Food Delivery

64 billion at 15.4% CAGR

Online food delivery is set to supersize to a hefty $200 billion by 2025.

In 2018, Frost & Sullivan estimated the industry at $82 billion in terms of gross revenue bookings and is
set to more than double by 2025

Food delivery has become a global market worth more than $150 billion,

DoorDash & Wolt

DoorDash Wolt - $8bn - All Stock - $206 per share - accretive to GOV growth - $3bn post fall in share
price - 23 countries + 4 countries for DoorDash - $850 mn raised - $530 latest round (Tiger, Prosus, KKR,
EQT) - less dense suburbs

$2.5 billion GOV - emerging food delivery markets - uber eats, food panda, - 130% growth

3.5x GOV when doordash trading at 1.9

25x EV/Revenue when doordash trading at 15x

Other Deals

Wolt (which raised $530 million in January 2021), REEF Technology ($700 million in November 2020),
and Rebel Foods ($26.5 million in July 2020),

Uber’s acquisition of Postmates (for $2.65 billion in December 2020)

Just Eat Takeaway’s acquisition of Grubhub (for $7.3 billion in June 2021)

Two recent IPOs—DoorDash in December 2020 and Deliveroo in March 2021

DoorDash

EV/Rev of 3.5x, EV/GOV - 0.5x

Revenue - $6bn, Orders - 1.2billion, GOV – 50 billion

Take Rate - 12%, Contribution 3%, Market share – 59%

$323 per quarter per customer

DoorDash was dominating the industry with an approximate 57% market share in 2021 and an all-time
stock high of $246/per share

price dropped a shocking 62% to $89/share

DoorDash provides delivery services for companies including Petco, Macy’s, and Walmart
Zomato

EV/Rev of EV/GOV

Revenue - Orders – GOV

Take Rate, Contribution, Market Share

AOV

GrubHub, Uber Eats, Meituan, Just Eat, and Deliveroo

Deliveryhero

Meal delivery could change attitudes toward shopping, cooking, and eating

Ten percent cannibalization of the $800 billion US restaurant industry, for example, would suggest a
domestic revenue opportunity of $80 billion. True, but this estimate fails to incorporate an important
nuance: meal delivery takes share not only from eating out but also from home cooked meals, creating a
new market

its primary constraints are disposable income and delivery infrastructure.

Key Trends

Subscriptions

Dark Kitchens

Kitchen Automation

Autonomous Delivery

Kitchen United, most well-known for its ghost kitchens

Amazon offered grubhub for a year

Market Share

Uber Eats – 32%

DoorDash – 57%

GrubHub – 11%

Just Eat having a presence in eight countries in the region, and an over 83% share of the U.K. market –
Owns GrubHub

Delivery Hero – Berlin

Business Model
Restaurant Commissions

DoorDash charges the restaurant 13-14% and Uber Eats fees are slightly higher at 15%, but newer
restaurants should expect a 25-30% charge

Customer Delivery Fees - $2-5

Customer Service Fees – 15% surcharge

In-App advertising –

Tips – Straight to drivers but subsidize operating costs

Risks

Governments in the United States have imposed caps on these commissions

Restaurants are contentious

ongoing national (and international) debate about whether gig workers, particularly drivers, should be
considered employees.

Food (generally 28 to 32 percent of total costs), labor (another 28 to 32 percent), and occupancy- or
real-estate-related costs (22 to 29 percent)

cannibalize their in-house dining and compromise the quality of the dining experience

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/
ordering-in-the-rapid-evolution-of-food-delivery