Uber Eats and Postmates are officially teaming up.

Uber Eats and Postmates are officially teaming up. On Monday, Uber and Postmates officially announced they’re $2.65 billion mergers, scheduled to close in Q1 of 2021.

The food delivery market is quickly changing, and restaurateurs nationwide are left wondering how this evolution will affect their industry. This means the U.S. third-party delivery market has slimmed from four major players to three, with Uber/Postmates becoming the second-largest behind DoorDash. Uber Offical Release.

According to Second Measure – Consumer Transaction Data, Door Dash occupied 44 percent of the delivery market in May, followed by 23 percent for Grubhub, 22 percent for Uber Eats, and 8 percent for Postmates. Although Postmates is fourth-largest among its competitors nationally, it holds the biggest market share in Los Angeles with 35 percent.

Uber CEO Dara Khosrowshahi said the deal is expected to “drive significant efficiencies and cost savings” for all sides of the marketplace, including customers and restaurants.

“We believe that over time, we can offer a wider selection and lower prices for consumers, generate increased demand, lower costs, streamlined operations with fewer tablets for restaurants, and provide more work opportunities and improved earnings for delivery people,” Khosrowshahi said during a conference call.

However, Lunchbox CEO Nabeel Alamgir says he doesn’t see how the merger will benefit drivers, customers, or restaurants because of the reduced competition. He views the consolidation as a survival mode.

“None of those companies are profitable,” Alamgir says. “… Not only are they not running a sustainable business, but I also don’t think they plan to run a sustainable business. They plan to get to the top of the mountain, and hopefully, only two groups are left so they can hash it out then.”

As restaurants continually to find ways to survive, one major shift has occurred—3rd party fees and online food and delivery system per transaction. The successful restaurateurs are shifting away from 3rd party fees and 3rd party web automation transactional fees, bot tools, and bringing it in-house fully or with 1st party website development and tools intact.

Note: DoorDash quietly launched its own online ordering system to build native websites and apps for restaurants, which Lunchbox does exclusively. DoorDash plans to go not only to third-party ordering but first-party ordering, as well. It’s another signal to the industry that we need to invest in this because consumer sentiment changes.

In summary: If you are looking to bring in an in-house system and or restaurants looking for help, the Tridence Web Development team can offer solutions. Vist: https://www.tridence.com/web-development-software/