Ah, the Waffle House.   My son fell in love with it.  Mostly because there were a slew of things we could eat there- any time of the day.  And, we certainly hit this place at odd hours.  It was convenient to the location I took my children to view eclipses, meteor showers, and just wonderful astronomical events.

(We have a corrupt version of the chain here in Alexandria.  To distinguish itself from whence it came, its sign declares this shop on the corner of Russell and Mount Vernon is the Wafle House…)

And, now, the chain is going to branch out with a new joint venture, of sorts.  This 1750 unit chain that is open 24 hours a day is hooking up with Roadie, Inc.  Roadie plans to take on FedEx and UPS in delivering packages.  In about the same way that Uber operates and takes on the taxi business.

The concept?  Find folks who have stopped to eat at the Waffle House- generally those traveling around the US- and contract with them to deliver packages.

Right now, Roadie (with its headquarters in Atlanta [GA]) is a regional operation- working where Waffle House is strongest- the Southeast portion of the US.  And, the fee for delivering packages will range from $ 12 to $ 200 or so- which is based upon mileage (and a base cost).  As you can see, these costs are higher than those for UPS and FedEx, but the delivery time should be shorter- and pickup times more flexible.  Using Waffle House as the “meeting place”.

The drivers garner 80% of the delivery fee- less $ 1 to cover ‘insurance’ for the parcel they are carrying.  To make matters easier for these contractors, they will receive a 1099 for revenue earned- and a list of miles driven, so they can easily compute their Schedule C tax obligations.  (Oh, and let’s NOT forget their SE [self-employment; Medicare and Social Security] obligations.)

Roadie will work with drivers, customers, and Waffle House units to insure that the pickup (and delivery) goes off without a hitch.   The delivery is not to another Waffle House, but to the specific destination desired.

Roadie currently uses a smartphone app, just like Uber.  It’s not taken the US by storm yet- having been downloaded about 10,000 times with only a hundred deliveries or so.  But, it’s been well capitalized (to the tune of $ 10 million), so it should become a formidable competitor in the delivery industry.

Except it could run afoul of the law.  (You’ve seen the problems Uber has, right?)   After all, what is to preclude someone from sucking a driver into delivering drugs?  And, is that $ 1 fee really going to be enough if someone swipes the package and disappears?  (Or, if there is an accident and it’s damaged? Or, the driver stops off for another snack or meal- and someone lifts the package from the car?)

To counter these issues (ok, maybe), shippers will have to certify that what they are shipping is perfectly legal.  (I keep thinking of the movie- and TV show- Transporter…)  And, Roadie will have a copy of the driver’s operators licenses.  In addition, drivers will have to have location services turned on via their cell phone so the shipper can follow the package in real time.

The big hitch?  Will drivers really sign up to deliver a package (even if it’s not terribly out of the way) for 80% of $ 12 or even $ 200?

Stay tuned…

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