Global Online Food Delivery Services Market by Channel Type (Websites/Desktop, Mobile Applications) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global online food delivery services market was worth USD 23,539.40 millions in 2018. It is projected to grow at a compound annual rate (CAGR of 15.4%) between 2019 and 2025. Market growth is being driven by the increasing penetration of internet and smartphones. Market growth is being driven by the expansion of the food delivery industry, which allows customers to order food from a variety of restaurants. Market growth has also been aided by the expansion of delivery aggregators like Zomato and Swiggy in India over the past couple of years.

Market growth is expected to be influenced by the changing lifestyles and eating habits of dual-income families, as well as the factors mentioned above. The market is also driven by the increasing demand for food at reasonable prices. Online delivery services offer many benefits, including attractive discounts, cashback rewards, doorstep delivery and multiple payment options. In order to offer high-quality food, food service providers are creating large warehouses in order to store fresh produce. They also encourage the use of online delivery.

Market expansion is possible with significant funding available in the food shipping space. These investments are not the only factors that drive the market's growth. Online food delivery is growing in popularity due to the increased demand for fresh food, fast home delivery and accessibility. Additionally, millennials are increasingly interested in online food delivery services.

Vendors operating in the market are also able to benefit from increased infrastructure advancements. These enable companies to grow their delivery and restaurant network in different cities. The integration of HTML3_ IoT HTML3_ HTML4_ allows users to order online food delivery via voice commands. This makes the delivery process even easier. These technological advances are expected to drive market growth.

Despite the current growth phase of the market, many factors like fluctuating pricing models or availability of multiple food delivery services platforms will increase competition. The quality of food delivered is also affected by high food order volumes. This requires additional resources to transport the food. Market growth is being slowed by inability of restaurants to handle multiple deliveries and inefficiency when handling large volumes. The emergence of virtual restaurants, delivery-only kitchens and other options is expected to offer significant market growth.

Type Insights

Based on type, the online food delivery services market is categorized into restaurant-to-consumer and platform-to-consumer. Over the forecast period, the platform-to-consumer market is expected to grow at a rate of 15%. The platform-to–consumer model addresses logistics and resource issues of food delivery, while simultaneously offering delivery services to restaurants that don't have their own delivery staff. This segment is experiencing significant growth in capital cities due to the increase in investments.

The restaurant-to-consumer type segment accounted for a prominent market share of more than 40% in 2018. This model allows restaurants to handle the shipping aspect, while online food delivery companies manage the ordering. To penetrate the market, these players offer subscription and loyalty programs. Segment growth is also being driven by the integration of multiple restaurant chains with aggregators like DoorDash.

Channel Type Insights

The market for online food delivery services can be divided into two types of channels: desktop/desktop or mobile apps. Mobile applications are expected to grow at a rate of 14% during the forecast period. This segment's growth can be attributed to increasing smartphone penetration and technological advances such as 3G or 4G networks. Many restaurants offer discounts for customers who order food via mobile apps.

In 2018, the website/desktop segment held a significant market share of over 40%. This segment's growth can be attributed to an increasing number of restaurants that are trying to increase foot traffic through their websites. E-commerce has accelerated the popularity of websites/desktops for ordering food online. The segment will also grow due to the integration of AI/VR on desktop/laptops.

Payment Method Insights

The market for online food delivery services can be divided into two segments based on payment method: cash on delivery or online payment. With a CAGR exceeding 13%, the online payment market is set to experience significant growth over the forecast period. Payments can be made online via payment portals, net banking or credit/debit card. Online payment methods are being adopted due to the increasing awareness of digital money by consumers and the number of partnerships between banks and online food delivery service providers.

In 2018, cash on delivery accounted for more than 30% of the market. This segment growth is due to the fact that many customers prefer to pay by cash, as they are sceptical about online payments. Banks are working to improve security and offer additional services to customers, which will likely change the situation in the future. Cash on Delivery is also a preferred method of payment in emerging economies like India and Sub-Saharan Africa.

Regional Insights

Over the forecast period, the Asia Pacific market will experience a CAGR exceeding 15%. Rising per capita incomes and the changing preferences of millennials are two reasons for regional growth. The region's market growth is also being driven by the rapid adoption of advanced technologies like voice-assistant apps and increasing use of internet-enabled phones by millennials. Further, the region is seeing a rise in e-commerce in developing countries like India and Japan.

In 2018, North America was responsible for over 20% of the total revenue share. Due to growing consumer preferences for fast food and changing lifestyles, the regional market is experiencing healthy growth. The regional market is also being boosted by the addition of many online food service providers like Just Eat Holding Limited or Postmates Inc. Market players in the region offer live customer service and delivery execution as well as other related services. This is fueling regional market growth.

Market Share Insights & Key Companies

Due to the presence of local players, the market is fragmented and characterised by high levels of competition. DoorDash, Swiggy, Takeaway.com and Uber Technologies Inc are the key players in this market. These companies are focusing on attractive discounts and growing their customer base. The key players in this market have seen a rise in price competition due to lower shipping costs.

Companies are looking to increase their order volume by partnering restaurants or launching advanced delivery and ordering options. Companies also focus on customer service and aim to lower their operational costs by using drones, robots and parachutes. Project Wing, for example, delivered burritos to Australia with drones in December 2018. Flytrex introduced drones commercially in Iceland in September 2017. The companies also plan to strengthen their logistics network to increase their market reach. Zomato, for example, acquired Runnr in September 2017 to improve its logistics services and increase its delivery fleet capacity in India. These are some of the most prominent players in online food delivery services:

• DoorDash

• Just Eat Holding Limited

• Swiggy

• Takeaway.com

• Uber Technologies Inc.

Up Market Research published a new report titled “Online Food Delivery Services Market research report which is segmented by Channel Type (Websites/Desktop, Mobile Applications), By Players/Companies Swiggy, DoorDash, Just Eat Holding Limited, Takeawaycom, Uber Technologies Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Online Food Delivery Services Market Report Segments:

The market is segmented by Channel Type (Websites/Desktop, Mobile Applications).

Online Food Delivery Services Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Online Food Delivery Services Market

Overview of the regional outlook of the Online Food Delivery Services Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Online Food Delivery Services Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Online Food Delivery Services Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Websites/Desktop

                2. Mobile Applications

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Online Food Delivery Services Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Online Food Delivery Services Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.