Food Delivery Consolidation: A Giant's Game

The global food delivery market is undergoing massive consolidation. Five companies now control over 90% of the market, evidenced by high-premium acquisitions like Prosus's purchase of Just Eat Takeaway and DoorDash's acquisition of Deliveroo. This consolidation creates network effects, boosting efficiency, but will likely squeeze profits from drivers, restaurants, and ultimately, consumers. Expect fewer promotions, higher delivery and menu fees. However, technological advancements like robot delivery offer new growth avenues. For investors, Prosus and Uber present relatively lower valuations compared to DoorDash, making them attractive options.