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DoorDash leads food delivery market share for April: Edison Trends

Yahoo Finance's Heidi Chung breaks down the latest Edison Trends data about how food delivery companies are performing amid the coronavirus pandemic.

Video Transcript

ZACK GUZMAN: And right now, we are seeing Grubhub shares move to the upside-- up more than 1.5% today-- still trading near those 2020 highs after reports of Uber looking to combine with Grubhub, buying them out, serviced a couple weeks ago. And when we look at that, I want to dig into the numbers in terms of how big that combined company might be and problems in terms of getting that deal approved. Yahoo Finance's Heidi Chung, who has more details on that front-- Heidi.

HEIDI CHUNG: Hey, Zack. A lot of stuff is brewing, at least in the third party delivery platform space. There's been talks about whether there's going to be an acquisition, whether this merger will happen, won't happen between Grubhub and Uber Eats. And you know what? During this pandemic, market share has never mattered more. And research firm analysis Edison Trends analyzing two million transactions in April to take a look at who the dominant force is in this space.

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In April, it looks like DoorDash still holding on to the number one spot with 45% of total market share overall. It's held the top spot since March of 2019. But now, that lead has increased over Uber Eats by 17 percentage points. Uber Eats coming in at number two with 28% market share, followed by Grubhub with 17% market share and PostMates with about 7% overall.

Now, the food delivery industry sales have increased about 51% since early March. That's really when this pandemic started gaining steam here in the US. And Edison Trends saying that a lot of these food platforms are seeing different average check amounts. Taking a look at the month of April, the average order on Grubhub was about $41-- about $36 spent on DoorDash, and $31 per order on Uber Eats.

But one interesting thing that you mentioned earlier that Edison Trends really highlights here is a scenario in which, OK, so let's say Uber Eats and Grubhub combine. What would that look like in terms of market share? Well, the company says that if these two companies were to come together, the combined would have about a 45% market share. So that'd be right in line with what we're seeing in terms of DoorDash's market share.

But the latest on that potential merger front here is that this past weekend, two CEOs were in discussions, reportedly, and Uber CEO Dara Khosrowshahi offered, reportedly, about 1.9 Uber shares for each Grubhub share. But Grubhub said that that is not enough. So the talks are still reportedly ongoing here, Zack.

ZACK GUZMAN: Yeah, I mean, think about that combined, it's 90% of the overall market-- classic duopoly, and why we are seeing a little bit of pushback from Congress in terms of the people in charge of overseeing some of these deals-- but very interesting updates there.