SAN FRANCISCO—Lyft announced this week a new food-delivery service is in the works, Reuters reports. Lyft’s core ride-hail delivery service has experienced a 48% decrease in quarterly revenue.
Unlike rival Uber Technologies, Lyft has not dipped its toes in the food delivery waters yet. Lyft President John Zimmer said the company would be targeting what it called an untapped market by focusing on delivery services for restaurants lacking a robust consumer food delivery platform.
“What we’re hearing from restaurants is they’re looking for a partner who will not charge 30% commission but still offer delivery service,” said Zimmer. The new food delivery service would provide new income streams for Lyft drivers.
The company said the food delivery business was in the early stages, but it would attempt to underbid GrubHub, Uber and other food-delivery, third-party delivery companies which charge restaurants per order. Last month, Lyft and GrubHub announced a venture that gives Lyft loyalty program members free delivery from GrubHub restaurants.
“The company has the infrastructure and tech capabilities to become a powerful player in the food delivery space, so expect them to mount a serious challenge to the likes of Uber Eats in the near future,” said Haris Anwar, investing.com analyst.
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