The Impact of Small Businesses on Third Party Food Delivery
Small- and medium-sized businesses – classified as restaurants that did not rank in the top 400 by total order volume – made up 44% of the total third party market share in October 2022.
Though, this market share varies by third party platform. Grubhub has the highest share of SMB orders at 62%, likely due to its high use in NYC. On Uber Eats, SMBs make up 49% of the total market share, and on DoorDash, only 38%.
3P Market Share by Platform
US, Third Party | October 2022
Despite Grubhub’s large share of SMBs, the platform’s total sales from smaller brands declined 16% YoY in October 2022. While DoorDash had the lowest overall market share from SMBs in October, their share has increased YoY, up 9%. Uber Eats, meanwhile, has seen the largest increase in total sales from SMBs, up 16% YoY and 5% MoM in October.
Indexed SMB Sales by Platform
US, Third Party | January 2021 - October 2022
The number of small businesses available to order from third party has grown significantly. The number of SMBs has nearly doubled in NYC and LA since 2020, though has leveled in growth in recent months. Additionally, there has been moderate growth in other large markets, while growth has been less significant for Tier 3 and 4 metro areas.
There’s also, predictably, a large variation in SMB spend depending on region: SMB share of orders is higher in metropolitan areas. SMBs also have much better visibility in high volume metro areas, which is why they are more popular on Platforms like Grubhub and growing in Tier 1 cities.
Number of Distinct SMB’s by Top Metros
Top US Metros, Third Party | January 2020 - October 2022
Sources: Email receipt data
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