurateur in the world. YUM is an incredible brand which includes Taco Bell, KFC, and Pizza Hut. They are very forward-thinking. They invest in technology a lot and they wanted to make a fundamental partnership and we wanted to understand what the brands needed from a partner.

Yum made a $200 million investment because they believe in our story. We didn’t need the investment because we have a very healthy balance sheet. What it did it was really bringing the support of the young brand and the franchisees into Grub. As a tight partnership, we’re able to execute on technology and growth for them in a way that nobody else in the industry is doing right now. I totally disagree (that we aren’t making money from this partnership).

We Are a Marketplace That Sells Demand Generation

We are a marketplace that sells demand generation. We sell growth. That’s what our primary product is. We’re not a logistics company. We do logistics because we know that’s an end to get to restaurant growth and make money off our logistics. The gross margins on the logistics are not fabulous. The gross margins on the demand generation are fabulous which is why I differentiate between a logistics company and demand gen company.

If you’re selling consumers, you’re selling growth and you can charge a lot for that. That’s the profitable side. Everyone else in my industry is a logistics company which has razor thin margins. One of my competitors said they’re the next FedEx. Do you really want to be the next FedEx? There’s the multiple that we can get as marketplaces and there’s the multiple that logistics companies can get.

Everyone Would Prefer to Order Digitally

I think that everyone in the country would prefer to order digitally than order on the phone. That’s why we acquired Tapingo. It’s an incredible acquisition because it gives us further scale on campuses. Tapingo is a pickup focused product. So here’s what you need to think about. We sell growth, we sell orders. I don’t care if that’s a pickup order, a delivery order, a self-delivery order, or a catering order.

Everyone else in my industry only does delivery facilitated by that platform. Because we partner with the restaurants (which means) the restaurants are subsidizing part of our transaction fee, we are always cheaper. That’s what people don’t understand. There’s a lot of bait and switch pricing going on (from competitors).

Early Uber investor Jason Calacanis says that unlike Lyft, Uber built a very anti-fragile business with the combination of Eats and Rides and has become relentlessly focused:

Uber Built A Very Anti-Fragile Business

What we’re really going to see here is that Uber built a very anti-fragile business in regards to having the Eats business and having the Rides business. When the Ride’s business went down that kind of indicates people are staying home. When they stay home they use Uber Eats and increasingly Drizly, Cornershop, and Postmates. People are ordering groceries. Watching the Uber team take on this challenge of the pandemic year has been really impressive.

It reminds me a lot of Disney and how they got focused around Disney+ as the center of the organization. They looked at what was happening in the pandemic and said parks are great, merch is great, movies are great, let’s just put everything into Disney+ and accelerate that. Look what happened to that company. I’ve got to give Dara Khosrowshahi a lot of credit. He got rid of a lot of the noise like self-driving cars which are a multi-decade kind of vision. He sold off the places where they weren’t going to be in first, second, or even third place. He did JVs and sold off those businesses like Russia and China, etc. That’s well documented.

The Space Can’t Have 50 Players Losing Money

They found a new really inspiring footing which is if Amazon is two-day delivery going to one-day, Uber’s is one-hour delivery going to 10-minute delivery. That is Travis Kalanick’s original vision for Uber. When I met with him when he was building the company and I was the third or fourth investor his vision was this is a logistic company. We took atoms in the world made them bits on the internet. Now we’re going to take bits on your phone, an app, and we’re going to move atoms in the real world. That was his original pitch. Here we are in decade two where I’m still own the same shares I’ve had since I bought them for a penny or whatever back in 2008 or 2009. I remain super bullish. I have a huge position in Uber and I’m going to hold it for the next decade.

It’s fairly obvious that there are acquisitions and consolidation that need to happen in the space in order for it to be profitable. The space can’t have 50 players losing money. We’ve watched Lyft, Postmates, Doordash, and everybody, say that we’re going to have to charge what this product is worth. We’re going to have to stop burning money. There’s no free VC money. The public markets are not down with lose money forever and grow. I think we found a happy medium here between what public market investors want, profits, and what private market investors want, growth.

Uber Has Become Relentlessly Focused

I think Dara has done an exceptional job. Some things will come from acquisitions but most of it has to be just relentless execution and focus. That is the inspiring part of what happened here. Uber has become relentlessly focused. Things that were coming in 10 or 20 years like self-driving in all likelihood will be a commodity business. In 10 or 20 years there’ll be five companies who have that technology. VTOLs are very fascinating and very interesting, but again that’s probably seven, eight, nine, or ten years off as a very niche product.

Despite the job-killing nature of the bill the Democrat’s press release sings its praises:

“Top Democrats Introduce Bill to Protect Workers’ Right to Organize and Make our Economy Work for Everyone. Legislation addresses growing income inequality by protecting workers’ right to join a union and negotiate for higher wages and better benefits.”

The House bill was introduced by House Committee on Education and Labor Chairman Robert C. “Bobby” Scott (VA-03), Congresswoman Frederica Wilson (FL-24), Congressman Andy Levin (MI-09), Congresswoman Pramila Jayapal (WA-07), and Congressman Brendan Boyle (PA-02).

The Senate bill was introduced by Senate Committee on Health, Education, Labor, and Pensions (HELP) Chair Patty Murray (D-WA) and Majority Leader Chuck Schumer (D-NY).

The bill mimics the California bill which Uber CEO Dara Khosrowshahi said would effectively end Uber as we know it in California. The company is already losing money and it would be impossible for it to pay a minimum wage of $15 an hour plus benefits to all of its 1 million drivers. It also begs the question, does the Democrat party not realize that the very people who love Uber and who are independent contractors for Uber probably are also majority Democrat voters? After all, the gig economy was popularized by liberal San Francisco based Uber itself.

Without an initiative process at the national level, the only way to keep the millions of gig jobs alive and to keep rideshare and food delivery readily available would be for their voters to vote the majority party out of office. There really is no middle ground here. In the meantime, if this bill passes Congress and is signed by Biden the gig economy will become illegal.

YouTube is rolling out a major new feature designed to protect content creators, warning them of potential copyright issues during upload.

Called “Checks,” the new tools is designed to save creators some headache and potential lost revenue by warning them of copyright issues before they go live with content. Many creators had previously resorted to uploading their videos as unlisted or private to check for copyright or monetization issues before going public.

The company made the announcement in a YouTube Help post:

Hey Creators! Today we’re rolling out a new step in the upload process on Studio desktop called “Checks” – which will automatically screen your uploads for potential copyright claims and ad suitability restrictions. This new step will help you minimize the number of videos uploaded with copyright claims and/or yellow icons and avoid surprises or worries.

More information can be found in the Help Center. In the meantime, the new Studio tool should be a big help to content creators.

IAC announced in December its plans to spin Vimeo off as an independent, publicly traded company. As a video hosting platform, and YouTube’s prime competitor, Vimeo has experienced significant growth. In fact, the company saw 57% year-over-year revenue growth in December.

As Vimeo prepares to go public, the new funding will provide the capital it needs to continue its growth and innovation.

“As the world embraces video like never before, Vimeo is in an incredibly strong position to help more businesses take advantage of this powerful medium,” said Anjali Sud, CEO, Vimeo. “We have built an industry-leading solution that the market needs, and we intend to move swiftly to bring our professional-quality tools to millions more users.”

“Vimeo is the quintessential IAC success story,” said Joey Levin, CEO, IAC. “With patience, discipline, and ambition, Vimeo has transformed from a tiny seed to a large global enterprise making its mark on the world, and Anjali Sud is an exceptional leader.”

Uber CEO Dara Khosrowshahi says that Uber Eats is growing at unprecedented rates during the pandemic and he expects the business to do well post-pandemic as well:

Uber Eats Growing At Unprecedented Rate

On the Uber Eats side, it is an entirely different story where the business continues to grow at unprecedented rates. Revenue has almost tripled year on year. That business continues to accelerate. When we look at Eats we are seeing some great trends. The monthly actives on Eats are up 70% on a year on year basis. The trips are up 110% on a year on year basis. New orders, orders per eater, or basket sizes, all of these trends are up double-digit.

We’ve taken a look at Eats’ performance in markets that are opening up such as New York City and we haven’t seen any kind of performance degradation in Eats. What that suggests to us is that there is a whole new class of consumer that’s experiencing the delight of being able to pick anything and have it delivered within 30 minutes and eat what you want how you want it. It looks like the Eats business is sticky. I wouldn’t count on the growth rates we are having now post-pandemic. However, I do think that you are going to have big growth rates off of a much larger base as a result of everything that has happened.

As Cities Open Up Uber Opens Up

It really is impossible to tell when the mobility business can come back. It depends entirely on the health situation on the ground. With markets that are opening up faster because of the health situation or the society, things are coming back. For example, we looked in New York City where the counts have been down relative to the rest of the country and in just October our volumes were 63% of pre-pandemic levels. This is materially higher than they were in the rest of the nation.

You have week-day use cases of the service outside of commute that is now at pre-pandemic levels or higher. As cities open up Uber opens up as well. We actually think that we can be a beneficiary of certain trends that we’re seeing.

We have invested in safety such as digital mask verification. We also have the No Mask No Rides advertising campaigns. People are feeling safer using Uber. Our reliability and predictability are absolutely unrivaled. While we look at share and we always want to make sure that we are competitive really what we focus on is the reliability of the service and safety of our drivers and hopefully coming back as the health situation improves.

Vaccine Could Radically Improve Bookings

There is a pretty consistent improvement in the mobility business as you go month to month to month. This is one of the benefits of having a truly global business. Within that steady improvement, there are all sorts of ups and downs. Hong Kong has had some openings and closings. Obviously, Europe is now going through another shutdown. US case counts are moving up. The individual curves are not smooth. But when you look at our global portfolio it smooths out.

We are seeing a month to month improvement. For example, if you look at our last quarter overall gross bookings were down 50%. In September, the last month of the quarter, they were down only 44%. You just see this kind of consistent improvement. We think that the consistent improvement will continue into next year. We think a vaccine could radically improve the slope of that improvement.

California Assembly Bill 5 (AB5), was overturned by the people in regards to ridesharing with the passage of Proposition 22 Tuesday. AB5 was passed by the Democrat-controlled state legislature and signed by California Governor Gavin Newsom in September 2019 as a favor to both the taxi industry and unions who heavily finance Democrat campaigns. AB5 required companies that hire independent contractors to reclassify them as employees. The bill would have made it financially impossible according to Uber and Lyft for them to operate in California. Unfortunately, Proposition 22 did not change AB5’s ban on independent contractors in other industries.

“This was massive in terms of almost an existential business risk to these models in terms of the gig economy,” says Dan Ives of Wedbush Securities. “It could have been a $500 million incremental expense to Uber a $150 million for Lyft. In my opinion, they’re really popping the champagne today because this was really a best-case outcome. It was a dark cloud over the gig economy in these stocks and I think worth potentially 15 to 20 percent to ultimately where I see the valuations.”

“What was really the crux of the issue is the worry of the street that this was going to be a pandora’s box situation, a ripple effect across cities and states,” added Ives. “The fact that the voters in California approved this was really a seminal moment. From the beginning, really the last year and a half, it’s been a head-scratcher in terms of what this could have done not just to the gig economy. Of the hundreds of drivers that we’ve talked to, 95 percent of them were against the AB5. This is definitely a sigh of relief early this morning for investors as well as for the drivers themselves.”

Uber CEO Dara Khosrowshahi discusses how Uber Eats is going to ‘essentially power world commerce’ in a Zoom call with the Wall Street Journal:

If there was a time to lean into delivery, this is the time,” We’re going to be the global leader in that business. We’re going to expand beyond food into other categories such as groceries and pharmacy, essentially powering world commerce.

The food delivery business is profitable in certain countries. For example, two of our top five international markets are profitable today and were profitable last quarter. The profitability really depends on how hard we are leaning in toward expanding supply and acquiring customers. The perspective that we have on this business is that even though it’s growing it’s actually very early in its development.

For example, Japan is a huge market potential for us and one of our leading growth markets. Less than ten percent of restaurants in Japan are signed up to use Uber Eats as a delivery service. When you have a situation where your penetration is ten percent of the ultimate market size you lean in as a company.

We are fortunate in that we’ve got very strong balance sheets, over $7 billion in cash and available capital. That allows us to lean into certain businesses. If there was a time to lean into delivery, this is the time. We’re going to be the global leader in that business. We’re going to expand beyond food into other categories such as groceries and pharmacy, essentially powering world commerce.

Twitter began testing the feature in June in an effort to help stop the spread of disinformation that social media platforms have increasingly been called to task for. The results of the tests have been positive, with significant upticks in the percentage of people actually looking at the articles they retweet.

https://twitter.com/TwitterComms/status/1309178716988354561?s=20

Social media companies are looking at multiple ways of reigning in disinformation and radical content. Time will tell if Twitter’s new feature has a long-lasting impact.

Full Truck Alliance is a multi-billion dollar valued company that is becoming the Uber of trucks throughout China. The fragmentation of the trucking industry in China between independent truckers and shippers has resulted in an empty load rate of over 40 percent, about four times higher than in the United States. The Full Truck Alliance app and online platform connects shippers to truckers in real-time enabling huge reductions in empty loads.

Richard Zhang, CFO of Full Truck Alliance based in China, discussed the company’s future in an interview on CNBC International TV this morning:

Full Truck Alliance in China is the Uber for Trucks

The problem we’re trying to solve is very simple because there are high inefficiencies between matching with the truck drivers and also matching with the shippers. The empty load rate in the US is only ten percent while the empty load rate in China is 40 percent. The empty load rate is very similar to the vacancy rate in the hotel business. The reason is that the market here is highly fragmented. You have highly fragmented truck drivers and highly fragmented shippers, lots of SMEs.

Before we came into existence the matching between the truck drivers and shippers were taking place across a thousand offline marketplaces in China. What we have been trying to do is bring that offline marketplace online and use our algorithms in the back office to match automatically the truck drivers and the shippers. We are trying to reduce that empty load rate to well below 40 percent.

Monetization Via Membership and Uber-Like Fees

Our monetization strategy for Full Truck Alliance is as a product of a merger between two companies, Truck Alliance and also Yunmanman a little over a year ago. Post-merger we started monetization and the monetization takes place in two ways. Number one is we are charging a membership fee for the shippers and also very similar to Uber or DiDi we’re charging a take rate on the transactions themselves.

We were very close to achieving our 2018 profit objective. We are actually very marginally close to break-even at the current moment and we have no doubt that we’re going be making earnings in 2019.

Autonomous Driving for Trucks Will Happen First

Our view is that the commercialization of autonomous driving for passenger vehicles will probably take a bit longer than people would think. We think the commercialization of autonomous driving for trucks will probably take place a lot sooner than it will take place in the passenger car vehicle sector. Therefore we are deploying a certain amount of resources into that sector in the form of investment.

We have decided to be a strategic investor in an autonomous driving truck company for them to actually develop that technology and for us to actually use. The mandate for the partner is to actually put a fleet on the road in China to start working with our shippers in the next 12 to 24 months. That’s our mandate and so it depends on how successful they’re going to be at executing our strategy.

Gene Munster, Managing Partner at Loup Ventures, discusses how California in forcing drivers to be employees may ultimately speed up the efforts of Uber and Lyft to go fully self-driving and thereby simply eliminate all human drivers:

What Would The Drivers Want?

Both Uber and Lyft are in a tight spot. There was reprieve today. But this topic is not over with this vote coming November 3rd and California’s influence that they can have with other states. If you put all of this together and think about if these changes to employees across the country, it could be a 15 percent increase (in costs). This is effectively their profit margins.

I do want to caution the voters of California and also some of the lawmakers on one aspect. What would the drivers want? Most of these drivers use both apps, both Lyft and Uber. If they are employees they likely will be restricted from jumping from app to app. That would cut down some of their rides and cut down what they will be paid on an hourly basis. I don’t think that the right path here is as clear for the drivers in simply becoming an employee.

Ultimate Solution For Uber and Lyft Is Autonomy

The ultimate solution for Uber and Lyft is autonomy. If this employee model simply doesn’t work you are going to see these companies push even harder into autonomous systems simply eliminating the drivers. One of the unique things about Lyft and Uber is it is a two-sided marketplace. They have drivers and riders. In an autonomous world you don’t need drivers. Essentially, that would leave Lyft and Uber with their key asset, their brands around movement. I think that is an asset but I don’t know if it is worth $55 billion.

What I really take away from this is that over the next few years there are going to be ups and downs related to this regulation. Longer term, we know where this is going. Cars should be autonomous for safety reasons and productivity reasons. Ultimately, ridesharing with Uber and Lyft is going to be fully self-driving. This topic we are discussing today is going to be largely irrelevant.

Google and Tesla Will Compete With Uber and Lyft

There are some key nuances to an autonomous ridesharing business model. As I mentioned, there is a two-sided marketplace. That’s really what makes Lyft and Uber special today. One of the sides of the marketplace, the drivers side of this, is under some pressure right now. But if we eliminate the drivers side then you don’t even have a marketplace. You are just trying to get consumers to ride. That opens up new competitors. There are about six of them that are trying to get there.

The autonomy option is a better option for Lyft and Uber than what they currently have with humans driving. For an investor it’s a more profitable option. However, ultimately it will attract more competition. I think the two best companies positioned within that would be Google and their Waymo initiatives and also Tesla and how they are going to vector into the ridesharing market.

I Would Put My Money On Lyft

Assuming their ballot initiative wins in November, I’m in the Lyft camp. This is partly because I like their focus just on the US and on ridesharing. I think that the Uber Eats business, while its had a tremendous tailwind, it will get progressively more competitive and it’s tougher to make money in that business.

Ultimately, if I had my choice I would put my money on Lyft. There is another X factor here. There is something subtle about Lyft’s culture. It is a more investor friendly culture and that influences my view.

Here is how California Assemblyman Kevin Kiley describes the laws impact:

This law, California Assembly Bill 5, has made it impractical for Uber and Lyft to operate here. Everyone saw this coming. We’ve known this whole year that this law has been devastating for people. It’s actually devastating not just for Uber and Lyft but for hundreds of professions in California.

This law, AB-5, has basically banned being an independent contractor or an independent worker. It says you have to be in the employ of someone else. They are shutting down Uber and Lyft and that will leave 100,000 of their drivers out of work. We have millions of Californians who also rely on their services. It’s going to be yet another blow to our economy which is already doing about as bad as any state in the country.

Uber, Lyft and the state of California have been locked in a battle over how to classify the two companies’ drivers. Under the Assembly Bill 5, gig workers are considered employees if they are critical to a company’s business. The law has profound implications for companies like Uber and Lyft, whose entire model is geared around independent contractors.

In his ruling, the judge granted a preliminary injunction preventing Uber and Lyft from classifying their drivers as independent contractors, effectively making them employees. While both companies plan to appeal the ruling, according to The Verge, Lyft President John Zimmer made it clear that losing the appeal would result in Lyft leaving the state. In a call with investors, he said: “If our efforts here are not successful it would force us to suspend operations in California.”

Uber and Lyft’s case will have far-reaching consequences for the gig economy in California and beyond.

“We think the ruling by a California judge was unfortunate on reclassifying drivers from contractors to employees,” says Uber CEO Dara Khosrowshahi. “We think we (already) comply with the laws. But if the judge and a court finds that we are not and they don’t give us a stay to get to November then we will have to essentially shut down Uber until the voters decide.” 

Dara Khosrowshahi, CEO of Uber, discusses a court ruling requiring Uber to classify Uber drivers as full-time workers. Khosrowshahi says that this will force Uber to become a much small black car service focused on city centers and with much higher prices for rides. Essentially the service would no longer exist in California suburbs and rural areas:

Vast Majority of Uber Drivers Want To Remain As Contractors

We think the ruling (in California) was unfortunate (on reclassifying drivers from contractors to employees). We obviously respect the law and the judge. We do have about eight days now where there is a stay. We are going to go back to the court and appeal the ruling and hope that the court reconsiders. If the court doesn’t reconsider then in California, it’s hard to believe we will be able to switch our model to full-time employment quickly, so I think Uber will shut down for a while. Really, the big question is in November with Prop. 22, we have a proposition out there that puts forward what we believe is the best of both worlds. 

The vast majority of our drivers, a 4-1 ratio, want flexibility, and don’t want to be full-time workers. With Prop. 22 drivers can continue to have the flexibility that they have but they can enjoy the protections, benefit fund, an earning standard so that they have the protections that many people associate with full-time work. We are hoping that in November the California voters can speak. We are confident that this better way which is kind of the best of both worlds will be the way going forward for California.

We Will Shut Down Until The Voters Decide In November

In California, we have changed our model substantially. For example, riders in California pay drivers directly. Drivers can set their own price as an independent contractor would. Drivers have all the flexibility to decide whether or not they want to take a ride or not. We think we (already) comply with the laws. But if the judge and a court finds that we are not and they don’t give us a stay to get to November then we will have to essentially shut down Uber until the voters decide. 

It would be really unfortunate at a historical time of unemployment in California. It would put vast swaths of our drivers out of work without the opportunity to earn. It would take away transportation from hundreds of thousands of Californians. It would be really really unfortunate. Obviously we would look to comply with the law long-term and we’re hoping the law gives us the best of both worlds. Our labor laws are hopelessly outdated. You’ve got the haves and have-nots and you can have actually a better way.

Smaller Service, Higher Prices, Only Focused On Big City Centers

Hopefully, the courts will reconsider. By no means do we want this to happen. If they don’t we are going to have to work to move to a full-time model. It’s essentially how Uber started, kind of a black car service with very few cars on the road and much higher prices. So we will look to flip to a full-time model but this is a model that we built over ten years. We can’t go out and hire ten of thousands of people directly overnight. It would take a significant amount of time to switch over. We have teams thinking about it and working on it. We don’t think it’s the likely outcome by the way and we would look to get back on the road as quickly as possible. 

You would just get a much smaller service, much higher prices, and probably a service that’s focused on the center of cities versus a bunch of the smaller cities or the suburbs that we operate in right now. That’s the reality. It’s not a game of chicken or one way or the other. It’s really up to the courts and we are going to comply with the law. We will look to get going but it will be a very very different service once we get going.

Apple set out to reimagine the news industry, while at the same time providing a way for beleaguered newspapers to reach new customers in the digital age. Apple News hit the 125 million monthly users milestone earlier this year, and boasts some of the biggest names in news.

Despite the platform’s success, The Times has announced it will be leaving Apple News, effective June 29. The organization wants to focus on its own distribution and direct relationships with customers, rather than working through a third-party.

“Core to a healthy model between The Times and the platforms is a direct path for sending those readers back into our environments, where we control the presentation of our report, the relationships with our readers and the nature of our business rules,” Meredith Kopit Levien, chief operating officer, wrote in a memo to employees. “Our relationship with Apple News does not fit within these parameters.”

It remains to be seen if The Times is a one-off, or if other publishers will follow suit.

According to Business Insider, Khosrowshahi told investors the hardest hit areas have seen a 60-70% decline in rides, and that could go as high as 80% for the year. In spite of that, the CEO said the company has $10 billion in unrestricted cash.

“We have plenty of liquidity on the books which positions us to come out of this crisis strong and capable,” Khosrowshahi said.

Another bright spot is Uber Eats, the company’s food delivery service. As people forgo restaurants, Uber Eats is seeing growth in even the worst hit areas. Between the news that Uber has enough cash to survive the crisis, and news its food delivery service is growing, the company’s stock was up as much as 43% Thursday.

Uber should serve as an example for other companies. Between having enough cash to weather a storm, and diversifying into a disruptive business, the company seems well-positioned to survive any temporary hit to its core business.

The American Economy is thriving. The national unemployment rate is at a half-century low and nominal wage growth has reached a decade pinnacle – all while the economy continues to sprout. While these economic turnarounds are noteworthy, the standard cost of living has climbed 14% within the last three years – far outpacing wage growth. Consequently, Americans are jumping through hoops to afford a great lifestyle.

From 2017 to 2018, the cost of living hiked by more than 30% in Fresno, California; Colorado Springs, Colorado; Arlington and Austin, Texas; and Columbus, Ohio. In contrast, renters in 13 states typically spend more than half of their net income on necessities. Simultaneously, real real wages haven’t changed in over 50-years. Average hourly wages sat at $20.27 in 1964, converting to $2.50 in 2018-dollars, and $22.65 in 2018.

With stagnant wages and an increasingly costly economy, luxury lifestyles are becoming as fictional as The American Dream.More than half of Americans have less than $1,000 resting in their savings account while 32% have no savings at all. In 2019, 2 in 3 Americans haven’t been able to afford a summer vacation averaging $1,979. This has heavily influenced the general decline of happiness since the 1990s.

Believe it or not, money can buy and influence happiness as it can fulfil your needs and desires, as well as reducing stress when under hardships. Furthermore, it has been reported that your emotional wellbeing increases as salaries rise, providing more comfort in your life, up to $75k per year. Self-reflections become more positive with a higher income, up to $95k per year, as well. However, the key to happiness isn’t just having money, but how we spend it. 

Here’s a look at the science on buying happiness. The human mind wanders 47% of the time, often to a dark place, but anticipation and good memories counteract these negative thoughts. Participants of a 2003 study felt happier when anticipating and engaging in a planned experience to later recall on. This provides a sense of self: giving experiences to mention when telling your life story. Participants in a 2012 study feel experiences reflected their identity and values. Sharing experiences is a great way to connect with others since most people despise hearing others speak about their stuff as it could leave you feeling inferior.

The sharing economy promotes peer-to-peer platforms that provide access to shared goods and services down to transportation and lodging. Utilizing the sharing economy is an easy and environmental approach to increasing personal optimism, saving money, and even making money by turning your dormant belongings into extra cash. Discover more about the sharing economy below.