Mobile Commerce

Pizza Is Winning The Online Food Delivery Wars

With the myriad of high-tech, high concept options out there for getting food to a customer's door, the natural assumption might be that the winner in the food delivery wars would be the business that could deliver the most deliciously cutting-edge services, technologically and offering wise.

It would be a wrong assumption, though, as when it comes to food delivery, pizza remains the champion.

Though in fairness, no individual purveyor of pepperoni holds the majority of the market. The single player doing the best is GrubHub - according to new data released by 1010data. With its two food ordering platforms — eponymous GrubHub and Seamless — it represents almost a third of all online food orders.

But that is because pizza is dividing the field between Domino's, Pizza Hut and Papa John's, which collectively represent over 40 percent of all online orders.

Once you get past GrubHub and pizza, the market is carving up some mighty small shares. Eat24 is the leader among the non-GrubHub marketplaces, with 6.6 percent of online orders.

Postmates and Dash — and their collective $325 million in Silicon Valley investment — have managed to collectively eek out 6.9 percent of online orders.

Now in fairness, many of these services exist in a finite number of retail areas — whereas the pizza chains have scale in urban and suburban areas nationwide.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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