It seems maybe the time has come for some consolidation in an oversaturated food delivery market. After pursuing an expansion plan that was highly-ambitious the Texas-based delivery service Favor is closing all of its operations outside of its home state.
Favor delivery service said it would pull out of six cities nationwide, ending all service outside of Texas. Its delivery service remains in 15 Texas cities, including Austin, Dallas, Houston and San Antonio. The cities Favor is exiting are Boston, Denver, Nashville, Charlotte, N.C. and Tempe and Scottsdale, Ariz. The startup, once in 22 U.S. cities and Toronto, say it will focus on becoming profitable.
There are so many players right now it’s hard to know when app to have in which city or restaurant. Some restaurants prefer Door Dash and others may like Postmates. Judging from a poll conducted from a popular rideshare blog they concluded the industry leaders right now for drivers are the following:
That should tell you right there that Favor is nowhere favored and not really talked about much outside of Texas where they are based. You can bet that Favor will get bought out in the near future from one of the bigger players and we see a lot more consolidation in the rideshare and delivery services.
One thing we really found interesting reading the recent rideshare survey from drivers in this poll above is that Uber Eats ranks so low compared to Postmates and Door Dash even though Uber drivers are already out on the road. You would think Uber would have a monopoly on the delivery category as well but they may have too much to focus on with regulations and such.