Online food delivery business enables the customers to order their favorite food items and receive them at their doorstep. With an app or website, they can look into a wide range of cuisines and place an order with ease. The online food delivery market is recently witnessing massive growth as customers are showing interest in ordering food using a mobile app. Even though there are big players in the market, there is a place for newbie entrepreneurs to get into the market with a food ordering & delivery app. If you have any doubts on whether this business idea will be successful or not, check out this blog to get clarification. Read on to know about the online food delivery market in detail.
Online food delivery services market analysis
Recent global food delivery services market research is based on customer demand, recent trends, challenges, and forecasts. This analysis is helpful for you to know the barriers to business growth and identify the trends within application segments. It is also helpful for you to come up with effective & efficient strategies and be prepared for future challenges in advance.
Market analysis report consists of a comprehensive study of various segments like product type, application, and end user’s contribution. Some of the predominant players in the online food delivery market are McDonald’s, KFC, Subway, Pizzahut, Starbucks, Burger King, Dominos, Just Eat, Swiggy, Deliveroo, Zomato, Postmates, DoorDash, and many more.
Online food delivery market segmentation
Segmentation analysis is based on the type, sales channel, business model, payment method, regional insights, and many more.
Market split by type
Market split by payment method
- Cash on Delivery (COD)
- Online Payment
Market split by Sales channel
- Direct Channel
- Distribution Channel.
Market split by platform
- Mobile apps
Market split by business model
- Order focused
- Logistics based
Regional analysis scrutinizes the essence of the online food delivery services market in various regions. With this, you get to know the market size along with the prospects for future growth. This industry is predominant in the following regions.
- ● South America
- North America
- The Middle East and Africa
Impacts of Covid-19 in the online food delivery industry
The outbreak of coronavirus in 2019 impacts the online food delivery industry considerably. According to the report analysis, the Covid-19 can affect the industry in three possible following ways.
- Affecting production and demand
- Creating supply chain and market disruption
- Financial impact on enterprises and markets.
In India, the net worth of this industry was US $4.35 billion in 2020. It is expected to surge at a compound annual growth rate (CAGR) of 30.1% in 2021 and 2026.
Globally, the industry size was valued at US 23,539 million in 2018 and is forecasted to surge at a CAGR of 15% in the course of 2019 and 2025.
Hopefully, you are now clear that starting an online food delivery service business is a top-notch idea. If so, why wait? Opt for a food delivery app clone.
What is a food delivery app clone?
Food delivery app clone is a replica of the existing food ordering & delivery app in terms of features and functionality. Most app development companies offer a ready-made food delivery clone app that empowers you to start a business in the wink of an eye. Let’s see some of the well-known food delivery apps that you could consider to get a carbon copy of it for your business.
6 Major players in the online food delivery service industry
It is one of the leading food ordering & delivery service platforms in India which was founded in 2014 by Nandan Reddy and Sriharsha Majety. As of March 2019, it was in operation across more than 100 Indian cities. This company focuses on creating a dedicated delivery network in which they primarily focus on logistics. The estimated annual revenue of Swiggy is US $390 million, which was reported in 2020. It has collaborated with the following tech partners.
- Burger King (to offer delivery services)
- Google Local Guide (to facilitate customer feedback)
- Sodexo (to empower the users to pay through a full-digital meal card)
- Indifi Technologies (to enable a financial program for registered restaurants)
- ICICI Bank (for launching a digital wallet)
- ANRA Technologies (have started drone delivery trials)
Winning over your competitors, you can opt for a Swiggy Clone app infused with eminent features.
A parent company (Uber) launched UberEats in 2014, which is a food delivery platform. The company has planned and announced opening “virtual restaurants” in the United Kingdom to expand service. It is also known by the common terms “cloud restaurants” and “cloud kitchens.” UberEats provides a dine-option in certain places that allow the users to place their orders ahead of time and eat in the restaurants. The company has partnered with Apple to launch the Apple card, which empowers the users to pay digitally. The net worth of UberEats in 2019 was $2.51 billion and reached $4.8 billion in 2020. The Covid-19 is one such reason as UberEats experienced a 30% surge.
It is a multinational restaurant aggregator and food delivery service company founded as Foodiebay in 2008. Since its launch, it has acquired 12 startups worldwide. Zomato started its operation in India and later expanded its service in various countries. Its operational regions, along with the year of launch in those places, are listed below.
2011 – Delhi NCR, Bangalore, Pune, Chennai, Kolkata, and Mumbai
2012 – Sri Lanka, United Kingdom, South Africa, Philippines, Qatar, and United Arab Emirates
2013 – New Zealand, Indonesia, Brazil, and Turkey
2014 – Portugal
2015 – Canada, Lebanon, and Ireland
2019 – United States and Australia
The annual net worth of Zomato was nearly about US $350 million, which was reported in 2020. Amidst the Covid-19 pandemic, Zomato launched Zomato Market (an on-demand grocery delivery app) in over 80 cities across India as the demand for groceries surges significantly.
Also, it introduced “Contactless Dining” to minimize contact with the elimination of touch elements like a menu card. You can consider integrating these essential Covid-19 safety features into your Zomato Clone app that helps to cope with the thriving competition.
It is an American food ordering & delivery service platform owned by Uber. In 2017, it launched its service in Mexico City, which is outside the United States. In 2018, it expanded its service in more than 134 cities across the US. The net worth of Postmates in 2018 was US $1 billion. It primarily competes with big players such as Grubhub, DoorDash, and UberEats in the market. Amidst the
pandemic, Postmates offered a “contactless delivery” option like other food delivery apps.
Grubhub is an American (Chicago-based) online food ordering & delivery platform founded in 2004. It secured $1.1 million in Series A funding and raised $50 million in Series E funding. Like others, Grubhub infused its app with contact-free delivery and pickup options during the pandemic. The annual revenue of Grubhub in 2019 was US $1.31 billion.
DoorDash is a San Francisco-based online food delivery platform that was launched in 2013. To everyone’s surprise, it overtook UberEats and held the second position in the US market. In 2019, it exceeded Grubhub in sales at a rate of 27.6%. In the same year, DoorDash introduced a “ghost kitchen” in California. Because of the outbreak of coronavirus, the company changed the drop-off option to contactless delivery. Also, it launched the “Reopen for Delivery” program.
Undoubtedly, DoorDash has adapted to the changing trends, which is the primary reason to stand still and grow ahead in the market. When you plan to develop the DoorDash Clone app, consider the recent trends for the inclusion of features.
The convenience and comfort of ordering food items via a mobile app is one predominant reason for the demand for such an app in recent years. There is no doubt that entering this market is a wise decision. Can’t wait? Go ahead with opting for the food delivery app clone solution.
An author of Namaste UI, published several articles focused on blogging, business, web design & development, e-commerce, finance, health, lifestyle, marketing, social media, SEO, travel.
For any types of queries, contact us on info[at]namasteui.com.