Recent trends indicate that users of restaurant and grocery delivery applications are increasing their spending on these platforms compared to six months ago, revealing a significant potential for growth in the online user base of restaurants. A comprehensive survey conducted among 1,451 individuals highlights that 67% of respondents are utilizing restaurant delivery apps, while 57% are employing grocery delivery services.
Notably, 64% and 70% of these users, respectively, reported higher expenditures on the apps compared to six months prior. Insights from the survey suggest that 60% of those increasing their spending on restaurant delivery applications cite quicker delivery times and improved order accuracy as the driving factors behind their enhanced spending patterns.
It’s noteworthy that 40% of users are categorized as infrequent users, suggesting substantial potential to enhance usage frequency among existing clientele. Interestingly, many individuals who do not engage with restaurant delivery apps attribute their lack of usage to cost-related concerns. Nevertheless, the survey indicates that a sizable 71% of these respondents are unaware of the savings offered by service providers through monthly subscription models, emphasizing an opportunity to attract new customers through targeted marketing initiatives.
In line with these findings, Oppenheimer has adjusted its projections for restaurant delivery share gains in 2025, increasing expectations from 46 basis points to 58 basis points. Additionally, the brokerage has raised the gross transaction value projections for Uber and DoorDash by 2%, reflecting expectations of greater market penetration and favorable consumer trends as rate cuts may boost spending next year.
The survey also revealed that among the 43% of participants who do not currently use grocery delivery applications, a striking 73% express a preference for shopping in physical stores. This trend is anticipated to pose a short-term challenge for Instacart. However, there is a belief among analysts that upcoming initiatives focusing on in-store experiences could present long-term opportunities for advertising and growth.
Furthermore, the findings indicate that 82% of online grocery shoppers are now utilizing Instacart to place orders from restaurants, following its recent partnership with Uber. Nearly 38% of restaurant delivery users were also reported to be utilizing Instacart for their grocery needs. These results not only present a favorable outlook for Instacart but also suggest that the partnership has positively contributed to Uber's existing user base, thus making it an appealing acquisition target.
The penetration rates among grocery users reveal that Uber Eats leads at 51%, with DoorDash and Amazon.com following at 46% and 45%, respectively. Instacart occupies 44% of the market, while Walmart holds a 42% share, according to the survey findings. Oppenheimer has revised its price target for Uber shares upward to $95 from $90, while also increasing the target for DoorDash shares to $160 from $145.
The price target for Instacart remains at $48..