In the throes of COVID19, working from home, and using restaurants as communal kitchens without seating, comes the issue of delivery.
The delivery business is, essentially, unprofitable. It is also completely barren of customer loyalty.
The market share — restaurant delivery mind you — looks like this:
DoorDash 42%
GrubHub 28%
UberEats 20%
Postmates 9%
These are national numbers. I am certain that your hometown has a slightly different mix and many restaurants are handling their own delivery efforts.
The reason this bubbles up today is that Uber — which owns UberEats — desires to buy GrubHub.
Bit of quick abacus work tells us that the combination of UberEats + GrubHub = 48% market share thereby making them the dominant competitor, though DoorDash with 42% is not chopped liver (on rye with capers and some Kosher pickles, please).
Uber is not profitable. The entire delivery business is not profitable. So, one wonders why this deal makes sense.
Keen observers have called the buying public “promiscuous” as it pertains to delivery company loyalty, meaning the public uses multiple services and is driven by prices and specials more than brand.
What is the brand value proposition of a delivery company?
This deal will likely happen. Will it change anything? I doubt it.
But, hey, what the Hell do I really know anyway? I’m just a Big Red Car, y’all. Be good and eat a grilled cheese with bacon and tomato made on your own electric grill.
