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 didnāt just wināit pulled off a historic steal.
DoorDash made five critical moves:
1ļøā£ Built a delivery-first model instead of just listing restaurants.
2ļøā£ Expanded into suburbs, avoiding urban competition.
3ļøā£ Executed at lightning speed, launching DashPass and tracking features first.
4ļøā£ Raised over $1B, outspending rivals.
5ļøā£ COVID timingāwhen 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 couldnāt keep up, while Grubhub collapsed. DoorDashās suburban dominance proved critical, as it had already built a network in areas where demand exploded when dining out stopped.
DoorDash isnāt slowing down. In 2019, it took 8.5% of every orderās value. By 2024, that figure hit 14%, driven by ad revenue and logistics efficiency. Itās expanding into groceries, pet supplies, and ride-sharing with Lyft. The company isnāt just delivering your burritosāitās making sure you never leave the app.
Is DoorDash unstoppable, or will Uber Eats fight back?
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