The other day, while speaking to a certain individual, it was brought up how Postmates was last from the major food delivery companies as far as market-share is concerned. This person is certainly correct, and anybody that follows the industry would know this. As of October, 2020, Postmates had a 7 percent market-share and trailed Doordash (51 percent,) Uber Eats (23 percent,) and GrubHub (18 percent.)
As all Postmates drivers know by now, the company has been purchased by Uber, and that will later give Uber Eats a big boost as far as nationwide market-share is concerned. For now, Postmates is still here, and who is to say how Uber is going to use the Postmates brand in the future. Don't assume that they are just going to throw it all under the bus, because nobody really knows.
Postmates is the number one food delivery app in Los Angeles
The data of market-share is usually tabulated using nationwide stats, and even though Postmates trails its major competitors overall, Postmates actually dominates Los Angeles. It's no secret that L.A. is one of the, if not the most important cities to dominate in the country. When it comes to having food delivered in La la land, Postmates is the number one choice!
As of October, 2020, Postmates has a 38 percent market-share in Los Angeles. Doordash was second with 34 percent of the market. GrubHub and Uber Eats each had 14 percent of the Los Angeles food delivery market. This kind of makes you wonder how Postmates could have such a large customer base in Los Angeles yet be so far behind the other apps nationwide.
Different app based food delivery companies control different parts of the country
When it comes to New York City, Chicago, Dallas, Houston, Philadelphia and Boston, Postmates gets no more than 3 percent of the market-share. Each of those cities has a dominant food delivery company, but the other competitors are worthy competition, whereas Postmates is not.
In New York City, GrubHub dominates with a 51 percent share. They also control Boston with a 38 percent share. Uber Eats clearly dominates the Miami area as they control 61 percent of the market. As you can see, certain app based food delivery companies control certain sectors of the country.
Doordash, the overall nationwide leader, controls Chicago (37 percent,) Dallas (54 percent,) Houston (61 percent,) Philadelphia (55 percent,) Atlanta (44 percent,) Phoenix (46 percent) and San Fransisco at 69 percent.
Why does Postmates fail in other major cities?
Postmates didn't real fail in other major cities. Sure, their competitors got the upper hand as far as market-share is concerned, but Postmates is a company that delivers food nationwide and that is far from being a failure. If you look at every major city in the United States, you'll see that usually one food delivery company easily dominates.
It basically all comes down to marketing. There's no doubt that Postmates knows how to market, run and grow a business. When you can dominate a major city like Los Angeles, only a fool would argue that you don't know what you're doing. Why Postmates didn't market in other cities like they did in Los Angeles in beyond me. I'm sure they did do some marketing in other parts of the country, but I'm even more sure that Los Angeles was the major city that they concentrated on and justifiably so.
If there is going to be a city to highly concentrate on in the United States, New York City, Los Angeles and Chicago would always be the first choices. If you look at New York City, GrubHub clearly controls the market there with a 51 percent share. They control New York City the way Postmates controls Los Angeles.
All four of the major food delivery companies have been a success, but Doordash has clearly become the number one nationwide leader. This is due to marketing strategies. Their marketing efforts seemed to have reached more territories across the United States. Instead of putting too much concentration in only major cities, they seemed to have given smaller markets just as much attention as the larger markets. Doordash deserves credit where credit is deserved.
As far as Postmates is concerned, as long as the platform exists and is able to be used, their Los Angeles dominance should continue. Rich and wealthy people in Bel Air and Beverly Hills will continue to use Postmates as will many of us regular people. It might be too late for other major cities to jump on board, but remember, Uber Eats will continue to carry on the Postmates tradition.
No comments:
Post a Comment