Delivery Apps Face Growing Pressure as Niche Rivals and Regulators Close In
Forget the side of fries — delivery apps now have a lot more on their plate. DoorDashDASH topped expectations after Q1 revenue jumped 33% year over year, while InstacartCART also beat on revenue with a 14% increase. The results land as the delivery sector faces tighter margins and intensifying competition.
- DoorDash saw gross order value jump 37% YoY to $31.6B, even as rising oil prices tied to the Iran conflict added a $50M hit from its driver gas relief program.
- Instacart guided Q2 gross transaction value of $10.1B–$10.25B, slightly below Q1’s $10.29B, as shoppers leaned harder into value-focused and club retailers.
Delivery crackdown: As consumers grow more price-sensitive, Instacart CEO Chris Rogers said retailers offering in-store pricing on the platform are pulling ahead. Simultaneously, smaller delivery apps focused on niche cuisines are gaining traction in the US. Lawmakers are also stepping in, with Rep. Dan Goldman’s PRICE Act pushing platforms like DoorDash, Grubhub, and Uber EatsDASH to show full pricing upfront and ban surveillance pricing. Between tighter regulation and rising competition, the delivery wars are only getting more intense