Gig Economy Crucial for Assisting Restaurants to Navigate Complex Regulations While Gearing Back Up
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, May 28, 2020 /PRNewswire/ -- While restaurants are going empty, food delivery is actually going strong… for the food delivery companies but now, many restauranteers are repurposing existing staff to make deliveries itself… and to utilize those added revenues for its own needs. For the dozens of national and local delivery platform companies that enlist independent contract workers to make deliveries (from stores, grocery and restaurants) for other companies, this crisis has seen an increase in their revenues. Now, smart restauranteers are realizing they don't have to pay one or more of these companies and can actually increase their own revenues by making the deliveries themselves! Self-delivery brings in more money to the suffering owners and also keeps the workers employed during these hard times. Some companies are also looking to the GIG economy market to staff the restaurant and to 'specialize' on adding the delivery option to these small companies to make this transition. Active companies in the markets this week include ShiftPixy, Inc. (NASDAQ: PIXY), Grubhub Inc. (NYSE: GRUB), Slack Technologies, Inc. (NYSE: WORK), Uber Technologies, Inc. (NYSE: UBER), Lyft, Inc. (NASDAQ: LYFT).
Amid the coronavirus pandemic and the resulting stay-at-home orders and national economic downturn, our nation's GIG economy companies have become a fundamentally essential component for restaurants, for staffing and now self-delivery… providing an economic lifeline for both workers and owners alike... and for grateful customers being able to have a semblance of dining 'in' while enjoying their favorite dishes from their favorite restaurants. It provides a much needed sense of normalcy. Since the rules preventing no dining-in these restaurants have been limited to take-out, but being able to deliver has definitely helped the industry and now, smart restaurant owners are capturing that income for themselves and their workers… and keeping their bond with their long time customer base strong. Many self-delivering restaurants are reporting that the number of orders coming in has significantly picked up and are seeing increases weekly.
ShiftPixy, Inc. (NASDAQ: PIXY) BREAKING NEWS: ShiftPixy's Expertise in PPP Loans and CARES Act Benefits Ensures Positive Outcomes for Clients – ShiftPixy, a California-based gig engagement platform provider today outlined, as part of its Restaurant Resilience Plan, how the Company's compliance and labor law knowledge is helping client restaurant operators navigate the complex web of new regulations attached to Paycheck Protection Program (PPP) loans and other CARES Act benefits.
"PPP loans were a huge step in the right direction for restaurant operators – but improper reporting and handling could void the promised forgiveness small business owners are counting on, leaving them with potentially huge problems post COVID-19," said ShiftPixy co-founder and CEO Scott W. Absher. "In order to help hundreds of our restaurant operator clients prepare and navigate these programs correctly, our team has become experts in these programs and their parameters, as an extension of our Restaurant Resilience Plan. We will be there to support our clients throughout and after this trying time."
The PPP provides loans designed to provide an incentive for small businesses to keep workers on their payroll. The U.S. Small Business Administration will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
With ShiftPixy's help, restaurant operators can focus on keeping their business running instead of getting bogged down with paperwork and complex legal hurdles. The Company's unique gig engagement platform empowers restaurant operators to take full advantage of their human capital with powerful functionality to handle payroll, compliance and native delivery. Read this and more news for ShiftPixy at: https://www.financialnewsmedia.com/news-pixy/
Other recent developments in the markets this week include:
Grubhub Inc. (NYSE: GRUB) recently released a statement saying "While our policy remains to not comment on specific market rumors, we want to reiterate our views with respect to M&A-related matters given the current level of recent speculation.
"We remain squarely focused on delivering shareholder value. As we have consistently said, consolidation could make sense in our industry, and, like any responsible company, we are always looking at value-enhancing opportunities. That said, we remain confident in our current strategy and our recent initiatives to support restaurants in this challenging environment."
Grubhub is a leading online and mobile food-ordering and delivery marketplace with the largest and most comprehensive network of restaurant partners, as well as nearly 24 million active diners. Dedicated to connecting diners with the food they love from their favorite local restaurants, Grubhub elevates food ordering through innovative restaurant technology, easy-to-use platforms and an improved delivery experience. Grubhub features over 300,000 restaurants and is proud to partner with more than 200,000 of these restaurants in over 4,000 U.S. cities and London.
Slack Technologies, Inc. (NYSE: WORK) recently commented that between February 1 and March 25, 2020, Slack added 9,000 new paid customers—an 80% increase over the full quarterly total for the preceding two quarters. And not only are more people using Slack; they're using Slack more. As our co-founder and CEO, Stewart Butterfield, outlined in a recent series of tweets, during that same period, the number of messages sent per user per day increased by an average of 20% globally.
In the U.S., we've seen these global trends continue. The San Francisco Bay Area, Seattle and New York were among the first places in the nation to adopt shelter-in-place measures. As our customers in these regions shifted to remote work, the increased depth of engagement and usage shows how Slack has become a central part of their remote workday.
The notes will bear interest at a rate of 0.50% per year, payable semi-annually in arrears on April 15 and October 15 of each year, beginning October 15, 2020. The notes will mature on April 15, 2025, unless earlier converted, repurchased or redeemed in accordance with their terms. Prior to January 15, 2025, the notes will be convertible only upon satisfaction of certain conditions and during certain periods. On or after January 15, 2025, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date.
Uber Technologies, Inc. (NYSE: UBER) recently stated during these unprecedented times, we know families are facing new challenges – whether it's where the next meal will come from or how to handle the stress of cooking multiple meals each day.
At Uber, we are always thinking about how we can make people's lives easier by developing products that solve new challenges. Today, we're pleased to share that as part of our commitment to provide 10 million free rides & deliveries of food, we are donating 100,000 rides to local school districts and youth organizations for food-insecure families to pick up meals during this time of need. We are also launching Family Style Meals in the Uber Eats app, which will offer larger portions intended for sharing or combination items that provide value and savings, so working parents can spend more time on what matters and less time preparing meals.
Lyft, Inc. (NASDAQ: LYFT) According to an article published by Travel&Leisure, ride share company Lyft is donating tens of thousands of free rides to people in need as the coronavirus pandemic continues to spread throughout the country.
Through their LyftUp initiative, which partners with government agencies and community organizations, the ride-sharing company will focus on helping on families and children, low-income seniors, as well as doctors and nurses who need transportation to work.
"We know Lyft can be a critical lifeline for communities in need — this situation is no different," the company said in a statement, adding, "many vulnerable populations still don't have as much access to these essential services as they should. So we're taking immediate action to fill the gaps, while continuously working to protect driver safety."
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