The food delivery space is like a clown car—an overstuffed vehicle spilling startup after startup. And just when you think the car can’t possibly fit another Postmates look-alike, VCs shell out for yet another multimillion-dollar round.
Since the beginning of the decade, capital invested in the space has skyrocketed, from just over $100 million in 2010 to a high of nearly $2 billion by 2015. With more than $750 million VC dollars invested into the space so far this year, per the PitchBook Platform, it’s not showing signs of slowing down.
Consistent VC investment, however, can’t eliminate the problems associated with an over-crowded industry. Last year was deadly for food startups: Take Eat Easy, Kitchit, Kitchensurfing and a few others shuttered. And in May of this year, both Maple and Sprig ceased operations. The high costs associated with running a food delivery company, coupled with the intense competition exacerbated by tech giants like Amazon and Uber jumping in the ring, make it difficult to thrive in the space. Amazon’s acquisition of Whole Foods, which was probably not good news for Whole Foods partner Instacart, was just the cherry on top.
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To keep track of the space, we’ve ranked the top 10 food delivery companies in the US and Europe by valuation. Most of them are private, but for comparison’s sake, we’ve also included three companies that have hit the public markets: Two of them, Delivery Hero and Blue Apron, did so in the last month. The charts below also highlight the biggest VC rounds in the sector so far this year.
PitchBook subscribers can access the full data on food startups.
Article by Kate Clark, PitchBook