What makes a business or an industry thrive? The answer to this question is the competition in the market that creates an environment of a marathon that does not stop. This constant competition benefits the customers as they get much better services in offers, food quality, variety, short-time delivery services, etc. People could differentiate between two or more companies and choose whichever they find best for their services.
Earlier, people had limited options due to which they had to compromise with whatever services they were provided with, which could be expensive and of average quality. But now the industry has taken a different road since a competition to hold a position in the market has become a game of snake and ladder; one snake(mistake) can take all the steps(hard work) of the player(company) to begin from the starting point.
The food delivery market has been revolutionized since the online food delivery market was introduced into the food industry. The online food delivery system has made it easier for people to have a proper meal or fulfill their urge to crave their favorite dessert or snacks without moving their feet outside.
Market Size of Online Food Delivery Market
In 2020, the online food delivery section amounts to US$122,739 million, which is expected to show an augmentation in demand for the online delivery system, which will further increase the value to US$164,002m by 2024.
In the U.S., the revenue in the online food delivery market is valued at US$26,527 million in 2020, which is anticipated to grow at 5.1%, resulting in a market share of US$32,325 million by 2024. In 2020, the market volume for restaurant-to-consumer delivery was US$15,631 million.
In India, the online food delivery industry has a value of US$9,207m in 2020. The revenue is anticipated to result in an annual growth rate of 9.5%, causing the market volume to US$13,233 million by 2024.
If compared globally, China generates most of the revenue (US$45,909m in 2020).
Food Delivery war between various Players in the Market
Grubhub V/s Doordash
GrubHub is considered one of the oldest players in the online food delivery market. It was started in 2004, Chicago and has created services for people who have helped GrubHub earn 5.6 million active customers, delivering 234,700 orders per day. It has partnered with more than 35,000 restaurants in 900 locations to provide the customers with both quality and options to choose. GrubHub acquired Seamless, a food delivery company, in 2013.
DoorDash entered into the food delivery market in 2013, and since then, it has not stopped from making customers satisfied with the services. Even after its much later entrant into the food delivery market, it has overpowered GrubHub. Within seven years of its lifetime, DoorDash has already covered 850 cities across North America.
Doordash has gained way more success in a short period than its rival GrubHub.
Ubereats V/s Doordash
UberEats success has been one of the most discussed topics in the food industry. Since it arrived in 2014, almost every online food delivery company in the market has defeated. It offers food delivery services from multiple restaurants. Due to its attractive discount offers and lower delivery charge, UberEats has spread across 200 cities across the globe and is still counting.
DoorDash has left a remarkable presence in the market since its arrival. The application has been delivered in more than 4000 cities and has reached the 3rd position in online food delivery company, defeating GrubHub in 2019. DoorDash is also known for its alcohol delivery service. Though DoorDash charges a service fee, that’s why UberEats is much better for larger orders.
Postmates V/s Doordash
Postmates has been a celebrity app, whether it was Seth Rogen ordering a birthday cake for his wife’s birthday, or Post Malone spending over $40,000 on Postmate deliveries within a year. It came with a notion of anything, anytime, anywhere, making the customers try the Postmates services.
DoorDash has many more cities under its services compared to Postmates. Although both deliver in suburbs and downtown areas, DoorDash won the battle as it has more customer base than Postmates.
Ubereats V/s Grubhub
According to a survey, UberEats delivered food to around 15 million users in December 2019. The company has been currently in partnership with 46,100 restaurants, double than the restaurants since 2016. UberEats has grown at a breakneck pace.
GrubHub has a much more customer base in the U.S. than UberEats. After merging with Seamless, GrubHub got more customers and restaurants in its business. The company is leading over UberEats by partnering with 300,000 restaurants worldwide.
Postmates V/s Grubhub
Postmates have much more quality services than GrubHub. Apart from food deliveries, Postmates delivers many other things. Postmates provides the feature of pickup option to the customers along with the delivery system, which makes it more unique. Although Postmates provides many different services, including food delivery GrubHub still wins over Postmates as the former company has a more customer base. Also, GrubHub is available in over 1,600 cities in the U.S. and London, making it a much readily available service, unlike Postmates, which covers around 100 cities in the U.S. If compared based on price, Postmates charges a service fee, which makes the order a bit high-priced if compared to GrubHub which again makes GrubHub a clear winner.
Ubereats V/s Postmates
The best thing that sets Postmates apart from UberEats is that Postmates deliver many other things apart from online food delivery, giving Postmates an edge. Another fact that makes Postmates a better option is that a restaurant doesn’t need to partner with Postmates to be added to the Postmates app, which results in more restaurant options for the customer. However, the non-partnered restaurant must pay a fee for each order made by the app. Postmates have a separate team to deliver products in the city, unlike UberEats.
Although every food delivery app has some features better than the others. For instance, GrubHub is best for its best service, DoorDash is known for the features provided by the app, but still, UberEats has been on the top due to the discount offers and services it offers, making it the cheapest app to order from and hence it is much more preferable apps to be used by the customers.
The online food delivery market will keep getting vast as time will pass by. Some companies will thrive, some will drown, but as it is said, “the show must go on.” New companies will evolve with much more excellent services.
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