There has been a meteoric rise in the popularity of food delivery apps in recent years, as more and more people rely on online food delivery services.
It’s no surprise that by the end of 2024, the online meal delivery market will have skyrocketed with the rising desire for food ordering convenience and accessibility.
This article explores the most recent data on the food delivery app market and offers forecasts for 2023 about the growth of food delivery app revenue and user engagement.
Online ordering and food delivery have become integral parts of today’s food technology, and their growth has been a game-changer for the restaurant sector.
At a compound annual growth rate (CAGR) of 10.2% from 2018 to 2023, the worldwide online food delivery industry is expected to reach $154.34 billion in 2023, as reported by Food Delivery App Industry Stats in 2023.
Apps like DoorDash, Uber Eats, and Grubhub are the most prominent participants in the meal delivery sector. DoorDash has 45% of the market share for delivery applications, followed by Uber Eats with 22% and GrubHub with 18%. However, there is a lot of competition in the meal delivery market since new companies are entering it all the time.
Subscription pricing has been used by several companies in the food delivery industry to reward loyal consumers with discounts and perks for continuing to use the service.
Popular solutions that assist restaurants in improving efficiency and speeding up the delivery of food to clients include cloud kitchens and real-time updates.
The proliferation of food delivery applications and rising desire for ease of use are fueling the projected $38.4 billion growth of the US food delivery industry by the end of 2023.
With a 45.5% market share, DoorDash is the most popular meal kit delivery app in the United States, followed by Uber Eats’ market share (28.2%) and Grubhub (15.5%).
It is anticipated that by the end of 2023, the online meal delivery industry in Europe will be worth $175 billion. Just Eat, Deliveroo, and Instacart are the three most popular ones in the region.
With an expected $324 billion in sales by 2023, China is the largest market for online meal delivery. The Indian food delivery business is expected to be worth a total of $12.5 billion by 2023, with Zomato and Swiggy as the two dominant players.
The meal delivery industry has made it a top priority to ensure that customers get their meals in a safe and hygienic condition.
This has led to new regulations being implemented by several meal delivery firms to ensure the health and safety of their customers and their delivery personnel.
With an increasing number of food delivery services, eating at home may seem more like dining out than ever before.
The Food Delivery App Market Statistics 2023 report projects that the size of the US food delivery industry will hit $46.5 billion in the next decade, expanding at a CAGR of 10.1% during the five years preceding that year.
The number of people who use meal delivery apps is rising, and it’s projected to hit 44 million by 2023.
When it comes to ordering meals for delivery, 70% of customers prefer to do it online. In addition, clients like it when they can use cloud technology to get a head start on preparations and get information in real time.
Customers love using meal delivery apps, and business owners love the profits they bring in. The meal delivery industry in the United States is predicted to generate fifty billion dollars in sales by 2023, as reported by meal delivery app industry statistics for 2023.
The money comes in from restaurant commissions, customer delivery costs, and advertising.
Food delivery app development companies that transport food have diversified in recent years, with some now offering not only restaurant delivery but also prepared meals, groceries, and more.
Because of this strategy shift, several businesses have seen a rise in their bottom lines. Food technology has also made it simpler for these enterprises to run and grow.
According to research published in the UK Food Service Delivery Business Report, the on-demand food delivery app business in the UK is worth £4.2 billion in 2020.
Over the projection period (2020-2024), the food delivery industry is projected to expand to $22 billion, the research adds.
There are several on-demand meal kit delivery apps in the United Kingdom, but Just Eat, Deliveroo, and Uber Eats are the most popular. With 45% of the market, Just Eat is much ahead of its competitors.
According to a survey by Grand View Research, the on-demand food delivery app business in the United States is worth an estimated $26.5 billion in 2020. During the forecast period (2021-2028), the market is projected to expand at a CAGR of 9.8%, according to the analysis.
DoorDash, GrubHub, Uber Eats, and Postmates are the leading competitors in the US market. The majority of the market is controlled by DoorDash, which has 65%, followed by Uber Eats, with 23%, Grubhub, with 9%, and Postmates, with 2%.
In both the United Kingdom and the United States, a few chains dominate the industry, fast food and informal dining are on the rise, and technology is being used to improve the delivery process.
On the other hand, the two markets do have their distinctions. In contrast to the dominance of chain restaurants in the American market, independent restaurants and cafés predominate in the UK.
In addition, there is a greater need for nutritious food choices in the UK market than in the US market.
Read more: Top 10 Successful Food Delivery Apps to Follow in 2024
Global demand for on-demand food delivery apps was severely impacted by the COVID-19 outbreak. When several local eateries closed, their patrons increasingly relied on takeaway and delivery services.
According to the UK Food Service Delivery Market Report, the market for food delivery in the UK rose by 48.1% in 2020.
More restaurants and cafés are teaming up with on-demand service mobile applications to expand their client base as the epidemic has sped up the adoption of technology in the food delivery business.
Consumers are more concerned about cleanliness and want convenient delivery methods that don’t require them to use their hands.
The market for meal delivery apps in Europe has grown rapidly in recent years, mirroring the trend observed in the United States. Statista estimates that the food delivery app market in Europe will grow to over €158 billion in 2027.
Several causes, such as the widespread adoption of mobile devices, rising customer expectations for instantaneous service, and the COVID-19 epidemic that has kept many people at home and dependent on delivery services, have contributed to this expansion.
Deliveroo, Just Eat Takeaway, Uber Eats, Glovo, and Wolt are just a few of the leading participants in the European food delivery mobile app industry.
By providing customers with a wide variety of culinary options, an intuitive interface, and prompt and dependable delivery, these businesses have carved out sizable niches in the industry.
To further improve the client experience and simplify operations, these businesses have used cutting-edge technology like AI and ML.
The growing interest in eco-friendliness and sustainability is a trend in the European food delivery app business. While some businesses have introduced eco-friendly packaging alternatives, others, apps like InstaShop and Just Eat Takeaway, have begun employing electric motorcycles and scooters for deliveries.
There are, however, a number of obstacles that businesses in Europe’s food delivery app sector must overcome.
Competition in the market is fierce, especially with the steady influx of new entrants. Companies’ treatment of delivery drivers and their reliance on gig economy employees have also come under fire.
The industry for food delivery apps in Europe has been severely impacted by the COVID-19 outbreak. Many individuals are now using food delivery services since many eateries are either closed or operating at reduced capacity.
According to research conducted by McKinsey & Company, the pandemic has stimulated food delivery application development, leading to an estimated 20–30% rise in order volumes.
In addition, the epidemic has altered customer behavior, with many now preferring contactless delivery alternatives and preparing healthier meals at home.
Because of this shift, Top food delivery apps now provide innovative functionalities like meal packages and recipe recommendations.
Recent years have witnessed significant expansion in the food delivery app business in Dubai, which is expected to reach around $2 billion by 2023. Customers’ need for ease of use, such as the ability to place an order with the click of a mouse, is a contributing factor to this expansion.
Apps like Talabat, Deliveroo, and Zomato have become wildly popular in the United Arab Emirates.
These applications have altered the meal delivery sector by making it possible for individuals to enjoy their favorite foods from the comfort of their own homes, and they provide users with access to a wide variety of cuisines, both local and international.
Market projections put the value of food delivery apps in the United States over USD 220 billion by 2023, thanks to their meteoric rise.
The proliferation of third-party food delivery services, the rising desire for healthier alternatives, and the ease with which one may place an order while on the move are all contributing to this expansion.
DoorDash, Uber Eats, and Grubhub are among the most downloaded apps in the United States due to their convenient meal delivery services.
Using these applications, users may order their favorite foods from nearby eateries without ever leaving the house.
There are a number of reasons behind the popularity of meal delivery applications in the United Arab Emirates.
Read more: Advantages & Disadvantages of Online Food Ordering System
Food delivery apps in the United Arab Emirates and the United States have several things in common, including offering convenience and variety, but they also have significant disparities.
When comparing the two marketplaces, the prevalence of different applications is a key distinction. Talabat and Deliveroo are the two most popular meal delivery apps in the United Arab Emirates, whereas DoorDash and Uber Eats dominate in the United States.
The food delivery app costs and prices also change from one app to the next and from one place to the next.
The proliferation of food delivery applications has led to a meteoric rise in the Indian meal delivery market in recent years.
With the help of these applications, ordering meals online and having them delivered has become much more convenient.
This article is going to look at the food delivery app business in India and how it stacks up against the US market.
The drivers fuelling this industry’s expansion, the obstacles encountered by food delivery applications in India, and the industry’s future prospects will also be discussed.
Competition between Swiggy and Zomato has been intense, with each firm proposing new innovations and features in an effort to win over a larger share of the market. As a result of its market share decline, Uber Eats recently merged with Zomato.
It is projected that the Indian meal delivery app industry will generate $17.02 billion in sales by 2023, expanding at a compound annual growth rate (CAGR) of 16% between 2020 and 2023.
Online food ordering’s meteoric rise, doorstep delivery’s widespread appeal, and urbanization are only a few of the causes of this expansion.
Four companies—Uber Eats, Grubhub, DoorDash, and Postmates—currently control the majority of the U.S. meal delivery app industry. DoorDash is the most well-liked food delivery service, followed by Uber Eats and GrubHub.
The American market is far more centralized and saturated than the Indian market. In India, the top two or three firms control just around 80% of the market, whereas the top four in the United States control more than 90%.
The two markets are quite different from one another with regard to the typical order size. The low average order value in India compared to the US may be somewhat attributed to the country’s relatively inexpensive cuisine.
Therefore, in order to make a profit, Indian food delivery apps will have to process a lot more orders overall.
Read more: DoorDash: Working, Revenue Sources, and Business Model Explained
The meal delivery app industry in India has its challenges. One of Swiggy and Zomato’s main challenges is the competition they face from one another.
Both companies are actively courting new customers by offering steep discounts and other incentives. Thus, earnings pressure has grown and profit margins have contracted.
The regulatory environment in India is likewise problematic. The government has enacted many regulations to ensure the quality and safety of food and to protect the legal interests of individual restaurant owners.
These regulations make it harder for Restaurant mobile app to operate and more costly for them to stay compliant.
The online food delivery market is highly competitive and continuously growing. Here are some of the top players in the industry:
When it comes to online meal delivery services, Uber Eats is among the most well-known options around the globe. The ride-hailing behemoth Uber has a stake in this company. In excess of 6,000 cities across 45 countries now have access to Uber Eats.
Its website and app make it easy to place orders from a variety of nearby eateries. American, Italian, Mexican, Chinese, and other cuisines are just some of the options available with Uber Eats. In addition, it has speedy delivery choices, making it a popular pick for hungry customers in a hurry.
More than 4,000 cities in the United States, Canada, and Australia may order meals via DoorDash, an American online food delivery service. With its network of more than 350,000 eateries, it provides its customers with access to a diverse selection of dishes from all across the country.
DoorDash’s stellar delivery services and intuitive user interface have earned them much praise. DashPass is a paid membership program that allows consumers to get free delivery and lower service prices.
There are now over 27 million active customers of Grubhub, the largest meal delivery network in the United States. It serves over 300,000 eateries and is present in over 4,000 locations throughout the United States.
The food on Grubhub ranges from Italian to Chinese to Mexican and more. Credit cards, PayPal, and even Venmo are just some of the available payment methods. People who need their meals delivered promptly often turn to Grubhub because of its excellent reputation for speed and dependability.
Founded in London, England, Deliveroo now serves over 200 locations in Europe, Asia, and Australia. It works with more than 140,000 eateries to provide users with a diverse menu.
Deliveroo’s fame stems from the company’s cutting-edge tools and lightning-fast delivery times. Free delivery and discounts are offered to subscribers of a program called Deliveroo Plus.
Zomato is an Indian food delivery app that has expanded to more than 500 cities in India and 23 other countries. With its network of over 1.5 million establishments, it provides its customers with a wide selection of cuisines.
Zomato is well-liked for its convenient user interface and quick food delivery. Zomato Gold, a customer loyalty program, is available and rewards customers with exclusive deals and discounts.
Know more: Top Food Delivery App Development Companies in the World
Online meal delivery services have been popular recently. Uber Eats, Grubhub, and DoorDash make ordering from favorite eateries simple from home.
According to ResearchAndMarkets.com, the worldwide online meal delivery industry will rise 8.8% to $143.7 billion by the end of 2023. Online meal delivery businesses are powerful.
Dine-in restaurants are still popular after centuries. Restaurants are about more than food. People love eating out with friends and family, discovering new places, and having a night out. In 2018, US dine-in restaurant sales surpassed $237.6 billion, according to Technomic.
Online meal delivery and dine-in restaurants are still competing, according to the data. The NPD Group found that online meal delivery accounts for just 3% of restaurant traffic, but it is growing.
However, 48% of restaurant traffic is still from dine-in establishments. Online meal delivery is expanding faster than dine-in establishments.
Online meal delivery is here to stay and is increasing fast. Dine-in restaurants won’t disappear anytime soon. Dine-in restaurants will always be popular. Dine-in restaurants will need to innovate to remain relevant.
Food delivery applications have simplified and democratized the food sector. Food delivery applications are expected to grow significantly in 2023. Food delivery applications have a bright future with a rising user base and profitability.
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