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- 🍋 DoorDash Inflation
🍋 DoorDash Inflation
Why New Yorkers are paying 58% more in food-delivery fees this year, plus how J.D. Vance's venture capital background helped him become the VP pick.
Together With
“Venture capital is unscalable. Production equals the time each partner has.” — Bill Gurley
Good Morning! Trump announced J.D. Vance as his VP pick. Vance is a former venture capital investor and worked at a firm Peter Thiel co-founded. Meanwhile, Goldman Sachs more than doubled its profit thanks to an investment banking uptick. Pura Vida, a Miami-based fancy wrap and smoothie chain, is planning 10 NYC locations with the first opening this Friday. Gen Z is projected to become the largest, wealthiest generation in history. Plus the top 10 states for finding a job in the AI boom.
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SQUEEZ OF THE DAY
DoorDash Inflation
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/33ab0a70-59f7-41d6-86a7-d14ac82f54c5/image.png?t=1721120484)
If you've noticed you're getting a lower bang for your buck than you used to on food delivery orders - you're not alone. Ever since a new NYC minimum wage law went into effect late last year, New Yorkers have been paying 58% more in food-delivery fees.
Restaurant-delivery services like DoorDash, Uber Eats, and Grubhub have passed along the rising costs to consumers, who paid an average of $20.1 million a week in delivery fees in Q1 2024, a 58% increase from a year ago. Meanwhile, fees paid by participating restaurants only rose by 13%.
The new minimum wage rule increased delivery workers' earnings to $19.26 an hour, a 64% rise, but tips fell by 60%. To manage costs, companies raised service fees and reduced the number of couriers working at any time, resulting in a 9% drop in the workforce.
Delivery demand still remains strong, with workers completing 2.8 million deliveries in Q1, up 8% from the previous year.
Takeaway: Critics are calling the minimum wage rules job killers, with fewer couriers working, and delivery fees that can cost even more than meals. However, these apps bet that consumers wouldn’t blink and still order delivery despite the high fees. And it turns out they were right. After all, nothing stands between a New Yorker and their Shake Shack, not even a $20 delivery fee.
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HEADLINES
Top Reads
JD Vance, former venture capital investor, is Trump’s VP pick (YF)
Top 10 states for finding a job in the AI boom (CNBC)
BlackRock pulls commercial that included Trump rally shooter (YF)
Apple released iOS beta for iPhones (CNBC)
Sequoia Capital offers to buy Stripe shares from investors (Axios)
Goldman Sachs profits more than double in second quarter (YF)
Burberry CEO is out after company warns about its profit (CNN)
KKR-backed OneStream seeks $4.38 billion valuation in US IPO (YF)
Most businesses that failed this year come from one sector (CNN)
Miami’s fancy wrap and salad chain is opening 10 NYC locations (NYE)
Gen Z is projected to become the largest, wealthiest generation (YF)
CAPITAL PULSE
Markets Rundown
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/9a44af67-4392-4329-9318-12d314ce05d5/master_index.pptx__91_.png?t=1721077020)
Stocks closed higher as Jay Powell tells investors he won’t wait until inflation reaches 2% to cut rates.
Movers & Shakers
(+) MicroStrategy ($MSTR) +15% after crypto stocks mirrored Bitcoin’s rally.
(+) Smith & Wesson ($SWBI) +11% after firearm manufacturers rallied following Saturday's shooting.
(–) Macy’s ($M) -12% after the department store ended negotiations with activist investors.
Private Dealmaking
Cleveland-Cliffs bought Stelco Holdings for $2.5 billion
Halo Industries, a laser manufacturing tech platform, raised $80 million
Standard Bots, a robotic automation startup, raised $63 million
Partior, a blockchain payment network, raised $60 million
Fireworks AI, a generative AI inference startup, raised $52 million
Fintech Farm, a neobank-in-a-box startup, raised $32 million
For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.
BOOK OF THE DAY
Never Enough
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/1b1f39ab-c871-46c9-aa1f-cda5aaaf4dc1/Screenshot_2024-07-15_at_10.46.35_PM.png?t=1721109279)
Once a barista in a small cafe making $6.50 an hour, Andrew Wilkinson built a business valued at over a billion dollars by the time he was 36—and yet, his path to success was anything but a straight line.
In Never Enough, Wilkinson pulls back the curtain on the lives of the ultra-rich, sharing insights into building a successful business that has been called a “Berkshire Hathaway, but for internet companies,” and a surprising first-person account of what it’s actually like to become a billionaire.
Never Enough features both the lessons Wilkinson has learned as well as the many mistakes made on the road to wealth—some of which cost him money, happiness, and important relationships.
Taking a “no secrets” approach to stories the wealthy rarely reveal, Wilkinson is unwaveringly honest about some of the unexpected downsides of money: its toxic effect on personal relationships, how the lifestyles of the rich and famous aren’t all they’re cracked up to be, and how competition with peers leaves everyone—even billionaires—feeling like they never have enough.
"Like going to business school and therapy all in one book."
DAILY VISUAL
S&P 500 Profit Margins Very High
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/548fdaf9-32ca-4b1d-b808-604212c6cd68/image.png?t=1720869638)
Source: Apollo
DAILY ACUMEN
Discomfort
Growth and comfort do not coexist. The magic happens outside your comfort zone.
Every time you push your boundaries, you expand them.
What scares you a little? That's probably where your next breakthrough lies.
Think of butterflies emerging from cocoons.
The struggle to break free is what gives them the strength to fly.
Your challenges are not obstacles; they're opportunities for growth.
Embrace discomfort. Seek out new experiences.
Remember, life begins at the end of your comfort zone.
ENLIGHTENMENT
Short Squeez Picks
MEME-A-PALOOZA
Memes of the Day
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