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In the last month alone, DoorDash announced an exclusive partnership with Cheesecake Factory and deals to deliver for Chipotle Mexican Grill, Five Guys and other local restaurants, as the food delivery service continues its run as the industry leader.
According to data from consumer analytics firm Second Measure, DoorDash controls 35 percent of the meal delivery market while rivals GrubHub and Uber Eats have only captured 30 percent and 20 percent of the market, respectively.
Furthermore, DoorDash is the fastest growing of the food delivery giants, with sales increasing 114 percent since 2018, while the overall market grew by 40 percent.
Many believe that the meal delivery industry still has room to grow, which was noted by Morgan Stanley’s research showing meal delivery services only address 6 percent of the $350 billion dollar quick-service restaurant market.
Peter Saleh, managing director and restaurants analyst at BTIG, says “restaurant delivery will survive, if not thrive, given the healthy consumer demand for the service across quick service, fast casual and casual dining.”
According to Bloomberg, DoorDash is reportedly planning to enter the public markets through a direct listing. Based on recent investments, the company’s valuation is approaching $13 billion, the report adds.
The meal delivery leader may now have the biggest share of customers nationally, however, the landscape remains fragmented in major cities.
According to Second Measure data, DoorDash has the most customers in Washington DC, Houston, and San Francisco. GrubHub dominates New York City while Uber Eats grabs the top spot in Los Angeles.
While DoorDash is increasing market share, it is also facing increased public scrutiny. The Washington, D.C. attorney general is accusing the DoorDash of keeping the tips meant for workers.
The overall meal delivery business is also facing increasing pressure on margins with the rise of price comparison tools available on Google and through the site FoodBoss.
With both opportunities and challenges going on in food delivery game, it remains to be seen how DoorDash strives to maintain as top leader in industry.
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