- Consumers continue to spend more, but on a cautious note on the biggest food-delivery apps, DoorDash, Inc DASH and Uber Technologies, Inc UBER Uber Eats, analysts and industry executives said.
- People switched to in-store pickups, ordering fewer dishes and changing what they get delivered, the Wall Street Journal reports.
- In November, DoorDash CFO Prabir Adarkar said delivery remained part of people's daily life who had just adjusted their behavior on pandemic recovery.
- Some consumers migrated from expensive restaurants to fast food, while others cut back on the number of items in a restaurant order.
- Restaurant executives said some customers picked up more food to avoid delivery fees.
- Food-delivery apps took off during the pandemic.
- DoorDash and Uber Eats collectively control 90% of the U.S. food-delivery market, recorded sales expansion. But growth cooled across the industry.
- Orders and spending on Grubhub, America's third-largest food-delivery app, deteriorated. European owner Just Eat Takeaway.Com N.V. JTKWY weighed divesting Grubhub since April.
- Most analysts predict continued growth at DoorDash and Uber Eats.
- DoorDash and Uber Eats tried to attract more customers with holiday deals on their membership programs, which include discounts on food and delivery fees.
- The cost-conscious consumers increasingly subscribed to save money, the apps said.
- Grubhub expanded the option to allow groups to bundle multiple orders to help consumers save on delivery charges.
- The companies cut costs. DoorDash laid off 1,250 employees late last month. Uber said it would cut marketing spending and pause hiring.
- Price Action: DASH shares traded higher by 0.85% at $24.80 in the premarket on the last check Thursday.
- Photo by Mapbox via Flickr
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