Food delivery wars intense in coronavirus world

DoorDash, Grubhub lead market as meal deliveries skyrocket

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The meal delivery service industry hit record heights in March as the coronavirus pandemic forced millions of Americans to self-isolate at home.

There was a 24 percent year-over-year growth in March for those services, according to data analytics firm Second Measure. And social distancing practices may have also encouraged more people to try the services for the first time, as 28 percent of American consumers have ordered through them, compared to 22 percent a year ago.

TickerSecurityLastChangeChange %
UBERUBER TECHNOLOGIES INC.36.32+2.17+6.35%
GRUBGRUBHUB INC56.74+3.91+7.40%

TOP THREATS TO US FOOD SUPPLY CHAIN

The services have been actively looking to attract business during the pandemic, offering deals like free or discounted delivery and reducing restaurant commissions.

“We continue to hear from our restaurant partners that driving growth in sales is the most effective way to help,” DoorDash CEO Tony Xu wrote in a blog post.

DoorDash and its subsidiaries continued to hold the largest share of the food delivery market in March, with 42 percent of sales, according to Second Measure. Grubhub, including subsidiaries like Sealess and Eat24, had the second-largest share with 28 percent of sales.

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A Grubhub spokesperson told FOX Business earlier this month that the service had seen an uptick in new restaurants joining the service. And after an initial downturn in business, the company told investors last week that it had seen ordering return to or exceed its expectations set before the pandemic, and that it was investing in pushing further growth.

“We have responded quickly to the crisis by launching a number of initiatives to support restaurants, drivers and diners; our focus is on driving as much business as we can to our restaurant partners while dining rooms remain closed,” the company told investors in a written statement. “And we will continue to support the local communities and restaurants that are struggling during this uncertain and difficult period.”

A food delivery driver wears a protective mask as she loads a take-out order into her car at the Pike Place Market, Friday, March 20, 2020, in Seattle. (AP Photo/Elaine Thompson)

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Uber Eats held 20 percent of sales, but the Second Measure analysts noted that Uber may actually hold a larger share of the market because some Uber Eats transactions are “indistinguishable” from rides, and because its data don’t include purchases made with Uber Cash or by corporate customers.

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