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Meal Delivery

Food fight: DoorDash diminishes Uber Eats’ dominance in food delivery

by Rakuten Intelligence - June 26, 2019

Image credit: Photo by Lily Banse on Unsplash

Who’s gobbling up the biggest share of the food delivery market? About a year ago, our data showed Uber Eats, whose parent company Uber just went public, as the leader in terms of rapid revenue and order growth. But there’s a food fight coming: In February 2019, DoorDash, with a rumored IPO on the horizon, finally generated more revenue than Uber Eats, which was in the lead for the past year.

 

DoorDash and Uber Eats appear to be battling it out for the top of the food (delivery) chain: Over a 24-month period, DoorDash showed whopping revenue growth of 174.5 percent, with Uber Eats at a healthy 85.5 percent. However, over the past 12 months, Uber Eats led with 25.1 percent share of revenue, followed by Grubhub with 20.4 percent and DoorDash with 19.6 percent.


Monthly Indexed Revenue

While the entire industry has seen growth, Doordash surpassed UberEATS in revenue in February 2019

The most-frequent food delivery patrons: New York and Boston

The food delivery market leaders are clear – but who’s chowing down on meals delivered by the big players? Nationally, the most growth is coming from e-commerce buyers ages 18 to 24 (a 57.4 percent increase year over year), and those 45 to 54 years old (a 53.3 percent increase).

 

New York-area consumers, known for their love of convenient deliveries and takeout food, are the biggest spenders, racking up an average of $773.67 per buyer over one year. San Francisco Bay Area diners are in second place but clearly have an appetite for food delivery: They spent an average of $579.76 per buyer over one year.

 

However, San Francisco leads in term of per-order value: $36.59 on average, compared with $33.23 per order in Los Angeles.

 

In addition to spending more on food delivery, New Yorkers also enjoy home-delivered meals more frequently: 51.2 percent of Big Apple online food delivery buyers hit up their food delivery apps 10 times or more per year, compared to 30.8 percent of all U.S. food delivery consumers. No other metro area comes close: Boston is second, with 39.6 percent of food delivery consumers ordering out more than 10 times a year.

 

Bay Area foodies are more willing to shop around for door-to-door food: They have the least loyalty to a given food delivery merchant of all the cities and regions we examined. DoorDash has the highest market share of any company in the San Francisco area, but they’re only at 26.1 percent of food delivery orders.

 

Compare San Franciscans with Miami-Fort Lauderdale diners, who are more loyal: 58.4 percent of their food delivery revenue goes to DoorDash.


Buyer Spending by Region

The Greater New York City region has the highest buyer spending, while the Dallas-Fort Worth region has the lowest out of the major cities

Firing up food delivery apps on the weekend

New Yorkers and San Franciscans may be shelling out more money for food delivery, but their hungry friends in Dallas/Fort Worth are, as a whole, taking food delivery to heart. Taking into account revenue, orders, and buyers, food delivery buyers make up 52.3 percent of e-commerce buyers in Dallas/Fort Worth, followed by Atlanta (48.1 percent) and Boston (47.6 percent).

 

No matter where food delivery fans are opening their front doors and eagerly tucking into their meals, it’s no surprise that they’re more likely to do so on the weekend. More than half of food delivery dollars are spent between Friday and Sunday.

Market Penetration in Major Cities

The Dallas-Fort Worth area has the highest food delivery market penetration

About this data

With a panel of millions of online shoppers, Rakuten Intelligence gives the most detailed, and accurate digital commerce data available, and is reported daily.

 

Rakuten Intelligence is the only service to measure digital commerce directly from the consumer, across all retailers, at the item level, and over time. Our retailer-independent methodology precisely measures commerce as it happens. By extracting detailed information from hundreds of millions of aggregated and anonymized e-receipts, Rakuten Intelligence can map the entire Purchase Graph, connecting each and every consumer to all their purchases.

 

Rakuten Intelligence gets its data from e-receipts – not a browser, app or software installed by the end-user – so its measurement reflects comprehensive shopping behavior across multiple devices, over time, which are key in an increasingly omnichannel retail world. Rakuten Intelligence is the exclusive e-commerce data provider for NPD’s Checkout Tracking e-commerce service.

 

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