Jul 25, 2022 16:00:00

Double punch of rising prices and economic downturn in the food delivery industry, Uber Eats and DoorDash's next move is to deliver liquor and daily necessities

by

Katell Ar Gow

It was reported that the food delivery industry, which had grown rapidly due to the pandemic of the new coronavirus, was in a difficult situation due to rapid inflation and recession. Faced with slowing growth, Uber Eats and DoorDash are finding a way to diversify their services.

Uber Eats, DoorDash Offer New Deals to Court Customers as Growth Cools --WSJ
https://www.wsj.com/articles/growth-cools-at-once-hot-food-delivery-apps-uber-eats-and-doordash-11658340167

The food delivery industry has grown steadily from 2020 to 2021 after being touted as 'an indispensable job for people to live' by the pandemic, but due to the high inflation in 40 years and the accompanying recession. You are forced to struggle.

According to market research firm YipitData, the total number of orders increased by only 11% year-on-year in April-June 2022, the slowest quarterly growth rate in the two years since the pandemic occurred. It was said that. Due to the slump in the food delivery industry, the stock prices of both Uber Eats and DoorDash, which dominate 80% of the US delivery market, have plummeted by more than 50% in the last 12 months.

'Inflation is arguably a concern we take very seriously,' DoorDash CEO Tony Xu said in a conference call with analysts in May. He believes that soaring prices are weighing on growth. Uber CEO Dara Khosrowshahi also asked in-house material, 'Investors are asking,'Is delivery a good business?' And'what if we're in a recession?' We can't doubt. We have to answer these questions with no strong results. '

Uber has also been hampered by pre-pandemic blunders. On July 22, the company acknowledged liability for the 2016 information leak that caused damage to 57 million drivers and passengers as a condition to avoid criminal accusations and settle with prosecutors.

To deal with this situation, major delivery companies are diversifying their services, expanding the scope of delivery to non-cooked foods, alcoholic beverages, and even daily necessities. Uber Eats appealed to handle other than food by calling out 'Get anything, but stop eating anything' in a commercial featuring popular actress Gwyneth Paltrow and others who eat detergent and soap.

Uber Eats Super Bowl 2022 Commercial with Gwyneth Paltrow --Video Dailymotion


Experts are skeptical about the resurgence of the food delivery industry, which has made a leap forward with the pandemic. 'There is certainly growing concern that this is a mountain, because there are many reasons to worry,' said Lloyd Walmsley, an analyst for the food delivery industry at UBS, a Swiss bank.