Uber, DoorDash customers are willing to pay for convenience

The trend: Consumers displayed a healthy—and growing—appetite for food delivery in Q2.

• DoorDash set quarterly records for total orders, marketplace gross order value (GOV), and revenues, thanks to an increase in its user base as well as customer engagement. Total orders rose 19% year over year (YoY) to 635 million—outpacing the consensus estimate of 627 million, per Bloomberg—while GOV grew by 20% YoY to $19.7 billion, also ahead of expectations.
• Uber’s delivery gross bookings rose 16% YoY to $18.1 billion, in line with expectations; total monthly active platform consumers increased 14% YoY thanks to growing demand for delivery as well as the company’s ride-hailing services.

Behind the numbers: While overall restaurant spending is under pressure as diners search for deals, DoorDash and Uber Eats are winning over more affluent customers who care more about convenience, speed, and selection than price.

More customers are opting for third-party delivery apps over direct restaurant delivery, even if prices are higher on the former.

• Roughly 1 in 5 (21%) of consumers currently use platforms like DoorDash and Uber Eats for restaurant delivery, up from 15% in 2020, per Technomic’s 2024 Delivery & Takeout Consumer Trend Report as cited by CNBC.
• Users cited better order tracking, the ability to access deals and promotions, and the opportunity to discover new eateries as top reasons for the shift.
• That was clearly evident in Uber’s performance: Uber Eats attracted more first-time consumers in the US in Q2 than at any point in the past five quarters, CEO Dara Khosrowshahi said on the company’s earnings call.

Membership programs are boosting order frequency.

• Half of Uber’s gross delivery bookings in Q2 came from Uber One subscribers, per Khosrowshahi, while the convenience the membership offers is helping to make delivery orders more habitual.
• Likewise, DoorDash’s DashPass had a strong quarter, with record-high subscribers and order frequency.

Customers are turning to Uber and DoorDash for more than just restaurant meals.

• DoorDash’s efforts to broaden the array of merchants on its marketplace—from restaurants to grocers to retailers like Ulta Beauty and Lowe’s—enabled it to attract a broader array of customers, as well as grow order frequency across verticals.
• Uber’s grocery business grew “at a substantially faster rate” in the last quarter than its overall delivery segment; 15% of Uber Eats customers now order groceries, up 200 basis points YoY, while retention is improving.
• Both companies are on a big push to grow their merchant bases, which in addition to expanding selection for consumers will provide fuel for their fast-growing ad businesses.

The big takeaway: While there are signs that consumers’ resilience is finally beginning to flag, the desire for convenience—particularly among more affluent households—is driving steady growth for companies like DoorDash and Uber.

• We expect Uber Eats’ restaurant sales to grow 10.8% this year, while grocery sales will rise even faster at 14.8%.
• DoorDash, meanwhile, will see its share of grocery delivery intermediary sales rise to 12.6% this year, in addition to accounting for over half the restaurant delivery market.

Go further: Check out our Data Drop: 5 Charts on Digital Dining Habits.