Grubhub, the market leader in on-demand food delivery, may be losing ground to rivals Uber Eats and DoorDash.
Years ago, we had the so-called "browser wars" as Netscape battled Microsoft for market dominance for internet browsers (spoiler alert, a startup called GOOGLE came along and took over from both of them). Today we have the less catchy "food delivery wars" as the major players, Grubhub, Uber Eats, DoorDash and Postmates, all battle for market share in this highly competitive industry. It seems unlikely that anyone will overtake these companies, although it should be noted there is a little company out there called AMAZON that already offers a restaurant delivery service. If they ever decide to really get behind that, you heard it here first!
Of the major players, Grubhub is the only public company, and hence most susceptible to changes in market share. The industry has already seen consolidation, but these four companies are all well-funded and have continued to raise financing rounds in recent months.
Recent reports suggest Grubhub has been losing ground to Uber Eats and to DoorDash. As can be seen on the chart below, this has resulted in a steady decline in the share price of Grubhub from a peak of around $145 in August 2018 to the current price of around $69.
As time goes by, we may see more consolidation with smaller companies such as Caviar getting bought. Besides Amazon, it is doubtful that another big player will merge, although the battle to create Ghost Kitchens is now starting with Cloud Kitchens and Kitchen United leading the charge.