3 Food Delivery Stocks to Watch

You might think that with reopening, delivery cos will fall out of favour, but we still believe the market and its growth potential are attractive post-pandemic.

Vikram Barhat 7 July, 2021 | 3:28AM
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 Food Delivery

Revenues of food delivery companies have seen tremendous growth over the past year, driven by the pandemic restrictions and stay-at-home orders. The U.S.-based food delivery apps clocked US$26 billion in revenue in 2020, a big jump on the US$22 billion the year before, according to data compiled by Morgan Stanley and McKinsey.

Morningstar's Ali Moghrabi says while the trend accelerated significantly in 2020 due to COVID-19, “we still believe the market and its growth potential are attractive" post-pandemic. The U.S. away-from-home market is projected to grow 4%-5% annually during the next five years. Globally, the online food delivery services market is expected to grow from US$115 billion in 2020 to US$127 billion in 2021, a 10.3% growth rate, boosted by time-starved and tech-savvy younger consumers picking convenience over conventional eating arrangements.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
DoorDash Inc Ordinary Shares - Class A177.13 USD-0.28Rating
Just Eat Takeaway.com NV ADR17.71 USD-1.67
Uber Technologies Inc42.79 USD-1.61Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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