Grubhub Faces a New Headwind in Its Biggest Market

…Grubhub controlled 69% of New York City’s third-party food delivery market in May, according to Second MeasureUber (NYSE: UBER) Eats ranked second with a 14% share, followed by DoorDash’s 10% share.

But on a nationwide basis, Second Measure claims that DoorDash overtook Grubhub as the market leader in May, claiming 32% of the market compared to Grubhub’s 31.7% share. Uber Eats ranked a distant third, with 19.7% of the market.

Second Measure claims that Grubhub leads in only four major markets: New York City, Chicago, Philadelphia, and Boston. DoorDash is the dominant player in Los Angeles, San Francisco, Dallas-Fort Worth, Houston, Washington, D.C., and Phoenix. Uber is the market leader in Atlanta and Miami.

That regional fragmentation is troubling, but Grubhub frequently relies on its strength in New York, the most populous city in the U.S., to offset its softness in other markets. It also uses New York as a launchpad for new partnerships, including its recent deals with Blue Apron and Dunkin’ Brands.


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