For Uber and Amazon, 2020 Offers Promising Food Delivery Acquisitions
A wave of consolidation among startups has made it easier for tech giants to grab the lead with a big purchase or two.
An Uber Eats rider pedals through Warsaw’s Pole Mokotowskie park.
Photographer: Jaap Arriens/NurPhoto/Getty ImagesA year ago, the billions of dollars that venture capitalists had poured into food delivery startups mostly looked like a waste. Profits seemed to be a fantasy, and the weakest and least capitalized—companies with names such as SpoonRocket, Maple, Sprig, and Munchery—fell hard and shut down. But in 2019 the dozen or so survivors matured, raised more money, and in some cases started buying sprees to further consolidate the field.
More tieups seem likely in 2020, says Sucharita Kodali, an analyst at Forrester Research Inc. “The space is saturated with too many companies, none of which has a path to profitability,” she says. Perhaps more important, companies including Uber and Amazon, convinced their scale and adjacent businesses can boost margins, are eager to expand their food footprints. Here’s an early ranking of the players in next year’s food fight.