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“Food-Delivery is not a Fad”- RBC Capital

10/29/2018

David Mell, managing director of RBC Capital Markets commenting on recent infusions of capital for food-delivery companies maintains that “the trend is not a fad”.

 

Companies which have received financial support include Instacart Inc. which secured a $600 million investment; DoorDash Inc.; Grubhub Inc. and the UberEats subsidiary of Uber Technologies.

 

To be credible, delivery companies must have a strategic partnership with a major food chain or QSR.  To date a front-runner has not emerged although all companies cited above have financial support and a presence in the field which is characterized by a low barrier of entry.

 

Jerome Scott with Mizuho Securities considers that takeout and delivery will represent 15 percent of restaurant sales by 2027 especially with the popularity of mobile apps.