After years atop the US food delivery market, Grubhub has been unseated by a Silicon Valley challenger.
DoorDash overtook Grubhub in US monthly sales in May, according to research firm Second Measure. DoorDash also surpassed Grubhub in market share as measured among the online food delivery companies that Second Measure tracks using anonymized credit transaction data, though the absolute value of those sales has grown for both companies.
… Grubhub, which operates only in the US, is very much still growing. For the first quarter of 2019, Grubhub reported $1.5 billion in gross food sales (the total value of food, tips, taxes, and delivery fees on orders placed through its platform), up 21% from the same period a year earlier. The company reported 19.3 million active diners, defined as the number of unique accounts from which a Grubhub order had been placed in the last 12 months, up 28% from the first quarter of 2018.
…Venture capitalists have poured money into the food delivery space, believing it could still yield a mega-startup along the lines of Uber. From 2015 to 2018, meal-ordering and -delivery companies received $6.7 billion in capital, according to data from PitchBook, a venture-capital research firm. The market for those services is expected to reach $40 billion by 2021.
None of these private food delivery startups are yet thought to be profitable, and it’s unclear how they would fare were that pipeline of venture funding to dry up. In a dig at its money-burning competitors, Grubhub CEO Matt Maloney has referred to Softbank’s CEO Masayoshi Son as “Uncle Masa” and said his company could also post huge growth numbers if it were willing to lose $1 billion a year.