U.S. Food-Delivery Rivals Risk Capital Destruction

Americans spent nearly $800 billion on food away from home in 2017, according to the Department of Agriculture, rising at about 5% per year. Assuming the trend continues, sales should be about $1 trillion in five years.

Uber’s first-quarter figures, set to be unveiled in detail on Thursday, should show bookings doubling over the past year to $3 billion, much faster growth than its ride-hailing business.

As long as players vie for market share, margins are likely to be thin even once hyper-competitive discounts are history.

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