❌

Normal view

Received before yesterday

Good news, delivery drivers: DoorDash CEO says robotaxis aren't ready for food delivery

7 August 2025 at 17:00
A person on a bike with a Doordash box on their back.
A Doordash deliveryperson on a bike.

REUTERS/Carlo Allegri

  • Uber and Tesla are offering ride-hailing trips in self-driving cars in some cities.
  • Getting dinner delivered in an autonomous vehicle is a little harder, DoorDash CEO Tony Xu said.
  • Robotaxis need an "end-to-end" system to make deliveries feasible, Xu said.

Don't expect a robotaxi to deliver your DoorDash order anytime soon.

Autonomous cars are already shuttling riders around some US cities thanks to a partnership between Uber and Waymo, as well as Tesla's own robotaxi offering. They function much like traditional ride-hailing trips: You request a ride through an app and then get in the car once it arrives.

Using AVs to deliver restaurant food and other goods, though, "is actually very different from doing autonomous passenger driving or robotaxis," DoorDash CEO Tony Xu said on the company's earnings call on Wednesday.

"The passenger can walk in and walk out of the car, even if the drop-off or pickup locations aren't perfect," Xu said. Deliveries, by contrast, require a more precise hand-off between the restaurant and the vehicle, requiring companies like DoorDash "to solve for the end-to-end system," he said.

"That's probably the single biggest learning we've had," Xu said on Wednesday.

In April, DoorDash said that it had started making some deliveries in Chicago and Los Angeles with wheeled robots that can navigate sidewalks designed by startup Coco Robotics. DoorDash and Coco previously worked on a pilot program using the robots to make deliveries in Finland through Wolt, DoorDash's international arm.

Xu added that DoorDash's experiments with autonomous delivery "have gone great" and that autonomous delivery is "something we're very excited about."

Riding in an autonomous vehicle is already an option for some ride-hailing users. In June, Tesla launched a limited version of its robotaxi service in Austin with Tesla safety employees in the passenger seat, and has since expanded to San Francisco with safety employees in the driver's seat.

Uber offers fully autonomous rides in Waymos in Atlanta and Austin and has plans to add more self-driving vehicles to its network next year through a partnership with EV-maker Lucid and self-driving technology startup Nuro.

For DoorDash, the challenge is moving burgers, groceries, and other stuff from stores to customers' homes. Many of those items can be delivered in smaller, autonomous vehicles, Xu has said.

"You don't need a 4,000-pound vehicle to deliver a one- or two-pound item or package," Xu said on an earnings call in May.

Do you have a story to share about gig work? Contact this reporter at [email protected] or 808-854-4501.

Read the original article on Business Insider

DoorDash seeks dismissal of Uber lawsuit

25 April 2025 at 23:25
DoorDash has asked a California Superior Court judge to dismiss a lawsuit filed by Uber that accuses the food delivery company of stifling competition by intimidating restaurant owners into exclusive deals. DoorDash argues in its motion that Uber’s claim lacks merit on all fronts. On a post on its website on Friday, DoorDash said, β€œthe […]

Uber accused DoorDash of stifling competition. DoorDash says merchants just like them more.

25 April 2025 at 18:24
DoorDash and Uber Eats stickers in a New York City cafe window.
DoorDash asked the California Superior Court to dismiss a lawsuit Uber filed in February.

Beata Zawrzel/NurPhoto/Getty Images

  • DoorDash asked the California Superior Court to dismiss Uber's lawsuit on Friday.
  • In February, Uber accused DoorDash of inflating costs and other anti-competitive business practices.
  • "Instead of competing through innovation, Uber has resorted to litigation," DoorDash says.

DoorDash wants Uber's anti-competition lawsuit tossed by the California Superior Court, saying the litigation is a "cynical and calculated scare tactic."

DoorDash filed the motion alongside a press release on Friday.

"It's disappointing behavior from a company once known for competing on the merits of its products and innovation," DoorDash, which tops the online food delivery market in the United States, wrote in the release.

Uber filed a complaint against DoorDash in February, accusing the company of anti-competitive business practices that inflated prices for restaurants and customers. The complaint said DoorDash "devised and is engaged in an unlawful scheme to stifle competition with Uber Eats, its closest rival."

Uber accused DoorDash in the complaint of leveraging restaurants' dependence on its app to secure near-exclusive or exclusive use.

"Restaurants simply cannot afford to stand up to DoorDash, and find themselves powerless to choose the service or services that are best for their businesses in the market for first-party delivery," Uber's complaint said.

Doordash
DoorDash denied the accusations made in Uber's lawsuit in a motion on Friday.

Emily Dulla/Getty Images for DoorDash

Earnest Analytics reported in February that DoorDash dominated the food delivery market with a 60.7% share. Uber Eats followed at 26.1% and Grubhub at 6.3%.

DoorDash denied Uber's accusations in the motion on Friday.

Among its arguments, DoorDash said Uber is trying to "shoehorn its competition claims" by using a statute that typically applies to "disputes regarding employee non-compete provisions."

"Uber's lawsuit should be seen for what it is: sour grapes from a competitor that has been told by merchants, time and again, that they prefer working with DoorDash," the company's motion said. That's not the basis for a lawsuit β€” it's just fair competition. The Court should sustain DoorDash's demurrer."

Uber told Business Insider in a statement that it won't back down.

"It seems like the team at DoorDash is having a hard time understanding the content of our complaint. When restaurants are forced to choose between unfair terms or retaliation, that's not competition β€” it's coercion. Uber will continue to stand up for merchants and for a level playing field. We look forward to presenting the facts in court," an Uber spokesperson said.

A lawyer for DoorDash told BI, "Uber appears to be upset that they're losing in the marketplace because DoorDash has better and more innovative products, but that isn't a legitimate basis for a lawsuit."

"Uber's legal claims are meritless and should be dismissed," the lawyer said.

DoorDash isn't Uber's only legal battle this year. In April, the Federal Trade Commission sued Uber, saying the company added users to its Uber One subscription program without their consent.

The FTC said in a press release that the company "failed to deliver promised savings" and made it tough for users to cancel the service.

Uber CEO Dara Khosrowshahi told Semafor on Friday that the FTC's lawsuit was a "head-scratcher."

"We make it incredibly easy to sign up for Uber One, the value is enormous, the renewal rates are over 90%. It's a great product," Khosrowshahi said. "We allow you to cancel. We allow you to pause. That one was a head-scratcher for me."

Read the original article on Business Insider

❌