Which company is winning the restaurant food delivery war? - Bloomberg Second Measure (2022)

NOTE: Bloomberg Second Measurelaunched a new and exclusive transaction datasetin July 2022. Our data continues to be broadly representative of U.S. consumers. As a result of this panel change, however, we recommend using only the latest posts in assessing metrics, anddo notsupport referring to historical blog posts to infer period-over-period comparisons.

When many Americans sheltered in their homes early in the coronavirus pandemic, meal delivery sales reached new heights. Our data reveals that in May 2022, sales for meal delivery services grew 8 percent year-over-year, collectively.

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Which company is winning the restaurant food delivery war? - Bloomberg Second Measure (1)

These thriving businesses have been in the spotlight during the COVID-19 era. DoorDash (NYSE: DASH) made its public market debut with one of the biggest IPOs of 2020, while Uber (NYSE: UBER) acquired Postmates at the end of November 2020 in an attempt to consolidate market share and boost profitability. Uber is also seeking ways to diversify its existing business, such as by launching a U.S. grocery delivery service and piloting same-day delivery with Costco. Uber has also expanded its prescription delivery partnership with Nimble and acquired alcohol delivery company Drizly. Meanwhile, DoorDash has partnerships with CVS as well as regional and national convenience stores for the delivery of household essentials. DoorDash also partnered with Albertsons to expand its grocery delivery offerings and reportedly engaged in talks to buy Instacart. In September 2021, DoorDash also announced that it was adding alcohol delivery to its app. Both Uber Eats and DoorDash have also recently launched nationwide shipping from select merchants.

Bloomberg Second Measure’s transaction data shows that DoorDash and its subsidiaries earned 59 percent of U.S. consumers’ meal delivery sales in May 2022, while Uber Eats came in second place with 24 percent. It’s worth noting that our sales metrics may differ from publicly reported earnings for a number of reasons. First, some Uber Eats transactions are indistinguishable from Uber Rides transactions in Bloomberg Second Measure’s data, and this issue was especially pronounced from May 2019 to mid-August 2019. Additionally, Bloomberg Second Measure’s data does not include Uber Eats’ purchases made using Uber Cash or purchases made by corporate customers, an area where Uber Eats is reportedly making inroads. Our analysis includes debit and credit card purchases from a panel of millions of U.S. consumers. Postmates earned 3 percent of the U.S. meal delivery market in May 2022, bringing Uber’s total market share to 27 percent.

Grubhub and its subsidiaries, which include Seamless and Eat24, came in at 13 percent of U.S. meal delivery consumer spending in May 2022. (Purchases made through LevelUp, which Grubhub acquired in late 2018, are not included in our analysis. Neither are college student meal plan purchases made through Grubhub subsidiary Tapingo.)

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One of the industry’s smaller services, Waitr (NASDAQ: WTRH), earned less than 1 percent of national sales in May 2022. In January 2020, the company announced plans to lay off all drivers in favor of using contractors. The change came weeks after Waitr installed a new CEO as it tried to boost share prices and remain listed on Nasdaq. In December 2021, Waitr also announced its plans to acquire the cannabis dispensary POS platform Cova.

Average sales per customer on the rise at meal delivery companies, especially DoorDash and Uber Eats

In addition to more consumers ordering from food delivery services, the average sales per customer has increased at these companies during the pandemic. DoorDash and Uber Eats have seen the most growth in average sales per customer over the past two years. At DoorDash, the average sales per customer in the first quarter of 2022 was 89 percent higher than in the first quarter of 2020. For Uber Eats, the average sales per customer rose 72 percent during the same time period.

Which company is winning the restaurant food delivery war? - Bloomberg Second Measure (2)

In the first quarter of 2022, DoorDash customers spent the most, with an average of $323 per customer. Uber Eats’ quarterly customer spend was the second highest with an average of $246, while customers at Postmates and Grubhub spent an average of $195 and $163, respectively.

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Consumers may be paying even more for meal delivery services in the near future, as the price of food and gas continue to rise. Meal delivery companies have responded to these inflationary pressures in different ways. For example, Uber Eats implemented a fuel surcharge for consumers, starting in March 2022. DoorDash launched a gas rewards program for drivers to aid with rising fuel costs, while Grubhub has boosted driver pay per mile.

Subscription meals have appeal

As meal delivery services look for new ways to grow in cities big and small, one emerging answer is subscriptions. Postmates launched Postmates Unlimited in 2016, while DoorDash and Grubhub followed suit with their own subscription options in 2018 and 2020, respectively. In November 2021, Uber also launched its new “Uber One” subscription plan, which offers benefits for both rides and delivery services.

In May 2022, DoorDash’s DashPass subscription attracted 30 percent of DoorDash’s customers. Among cohorts who signed up for DashPass between May 2021 and May 2022, an average of 69 percent remained subscribed after one month. The average six-month customer retention rate for DashPass was 42 percent and the average 12-month retention rate was 32 percent. In April 2022, DoorDash also launched DashPass for Students, which offers the subscription’s benefits at a reduced price.

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Which company is winning the restaurant food delivery war? - Bloomberg Second Measure (3)

Notably, in December 2019, DoorDash also partnered with Chase to give free DashPass memberships to millions of credit card holders. These free memberships are not included in Bloomberg Second Measure’s data.

Companies vie for restaurant partners

Another very popular growth strategy for meal delivery companies has been forming partnerships with the nation’s top chain restaurants. (Though many services have also been in the news for listing restaurants that do not want partnerships.) In 2020, DoorDash officially teamed up with Little Caesars Pizza, a brand that has never previously offered delivery. DoorDash has other deals with Wendy’s, Chick-fil-A, and McDonald’s, the biggest fast food chain in the country, which also offers delivery with Uber Eats.

Starbucks has a contract with Uber Eats, Popeyes with Postmates, and Taco Bell and KFC with Grubhub. Yet, as Uber Eats and Grubhub public filings show, partnerships don’t always lead to revenue. Often, larger partners pay the delivery services lower fees, decreasing their take rates or even causing them to lose money. Conversely, some restaurants that are relying heavily on delivery amidst the COVID-19 pandemic have reported losing money on orders as meal delivery companies charge high service fees, prompting policy intervention in many cities. New York City has also recently passed legislation to improve conditions for food delivery workers.

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However, the partnerships seem to be driving sales for some of the restaurants. The Cheesecake Factory and Chipotle have publicly credited DoorDash with boosting their revenue. In May 2022, DoorDash accounted for 8 percent of sales at Buffalo Wild Wings and 11 percent at Chipotle (before subtracting DoorDash’s cut or the delivery tip).

Fewer customers are loyal to a single meal delivery service

Despite overall industry growth, the battle for customers is getting more intense because fewer of today’s diners are loyal to just one service. (Grubhub’s former CEO cited “promiscuous customers” as a hindrance to his company’s growth.) As more restaurants form exclusive delivery partnerships, more diners are going to have to hop between apps to cover all their favorite takeout spots. The least loyal customers, it seems, will also be the most well fed.

*Note: Bloomberg Second Measure regularly refreshes its panel and methods in order to provide the highest quality data that is broadly representative of U.S. consumers. As a result, we may restate historical data, including our blog content.

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FAQs

Who has the biggest market share in food delivery? ›

Key food delivery statistics
  • China is the largest market for food delivery, with a market size of $27.3 billion in 2021. ...
  • The entire food delivery app industry is expected to reach $320 billion market size by 2029.
  • Uber Eats is the most popular food delivery app, Delivery Hero has the most collective users.
13 Sept 2022

Which food delivery app pays the most 2022? ›

The food delivery service that pays the most is Instacart, with drivers reporting earning as much as $30 an hour. Before you quit your day job to deliver food, you need to consider the responsibilities of a delivery job.

Is DoorDash or Uber Eats more popular? ›

Bloomberg Second Measure's transaction data shows that DoorDash and its subsidiaries earned 59 percent of U.S. consumers' meal delivery sales in May 2022, while Uber Eats came in second place with 24 percent. It's worth noting that our sales metrics may differ from publicly reported earnings for a number of reasons.

Who started DoorDash? ›

Andy Fang is one of the co-founders of DoorDash, everyone's favorite food delivery app. Andy and his co-founders, Tony Xu and Stanley Tang, started the company in 2013 while they were students at Stanford.

Who is the top food delivery company? ›

The best food delivery services you can try today
  1. Grubhub. Best food delivery service overall. ...
  2. DoorDash. Great food delivery service with helpful recommendations. ...
  3. Seamless. A mirror image of Grubhub. ...
  4. Uber Eats. The best food delivery service if you already use Uber. ...
  5. Instacart. ...
  6. Caviar. ...
  7. Postmates. ...
  8. ChowNow.
7 Oct 2022

Who is the biggest food delivery company in the world? ›

DoorDash

How much do Uber drivers make? ›

Average Uber Driver Earnings. The average Uber driver earns between $8.55 and $11.77 per hour. Those figures will vary when influenced by the factors we have discussed, such as the particular Uber service provided, Uber's pricing schematics, and the number of hours worked in total by the driver.

How are Uber Eats drivers paid? ›

Cash out. Payments are made weekly to your linked direct deposit account. Uber also offers Instant Pay, which lets you transfer your earnings to a debit card up to five times per day. You also can view your earnings at any time by clicking on the “Earnings” tab in the app.

Can you DoorDash at 17? ›

What's required to dash? You must be at least 18 years old, have an iPhone or Android smartphone, and complete the sign-up process.

Who is the richest DoorDash? ›

DoorDash had its IPO in December 2020 making Xu's net worth an estimated $2.8 billion as of April 2021. He and his wife Patti are signatories to the Giving Pledge.
...
Tony Xu
OccupationCEO of DoorDash
Board member ofDoorDash and Meta Platforms
SpousePatti Xu
Children2
11 more rows

Why is it called DoorDash? ›

Next thing we knew, we were delivering food every single day all over the Stanford campus. We were students by day, delivery drivers by night. We learned so much as drivers that we now have every team member start as a driver in their first week at our company. We later changed our name to DoorDash in June.

How does DoorDash make money? ›

DoorDash (DASH) is a food delivery app that relies on contract delivery drivers who deliver food from local restaurant partners to customers' doors. They make money via delivery and service fees, commissions, subscription plans, advertising, and catering.

Which delivery company pays the most UK? ›

Top companies for Delivery Drivers in England
  • YODEL. 2.8 £16.77per hour. 896 reviews186 salaries reported.
  • Bryanston Logistics. 2.7 £16.35per hour. 53 reviews30 salaries reported.
  • Laundryheap. 2.2 £14.89per hour. 16 reviews440 salaries reported.
  • LLG NW LTD. 4.1 £14.44per hour. ...
  • Ocado Group. 3.0 £14.04per hour. ...
  • Show more companies.

What delivery drivers make the most money? ›

10 best paying delivery jobs
  • DoorDash delivery driver. National average salary: $45,555 per year. ...
  • Grubhub courier. National average salary: $47,378 per year. ...
  • Instacart delivery driver. ...
  • Postmates delivery driver. ...
  • Caviar delivery driver. ...
  • Uber Eats delivery driver. ...
  • FedEx local delivery driver. ...
  • UPS delivery driver.

Which food delivery drivers make the most money? ›

Here's a look at the average hourly pay rate for some of the major food delivery apps.
  • Grubhub — $16.71.
  • Uber Eats/Postmates — $14.81.
  • DoorDash — $14.02.
  • Saucey (alcohol delivery) — $18.
  • Instacart — $17.
  • Shipt (grocery store shopper and delivery) — $16.
  • Gopuff (alcohol, food, drinks, and more) — $14.
10 Aug 2022

Who is the biggest food delivery service UK? ›

As of 2021, UberEats has a 27% market share of the UK's food delivery app market, an impressive feat falling only behind JustEat, and they operate within all major cities in the country. That's a lot of hungry customers at your fingertips!

Who is bigger Deliveroo or just eat? ›

As of 2019, JustEat was far and away the largest player in the UK app takeaway market—80% of Brits who regularly ordered takeaways had used JustEat, compared to just 24% on UberEats and 23% on Deliveroo (per GlobalWebIndex.

Which food delivery service is best UK? ›

Check out our recommendations for the best food delivery and takeaway apps in the UK.
  • Just Eat.
  • Deliveroo.
  • Uber Eats.
  • FoodHub.
  • Gousto.
  • Domino's.
  • Zomato.
25 Jan 2022

What is the name of the company that delivers food? ›

DoorDash. DoorDash is one of the world's most established food delivery apps.

Who owns caviar? ›

Square announced the sale of Caviar, to DoorDash for $410 million last August. At the time, CEO Jack Dorsey, who is also the chief executive of Twitter , said in a statement the move would allow Square to double down on investments and focus in its core payments businesses.

How big is the food delivery market? ›

b. The global online food delivery market size was estimated at USD 189.70 billion in 2021 and is expected to reach USD 215.69 billion in 2022.
...
Report AttributeDetails
Market size value in 2022USD 215.69 billion
Revenue forecast in 2028USD 388.74 billion
Growth RateCAGR of 10.8% from 2022 to 2028
11 more rows

How much do Uber drivers make UK 2022? ›

UK Uber drivers earn an estimated average of £7.88 per ride. Based on two rides per hour, that's an hourly rate of £15.76. So a 30-hour week would earn you an income of £472.

How much do you tip Uber drivers? ›

You should tip Uber and Lyft drivers between 10 and 20 percent based on quality of service. You should use a set tip of $4-$6 for rideshare delivery.

Do you tip Uber drivers? ›

At the end of your trip, you'll be prompted to rate your driver. Once you provide a rating, you'll be given the option to add a tip. You are free to tip and drivers are free to accept tips at any time. Giving cash directly to your driver is always an option.

How much Uber Eats pay UK? ›

How much does a Delivery Driver make at Uber in the United Kingdom? Average Uber Delivery Driver hourly pay in the United Kingdom is approximately £15.00, which is 78% above the national average.

Can Uber Eats drivers see if you tip? ›

If you're wondering whether your Uber Eats delivery driver can see if you added a tip before they bring you your order, the answer is yes. The version of the app-based food delivery platform that Uber Eats drivers use shows them how much their customers added as a tip or if they decided not to tip at all.

Do Uber Eats drivers get paid without tips? ›

Uber Eats driver employees do not get paid solely in tips. The company does provide payment for each delivery. In addition, Uber drivers delivering food get to keep all of the tips that their customers leave. One thing you should remember is that Uber Eats has informed its customers that gratuities are not expected.

Can you DoorDash with your kid? ›

Can I bring my kid with me to DoorDash? Dashers can bring kids along with them when they deliver for DoorDash. But they should not leave children unattended in the car while making deliveries.

Can you DoorDash at 12? ›

Can You Drive For DoorDash at Any Time? Yes, you can drive for DoorDash at any time of the day or night. DoorDash provides drivers with a lot of flexibility in that area. However, you need to make sure there are restaurants on DoorDash open throughout the night where you live.

Does DoorDash pay gas? ›

No, DoorDash does not pay for gas. Dashers are responsible for all of their vehicle and fuel costs because they are independent contractors. Unlike employees who do get their gas expenses reimbursed by their employer, as independent contractors, Dashers are essentially acting as their own small delivery business.

Who is the youngest billionaire? ›

(Image credit: @alexandr_wang) As a kid, Alexandr Wang was a math whiz who liked participating in national math and coding competitions.

How many billionaires are there in the world? ›

The world's billionaires—only 3,311 individuals—represent almost $11.8 trillion in wealth.
...
Billionaires by Region.
Rank#1
RegionNorth America
Number of billionaires1,035
Collective Billionaire Wealth$4.6 trillion
6 more columns
15 Sept 2022

How much do DoorDash drivers make? ›

Base pay from DoorDash to Dashers ranges from $2-$10+ per delivery depending on the estimated duration, distance, and desirability of the order. Deliveries that are expected to take more time, that require Dashers to travel a longer distance, and that are less popular with Dashers have higher base pay.

What was the first food delivery app? ›

1989 – Peapod, company that pioneered the concept of online grocery deliveries, was launched. 1994 – The first online food order was a pizza from Pizza Hut, via 'PizzaNet', the company's digital ordering hub. 1995 – The first online food ordering service, World Wide Waiter (now Waiter.com) was founded.

Does DoorDash work in UK? ›

London Food Delivery – 400 Restaurants Near You | DoorDash.

How much do door Dashers make a week? ›

This is the same as doing DoorDash full time, but of course, DoorDash is just a side job for most people. If you only do a few hours of deliveries per week and treat DoorDash like a second job, you're likely only making about $100 to $200 per week in DoorDash earnings.

How much does DoorDash pay per mile? ›

Aim for $1 per mile: A general rule of thumb among top-earning dashers is that a good order will pay about $1 for each mile you have to drive. On an order request, you can quickly do the math to see if an order is worth it. A $4 order for 8 miles is less than $1 per mile and isn't worth it to many Dashers.

Does DoorDash pay daily? ›

Drivers delivering with DoorDash are paid weekly via a secured direct deposit to their personal bank account — or via no-fee daily deposits with DasherDirect (U.S. Only). Dashers in the U.S. can withdraw their earnings once daily with Fast Pay ($1.99 per transfer).

Who is the biggest food delivery service UK? ›

As of 2021, UberEats has a 27% market share of the UK's food delivery app market, an impressive feat falling only behind JustEat, and they operate within all major cities in the country. That's a lot of hungry customers at your fingertips!

What is the market share of Deliveroo? ›

Just Eat accounted for 40 percent of the food delivery segment in Europe, more than Delivery Hero and Deliveroo combined.
...
Leading players in the ready-made meal delivery market in Europe as of 2017, based on market share.
CharacteristicMarket share
Just Eat40%
Deliveroo13%
Takeaway13%
Delivery Hero7%
1 more row
4 May 2022

Which food delivery service is most popular UK? ›

Just Eat. Founded in 2001, Just Eat is the most popular delivery service in the UK (less so in the USA) and Europe.

Which food delivery service is best UK? ›

With a variety of different options for different needs, HelloFresh is one of the UK's leading meal delivery services and is currently serving all of the UK. Try the Family Box to create fuss-free dinners, the Rapid Box for meals that take under 20 minutes, or the single person meal delivery.

What is the UK's most popular takeaway? ›

Leading types of takeaway food in Great Britain 2021

In 2021, the most popular type of takeaway cuisine in Great Britain was Chinese, with 25 percent of respondents stating that this was the case. Meanwhile, the second and third most popular types of takeaway cuisine were Indian and fish and chips, respectively.

How big is the UK food delivery market? ›

According to the new Lumina Intelligence UK Foodservice Delivery Market Report 2022, the UK foodservice delivery market is forecast to grow by +£0.7bn in 2022, to a value of £13.3bn. This follows strong growth of +6.5% in 2021, bringing the total value of the market to £12.6bn currently.

Which food delivery app came first? ›

1989 – Peapod, company that pioneered the concept of online grocery deliveries, was launched. 1994 – The first online food order was a pizza from Pizza Hut, via 'PizzaNet', the company's digital ordering hub. 1995 – The first online food ordering service, World Wide Waiter (now Waiter.com) was founded.

Why is Deliveroo not making a profit? ›

Losses at Deliveroo soared by more than half to £147m in the first six months of the year, with the embattled company facing a dramatic slowdown in revenue growth as the cost of living crisis affects the demand for takeaways.

Why does Deliveroo make a loss? ›

Deliveroo reported a pretax loss of £147.3 million ($178 million) in the first six months of the year, up 54% from the same period a year ago. The losses were driven mainly by increasing spending on marketing and overheads.

Does Amazon own Deliveroo? ›

Amazon's investment was ultimately approved after regulators concluded the deal didn't present any significant competition concerns and that Deliveroo would struggle to survive without the investment. It gave the e-commerce giant a 16% stake in Deliveroo, which is led by former Morgan Stanley banker Will Shu.

Does Uber eats pay better than Deliveroo? ›

Of these two, our research indicated drivers generally earned more with UberEats, although this was not anywhere near consistent, and some drivers certainly earned more through Deliveroo. Your best bet will be to try as many different delivery/courier apps as possible and find which works best for you in your area.

What is the food delivery service in UK? ›

Some of the most popular online takeaway providers in the UK are Just Eat Takeaway.com, Deliveroo, Uber Eats, and Domino's Pizza. According to a global consumer survey conducted in the country in 2022, 69 percent of respondents used Just Eat within the past 12 months.

Which app is best for food delivery? ›

Best Food Delivery Apps: Top 10 Food Delivery Apps (2022)
  • Toast TakeOut.
  • Uber Eats.
  • DoorDash.
  • ChowNow.
  • Grub Hub.
  • Caviar.
  • Seamless.
  • Postmates.

Which food delivery app has the most restaurants in UK? ›

According to the statistics of 2021, Just Eat Takeaway dominated the UK's food delivery market with a market share of 45%. UberEats has a share of 27%, followed by Deliveroo with 26%.

Who is the cheapest food delivery company? ›

Out of the four food delivery apps we tested (DoorDash, Uber Eats, Grubhub, Postmates), Uber Eats came out on top as the cheapest.

What is the healthiest meal prep company? ›

A quick look at the best healthy meal delivery services
  • Best fully prepared meals: Snap Kitchen, The Good Kitchen, and Territory Foods.
  • Best for athletes: Trifecta.
  • Best gluten-free: Freshly.
  • Best keto: Factor.
  • Best variety: Sunbasket.
  • Best for families: Green Chef.
  • Best for kids: Yumble.

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