How do direct online pizza sales compare to pizza sales via third party delivery operators?
Figure 1: Chart shows the estimated market share based on online spending at the top three pizza delivery brands, comparing August 19, 2019 - February 16, 2020, according to Edison Trends. This analysis is based on over 500,000 transactions from Domino's, Pizza Hut, Papa John's, UberEats, DoorDash, Postmates, and Grubhub (including Yelp, Seamless, Eat24, and Tapingo).
Domino’s is one of the leading brands in popularizing food delivery and has taken the strategy to go it alone when it comes to delivering their pizzas, avoiding food delivery operators and relying on employees from its almost 6,000 U.S. stores to bring hot pies directly to consumers via its own app.
Since August 2019, Domino’s has remained a firm leader in market share of online spend versus Pizza Hut and Papa Johns, with their shares holding steady between 49-54% from August to February 2020, according to Edison Trends. Pizza Hut, like Domino’s, has elected not to use food delivery operators. Only 1% of online pizza transactions came from food delivery operators, as Papa John’s was the only brand of the top three to partner with companies such as Uber Eats and DoorDash.
Figure 2: Chart shows online spend on pizza delivery from February 12-16, 2020, according to Edison Trends. This analysis is based on over 500,000 transactions from Domino's, Pizza Hut, Papa John's, UberEats, DoorDash, Postmates, and Grubhub (including Yelp, Seamless, Eat24 and Tapingo).
During the week of February 9, looking at what customers spent on online pizza sales directly from merchants, as well as through delivery operators, 50% of the market share went to Domino's direct orders. Pizza Hut took 29% and 20% went to Papa John's.