Food delivery not just about pizza anymore
The U.S. online food delivery market could grow from nearly $17 billion this year to more than $24 billion in 2023, according to Statista, as more diners stay home.
Many consumers associate pizza and Chinese food with deliveries, but a recent Acosta and Technomic survey found that diners are also interested in deliveries for hamburgers, chicken wings, Mexican food, barbecue and desserts.
The survey found that 77 percent of millennials ordered a food delivery over the past three months, compared to 51 percent of all U.S. diners. Forty-four percent of millennials ordered meals from a third-party food delivery service, compared to just 20 percent of all U.S. diners.
That’s great news for Grubhub, which controls about half of the third-party U.S. food delivery market, according to Second Measure. Grubhub – which owns Seamless, Eat24 and other platforms – also provides deliveries for a growing list of fast-food restaurants, including Yum! Brands’ KFC and Taco Bell.
Grubhub’s top rival, UberEats, provides deliveries for McDonald’s, and the third-largest player, DoorDash, delivers for Wendy’s and Wingstop.
But that’s not all – many restaurants are also launching first-party delivery platforms to lock in diners who are too busy to cook or go out.
Leo Sun owns shares of Grubhub. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.