As DoorDash chief operating officer Christopher Payne told the Wall Street Journal recently, “This is a cost-intensive business that is low-margin and scale driven.” 1 Preetika Rana and Heather Haddon, “DoorDash and Uber Eats are hot. And while the industry has experienced explosive growth during the global pandemic, delivery platforms, with few exceptions, have remained unprofitable.
Potential regulatory constraints, including possible changes to how drivers are compensated, will figure into the reshuffling. Considerations such as brand, real estate, operating efficiency, breadth of offerings, and changing consumer habits will determine which stakeholders win or lose as the industry develops. Moving forward, it is poised to remain a permanent fixture in the dining landscape.Įven as the food-delivery ecosystem continues to expand, its economic structure is still evolving. Lockdowns and physical-distancing requirements early on in the pandemic gave the category an enormous boost, with delivery becoming a lifeline for the hurting restaurant industry.
The advent of appealing, user-friendly apps and tech-enabled driver networks, coupled with changing consumer expectations, has unlocked ready-to-eat food delivery as a major category. In the United States, the market has more than doubled during the COVID-19 pandemic, following healthy historical growth of 8 percent. Nowadays, food delivery has become a global market worth more than $150 billion, having more than tripled since 2017. A little under two decades ago, restaurant-quality meal delivery was still largely limited to foods such as pizza and Chinese. How the world eats is changing dramatically.
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