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Food-Delivery Companies Still Struggle Despite Surge in Orders

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Food-delivery companies are struggling to profit during one of the greatest opportunities presented to food-delivery markets in decades.Companies including Grubhub and Uber Technologies’ Uber Eats are losing money on delivery orders or barely breaking even. And they say they aren’t sure how many diners will stick with delivery after stay-at-home orders are relaxed.

Sales for Grubhub, Uber Eats, DoorDash and Postmates are growing, according to the companies and credit-card data. But increased costs to fund promotions and safety equipment on one hand, and pressure to reduce commissions for strapped restaurants on the other, have created an even worse financial proposition for food-delivery companies.In a sign of potential consolidation ahead, Uber is seeking to acquire Grubhub, according to people familiar with the matter, a deal that would create the country’s biggest food-delivery service.

 

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