Yahoo Finance A Foolish Take: America's Growing Interest in Food Delivery
The U.S. online food delivery market could grow from nearly $17 billion this year to over $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.
Data source: Acosta/Technomic. Chart by author.
The survey found that 77% of millennials ordered a food delivery over the past three months, compared to 51% of all U.S. diners. Forty-four percent of millennials ordered meals from a third-party food delivery service, compared to just 20% of all U.S. diners.
That's great news for Grubhub (NYSE: GRUB), 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, while 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.
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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.
