Published on 29 Dec 2022 on Benzinga via Yahoo Finance

Food Delivery Apps DoorDash, Uber Adjust To Changing Customer Needs On Pandemic Recovery

Consumers continue to spend more, but on a cautious note on the biggest food-delivery apps, DoorDash, Inc (NYSE: DASH) and Uber Technologies, Inc (NYSE: UBER) Uber Eats, analysts and industry executives said.People switched to in-store pickups, ordering fewer dishes and changing what they get delivered, the Wall Street Journal reports.In November, DoorDash CFO Prabir Adarkar said delivery remained part of people's daily life who had just adjusted their behavior on pandemic recovery.Some consumers migrated from expensive restaurants to fast food, while others cut back on the number of items in a restaurant order.Restaurant executives said some customers picked up more food to avoid delivery fees.Food-delivery apps took off during the pandemic.DoorDash and Uber Eats collectively control 90% of the U.S. food-delivery market, recorded sales expansion. But growth cooled across the industry.Orders and spending on Grubhub, America's third-largest food-delivery app, deteriorated. European owner Just Eat Takeaway.Com N.V. (OTC: JTKWY) weighed divesting Grubhub since April.Most analysts predict continued growth at DoorDash and Uber Eats.DoorDash and Uber Eats tried to attract more customers with holiday deals on their membership programs, which include discounts on food and delivery fees.The cost-conscious consumers increasingly subscribed to save money, the apps said.Grubhub expanded the option to allow groups to bundle multiple orders to help consumers save on delivery charges.The companies cut costs. DoorDash laid off 1,250 employees late last month. Uber said it would cut marketing spending and pause hiring.Price Action: DASH shares traded higher by 0.85% at $24.80 in the premarket on the last check Thursday.Photo by Mapbox via Flickr

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