The online food delivery market has transformed dramatically over the past decade, reshaping how millions of Europeans and Americans order their meals. What began as a niche service for pizza and takeout has evolved into a fiercely competitive, tech-driven sector dominated by platform giants. Yet, beneath the convenience and rapid growth lies a turbulent history of intense rivalry, rapid expansion, and spectacular failures. The story of Take Eat Easy—a Belgian startup that soared and then collapsed—offers a powerful lens to understand why only the biggest players survive, and why the recent acquisition of Deliveroo by DoorDash comes as no surprise. This piece explores the sector’s evolution, the hard lessons from Take Eat Easy’s rise and fall, and how these dynamics set the stage for the latest industry shake-up.
The current state of food delivery in Europe and the US
The online food delivery sector has become one of the fastest-growing segments in both Europe and the United States, driven by rapid urbanization, changing consumer lifestyles, and technological advancements. In Europe, the market was valued at over $376 billion in 2024 and is projected to more than double by 2033, with leading countries like the UK, Germany, and France accounting for the majority of market share. The surge in dual-income households, widespread smartphone adoption, and a shift toward contactless services have fueled this growth. Major players such as Deliveroo, Uber Eats, and Just Eat Takeaway have redefined the landscape, investing heavily in AI-driven logistics, real-time tracking, and sustainability initiatives. In the US, the sector is similarly dynamic, with DoorDash, Uber Eats, and Grubhub dominating.
The pandemic accelerated adoption, but as markets mature, companies face new challenges: profitability pressures, regulatory scrutiny, and fierce competition. Both continents are seeing increased consolidation as platforms seek scale and operational efficiencies to survive in a winner-takes-most environment.
The rise and fall of Take Eat Easy
Take Eat Easy’s story is a cautionary tale for food delivery startups in the sharing economy. Founded in Brussels in 2013, the company quickly positioned itself as a premium delivery platform, connecting quality restaurants with urban customers. Its rapid expansion across Europe was fueled by significant venture capital, growing its team from 10 to 160, expanding to 20 cities, and partnering with 3,200 restaurants within three years.
Despite impressive growth, Take Eat Easy was unable to achieve profitability. Its business model (charging restaurants a 25-30% commission plus a fixed delivery fee to customers) relied heavily on optimising courier utilisation. However, aligning real-time demand and supply proved complex and costly. The company’s contribution margin improved, but never sufficiently to cover fixed costs, making it dependent on continued external funding.
As competition intensified, especially from better-funded rivals like Deliveroo and Foodora, Take Eat Easy’s challenges mounted. Network effects and the winner-takes-most dynamic meant that once a competitor gained a lead, it became self-reinforcing. Take Eat Easy’s attempt to secure a crucial third funding round failed when a key investor withdrew, while another major backer shifted support to a direct competitor. Without new capital, the company filed for judicial restructuring and ceased operations in July 2016, just after reaching one million deliveries.
As we explained in our 2017 article (“The Rise and Fall of Take Eat Easy, or Why Markets are not Easy to Take in the Sharing Economy”), this case highlights three main threats for platform startups: aggressive incumbent responses, intense competition among similar platforms, and the pitfalls of prioritizing growth over sustainable unit economics. In the end, the sector’s structure favored the biggest players with the deepest pockets and the ability to absorb losses until dominance was achieved.
Why DoorDash’s acquisition of Deliveroo is no surprise
The fate of Take Eat Easy, set against the broader context of the food delivery sector, makes DoorDash’s acquisition of Deliveroo in 2025 a logical development rather than a shock. Several factors explain why:
Winner-takes-most dynamics. As seen with Take Eat Easy, network effects and scale are decisive. The market naturally consolidates around a few dominant players, with smaller or less capitalised platforms pushed out. Deliveroo’s survival and growth were due in part to its ability to secure more funding and scale faster than rivals, a dynamic DoorDash is now leveraging on a global scale.
Capital intensity and profit pressures. Food delivery is a cash-intensive business with thin margins. Even large players like Deliveroo struggled with profitability, only recently reporting its first annual pre-tax profit after years of losses and a disappointing IPO. DoorDash, with its larger capital base and experience in scaling operations, is better positioned to absorb these pressures and invest in long-term growth and technology.
Consolidation as a survival strategy. The collapse of Take Eat Easy and the ongoing struggles of many platforms underscore the need for consolidation. DoorDash’s acquisition of Deliveroo, following its earlier purchase of Wolt, is part of a broader trend where only the biggest, best-capitalised companies can survive and thrive in a maturing, highly competitive market.
Global expansion and integration. DoorDash’s strategy is to become a global leader, integrating operations and technology across continents. By acquiring Deliveroo, DoorDash gains a strong foothold in Europe and the Middle East, instantly expanding its reach to over 40 countries and 50 million monthly users. This scale is essential for competing with other global giants like Uber Eats and Just Eat.
Investor and market realities. The sector’s history—Take Eat Easy’s failure, Deliveroo’s volatile post-IPO performance, and the acquisition of Just Eat Takeaway by Prosus—shows that investors are increasingly sceptical of standalone platforms unless they can demonstrate both scale and a path to profitability. Mergers and acquisitions are the natural outcome of these market realities.
In summary, DoorDash’s takeover of Deliveroo is a direct response to the structural forces that shaped the sector and led to the demise of companies like Take Eat Easy. Scale, capital, and consolidation are now prerequisites for survival and success in the global food delivery market-a lesson written in the rise and fall of earlier startups and now playing out at the highest levels of the industry.
(During the preparation of this post, the author used GenAI tools to collect ideas and improve the expression. After using these services, the author reviewed and edited the content as needed. The author takes full responsibility for the publication's content. Photos by author or royalty-free photos from Pexels.com.)
