Menulog, once Australia’s food delivery leader, loses ground to global giants and falls below 10% market share, forcing its exit from the industry.
Background: Menulog was founded in Australia in 2006 as a digital marketplace connecting customers with local restaurants and delivery drivers. At its peak in 2014, it dominated the local online food ordering scene, holding around 80% of the market share. In fact, it was acquired by Just Eat in 2015 for $855 million.
What happened: When US giants like Uber Eats and DoorDash entered the Australian market, Menulog’s market share started to decline. In fact, by 2022, it had dropped to 24% market share alongside an annual loss of $275 million.
What else: By this year, its market share slipped below 10%. Despite Aussies spending more on food delivery than ever, Menulog struggled to keep up with its global competitors.
What's the key learning?
💡Market share is the percentage of total sales a company earns compared to all of its competitors in the same industry.
💡In smaller markets like Australia, when a few big players dominate, smaller competitors often get squeezed out, as seen with Foodora, Deliveroo, and now Menulog.
💡With Menulog’s exit, the food delivery industry becomes even more concentrated, which could lead to higher prices and fewer discount offers for customers.
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