Doordash has eclipsed Grubhub in the month of May to become the leading food delivery service in the nation according to figures from research firm Second Measure.
DoorDash earned 32 percent of U.S. consumers’ meal delivery sales last month, while Grubhub and its subsidiaries, which include Seamless and Eat24, took in 31.7 percent. (Purchases made through Tapingo and LevelUp, which Grubhub acquired in late 2018, are not included in Second Measure’s analysis.) DoorDash’s sales overtook Uber Eats’ in October 2018.
San Francisco delivery service Postmates, recently announced expansion plans and confidentially filed for an IPO in February. Due to the way Postmates bills purchases made through its subscription program, Postmates Unlimited, Second Measure was not always able to track orders. So Postmates market share is likely even higher than its analysis shows.
DoorDash is gobbling up market share because its sales have been growing very fast. In May, the company saw a staggering 189-percent year-over-year jump, compared to 32 percent at Uber Eats and 6 percent at Grubhub. Besides diners, the company also brings investors to the table. Last month, DoorDash announced raising $600 million in its fourth funding round in 14 months.
No other meal delivery service comes close to DoorDash’s growth, but nearly all of them are growing. In May, sales for the industry as a whole rose 52 percent year-over-year, as more Americans realize how much they like eating restaurant meals at home. In fact, 23 percent of Americans have ever ordered from one of the services in our analysis, up from 17 percent a year ago.
Doordash and Grubhub may be neck and neck in U.S. market share, but their strongholds are in different regions. Grubhub is the most popular service in many Northeastern metro areas, including New York, Boston, and Philadelphia. DoorDash rakes in more than half the sales in the two biggest Texas metros, Dallas-Fort Worth and Houston. But neither is DoorDash’s biggest region in terms of dollars. That distinction goes to the San Francisco Bay area, where DoorDash is headquartered.
While Doordash may dominate its hometown in San Francisco, Grubhub reigns supreme in the nation’s largest city — New York — where it also operates under the Seamless brand. The company earned 69 percent of residents’ meal delivery sales in May and took in more money there than anywhere else in the nation. Surprisingly, the region also generated the top sales for Uber Eats, even though it controls just 14 percent of the New York market. It’s a testament to just how many diners—and restaurants—are hungry for delivery in New York, and proof that even a small slice of the Big Apple’s pie is worth big bucks.