Wall Street Is Banking Billions On The Food Delivery Boom

- FN Media Group Presents Oilprice.com Market Commentary

LONDON, Dec. 23, 2020 /PRNewswire/ -- With the pandemic shuttering thousands of businesses in 2020, the food industry rolled back the clock, turning to a trend made popular in the 1960s to save it. It may be the most revolutionary change in the food business in decades, creating an unprecedented boom in this projected $154 billion industry. And it led to one of the biggest IPOs of the year, with DoorDash coming to market in a $71.3 billion IPO.  Mentioned in today's commentary includes:  Uber Technologies, Inc. (NYSE: UBER), Grubhub Inc. (NYSE: GRUB), Domino's Pizza, Inc. (NYSE: DPZ), DoorDash, Inc. (NYSE: DASH), Yum! Brands, Inc. (NYSE: YUM).  

Since strict limits have been placed on in door dining, restaurants are seeing nearly a 50% drop in customers dining in this year. In 2020 alone, over 100,000 restaurants have been forced to shut their doors. But while it's hit many restaurants hard, others are surviving thanks to a booming trend…

One that's already taken off in recent years and is now catapulting to new heights. It's the trend that started nearly 60 years ago, when Dominos made the promise of delivering food to its customers' homes in "30 minutes or less." But now that's spread to thousands of restaurants, all fueled by companies making up a projected $154 billion industry by 2023.

That's why CNN is saying, "The pandemic boosted food delivery companies."

The New York Times is saying, "Food delivery apps are booming."

And Marketwatch is saying, "The pandemic has more than doubled Americans' use of food delivery apps."

This meteoric rise in the food delivery industry helped DoorDash catch the attention of major investors everywhere earlier this month with their IPO. And it's helped smaller companies like the Canadian ESG investment platform Facedrive (FD, FDVRF) become an up-and-comer in a booming industry.

Most folks know them as the eco-friendly ridesharing company, but they caught onto this food delivery trend early this year as they saw the pandemic lead to an unprecedented sales surge in the industry. That's why they've looked to grow their vertical in Facedrive Food quickly through major acquisitions and with key partners. And by acquiring hundreds of thousands of new customers quickly, they've seen their food delivery business grow an incredible 25% in just the last month.