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Pizza was the first food to go online. The classic phone orders were replaced by fancy “watch as it cooks” widgets. Now Dominoes will automatically place your last order if you even open its app. 

Yet, pizza isn’t the only delivery food, and there’s companies warring over the rest of the market. 

Grubhub remains the largest incumbent in the space, but startups from Silicon Valley and heavyweights like Uber and Amazon are now entering the food space too. 

Morgan Stanley Research recently published a report that breaks down how big GrubHub’s lead is on the rest of the competition — and where upstarts like Amazon and Uber could quickly catch up.

“Online food delivery is still in its nascency as, by our math, only 5% (or $10B) of the ~$210B core addressable restaurant spend is done through online delivery, and more than half of that is pizza,” Morgan Stanley analysts noted.


Here’s why so many big companies are salivating over the opportunity:

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.

It’s a competitive industry, but it’s also still early. Some restaurants, like Pizza Hut, do their own delivery. For others, though, there’s a competition about who delivers the food in the end.
Morgan Stanley Research
Pizza’s early lead for online means it still dominates ordering today, Morgan Stanley says. GrubHub’s close behind it, but a lot of the Silicon Valley startups still lag behind. Amazon doesn’t even crack into the top of the charts.
Morgan Stanley Research
Put another way, GrubHub’s 23% market share still dwarfs Uber’s 0% or Postmates’ 2%.
Morgan Stanley Research
See the rest of the story at Business Insider

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