uber-eats-vs-doordash-revenue

Uber Eats vs. DoorDash

Uber Eats and DoorDash are delivery apps and marketplaces that make money by charging a fee for each transaction/booking happening through the platform. In 2023, Uber Eats generated more than $12.2 billion in revenue, compared to DoorDash’s almost $8.63 billion in revenue.

ElementsUber EatsDoorDashSimilaritiesDifferencesCompetitive Advantage
Customer SegmentsIndividual consumers, restaurantsIndividual consumers, restaurants, businessesBoth serve individual consumers, restaurants, and businesses by offering food delivery services.Uber Eats focuses primarily on individual consumers and restaurants, while DoorDash also targets businesses as customers.Broader customer base (DoorDash).
Value PropositionConvenience, food delivery, wide restaurant networkFood delivery, restaurant selection, convenienceBoth provide the convenience of food delivery and access to a variety of restaurants. Uber Eats emphasizes its wide restaurant network, while DoorDash highlights restaurant selection and convenience.Uber Eats boasts a broad restaurant network and convenience for customers. DoorDash emphasizes restaurant selection and offers a strong focus on convenience in its value proposition.Restaurant selection and convenience (DoorDash).
ChannelsMobile app, website, partnershipsMobile app, website, partnershipsBoth operate through mobile apps and websites, and they establish partnerships with restaurants and businesses to expand their reach.Uber Eats’ primary focus is on connecting consumers with restaurants through its platform. DoorDash extends its services to include a broader range of partnerships and businesses.Diversified partnerships (DoorDash).
Customer RelationshipsMobile app, customer support, user ratingsMobile app, customer support, user ratingsBoth maintain customer relationships through their mobile apps and offer customer support. Users can rate and provide feedback on their experiences.Uber Eats and DoorDash both rely on mobile apps and customer support to manage customer relationships. User ratings and feedback mechanisms are common to both platforms.User ratings and feedback mechanisms (Both).
Key ActivitiesFood delivery, platform maintenanceFood delivery, platform maintenanceBoth engage in food delivery and platform maintenance activities.Uber Eats’ key activities revolve around food delivery and maintaining its platform. DoorDash also focuses on food delivery and platform maintenance.Similar key activities (Both).
Key ResourcesMobile app, restaurant partnershipsMobile app, restaurant partnershipsBoth rely on key resources such as their mobile apps and partnerships with restaurants to deliver their services.Key resources for Uber Eats include its mobile app and partnerships with restaurants. DoorDash similarly relies on its mobile app and restaurant partnerships.Leveraging partnerships with restaurants (Both).
Key PartnershipsRestaurants, delivery driversRestaurants, delivery drivers, businessesBoth collaborate with restaurants and delivery drivers to facilitate food delivery. DoorDash also partners with businesses to expand its services.Uber Eats’ primary partnerships are with restaurants and delivery drivers. DoorDash extends its services to include partnerships with businesses, in addition to restaurants and delivery drivers.Diversified partnership network (DoorDash).
Revenue StreamsDelivery fees, restaurant feesDelivery fees, restaurant feesBoth generate revenue from delivery fees charged to customers and fees paid by restaurants.Uber Eats primarily earns revenue from delivery fees and fees charged to restaurants. DoorDash follows a similar revenue model, relying on delivery fees and fees from restaurants.Similar revenue streams (Both).
Cost StructureDelivery costs, platform maintenanceDelivery costs, platform maintenanceBoth incur costs related to food delivery and platform maintenance.Both Uber Eats and DoorDash have cost structures that include expenses related to food delivery and maintaining their platforms.Comparable cost structures (Both).
uber-eats-business-modelhow-does-doordash-make-money

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DoorDash Financials

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DoorDash generated over $6.5 billion in revenue in 2022 and over $1.3 billion in net losses for the same period.

DoorDash Employees

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In December 2022, DoorDash announced the mass layoff of 1,250 employees, bringing the employees from 8,600 in 2021 to 7,350 at the end of 2022.

DoorDash GOV

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DoorDash defines its Marketplace GOV as the total dollar value of Marketplace orders completed in its local logistics platform, including taxes, tips, and any applicable consumer fees, including membership fees related to DashPass. In 2022, DoorDash GOV was over $53 billion, vs. almost $42 billion in 2021.

Is Uber Eats Profitable?

is-uber-eats-profitable
Uber Eats’ EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) – which measures a company’s operational efficiency – was negative for $348 million in 2021, compared to over $870 million in negative EBIDTA in 2020 and over $1.3 billion negative EBIDTA in 2019.

Uber Eats Revenue

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In 2021, Uber Eats passed $8.3 billion in revenue, compared to $3.9 billion in revenue in 2020.

How Much Does Uber Eats Pay?

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In general, a Uber Eats rider might make anywhere between $15-20 an hour in the US. Uber Eats has a take rate of 17-20% on each order placed by the customer. Uber Eats riders’ hourly rates can vary based on geography and route availability.

Visual Stories Related To the Uber Business Model

Who Owns Uber

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Uber’s principal individual shareholders comprise Yasir Al-Rumayyan (3.64%), the Governor of the Public Investment Fund, the sovereign wealth fund of the Kingdom of Saudi Arabia, and Dara Khosrowshahi, CEO of Uber. Institutional investors comprise Morgan Stanley, with 7.32% ownership, Fidelity, with 6.34%, and The Vanguard Group, with 5.85% ownership.

Uber Business Model

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Uber is a two-sided marketplace, a platform business model that connects drivers and riders, with an interface with gamification elements that make it easy for two sides to connect and transact. Uber makes money by collecting fees from the platform’s gross bookings.

Uber Revenue

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Is Uber Profitable?

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For the first time in its history, in 2023, Uber became profitable, with nearly $1.9 billion in net profits. Indeed on net revenues of over $37 billion, Uber posted a net profit of $1.88 billion, compared with a net loss of $9.14 billion in 2022. In 2021, Uber posted a lower net loss ($496 million), primarily thanks to the business divestitures of various assets. Throughout its history, on an annual basis, Uber has never made a profit except for 2023, when it finally reached profitability, thanks to a shifted focus toward operational efficiency.

Uber Take Rates

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Uber Mobility, which is the core platform of Uber, had a 28.8% take rate in 2023, and a 19.15% take rate for the delivery platform (Uber Eats) in the same period.
In 2022, Uber mobility took 27% of each booking on the platform. At the same time, Uber Eats took 20% of each booking on the delivery platform. The take rate varies according to demand and supply but also market dynamics. In short, in periods of increased competition, the service might charge lower take rates to keep up with it. In 2022, Uber pushed on efficiency, thus raising its take rates, to move toward profitability.

Uber Platform Users

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Uber had 150 million Monthly Active Platform Consumers in 2023. In 2022, Uber had 131 million Monthly Active Platform Consumers, compared to 118 million in 2021, and 93 million in 2020.

Uber Eats

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Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay small delivery charges, and at times, cancellation fees; Drivers earn through making reliable deliveries on time.

Uber Eats Revenue

uber-eats-revenue
In 2023 Uber Eats generated $12.2 billion in revenue, compared to nearly $11 billion in 2022, $8.3 billion in revenue in 2021, and $3.9 billion in revenue in 2020.

Is Uber Eats Profitable?

is-uber-eats-profitable
If we look at EBITDA, Uber Eats was a profitable segment, generating $1.5 billion in EBITDA in 2023. For the first time since its inception, Uber Eats’ EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) – which measures a company’s operational efficiency – turned positive for $551 million in 2022, compared to negative $348 million in 2021; negative $870 million in negative EBIDTA in 2020; and over $1.3 billion negative EBIDTA in 2019.

Uber Freight

uber-freight-business-model
Uber Freight is a platform that connects carriers with shippers, which generated $5.24 billion in revenue in 2023, slowing down from $6.95 billion in revenue in 2022, and it’s now one of the three core segments (Mobility, Delivery, and Freight) within the Uber Business Model.

Uber Revenue Breakdown

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In 2023, Uber generated nearly $20 billion from its core platform (mobility), followed by delivery (Uber Eats) with $12.2 billion and freight, with $5.24 billion in revenue.

Uber Advertising

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In 2022 Uber launched its advertising segment, which comprises revenue from sponsored listing fees paid by merchants and brands in exchange for advertising on the platform. By the end of the year, Uber advertising had generated $500 million in revenue from 315K merchants. By 2023, the advertising business of Uber generated a billion dollars in revenue!

Uber vs. Lyft

uber-vs-lyft
Uber and Lyft are both mobility ride-sharing apps. Uber generated $37.28 billion in revenue in 2023, compared with Lyft, which generated $4.4B billion in the same year. A key difference is that while Lyft has primarily stayed in the mobility industry, Uber’s business model today spans various categories beyond mobility, such as delivery (Uber Eats) and freight. 

Food Delivery Business Models

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In the food delivery business model companies leverage technology to build platforms that enable users to have the food delivered at home. This business model usually is set up as a platform and multi-sided marketplace, where the food delivery company makes money by charging commissions to the restaurant and to the customer.

DoorDash

how-does-doordash-make-money
DoorDash is a platform business model that enables restaurants to set up no-cost delivery operations. At the same time, customers get their food at home, and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace.

Glovo

glovo-business-model
Glovo is a Spanish on-demand courier service that purchases and delivers products ordered through a mobile app. Founded in 2015 by Oscar Pierre and Sacha Michaud as a way to “uberize” local services. Glovo makes money via delivery fees, mini-supermarkets (fulfillment centers that Glovo operates in partnership with grocery store chains), and dark kitchens (enabling restaurants to increase their capacity).

Instacart Business Model

how-does-instacart-make-money
Instacart’s business model relies on enabling an easy set up for grocery stores, the comfort for customers to get their shopping delivered at home, and an additional income stream for personal shoppers. Instacart makes money by charging service fees, via memberships, and by running performance advertising on its platform.

Grubhub Business Model

grubhub-business-model
Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. cities and London. The Grubhub portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, andTapingo. The company makes money primarily by charging restaurants a pre-order commission and it generates revenues when diners place an order on its platform. Also, it charges restaurants that use Grubhub delivery services and when diners pay for those services. 

Shipt Business Model

how-does-shipt-make-money
Shipt is a North American integrated delivery service for groceries, home products, and electronics initially funded by Bill Smith, a highly experienced entrepreneur with a history of creating successful start-ups; in 2014, Smith used $3 million of his own money to create the first iteration of Shipt, the company was acquired by Target in 2017 in a cash deal worth $550 million. Membership fees predominantly drive Shipt revenue generation.

Postmates Business Model

postmates-business-model
Postmates is a food delivery service built as a last-mile delivery service platform connecting locals with shops. Postmates makes money by collecting fees (commission, delivery, service, cart, and cancellation fees). It also makes money via its subscription service (called Unlimted – $9.99/month or $99.99 annually) giving free delivery on every order of more than $12.
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