Delivery companies now generate $30 billion annually in revenue, having expanded using the financing offered by venture capital providers. Notwithstanding scope there is fierce competition in the space, and all the major participants are either unprofitable or marginally so. DoorDash continues to raise money from private investors in anticipation of a public listing. Postmates withdrew an IPO, but will be under pressure to list when market conditions improve. GrubHub Inc has experienced a significant drop in share price and is considering strategic options, including reverting to a private company. It is clear that the food delivery sector is unprofitable, not only in the U.S., but in Europe where Just Eats PLC of Britain merged with Takeaway.com of Holland.

It would appear that mergers will be required to achieve efficiency of scale and to reduce extreme competition. Currently, DoorDash backed by SoftBank Group, holds 37 percent of the U.S. market with GrubHub in second place with 31 percent. Uber Eats has contributed materially to losses of the parent company and management has ceased operations in a number of countries in Asia but is considering additional promotion for the U.S. Market.

CEO of GrubHub, Matt Maloney, indicated recently that there will be more clarity in the pattern of ownership in the food delivery sector by mid-2020.