U.S. Food Delivery Apps See Slower Growth in 2025

Delivery Boom Meets Reality

After years of double-digit expansion, the U.S. food delivery market in 2025 is showing signs of fatigue. Platforms like DoorDash and Uber Eats still dominate, but they are now facing slowing user growth, rising operational costs, and increasing consumer resistance to fees.

According to Bloomberg, the industry’s growth rate slipped to 4% in 2024, down from double-digit highs during the pandemic. Consumers, squeezed by inflation, are questioning whether the convenience of delivery is worth an extra 20–30% surcharge per order.

The Numbers Behind the Slowdown

Total U.S. delivery market revenue reached $218 billion in 2024, up only 3.9% year-over-year (Statista).
DoorDash still holds 65% U.S. market share (WSJ).
Uber Eats accounts for 23%, while Grubhub and smaller players split the rest.
Average basket size: $32 in 2025, compared to $28 in 2022 (CNBC).
Consumer survey: 52% of Americans cut back on food delivery at least once a month due to fees (Pew Research).

The slowdown reflects structural challenges, not just temporary headwinds.

Rising Fees Spark Consumer Pushback

Delivery apps have raised fees to offset rising labor and fuel costs. According to the NYT, some platforms now charge $7–$10 in service and delivery fees on a $25 order.

Restaurant Commission Fees: Still averaging 15–30% per order (National Restaurant Association).
Customer Service Fees: Introduced as “small order” or “platform” fees, now standard across the industry.
Subscription Models: DashPass ($9.99/month) and Uber One ($9.99/month) are popular, but adoption has slowed.

A Forb e s survey found 68% of consumers believe fees are “too high,” while only 27% say subscriptions fully offset costs.

Profit Pressures on Platforms

Despite massive revenues, profitability remains elusive.

DoorDash posted a small Q1 2025 profit of $45M, but margins are razor-thin (Reuters).
Uber Eats continues to rely on cross-subsidies from Uber’s ride-hailing division (Financial Times).
Smaller platforms like Grubhub struggle with declining market share, recently selling international assets to refocus on U.S. markets.

Analysts warn that platforms’ reliance on fee hikes and cost-cutting could alienate both consumers and restaurants.

Restaurants Push Back Too

Independent restaurants are also expressing frustration. According to Eater, 30% commission rates leave razor-thin profits. Many restaurants have started:

Encouraging pickup orders via discounts.
Building direct-ordering apps with startups like Toast.
Partnering with Shopify-powered food marketplaces (TechCrunch).

As one New York City restaurateur told WSJ: “Delivery apps helped during the pandemic, but in 2025, they’re eating into our margins more than they help.”

The Consumer Shift: Value Over Convenience

Consumers in 2025 are rebalancing priorities:

Pickup Popularity: Pickup orders rose 11% in 2024 (Nation’s Restaurant News).
Grocery Substitutes: Many consumers use Instacart or local grocers for meal kits instead.
Bundling Habits: Families increasingly combine multiple meals into one delivery to save fees.

A Morning Consult poll shows 56% of consumers prefer pickup when restaurants offer discounts, a trend that cuts into delivery volume.

New Competitors & Food-Tech Innovations

Even as big players slow, new models are emerging:

Robot Delivery: Starship Technologies expands autonomous deliveries on college campuses.
Drone Delivery: Zipline partners with major chains for 10-minute aerial drop-offs.
AI Menus: Platforms like DoorDash are rolling out personalization features to boost basket size.

According to TechCrunch, these innovations aim to offset slowing growth with efficiency and novelty.

Economic Impact

The U.S. food delivery industry employs over 1.2 million drivers (Bureau of Labor Statistics).
Wage hikes in California increased driver pay by 20% in 2024 (Los Angeles Times).
Fuel and insurance costs rose 11% year-over-year (AAA).
By 2030, delivery platforms could stabilize at $300B revenue, but with lower margins (Statista).

This signals a shift from “explosive growth” to steady, margin-focused consolidation.

Challenges Ahead

Regulatory Scrutiny: Cities like New York have capped delivery fees at 20% (NYC.gov).
Consumer Fatigue: Rising prices test loyalty.
Restaurant Alternatives: Direct ordering platforms reduce reliance on middlemen.
Sustainability: Packaging waste remains a major concern (World Economic Forum).

Without adaptation, the “big two” risk public backlash and regulatory penalties.

Conclusion: Growth Slows, Competition Heats Up

The U.S. food delivery boom is no longer the rocket ship of the pandemic era. In 2025, DoorDash and Uber Eats still dominate, but growth is slowing, consumers are pushing back, and restaurants are seeking alternatives.

For investors, it’s a warning: delivery is no longer just about scale, it’s about profitability, regulation, and innovation.

As the Financial Times noted, “the delivery apps that once seemed unstoppable must now prove they can survive the very convenience culture they created.”