Online Food Delivery Services Market Size By Type (Restaurant-to-Consumer, Platform-to-Consumer), By Channel Type (Websites/Desktop, Mobile Applications), By Payment Method (Cash on Delivery, Online Payment), By Geographic Scope And Forecast
Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationOnline Food Delivery Services Market Size By Type (Restaurant-to-Consumer, Platform-to-Consumer), By Channel Type (Websites/Desktop, Mobile Applications), By Payment Method (Cash on Delivery, Online Payment), By Geographic Scope And Forecast
Online Food Delivery Services Market Valuation – 2024 – 2031
The online food delivery services market is projected for substantial growth in the coming years, driven by several key factors. Increasing urbanization, rising disposable incomes, and growing internet penetration are all significant contributors to this trend. The market was valued at USD 68.15 Billion in 2024 and is predicted to reach a valuation of USD 251 Billion by 2031. This translates to a CAGR of 17.70% from 2024 to 2031.
Asia Pacific is expected to be dominated by the market. This dominance is attributed to its large and young population with a strong preference for convenience. North America and Europe are also anticipated to be significant players in the market. This is driven by a well-established online food delivery infrastructure and a high adoption rate among consumers in these regions.
Online Food Delivery Services Market Definition/Overview
Online Food Delivery Services are platforms or software that allow consumers to order food from local restaurants or food outlets and have it delivered to a specific location over the Internet. These services include a website or smartphone app that allows clients to browse menus, pick items, and pay electronically.
Furthermore, online food delivery services can be used to improve convenience by saving time and effort, offering a wide variety of cuisine options, providing accessibility for those who are unable to visit restaurants, facilitating business for restaurants through expanded reach, and incorporating features such as real-time tracking, personalized recommendations, and contactless delivery, which is especially useful during times like the COVID-19 pandemic.
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What are Key Drivers Propelling the Online Food Delivery Services Market?
The increasing popularity of smartphones and handy food delivery applications has profoundly altered customer behavior. Users can quickly explore menus, place orders, and track deliveries in real-time using their mobile devices. This convenience element, combined with increased internet penetration, is a significant driver of the food delivery market.
Modern lifestyles are characterized by hectic schedules and little time for cooking. Online food delivery services address this by providing a diverse selection of restaurant selections, allowing consumers to indulge in their favorite cuisines without leaving their homes. Also, the increased demand for variety and the possibility to try new eateries add to the appeal of these services.
Furthermore, the online food delivery market is becoming increasingly competitive, with several competitors fighting for market dominance. This competition drives constant innovation in terms of features, faster delivery times, expanded restaurant options, and appealing promotional offers. This variety, combined with competitive price methods, entices customers and drives market growth.
What are the Main Challenges Faced by Online Food Delivery Services Market?
The online food delivery market is very competitive, with many companies offering discounts and promotions to entice customers. This results in razor-thin margins for restaurants and delivery services. Finding the correct balance between offering low rates, preserving profitability, and providing reasonable remuneration to delivery drivers is an enormous challenge.
Furthermore, the online food delivery market depends significantly on a big pool of delivery drivers. However, driver shortages and high turnover rates cause disruptions in operations and impair delivery times. Furthermore, securing fair compensation and working conditions for drivers while remaining profitable presents a significant task for these service providers.
Category-Wise Acumens
How Does Platform-to-Consumer Platforms Provide Profitability for the Market?
The platform-to-consumer (P2C) segment is estimated to dominate the market during the forecast period. P2C platforms bring together restaurants from numerous chains and independent eateries into a single app or website. This enables consumers to browse menus, compare options, and order from a broader range of restaurants than would be offered through a restaurant’s delivery service (R2C). Users are particularly drawn to the convenience and variety of options.
P2C platforms operate their delivery networks, which may include independent contractors or employees. This enables them to optimize delivery routes, streamline logistics, and perhaps offer faster delivery times than restaurants that manage their delivery team under the R2C model.
Furthermore, P2C platforms spend substantially on marketing and advertising activities to attract both restaurants and customers. They also use user reviews and ratings to help clients find new eateries and make informed decisions. This emphasis on marketing, promotions, and user-generated content provides a more dynamic and interesting experience for users than the R2C model, where marketing efforts may be constrained.
How Does Mobile Applications Drive the Growth of the Market?
The mobile application segment is estimated to dominate the market during the forecast period. Mobile applications provide exceptional convenience for online food ordering. Users may access them from anywhere and at any time, explore menus, place orders, and track deliveries in real time using their cell phones. This simplicity of use overcomes the constraints of webpages accessible via desktops or laptops.
Mobile applications can employ push notifications to notify users of special offers, new restaurant additions, or order confirmations. Also, location services enable apps to automatically detect the user’s position, simplifying address typing and recommending nearby eateries for delivery. These capabilities improve the user experience and make mobile apps the preferred method for online food ordering.
Furthermore, Mobile applications seamlessly interface with mobile wallets such as Apple Pay and Google Pay, allowing for safe, one-click payments. Also, loyalty programs and reward points offered by meal delivery businesses are frequently controlled via mobile applications, enticing consumers to order through this channel.
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Country/Region-wise Acumens
How Does the North American Region Drive the Online Food Delivery Services?
North America is estimated to dominate the market during the forecast period. North America has a relatively high smartphone penetration rate, with a big proportion of the population comfortable utilizing mobile apps for a variety of reasons. This tech-savvy populace quickly adopts new technologies such as online meal delivery services, propelling industry growth. The ease of ordering food through user-friendly smartphone apps is a key driver of adoption.
Furthermore, North America is home to some of the world’s largest online food delivery systems, including DoorDash, Uber Eats, and Grubhub. These organizations have made significant investments in constructing strong delivery networks, forming relationships with a large number of eateries, and providing user-friendly smartphone apps. This developed market infrastructure, along with strong players, provides a dominant force in the online food delivery market.
What Factors are Driving the Growth of the Market in the Asia Pacific region?
The Asia Pacific region is estimated to exhibit the highest growth during the forecast period. The Asia-Pacific region has an extremely high mobile phone penetration rate. This, along with a strong digital-first culture, results in a population that is comfortable using mobile apps for a variety of purposes, including online meal delivery. The simplicity of ordering food using smartphones, as well as the presence of user-friendly apps, are important market growth factors.
Furthermore, Global firms do not completely dominate the Asia Pacific market. Several regional heavyweights, including Meituan (China), Swiggy (India), and Zomato (India), have established themselves as key players. These organizations understand local tastes, preferences, and delivery constraints, allowing them to personalize their offerings more efficiently. Also, major investments from venture capitalists and IT titans are driving innovation and industry expansion in the region.
Competitive Landscape
The online food delivery services market presents a dynamic competitive arena, marked by the presence of established industry leaders, emerging startups introducing innovative concepts, and technology firms offering diverse solutions to meet the evolving demands of consumers seeking convenience and sustainability.
Some of the prominent players operating in the online food delivery services market include
- Zomato
- Uber Technologies Inc.
- Delivery Hero
- Just Eat Holding Limited
- Deliveroo
- Postmates Inc
- Takeaway.com
- Ele. me.
- Foodpanda
- Pizza Hut
- Grub Hub
- DoorDash
- Swiggy
- Meituan Waimai
Latest Developments
- In June 2022, Zomato, India’s largest food delivery aggregator application, acquired BlinkIt, a struggling delivery service provider, for USD 568 million.
- In October 2021, Delivery By purchasing Hugo’s food and grocery delivery verticals, Hero expanded its presence in Central America and the Caribbean.
- In October 2021, Following the completion of Uber Technologies Inc.’s acquisition of Drizly, the two companies will start integrating their complementary delivery services and applications in 2019. About 18.7 million freshly issued Uber common shares and cash were included in the transaction price of about USD 1.1 billion.
- In April 2021, The largest food delivery and ride-hailing business in Southeast Asia, Grab Holdings, announced a USD 40 billion merger with Altimeter Growth Corp.
- In January 2020, Zomato acquired UberEats’ India division in an all-stock deal valued at around $350 million.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| Study Period | 2021-2031 |
| Growth Rate | CAGR of 17.70% from 2024 to 2031 |
| Base Year for Valuation | 2024 |
| Historical Period | 2021-2023 |
| Forecast Period | 2024-2031 |
| Quantitative Units | Value in USD Billion |
| Report Coverage | Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis |
| Segments Covered |
|
| Regions Covered |
|
| Key Players | Zomato, Uber Technologies Inc., Delivery Hero, Just Eat Holding Limited, Deliveroo, Postmates Inc, com, me., Foodpanda, Pizza Hut, Grub Hub, DoorDash, Swiggy, Meituan Waimai |
| Customization | Report customization along with purchase available upon request |
Online Food Delivery Services Market, By Category
Type
- Restaurant-to-Consumer
- Platform-to-Consumer
Channel Type
- Websites/Desktop
- Mobile Applications
Payment Method
- Cash on Delivery
- Online Payment
Geography
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- Latin America
Research Methodology of Market Research
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