By Chloe Aiello
Grubhub isn't feeling threatened by rival UberEats, even as its parent company gears up for an IPO, because the market potential of food delivery is still so huge, Grubhub President and CFO Adam DeWitt told Cheddar.
"There's such a big opportunity right now that regardless of what's happening with other folks that have similar services, we are actually growing faster now than we were a year ago, despite all the activity in the marketplace. It's because we're really focused on connecting restaurants and diners," DeWitt said.
Grubhub, which also owns urban-focused delivery service Seamless and other services, has almost tripled in size since its initial public offering five years ago, DeWitt said, but the market opportunity has grown right along with it.
"With our advent into delivery, now the market is much bigger," DeWitt said. "So at $6 billion in gross food sales, [it's] still a very, very large runway for us to go."
Revenue from online food delivery could hit about $19.5 billion in 2019 and as much as $25.5 billion by 2023, Statista estimated.
Despite DeWitt's confidence, however, analysts have expressed concern that the delivery mainstay is failing to keep pace with competitors in an increasingly crowded sector, CNBC reported. As competitors like DoorDash and Uber have snapped up market share, funding, and new customers, Grubhub has struggled with customer retention. Plus, rival Uber is gearing up for an IPO that could value the company north of $100 billion.