Based on transactions in January 2021, DoorDash leads in convenience store deliveries with 60% market share, ahead of goPuff (23%), Uber Eats (9%) and Instacart (4%).
• In 2020, overall online consumer spend at convenience stores grew 346%, grocery 121% and restaurant 112%.
• In January, DoorDash had 58% market share of convenience store spend via third party on-demand delivery apps. goPuff had 24%, Instacart and Uber Eats each had 8%, and Grubhub had 2%.
• Looking at quarter-over-quarter growth, DoorDash customers increased their convenience store spending by 162% from Q3 2020 to Q4. Grubhub grew in convenience store spending by 40%, Instacart 21%, goPuff 10%, and Uber Eats 7%.
2020 was a year of consolidation and convergence among top players in the on-demand delivery service market, and 2021 begins with even further expansion of these brands into new markets. Alongside increased consumer adoption of online grocery and food delivery sales we previously reported, the convenience store market is also poised for disruption amid Amazon’s plans to launch 3,000 cashierless Go Stores, grocers Whole Foods and Kroger testing convenience-style store formats, and popular convenience chains like Sheetz stating intentions to compete with both grocery stores and quick service restaurants.
The convenience store market size is expected to increase 5.5% in 2021, reaching an estimated $33 billion in revenue. As home delivery has become the norm following the COVID-19 pandemic, convenience store delivery is now also a growing sector alongside the on-demand food and grocery delivery markets. On April 1st, DoorDash started delivering from over 1,800 convenience stores nationwide, and 7-Eleven launched partnerships with both DoorDash and Postmates in late April. To understand which on-demand delivery services are growing the fastest within the convenience store industry, Edison Trends analyzed over 28,000 transactions in the U.S. from the top delivery apps.
Convenience Stores Included in Analyses
The convenience chains included in these analyses include: 7-Eleven, All In One Convenience Store, AMPM, Bartell Drugs, BP, Casey's, Chevron, Circle K, CVS (front-of-store merchandise only/no pharmacy sales), DashMart, DJ's Convenience Store, Duane Reade, Eddie's Convenience Store, Exxon, GetGo, Hasty Market, Holiday Stationstore, Huck's, Kinney Drugs, Kum & Go, Kwik Chek, Kwik Trip, Market on Demand, Maverik, Mini Mart Convenience Store, Minit Mart, Neighborhood, Convenience Store, QuickChek, QuikTrip, RaceTrac, Rite Aid, Royal Farms, Scotchman, Sheetz, Shell, Snack & Go, Speedway, The Convenience Store, United Pacific, Walgreens (front-of-store merchandise only/no pharmacy sales), and Wawa.