Food delivery apps rely on heavy users to sustain growth, Federal Reserve data shows

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Food delivery apps growth

Highlights

Federal Reserve's 2025 Survey of Consumer Finances shows food delivery spending is concentrated, with the top 10% spending up to $2,400 annually.
DoorDash and Uber maintain order and revenue growth, driven by a small cohort of heavy users spending hundreds or thousands of dollars per year on delivery.
Future growth for apps depends on attracting first-time users and converting high-spending customers from rivals, with minor share shifts significantly impacting revenue.

Federal survey highlights concentrated spending

As reported by Business Insider, citing the Federal Reserve's Survey of Consumer Finances, the latest data collected in 2025 shows food delivery spending is heavily concentrated among a relatively small group of users. The survey, conducted every three years across 5,000 households, asks respondents about how they earn, spend, save, and invest money.

Jeremy Horpedahl, an associate professor of economics at the University of Central Arkansas, said his review of the data by spending percentiles suggests many consumers do not use food delivery at all. For the bottom eight spending percentiles, the median respondent spent $0 on food delivery, while the top 10% appeared to account for far more meaningful usage.

Within that highest-spending group, the median consumer under 35 spent $1,800 a year on food delivery, and those aged 35 to 44 spent $2,400 a year. The survey does not identify DoorDash or Uber Eats specifically and also includes other delivery options such as pizza delivery, which means the figures reflect the broader category rather than individual platforms.

Retention and competition remain central

That spending pattern helps explain why DoorDash and Uber continue to report growing orders and revenue even as retailers including Walmart and Dollar General warn that shoppers are cutting back or seeking better value, including in six-figure-income households. Horpedahl said a small group willing to spend hundreds or thousands of dollars a year on delivery may be carrying a disproportionate share of sector revenue.

DoorDash said the survey captures only one slice of how consumers use its platform today. A company spokesperson said the business has recently added more grocers and other retailers, while also expanding its DashPass paid membership to retain frequent users.

The findings also point to two paths for future growth, attracting first-time customers who have not yet used delivery apps and persuading heavy users to switch from rivals. Horpedahl said even a small share gain among these high-spending customers could have an outsized impact on revenue.

Earlier, we reported on Australian retail shifts as department stores lost market share to discount chains and online sellers.

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