Competition in the food delivery market is fierce. Especially since the beginning of the corona pandemic, these have become very popular. Now the US company Doordash has expanded to Europe and opened in Stuttgart. The reason for entering the German market is “a promising market”. “80 percent of the delivery services are not to be found on the online marketplace for delivery services,” reports founder Andy Fang to “WELT”. The opportunity to establish oneself on the stock market is accordingly great.
The battle for the supremacy of the industry is still great. DoorDash is in pole position with a market value of 74 billion euros. However, the German competitor Delivery Hero has increased significantly in value due to the fourth corona wave. The company from Germany is not even half as big with a current market value of 30 billion euros.
DoorDash’s expansion also has a big impact on Just Eat Takeway. The company from Holland, which is mainly known as Lieferando in Austria and Germany, has so far been the clear market leader. The Dutch company has developed rapidly, primarily because of the corona pandemic. Just Eat has a market value of 12.7 billion euros.
Other listed delivery services such as Deliveroo (market value: 6.4 billion euros) or Domino’s Pizza (market value: 16.4 billion euros) want to continue to get involved.
Industry experts see a problem in the establishment of DoorDash in the American system. The suppliers bring the food with their own vehicles – whether car, bicycle or another means of transport is left to the supplier himself – as well as the maintenance and repair costs.
It remains to be seen whether the sales of the various delivery services will remain stable with the constantly increasing offers. However, delivery services are already considering how they can expand their offerings in order to win more customers. “It is conceivable, for example, to link additional product offers such as drugs or services from textile cleaning to the collection of technical devices for repair,” expects Rainer Münch, partner and trade expert at the consulting firm Oliver Wyman.
Investing in delivery services is becoming increasingly difficult for investors. Despite the current dominance of DoorDash, analysts believe that the competitor Delivery Hero has a lot of potential.