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Food & Beverage

Food delivery war rages amid global COVID-19 lockdowns

Uber Eats touches off industry consolidation, but startups have new tricks

Uber Eats has gone on the offensive in Japan with the introduction of a fixed-rate service.   © Reuters

TOKYO -- With food deliveries expanding fast worldwide as people stay home amid the coronavirus pandemic, three players' growing dominance is realigning the industry in the United States, Japan and elsewhere.

According to L.E.K. Consulting, the food delivery market in the U.S. was worth $53 billion in 2019 and is expected to grow to about $88 billion by 2023. DoorDash, which has bought rival Caviar for about $400 million, now has the largest market share at about 45%, according to Edison Trends. Uber Eats, which has the second-largest share at 28%, announced in July it will buy Postmates, whose 7% share puts it fourth. The Netherlands-based Just Eat has announced it will acquire Grubhub, ranking third with a 17% share.

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