DoorDash Takes the Lead in the Food Delivery Wars as the Landscape Dramatically Shifts in 2019

Keynotes:

  • DoorDash captured 33% of the U.S. market, Grubhub 32%, Uber Eats 20% and Postmates 10%.
  • Digital food delivery is projected to be a $467 billion dollar business by 2025.
  • Digital food delivery sale have grown by 13% or more each of the past five years.

DoorDash’s rapid growth in 2019 allowed it to edge past Grubhub to become the leader in digital food delivery, according to data from analytics firm Second Measure.

Doordash captured a third of all digital food delivery sales in the U.S. market last year, Second Measure said. That put it on top of Grubhub, which had 32% of sales in the category. Uber Eats followed with a 20% share, and was trailed by Postmates, with 10%.

DoorDash saw its sales grow by 143% year over year, creating a dramatic shift in the landscape from 2018, when Grubhub was the leader, with 43% of the market.

Digital food delivery is projected to grow into a $467 billion business over the next five years, a 31% increase, according to Morgan Stanley. But companies in the digital delivery industry have to contend with thin margins and a sometimes rocky path to profitability.

While digital delivery sales overall have increased at a double-digit pace in each of the past five years, according to data from the NPD Group, the growth of the average check has fallen sharply from more than 4% in 2015 to zero growth in 2019.

The use of aggregator sites for food delivery could also impact the future of the industry. FoodBoss, for example, is a site that allows users to compare the price and speed of digital delivery services for the restaurant of their choice, similar to aggregators in the travel industry like Expedia and Trivago. Google Maps now also offers similar functions.

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