Food delivery apps DoorDash and Uber Eats are facing slow growth after two years of massive growth due to COVID-19 and making a big marketing push to get back on an expansion track.
A prime factor is the current inflation environment and increasing prices at restaurants. The companies are also trying to curtail restaurants from boosting delivery prices, according to a Wall Street Journal report.
“Inflation is definitely a concern we certainly are taking very seriously,” DoorDash CEO Tony Xu said during a recent call with analysts. “Inflation is definitely a concern we certainly are taking very seriously.”
The two delivery companies lead the U.S. food delivery market. The 11% growth in the three months prior to this June, in comparison with the same time frame in 2021, marked the slowest growth in the two years since COVID hit in early 2020, according to YipitData.
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