The meal delivery space was once dominated by GrubHub, but with phenomenal gains in 2019, DoorDash overtook the market by storm.

In 2018, GrubHub held a 34% share of the food delivery market. They were founded 10 years before DoorDash, held the most restaurant partners of their competitors, and operated across 3,500 cities in the nation. Uber proposed an acquisition deal with GrubHub that was turned down for a partnership with the European meal delivery company Just Eat Takeaway for $7 billion.

Despite GrubHub’s partnership, DoorDash managed to excel their market share from second to first place in 18 months from 19% to 34% by 2020. Their rapid growth was a result of strategic partnerships that catered to their consumer demand. Exclusive deals with popular restaurant chains including The Cheesecake Factory, Chipotle, and Five Guys drove their revenues up 114% during the year of 2019, while the delivery market rose by 40% overall.

In 2019 DoorDash had expanded to Australia and Canada while GrubHub's fleet continued to remain within the United States Borders.

Even with COVID, DoorDash wasn’t discouraged. Their fleet grew by 30% and partnered with 30,000 new vendors including CVS Pharmacies. DoorDash now owns a third of the food delivery market, leaving GrubHub with 30%, Postmates with 20%, and Uber Eats with 17%.

Morgan Stanley published a report that stated meal delivery services only represent 6% of the market potential, valued at $350 billion. With Doordash’s valuation approaching $13 Billion, substantial room for growth lays ahead of them.

Moving forward, Doordash will have to continue it’s strategic business development to maintain their reign.