Grubhub CEO Matt Maloney says the food delivery company has seen record numbers amid the coronavirus pandemic, as state and local lockdowns have forced restaurants to close their dining rooms.
Maloney said many small independent businesses don't have a month's worth of cash on hand, making it unlikely they'll be able to reopen after a month-long closure.
"In some markets, we're seeing as high as 30 percent restaurant closures," Maloney told Cheddar Thursday. "It really is a devastating time for many of them. We're also seeing record numbers of new restaurants reach out to us to try to implement delivery, because in many cases while their dining rooms are shut down, their kitchens are still open for delivery.”
He said delivery has become a “revenue lifeline” for businesses trying to stay open or at least keep their hourly employees paid so they don’t leave for other jobs.
One factor that could change the economic outlook for struggling restaurants is the $2 trillion stimulus package making its way through Congress that is designed to help small businesses survive through the outbreak.
"I'm really happy that the federal government has stepped in to provide that support," Maloney said. "We can't afford to do it for the independent restaurants across the country for months and months, and this is the federal government's job to do it.”
Maloney added that he is waiting to see the details of the package and when exactly businesses and restaurants will see the promised support.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
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