Dec 6, 2019 - Technology

Competition is getting fierce in food delivery

Data: YouGov; Chart: Axios Visuals
Data: YouGov; Chart: Axios Visuals

Food delivery apps look to have found a sweet spot as data shows more than a quarter (27%) of Americans spend up to $50 each month on delivery.

The big picture: Competition among delivery companies is getting serious as more sign exclusive agreements with restaurants, closing the door on competition.

What's happening: The number of Americans considering DoorDash has doubled since the beginning of the year, according to data from YouGov provided first to Axios. Americans’ awareness of DoorDash also has shot up dramatically this year from 35% in January to 63% in December.

  • That's been largely due to a $400 million investment from venture capital investors and the purchase of rival Caviar, which has allowed DoorDash to spend aggressively on ad campaigns and pursue exclusive delivery rights with The Cheesecake Factory, Chili’s, Wendy’s and Chipotle, among others.
  • Still, Uber Eats remains the dominant player when looking at which services Americans say they’d consider, while Grubhub still has the highest BrandIndex Awareness score, YouGov finds.

On the other side: Only around 2% of survey respondents said they would consider using, and just 5% said they would try Postmates.

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