Grubhub most popular food delivery app in US
According to new research from digital marketing firm Zion & Zion, food ordering and delivery app Grubhub is more popular than any of its competitors. The app has 37.8% market share, with Uber Eats trailing closely behind at 36% and DoorDash in third place at 19.9%. That might be closer than Grubhub would like, but it’s still in first place. And, if it wants to stay there, it’s millennials that the company must continue to win over.
Grubhub’s share price has risen by 3% so far this year
Source: Yahoo Finance
Food order and delivery services are a big business. And growth does not look to be in short supply. According to a UBS forecast, the industry could see annual growth of 20% through to 2030, by which point it will be worth $365.
Grubhub is the biggest player in the space, and it’s working hard to keep its spot at the top. A recent partnership with Honda will see it become a part od connected dashboards within vehicles. And its recent acquisition of LevelUp will provide it with a powerful ordering infrastructure, as well as a portfolio of (an additional) 200 restaurant brands. And, as it noted during its last earnings call, it’s taking Uber Eats seriously, and increasing its incremental marketing spend to between $10 million and $20 million.
Perhaps the biggest takeaway from the Zion & Zion report, though, is how much more order and delivery services could benefit from more repeat custom. Just 7% of customers said they’ve used such a service in the past 90 days, while 12% ordered “five or six” times. Promotions tied in to delivery and repeat custom could become a powerful growth driver for the industry.
Dominion holds Grubhub in its Global Trends Ecommerce Fund.
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