DoorDash's rise to the top was fueled by logistics, suburban expansion, and aggressive execution. Its market share soared past 50% during COVID and continues growing.
In 2016, Grubhub dominated food delivery. By 2024, DoorDash flipped the script, capturing the largest share. It focused on controlling logistics, giving it an edge over rivals like Uber Eats. By 2019, it surpassed Grubhub, and by 2024, it controlled over 50% of the U.S. market. Uber Eats held 30%, while Grubhub collapsed to less than 10%. DoorDash didnât just winâit pulled off a historic steal.
DoorDash made five critical moves:
1ď¸âŁ Built a delivery-first model instead of just listing restaurants.
2ď¸âŁ Expanded into suburbs, avoiding urban competition.
3ď¸âŁ Executed at lightning speed, launching DashPass and tracking features first.
4ď¸âŁ Raised over $1B, outspending rivals.
5ď¸âŁ COVID timingâwhen the pandemic hit, it was already set up to dominate suburban markets while competitors struggled.
Probably worth to write full report on that!
In 2019, DoorDash had 30% of the market. By 2021, it surged past 50%, fueled by lockdowns and consumer habits shifting online. Uber Eats gained but couldnât keep up, while Grubhub collapsed. DoorDashâs suburban dominance proved critical, as it had already built a network in areas where demand exploded when dining out stopped.
DoorDash isnât slowing down. In 2019, it took 8.5% of every orderâs value. By 2024, that figure hit 14%, driven by ad revenue and logistics efficiency. Itâs expanding into groceries, pet supplies, and ride-sharing with Lyft. The company isnât just delivering your burritosâitâs making sure you never leave the app.
Is DoorDash unstoppable, or will Uber Eats fight back?
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