Uber Eats

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Waymo and Uber Eats start human-less food deliveries in Phoenix

Google, Tech, Uber Eats, waymo / /

Someday the robots will be mad that we aren’t tipping them —

You’ll need to run outside when your robot delivery arrives.

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A Waymo Jaguar I-Pace.

Enlarge / A Waymo Jaguar I-Pace.

Waymo

Your next food delivery driver may be a robot.

Waymo and Uber have been working together on regular Ubers for a while, but the two companies are now teaming up for food delivery. Automated Uber Eats is rolling out to Waymo’s Phoenix service area. Waymo says this will start in “select merchants in Chandler, Tempe and Mesa, including local favorites like Princess Pita, Filiberto’s, and Bosa Donuts.”

Phoenix Uber Eats customers can fire up the app and order some food, and they might see the message “autonomous vehicles may deliver your order.” Waymo says you’ll be able to opt out of robot delivery at checkout if you want.

  • The pop-up screen if a Waymo is delivering your order.

    Waymo

Of course, the big difference between human and robot food delivery is that the human driver will take your food door to door, while for the Waymo option, you’ll need to run outside and flag down your robot delivery vehicle when it arrives. Just like regular Uber, you’ll get a notification through the app when it’s time. The food should be in the trunk. If you get paired with a Waymo, your delivery tip will be refunded. Waymo doesn’t explain how the restaurant side of things will work, but inevitably, some poor food server will need to run outside when the Waymo arrives.

It seems pretty wasteful to have a 2-ton, crash-tested vehicle designed to seat five humans delivering a small bag of food, but at least the Jaguar i-Pace Waymos are all-electric. It’s a shame Waymo’s smaller “Firefly” cars were retired. There are smaller, more purpose-built food delivery bots out there—Uber Eats is partnered with Serve Robotics for smaller robot delivery—but these are all sidewalk-cruising, walking-speed robots that can only go a few blocks. The Nuro R3 (Nuro is also partnered with Uber) seems like a good example of what a road-going delivery should look like—it’s designed for food and not people, and it comes with heated or cooled food compartments. Waymo is still the industry leader in automated driving, though.

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Wendy’s will experiment with dynamic surge pricing for food in 2025

AI, Biz & IT, doordash, dynamic pricing, fast food, machine learning, Uber, Uber Eats, wendy's / /

Sir, this is Wendy’s new AI-powered menu —

Surge pricing test next year means your cheeseburger may get more expensive at 6 pm.

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A view of a Wendy's store on August 9, 2023 in Nanuet, New York.

Enlarge / A view of a Wendy’s store on August 9, 2023, in Nanuet, New York.

American fast food chain Wendy’s is planning to test dynamic pricing and AI menu features in 2025, reports Nation’s Restaurant News and Food & Wine. This means that prices for food items will automatically change throughout the day depending on demand, similar to “surge pricing” in rideshare apps like Uber and Lyft. The initiative was disclosed by Kirk Tanner, the CEO and president of Wendy’s, in a recent discussion with analysts.

According to Tanner, Wendy’s plans to invest approximately $20 million to install digital menu boards capable of displaying these real-time variable prices across all of its company-operated locations in the United States. An additional $10 million is earmarked over two years to enhance Wendy’s global system, which aims to improve order accuracy and upsell other menu items.

In conversation with Food & Wine, a spokesperson for Wendy’s confirmed the company’s commitment to this pricing strategy, describing it as part of a broader effort to grow its digital business. “Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menuboards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather,” they said. “Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value. We will test a number of features that we think will provide an enhanced customer and crew experience.”

A Wendy's drive-through menu as seen in 2023 during the FreshAI rollout.

Enlarge / A Wendy’s drive-through menu as seen in 2023 during the FreshAI rollout.

Wendy’s is not the first business to explore dynamic pricing—it’s a common practice in several industries, including hospitality, retail, airline travel, and the aforementioned rideshare apps. Its application in the fast-food sector is largely untested, and it’s uncertain how customers will react. However, a few other restaurants have tested the method and have experienced favorable results. “For us, it was all about consumer reaction,” Faizan Khan, a Dog Haus franchise owner, told Food & Wine. “The concern was if you’re going to raise prices, you’re going to sell less product, and it turns out that really wasn’t the case.”

The price-change plans are the latest in a series of moves designed to modernize Wendy’s business using technology—and increase profits. In 2023, Wendy’s began testing FreshAI, a system designed to take orders with a conversational AI bot, potentially replacing human workers in the process. In his discussion, Tanner also discussed “AI-enabled menu changes” and “suggestive selling” without elaboration, though the Wendy’s spokesperson remarked that suggestive selling may automatically emphasize some items based dynamically on local weather conditions, such as trying to sell cold drinks on a hot day.

If Wendy’s goes through with its plan, it’s unclear how the dynamic pricing will affect food delivery apps such as Uber Eats or Doordash, or even the Wendy’s mobile app. Presumably, third-party apps will need a way to link into Wendy’s dynamic price system (Wendy’s API anyone?).

In other news, Wendy’s is also testing “Saucy Nuggets” in a small number of restaurants near the chain’s Ohio headquarters. Refreshingly, they have nothing to do with AI.

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