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As the pandemic continues to keep people home, the food delivery app DoorDash is still the dominant player in convenience store deliveries, according to a recent research report by business intelligence provider Edison Trends. January transactions show that DoorDash had 60% of the market share for convenience store deliveries, ahead of Uber Eats which had 9%. The move to digital is anticipated to become a long-term trend that will continue to move beyond food and groceries.
The convenience store market size is expected to increase 5.5% in 2021, reaching an estimated $33 billion in revenue. Back in 2020, convenience stores like 7-Eleven and CVS saw third-party delivery app sales escalate 346%. By April, DoorDash started delivering from over 1,800 convenience stores nationwide, and 7-Eleven launched partnerships with both DoorDash and Postmates. Convenience store sales are still only a fraction of the third-party delivery app market, accounting for just 1% of overall spend.
This simultaneously occurred as the number of convenience stores reportedly dropped 1.6% during 2020. The National Association of Convenience Stores said there were 150,274 convenience stores operating as of December 2020, down from 152,720 in 2019. The pandemic motivated some convenience stores to embrace digital sales and move away from brick-and-mortar.
In a similar vein, DoorDash is currently the country’s industry leader with 50% market share when it comes to restaurant delivery. Reportedly, nearly 58% of all restaurant delivery sales in the U.S. are being made on these apps, and it’s expected to reach 70% by 2022.
In an attempt to consolidate market share and boost profitability, competitor Uber bought Postmates last year. Postmates is currently the fourth major meal delivery company in the U.S., and it earned 7% of the country’s meal delivery market in October. With Postmates’s customers, Uber Eats can pull ahead in Los Angeles. As of October 2020, Postmates is the top food delivery service in the city, according to data from Second Measure. Meanwhile, Uber Eats lags behind DoorDash and is on par with Grubhub.
Delivery services continue to expand their reach into retail and take on new partners. For example, following a successful delivery pilot in Dallas, Austin and Houston, Texas, Uber is expanding its on-demand prescription delivery to one of the largest U.S. metros: New York City. Uber Eats can now connect New Yorkers with prescription delivery, enabling them to easily transfer existing prescriptions or fulfill new ones from neighborhood pharmacies right from an app. If successful, we can count on seeing this service pop up in other major U.S. cities.