Lyft restructures, Uber's new vehicle rental partnership and GrubHub expands campus dining

Lyft has announced a restructuring plan that includes laying off 1% of its workforce, affecting about 30 employees, and discontinuing standalone dockless bikes and scooters. This shift, outlined in an SEC filing, aims to improve Lyft's adjusted EBITDA by $20 million by the end of next year. The company will discontinue dockless scooters in Washington, D.C., and explore alternatives in Denver, turning its focus to e-bikes, electrified docking stations, and software to better serve cities and streamline operations.

In other mobility news, Uber is expanding its vehicle rental options with a new partnership. Uber has joined forces with Turo, the largest peer-to-peer car-sharing platform, in a multi-year partnership that will begin in early 2025. This collaboration will allow Uber users to rent from Turo’s selection of over 1,600 vehicle makes and models directly through the Uber app. The partnership will provide more opportunities for Turo hosts while expanding vehicle rental options for Uber customers across the U.S., UK, Canada, Australia, and France.

Hungryroot has launched SmartCart?, an AI-driven system designed to simplify healthy eating and living. Using ten machine learning models and an operations research algorithm, SmartCart? recommends groceries, recipes, and supplements tailored to users' goals, lifestyle, and budget. Customers using SmartCart? order twice as often and report significant health improvements, saving three hours per week on meal planning and discovering three times more food options than when shopping independently.?

Grubhub is finding new growth opportunities in a different segment: campus dining. Despite a 12% decline in overall order volume, Grubhub's campus dining program has experienced a 28% year-over-year surge. This segment now accounts for 18.18% of Grubhub’s North American orders in Q1 2024. To further capitalize on this growth, Grubhub is expanding its campus network, adding 60 new universities—including the University of Alabama, Tulane University, and Howard University—bringing the total to 360 schools. This growth is fueled by students' demand for convenience, bolstered by Grubhub's technological innovations.

Meanwhile, Thrive Market, the online grocer specializing in organic and sustainable products, has introduced a new retail media network in collaboration with Instacart. With over 1.5 million members, Thrive Market will use Instacart’s Carrot Ads solution to provide a more personalized shopping experience and enhance the visibility of sustainable brands. The Carrot Ads platform helps Thrive Market expand its retail media network on both its website and app, offering a more tailored experience for its customers.

Finally, as delivery technology evolves, Coco, a Santa Monica-based delivery robot company, announced a partnership with Uber Eats in August. Founded in 2020 by two UCLA students, Coco has raised $63 million to date. Coco plans to develop new robot designs that can handle diverse terrains, ultimately reducing last-mile delivery costs and expanding the company’s reach.