Although the pandemic severely affected the overall US economy, one sector that thrived was that of online food delivery services. In the United States, this market grew by more than double during the COVID-19 pandemic, following healthy historical growth of 8 percent.
Note: Uber Eats acquired Postmates in 2020
Sources: McKinsey, Second Measure Bloomberg
For the first decade, Grubhub and Seamless dominated in their respective markets, but began to encroach on each other’s in the early 2010s as food delivery started to take off. In 2013, the two companies agreed to merge, creating a powerhouse that controlled 70 percent of takeout orders.
Since 2015, Grubhub has steadily lost marketshare in the US, as Uber Eats and DoorDash claimed more users. From a high of 70 percent, Grubhub sits at less than 20 percent marketshare in 2020, behind DoorDash at 45 percent and Uber Eats (with Postmates) at 30 percent.
This analysis will brief an audience about the top cities in US where Grubhub has their majority of userbase. The below geographical map of US shows the market share Grubhub hold in the particular state and respective cities.
From the above map, we can see New York, New Jersey, Massachusetts, Illinois and California are the top and major userbase for Grubhub services. Following visualization, gives us an idea about the GrubHub Userbase for top 5 states.
Searched States count per order for GrubHub Userbase
New York State is the highest searched state for about 2793 orders followed by Illinois and California on the second and third step.
In this section, from the past records and history we can definitely conclude that GrubHub was dominating in the Food Delivery Section for a decade or so but from 2016 with an entry of Doordash and UberEats the market share of GrubHub started a downfall. We can see the significant loss in GrubHubs market share from 2016.
In the Analysis section, we will be analyzing the factors that has or had impacted the GrubHubs performance with the entry of competitors.