Uber Eats is Growing Quickly and it's a Worrying Sign for GrubHub


(Brandon Bhangoo) #1

The war for food delivery is a constant one and will continue for as long as there is food to be delivered. Uber Eats has been gaining ground and is now overtaking GrubHub in more major locations. In fact, in 9 out of 22 cities, Uber Eats has taken the majority share of the market.

Only six months ago Uber Eats was dominant in three major Texan cities, Houston, Austin and Dallas. Now they have outranked DoorDash in Fort Worth, GrubHub in El Paso, and Postmates in Phoenix, and now taken over dominance from Amazon Restaurants in Seattle.

This does not mean that GrubHub and others are suffering, it just means that the market is fluctuating and growing, where more customers use one service over another. As the number of clients grows so too do the statistics change.

The food delivery service is far from saturated, and there is a lot more room for growth. DoorDash and Postmates negotiated a merger that would help them in the face of the two leaders. BY merging, the two would instantly gain a 24% hold in the market and become the second largest food delivery service after GrubHub.

However, this is not an exact science, and while they might gain a combined control over 24%, it would not be for a long time. The market is growing, and consumer habits change based on the perception of service and more so on the cost of service.

One of the ways that GrubHub is combating competition is by expanding its payment options in the app. This has come by integrating Venmo into their app. The new service will also enable group orders to be split via the Venmo feature.

Toi facilitates such a system; a customer will need to download both apps; GrubHub and Venmo. Once opened, the GrubHub app will notify the user that they can now use the Venmo app from within the GrubHub dashboard.

Once you decide to use Venmo via GrubHub, the GrubHub app will send you to the Venmo app automatically, and after you complete the payment, the Venmo app will send you back to the GrubHub app automatically. This whole process will save customers a lot of hassle. The ability to split the order is extremely useful for work places, where groups of team mates order in one go, and split the bill in one order.

Venmo is available on all GrubHub platforms including Seamless and Eat24.


(Jenny Catalano) #2

I quit driving UberEats. They just don’t pay as well here. Now DoorDash pays! Grub Hub has limited service and Postmates is nonexistant in my area.


(Bick Bhangoo) #3

@JennyCatalano What area do you drive in? DoorDash seems to be winning over drivers all around the country. How much do you average per hour with DoorDash?


(Jenny Catalano) #4

DD 13-19 per hour compared to 10 with Uber Eats. I drive 36-42 hours per week. Layton/Ogden UT