There was one big eater in American food delivery. DoorDash has dominated category among other delivery programs, increasing its market share among the three major food delivery platforms – Uber Eats, DoorDash and Grubhub – to a staggering 57%.
However, in the field of food delivery one can win the war.
Instacart has long dominated grocery sales. It owns more than 60% of the market for online export and delivery of products from April 2020, according to Edison Trends. But while in the period from July 2020 to July 2021, Instacart recorded a 6% increase in the cost of obtaining and delivering products online, third-party applications increased by 221%.
As food delivery platforms continue to invade food delivery, Uber Eats (NYSE: UBER) is the last to take a step. The site is on Thursday announced launch of a pilot program of on-demand and scheduled delivery of products in partnership with Grocery Outlet Holding Co. (NASDAQ: GO), adding its presence in the arena of food delivery.
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The pilot unfolded Thursday at 72 Grocery Outlet stores in California, Oregon and Washington. These include locations in Seattle, Portland, San Francisco, Sacramento and Pala Alto.
“Our goal is to provide a reliable and affordable product delivery option that works for everyone, regardless of your budget,” said Oscar Herthanson, head of Uber’s product division. “We see our partnership with Grocery Outlet as an opportunity to do just that, delivering to customers brands they like, at Grocery Outlet prices they love, on demand for their doors.”
Uber Eats introduced U.S. Food Delivery Service in July 2020. About a year later, she collaborated with the national grocer Albertsons (NYSE: ACI) yes expand its offering to deliver products to 400 U.S. cities, and in May the partnership expanded to include more than 2,000 Albertsons stores that include brands such as Acme, Safeway and Jewel-Osco.
Like the larger company, Uber Eats and the Uber shipping segment took some time to make a profit. But since then CEO Dara Khosravshahi bullish comments about Uber shipping growth in December, it was in tears.
Uber delivery first profitable quarter occurred just a few months ago in the 4th quarter of 2021, which ended last January. But the company followed suit high performance in the first quarter of 2022 as a result, the segment reached historical highs in both gross bookings and active traders.
In addition, the monthly active customers of the platform, the size of the basket, the frequency of orders and the total number of active couriers – all this has increased compared to last year. Adjusted earnings before interest, taxes, depreciation and amortization were $ 30 million, based on profitability in the 4th quarter of 2021.
Competitor Uber Eats DoorDash (NYSE: DASH) also makes inroads in product delivery, launches own product delivery partnership with the Albertsons in February and debuted en ultra-fast product delivery offer in December. Grubhub (COM)ACT: JTKWY) too manned ultra-fast service in February. That same month he picked up his handy Grubhub Goods channel, across the country.
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