The Little Guys Take A Bite Out of DoorDash
Bloomberg Businessweek|June 28, 2021
Homegrown alternatives to big food delivery apps are springing up across the U.S.
Nick Leiber

Seeking to stay busy after retiring from a career in nonprofit healthcare management, Jon Sewell opened a calzone shop in Iowa City, Iowa. After eight years in the business, he can tell you all about the joys of plying college kids with late-night cheesy goodness—and even more about the downsides of delivery apps such as Grubhub, which doubled the commissions it charges restaurants to 30% after it acquired a competitor that Sewell worked with. “If the true cost of the delivery service was borne by the customer, they’d never do it,” Sewell says.

In response, drawing on his experience persuading rival hospitals to cooperate, Sewell started Chomp, a delivery service that now works with almost 200 restaurants in Iowa City and nearby Cedar Rapids. Restaurants pay commissions of 15%, and drivers earn an average of almost $20 an hour. After Chomp gained traction, friends in Fort Collins, Colo., asked for help setting up a similar service called Nosh.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM BLOOMBERG BUSINESSWEEKView All

Bottom-Fishing Can Be Scary

In a rough year for stocks, it’s tempting to try to grab bargains now. Just be careful

6 mins read
Bloomberg Businessweek
May 09, 2022

RETHINKING FAIR PAY

Companies are overhauling compensation amid an uptick in relocations

4 mins read
Bloomberg Businessweek
May 23, 2022

MAKING CONTACT

Getting close enough to touch an animal usually isn't a great idea. But in a quiet lagoon on Mexico's Baja Peninsula, the whales are happy to oblige

6 mins read
Bloomberg Businessweek
May 23, 2022

BUILD BACKS BETTER

In a scoliosis market where treatments have changed little since the 1970s, even new brace technology shows how far we still have to go

10+ mins read
Bloomberg Businessweek
May 23, 2022

ASTRONOMICAL HARASSMENT

A long-term survey of women in astronomy reveals a sordid culture of discrimination and inequality in academia

4 mins read
Bloomberg Businessweek
May 23, 2022

The Teen Who Defied DeFi

How a young math whiz nabbed $16 million by exploiting decentralized finance | Index Finance was one of the great hopes of decentralized finance, the blockchain-based movement challenging Wall Street's gatekeepers. With one swift set of transactions, an 18-year-old math prodigy liquidated $16 million of its assets and opened a new legal frontier

10+ mins read
Bloomberg Businessweek
May 23, 2022

Nigerian Projects Stall as Chinese Loans Dry Up

President Buhari's legacy could be marred by Beijing's waning appetite for costly public works abroad

4 mins read
Bloomberg Businessweek
May 23, 2022

The Twitter Deal's Big Debt Bill

If the acquisition goes through, the company will face mounting interest expenses as it tries to grow

3 mins read
Bloomberg Businessweek
May 23, 2022

The Very Last of Lehman Brothers

The bank whose collapse marked the beginning of the 2008 financial crisis is only mostly dead. Meet the people attending to its final remains

10+ mins read
Bloomberg Businessweek
May 23, 2022

This Time Is Different

The slump that startups thought would never happen has arrived

6 mins read
Bloomberg Businessweek
May 23, 2022
RELATED STORIES

MUSK WARS WITH TWITTER OVER HIS BUYOUT DEAL - ON TWITTER

Tesla CEO Elon Musk promised that taking over Twitter would enable him to rid the social media platform of its annoying “spam bots.” Now he’s arguing — without presenting any evidence — that there might be just too many of those automated accounts for the $44 billion deal to move ahead.

2 mins read
Techlife News
May 21, 2022

MCDONALD'S ERA IN RUSSIA COMING TO A CLOSE, RESTAURANTS SOLD

McDonald’s is selling all of its restaurants in Russia 30 years after the burger chain became a powerful symbol of easing Cold War tensions between the United States and Soviet Union.

2 mins read
Techlife News
May 21, 2022

HARLEY-DAVIDSON SUSPENDS PRODUCTION FOR 2 WEEKS, SHARES FALL

Harley-Davidson announced a two-week suspension of vehicle assembly and most shipments, citing a regulatory compliance issue with one of its suppliers.

1 min read
Techlife News
May 21, 2022

CONSUMERS SHIFT AGAIN, FLUMMOXING BIG RETAILERS LIKE TARGET

The pandemic vastly changed the way Americans spend money and now as they return to pre-pandemic behavior, they’re tripping up retailers again.

3 mins read
Techlife News
May 21, 2022

CONGRESS DIVES INTO UFOS, BUT NO SIGNS OF EXTRATERRESTRIALS

Congress held its first hearing in half a century on unidentified flying objects. And no, there is still no government confirmation of extraterrestrial life.

2 mins read
Techlife News
May 21, 2022

NY AGENCY FILES DISCRIMINATION COMPLAINT AGAINST AMAZON

A state agency in New York has filed an administrative complaint against Amazon, alleging the e-commerce giant discriminated against pregnant and disabled workers by denying them “reasonable accommodations” and forcing them to take unpaid leave, Gov. Kathy Hochul announced this week.

1 min read
Techlife News
May 21, 2022

GOOGLE'S RUSSIAN BUSINESS PLANS TO FILE FOR BANKRUPTCY

Google says its Russian subsidiary is planning to file for bankruptcy because it can’t pay staff and suppliers.

1 min read
Techlife News
May 21, 2022

DUSTY DEMISE FOR NASA MARS LANDER IN JULY; POWER DWINDLING

A NASA spacecraft on Mars is headed for a dusty demise.

2 mins read
Techlife News
May 21, 2022

‘TWITTER PHILANTHROPY' REVEALS CHASMS IN SOCIAL SAFETY NET

Single father Billy Price was already struggling to make ends meet before someone broke into his Michigan storage unit, stole his identity and ruined his credit.

6 mins read
Techlife News
May 21, 2022

ARGO TOUTS DRIVERLESS OPERATIONS IN MIAMI AND AUSTIN, TEXAS

An autonomous vehicle technology company that partners with Ford and Volkswagen says it has started driverless operations in two of eight cities where it is developing its technology.

1 min read
Techlife News
May 21, 2022