While reading the latest results from Prosus, I realized there seems to be a trend that nobody is talking about. There is an obvious wave of consolidation in the food delivery market happening right before our eyes. The once-hot food delivery sector has gone cold faster than your DoorDash order. New entrants have disappeared as most of the VC money chases the cool and hip AI startups. Alongside a wave of acquisitions, the world's food delivery market is consolidating in the hands of 5 companies. These 5 companies own more than 90% of the total food delivery market worldwide.
The scale of this transformation is evident in two recent acquisitions. When Prosus acquired Just Eat Takeaway in February 2025, it paid a 49% premium based on the 3-month moving average. DoorDash followed suit in May, acquiring Deliveroo at a 40% premium on the 3-month moving average; surely they have good plans to pay this premium.
The graph below was posted after the announcement of Prosus' acquisition of Just Eat Takeaway on the 24th of February 2025. After adjusting our calculation for Prosus's acquisition of Just Eat Takeaway and DoorDash's acquisition of Deliveroo, the top 5 companies (Meituan, DoorDash, Uber, Prosus, Delivery Hero) have over 90% of the total gross transaction value (GTV) worldwide.
From Prosus’s Presentation Following Just Eat’s Acquisition
Second Order Effect
We should reflect on what this consolidation means for the future of food delivery and its stakeholders, and if we can use this to our advantage.
Companies
More consolidation means more customers, drivers, and restaurants are within the ecosystem of a food delivery company. This network effect will optimize the speed, convenience, and variety for consumers. It will also make restaurants have access to customers they couldn't reach before.
You will be mistaken to think that such improvements to the network will be all roses for the consumers, restaurants, or drivers. With little direct competition, those companies will expand their margins even further at the expense of their marketplace participants. As long as food delivery is just better than other options for the network participants, food delivery companies will be able to expand their margins safely without disrupting their network.
Drivers
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