For immediate release: Apr. 19, 2021
Contact: Geoff Vetter, (916) 634-9051
New Report: App-Based Delivery Services Generated More Than $9 Billion to More than 117,000 California Restaurants, Grocers, and Retailers During Pandemic
Company Data Shows App-Based Delivery Helped Restaurants & Retailers Survive COVID-19 Pandemic
SACRAMENTO – A new report compiled by the Protect App-Based Drivers & Services Coalition (formerly the Yes on Proposition 22 Coalition) found that app-based food and grocery delivery services generated more than $9 billion to more than 117,000 restaurants, grocers, retailers and small businesses throughout the coronavirus pandemic. The coalition aggregated these numbers using individual, California-specific data separately provided by DoorDash, Instacart and Uber Eats.
This new business and revenue proved to be a lifeline for restaurants and retailers during the pandemic-induced recession as lockdown orders were implemented and restaurants and retailers were closed or severely limited. According to a survey by the California Restaurant Association, as many as 30% of restaurants were threatened to permanently shut down due to the pandemic and recession.
The aggregate data, from March 1, 2020, to February 28, 2021, shows that app-based services contributed to CA restaurants, merchants, and retailers in the following ways:
- 117,019 restaurants and merchants utilized app-based delivery services in 2020, empowering them to access new streams of revenue and reach new consumers.
- 258,617,620 individual customer orders were placed with restaurants and merchants through app-based services during the period.
- $9,115,111,056 in revenue was generated for restaurants and merchants through app-based platforms during the period.
“When we closed our doors for in-person dining because of COVID-19, we honestly didn’t know how we were going to make payroll or keep serving our customers and community,” said Ray Ali, Partner of Green Olive, a Mediterranean restaurant in Los Angeles. “But, thanks to app-based delivery, we were able to stay afloat through a steady stream of delivery orders that came in and generated enough revenue for us to keep going through these difficult times.”
In November 2020, California voters protected the availability of app-based delivery and rideshare services by overwhelmingly passing Proposition 22. Without Prop 22, these services were at risk of closure or severely being restricted due to misguided legislation and lawsuits being pushed by special interests.
“It’s important to recognize how many small mom-and-pop establishments, merchants, and restaurant employees in our communities were saved due to the availability of app-based delivery services,” said Lilly Rocha, CEO of the Latino Restaurant Association. “App-based delivery no doubt saved thousands of restaurants from permanent closure. An injection of $9.1 billion into our economy for small businesses and workers during one of the worst recessions ever was absolutely critical. As we move forward, we must preserve the availability of these services.”
*Note: Merchants and restaurants that are listed on multiple app-based platforms may have been accounted for more than once as part of the aggregate data. Additionally, the data does not include other delivery platforms including Grubhub. Actual merchant revenue numbers will be greater.
About Protect App-Based Drivers & Services (PADS) Coalition
The Protect App-Based Drivers & Services (PADS) coalition, formerly the Yes on Prop 22 coalition, is continuing to engage to ensure the will of California voters is upheld; to protect access to independent, app-based jobs; and to preserve the availability, affordability and reliability of on-demand app-based rideshare and delivery services that are essential to Californians and our economy.
Proposition 22 was supported by 59% of California voters, 120,000 drivers, and a diverse coalition of more than 140 groups including social justice, senior, community, business, veterans and many others.