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Fancy a chauffeur? Uber is courting the well-heeled with a new ride option that will see it extend its reach from a taxi alternative to offering a more exclusive, limousine-style service. Uber announced Thursday it will launch a chauffeur ride optionUber Elitethat will offer a luxury ride experience targeting executives and other frequent travelers. Uber Elite will become the rideshare operators most expensive option, and will be offered on an invite-only basis for current Uber Black and Uber for Business clients in San Francisco and Los Angeles, followed soon by New York. Uber is banking on a market for a more elevated experience, though the accompanying cost may be difficult to justify for some people. Just consider the hypothetical ride that the company shared as an example in its announcement. An Uber Elite customer could request a ride from the San Francisco International Airport to the citys Union Square, with an option for a meet and greet at baggage claim, for a whopping $177.95 for the roughly 13-mile journey. Thats more than three times the cost of an UberX, a standard ride-alone option, while the citys BART system costs only $11.80 for that same journey. PREMIUM PRICING FOR PREMIUM EXPERIENCE The premium pricing is seemingly justified by a premium experience: Uber Elite will partner with fleet companies that employ professional chauffeurs driving luxury vehicles. In addition to the option to be met at baggage claim by the chauffeur, riders can expect complimentary amenities that some Uber drivers already offer in quest of a 5-star rating: Chargers, bottled water, mints, and hand-sanitizing towelettes. Riders can also make special requests, like champagne, which surely come at an extra cost. [Image: Uber] But there is a notable perk for anyone who has dealt with the frustration of trying to reach a human through Ubers customer support options: Uber Elite riders will have access to premium 24/7 phone support, which will be available before, during, and after the trip. Whats more, riders can call their chauffeur directly before pickup and rides can be arranged with as little as one hour notice or up to 90 days in advance. Chauffeur services have become the new battleground for rideshare companies. In October, Lyft acquired TBR Global Chauffeuring for about $110 million, expanding its reach into the luxury market in more than 3,000 cities in 120 countries. That said, Lyft has also been appealing to more budget-conscious customers recently, with recent blog posts touting the benefits of opting for rideshare versus car rentals and car ownership. Since its founding in 2009, Uber has steadily expanded its options to corner nearly every transportation option, from bikes to air taxis in select markets. Last year, riders booked more than 13.5 billion trips with Uber, the company reported last month. Even so, Ubers stock has stalled; its fallen more than 27% from an all-time high in October and slumped nearly 2.8% in mid-day trading on Thursday.
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E-Commerce
In 2020, Waymo began offering fully driverless rides to the public in Phoenix, turning the city into the closest thing the U.S. has to a real-world laboratory for autonomous vehicles. What began as a cautious pilot has since grown into a sprawling robotaxi network that now includes freeway travel and service to Phoenix Sky Harbor International Airport. Since then, Waymo has expanded to cities including San Francisco and Austin, while rivals like Tesla and Zoox are racing to deploy their own autonomous fleets. But the technologys spread has come with a steady stream of logistical and political questions for the cities hosting it (especially since Phoenix, with its wide roads and relatively simple grid, represents one of the easier environments for autonomous vehicles to navigate). Fast Company spoke with Phoenix Mayor Kate Gallego this week at Austin’s South by Southwest festival about what its actually like to govern a city where driverless cars are more fully integrated into the transportation system. The conversation has been edited for length and clarity. Youve overseen Phoenix during the whole arc of Waymos rollout. Whats changed in the city once AVs moved from a pilot to something residents can actually use? People have really appreciated Waymos expansion onto the freeways, because they can get where theyre going more quickly if its a longer distance. When we started, we were the first airport to have autonomous service in the world, which is a point of pride for Phoenix. We originally started pickups at our Sky Train, and now weve moved to the curb. We tried to be very safety-focused and make sure we tested and piloted before we did full deployment. Its a point of pride for us that we were the first in the world to have autonomous vehicle service at the airport. We think it really shows were a technology-forward city and that were willing to embrace innovation. Whats been the biggest benefit of having those Waymos on the streets in Phoenix? We had a real shortage of drivers, so more people have the ability to get where theyre going, particularly during hours like overnight when its harder to find people who want to be working. So its really improved quality of life for riders. Weve also seen some traffic-calming impacts. The Waymos go the speed limit. Phoenix has above-average traffic speeds for big cities in the United States, so speeding and red-light running are challenges for us. Waymos follow traffic rules, so thats helped have a traffic-calming effect. Have you seen any evidence in Phoenixcrash data, traffic incidentsthat verifies Waymos are making the roads safer? Are there other metrics you look at? We look at Waymos crash data, and the Waymos crash less than traditional human drivers. I dont know that weve done a full analysis, but we couldwe probably should. Youre the second person to ask me that today, so maybe Ill take the hint and do that analysis. Based on the Phoenix experience, whats something cities tend to underestimate when they first start integrating AVs into the roads? What adjustments do they have to make? Its really important to have good communication. If there are issues with the programming, you want to make sure Waymo knows and can fix them. When weve reported issues to Waymo, theyve been great about adapting the programming. What does the communication pipeline between your office and Waymo look like? Our first responders work directly with Waymo. If were going to have an unusual event or an emergency were responding to, they have the ability to work directly with the company. We also work directly with Waymo to report any incidents or opportunities, or if we want to partner on anything. Fast Company has reported on incidents in San Francisco where robotaxis can stall and take time to clear off the roads, partly because theres no human driver to communicate with. Have there been incidents like that in Phoenix? Early on, we had a street closure for an arts festival and a bunch of Waymos got very confused by it. We shared the incident, and Waymo updated the programming. We havent had a repeat of the issue. Generally, when weve had challenges, theyve been fixable. We dont have the same problem repeatedly. Weve trained our first responders, and its important to me that as new entrants come into the autonomous vehicle market, first responders can communicate with vehicles from outside the car. Thats worked fine with Waymo. In Arizona the state regulates autonomous vehicles. The city does not. But its been a partnership. For example, we had an issue where a Waymo drove into a pole in an alley. We shared the issue, and they updated the programming. I think they reported it to the federal government, but we werent their regulator. We were more like their partner. When you say they update the programming, what does that mean? I think they go out, look at what happened, and make sure the system understands how to react to that type of object or situation. There was an issue in another community where there was a stop sign in the bed of a pickup truck. The Waymo saw the stop sign and stopped, because it was programmed to stop when it sees one. But it wasnt aware of a moving stop sign driving down the street. Once they programmed it to understand that situation, it was fixed. Are other AV companies coming to Phoenix? Right now we have Waymo and Tesla. Zoox announced last week that it plans to come, but it hasnt arrived yet. Is there a point where there could be too many AV companies operating in a city? I chaired the U.S. Department of Transportations Transforming Transportation Advisory Committee, and one of our recommendations was that certain safety standards should be common across companiesfor example, first responders should be able to communicate with vehicles from outside the car. In Phoenix were also starting to think about how to design cities for more autonomous vehicles. Do we need more drop-off and queuing space in front of buildings? Should we adjust parking ratios? Some people in Phoenix imagine having their own autonomous vehicle that drops them off at work, then goes and makes money as a robotaxi and comes back later. I think were a ways away from that. But we do think about whether traffic might move differently if there are more AVs. That could have environmental benefits and reduce the need for pavement. I care a lot about climate action and emissions. Waymos are lower-emission compared to our average vehicle fleet, and reducing tailpipe emissions helps us with our air-quality challenges. I grew up with asthma, so thats something Ive cared about for a long time. Have there been actual changes to urban design yet, or is that still theoretical? Were really looking at our parking minimums. Id love to see Phoenix devote less space to pavement and more to active uses. That could help enable better mass transit as well. There are ongoing discussions about bringing Waymo to New York. Do you think the calculus changes in a much denser city? In some ways there could be benefits. A Waymo can see many things at oce, whereas a human driver has a limited field of vision. But cities should be ready to train first responders and make sure all stakeholders understand how to work with the technology. What does transportation look like five or 10 years from now in Phoenix? We recently went to voters with a ten-year plan. As part of that, we talked about advanced transportation technologies. Im really interested in how these technologies can help Phoenix grow up rather than outencouraging more density and more sustainable land use. And voters approved that plan? Yes, with 78% approval. It was our general plan for the city. We also passed a regional transportation sales tax and set aside $250 million for advanced technology. Are other cities asking you about Phoenixs experience with Waymo? Yes. Weve had people from all over the world come visit. Delegations from the European Union, officials from Prague, and others have come to see how our regulatory system evolved and how the safety systems work. Ive taken visiting officials on Waymo rides when theyre interested in bringing the technology to their own cities. The first head of government to ever ride in an autonomous vehicle was the Dutch Prime Minister in Phoenix in a Waymo. The Secret Service was very nervous about protecting him, so they did a lot of test runs. We had this bizarre parade through downtown Phoenix where there was a relatively small Jaguar with the prime minister surrounded by large armored Secret Service vehicles. Have you taken Waymos yourself? Yes. I was the first customer when we expanded service to Sky Harbor Airport. It was a good experience, except there were a bunch of cameras watching as we drove up, and I unbuckled early so I could get out quickly. The Waymo stopped because I had unbuckled. So it was my fault. As mayor, Im glad theyre responsive to safety issues. As a human, it was a little embarrassing.
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E-Commerce
The biggest new restaurant trend is small. Special menus with petite, less expensive portions are popping up all over, from large chains like Olive Garden and The Cheesecake Factory to trendy urban eateries and farm-to-fork dining rooms. Restaurants hope that offering smaller servings beyond the children’s menu will meet many different diners needs. Some people want to spend less when they go out. Others are looking for healthier options or trying to lose weight. Younger consumers tend to snack more throughout the day and eat smaller meals, said Maeve Webster, the president of culinary consulting firm Menu Matters. These are really driven by, I think, changes in the way people are thinking about their relationship with food, the way they spend money on food, what is a good value and whats not, Webster said. Looking for value Beth Tipton, the co-owner of Daniel Girls Farmhouse Restaurant in Connersville, Indiana, introduced an eight-item Mini Meals menu last fall after several customers requested smaller portions. The menu, which includes daily specials like a half piece of meatloaf with green beans, mashed potatoes and gravy for $8, now accounts for about 20% of the restaurant’s orders, she said. Older adults make up about half of the restaurants clientele, Tipston said, and some customers told her the regular menu was a stretch for their budgets. As someone who underwent weight-loss surgery, she also knew from experience that many restaurants won’t allow adults to order from their children’s menus. We wanted it to be available to all without the word kids meals attached, Tipton said. With the rising costs all around us we wanted to help in any way we can, and this is a great option. Eating out and GLP-1s Some restaurants are adding menus to court users of GLP-1 weight-loss and diabetes drugs like Zepbound, Wegovy, Ozempic and Mounjaro. Last fall, restaurateur Barry Gutin ran into two different friends who told him they were taking GLP-1s and struggling to find restaurant meals that met their dietary needs and smaller appetites. GLP-1 users tend to eat less, so they need nutritionally dense foods that are low in fat and high in protein and fiber. Gutin, the co-owner of Cuba Libre Restaurant and Rum Bar in Philadelphia, Washington, Atlantic City, New Jersey, and Orlando, Florida, reached out to a doctor who specializes in weight loss and to Cuba Libres culinary director, Angel Roque. Over the next month, they developed the chains GLP-Wonderful menu, which is available during dinner. The menu has five classic Cuban options. Roque said the pollo asado on Cuba Libre’s regular menu has nearly 1,000 calories; on the GLP-1 menu, that’s slimmed down to 400 calories, but heavy on protein and fiber. He said it was also important to keep the GLP-1 meals flavorful and colorful, to stimulate appetites. Many times when people are on those kind of regimes, they feel that they cant do the same as everybody else. So we wanted to show them, yes, at Cuba Libre, you can,” Roque said. Gutin said the menu has increased business. He estimated that 10 to 20 groups at each location every week have at least one person who requests the GLP-Wonderful menu. People say, Thank you for serving us, Gutin said. Big chains go small Olive Garden, whose seven-item Lighter Portions menu rolled out nationwide in January, said GLP-1 users were one consideration. The Italian-style restaurant chain also wanted to appeal to patrons pursuing healthier diets or more affordable meals, said Rick Cardenas, the president and CEO of Olive Gardens parent company, Darden Restaurants. There is a consumer group out there that believes in abundance, but abundance is different for everybody, Cardenas said in September during a conference call with investors. So consumers can choose. Were not changing our entire menu to make it a smaller portion.” The Asian fusion chain P.F. Chang’s began offering medium-sized portions last fall. The Cheesecake Factory added smaller, lower-priced Bites and Bowls to its menu last summer, while TGI Fridays recently began testing an Eat Like A Kid menu with smaller portions. A long-term change Smaller portions arent a new concept. Twenty years ago, small-plate tapas restaurants were all the rage, for instance. But to Webster, the menu consultant, the scaled-down dishes appearing now feel like a longer-term shift. For one thing, the trend is not tied to any particular cuisine. Webster also thinks consumers are thinking more about food waste than they used to, and smaller portions can alleviate some of their concerns. I think it is a core need that consumers have, and a demand that has been lingering under the surface for a long time because restaurant meals, particularly at chains, have become so large, she said. Sure, it sounds great to take leftovers home, but they never taste as good. During a recent visit to Shelburne, Vermont, from his home in North Carolina, Jack Pless was delighted to see the Teeny Tuesday menu at Barkeaters Restaurant, which specializes in locally sourced food. Pless, whos in his 60s and used to own a restaurant, said he cant eat as much as he used to at meals. So many times you go out to restaurants, especially me or my wife, and well take home a box and itll sit in the refrigerator for two, three days and start to grow a beard, he said. Julie Finestone, the co-owner of Barkeaters, said she introduced the Teeny Tuesday menu last month to bring in more weekday business during the winter. She was concerned about the cost of offering lower-priced food options, like $12 reuben sliders, but said the decision has brought in more business than she expected. Finestone said shes pretty confident Teeny Tuesday will become a year-round fixture. Some people, its dietary. Some have smaller appetites. Some people dont like to overindulge in the middle of the week, Finestone said. I think that it just spoke to people. Dee-Ann Durbin, AP business wrtier AP Video Journalists Mingson Lau and Amanda Swinhart contributed.
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E-Commerce
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