DoorDash, the online food ordering company, will add $48.57 billion worth of gross merchandising value sales in 2025. That’s double its 2020 sales, according to projections from Edge by Ascential’s market research arm, Retail Insight. The findings were reported by Progressive Grocer.
The forecasts come after the on-demand delivery sector exploded during the COVID-19 pandemic, with DoorDash taking on grocery and convenience store delivery last year alongside restaurant delivery services. More recently, DoorDash partnered with Lola and Him & Hers, enabling the company to also deliver period, sexual wellness, personal care items and more to customers.
Coming out of the pandemic, the on-demand market is expected to continue being red hot, according to analysts with Edge by Ascential, who made their forecasts in the report “Seizing the Delivery Intermediary Opportunity.” In fact, analysts believe the on-demand grocery market will jump nearly 150% to $76.27 billion by 2025. DoorDash will lead the sector, with about one-third of the U.S. delivery platform sales, while Uber and Instacart wil have about 20% market share each.
“E-commerce is growing and evolving rapidly," said Deren Baker, CEO, Edge by London-based Ascential. "Consumer behaviors and shopping habits have been changed forever by COVID-19, and we are living now in the future of retail. The delivery intermediary market is an exciting, fast-moving space, defined by big mergers and acquisitions, market-moving announcements, and emerging rivals with new business models that are attracting the eye of cash-rich venture capital firms.”
As demand continues to rise for delivery services, the competition is also heating up, with services clamoring to fulfill orders faster. For example, Gopuff promises delivery of convenience and grocery items in minutes, while an ultra-fast grocery delivery company based in Germany recently raised $240 million with plans to expand into the U.S.. The company, Flink, promises to deliver orders within 15 minutes.
See the full story at Progressive Grocer.