Grubhub is having its lunch eaten by rival DoorDash, a new KeyBanc Capital Markets report concludes, sending Grubhub stock tumbling.
KeyBanc analyzed the behavior of new customers at those companies, as well as UberEats, to determine who is winning the food-delivery war. Based on figures from the past three quarters, it concluded that DoorDash is making significant inroads at the expense of Grubhub.
“For the industry, DoorDash’s pace of share gain is the dominant trend,” KeyBanc analyst Andy Hargreaves wrote in a note late Monday. “For GRUB, new diner growth remains strong. However, diner retention, initial diner spend, and peak diner spend all appear to be deteriorating, which suggests lifetime value in newer cohorts is declining.”
…KeyBanc did have good news for the industry, and its three combatants. It said the number of new diners has grown an average of 28% quarter over quarter for the previous four quarters, reflecting strong market adoption of online food ordering and Grubhub’s increased marketing efforts.