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Fast Company has a piece about the major food delivery companies are their market shares - Door Dash has 65 percent of the market, Uber Eats has 25 percent, and Grubhub has 10 percent, including all their various subsidiaries.

According to the story, "As you can see, DoorDash dominates the food delivery business in America. Yet it might not want to get too comfortable in its lead. As Bloomberg Second Measure points out, one of the biggest challenges food delivery services are facing in 2023 is what Grubhub’s former CEO called 'promiscuous customers' - those customers who hop between food delivery services.

"Frequent users of food delivery services have become accustomed to app hopping to find the best deals as food prices and fuel surcharges continue to rise. Another issue is that due to the growing web of exclusive restaurant partnerships some food delivery services have set up, sometimes a customer has no choice but to order outside of their favorite food delivery app and use a competing app instead. For example, if a regular Grubhub customer wants a Little Caesars pizza, they need to order it through DoorDash, which has partnered with the pizza chain."

The story goes on:  "A final interesting note is that in an effort to combat this platform-hopping, most major food delivery services have rolled out subscription plans, which see subscribing customers get discounts. But when Bloomberg Second Measure looked at one such subscription plan - DoorDash’s DashPass - it found that for customers who signed up in June 2022, at six months the retention rate was just 34%, and at 12 months, only 25% of those original customers still had their subscriptions.

"All this seems to suggest that the food delivery wars are far from won by any single player."

KC's View:

It may be that the only way a single player is able to win the battle is by acquiring all the others.  Which may or may not be possible.

The problem, it seems to me, is that none of these players has been able to establish a killer value proposition that firmly differentiates it from the rest.  The act of delivery has been commoditized.  Which always is a danger.