The All-American Battle for Your Delivery Dollars
By Katherine Riley, Heather Haddon and Julie Wernau
The largest U.S. food-delivery companies are in a nationwide
fight for customers.
Until recently, DoorDash Inc., Grubhub Inc., Uber Technologies
Inc.'s Eats division and Postmates Inc. had footholds in different
cities and regions of the U.S., but expansion has sent them hunting
on one another's turf, worsening the already tough economics of
food delivery. Customers have been inundated with ads and have
benefited from promotions intended to try to lure their
Amid competition, deals are in the works. Uber agreed to buy
Postmates for about $2.65 billion in stock. Meanwhile, Europe's
Just Eat Takeaway.com NV and Grubhub are headed toward a $7 billion
tie-up after a breakdown in Uber's bid for Grubhub.
Just Eat's bid for Grubhub helps it compete with Uber's
food-delivery division globally, but won't reduce competition in
the U.S., said Grubhub chief executive Matt Maloney.
"I want to make sure the fight stays here in the U.S.," he
In New York City, a prime battle ground for restaurant delivery,
the major services are spending heavily to try to dominate
Manhattan while individual players such as Postmates have managed
to muscle out competitors outside the island.
The same goes for Los Angeles, where certain neighborhoods are
strongholds for Postmates despite intense competition in
Restaurants in Chicago tend to use several delivery apps at
once, allowing customers to ultimately decide which delivery
company they prefer.
--Luis Santiago contributed to this article.
Write to Heather Haddon at email@example.com and Julie
Wernau at Julie.Wernau@wsj.com
(END) Dow Jones Newswires
July 06, 2020 12:08 ET (16:08 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.