The global online food delivery services market is expanding at a significant rate. Major factors that are contributing to the growth of the market include change in lifestyle, food habitat, working hours, and rapidly changing food & beverage industry landscape. In addition, increasing penetration of smart phone and internet among all age groups is also supporting the growth of the market. Most of the online food service providers have launched their apps which are accessible through smartphones. Smartphone users are observed to be prime online purchasers for food and beverage sector. An upsurge in the number of smartphone users have resulted in significant increase in online shopping for food and beverages. This is why the largest share of the market is consolidated in countries such as China and India. On the other side, unpredictable price fluctuation in food industry, unstable customer base, and high dependence on third-party may hamper the growth of the market.
However, strategic alliances between major players in the market will provide better growth opportunities to the market over the forecast period. COVID-19 pandemic conditions had a positive impact on the market. Good hygiene practices followed by online food providers ensured that customers should get hygienic food. In addition, approvals from various governments in different countries to conduct business in pandemic period have fueled the demand of food delivery services.
Online Food Delivery Services market is categorized based on type and channel type. Different types of online food delivery services include restaurant –to- consumer and platform - to- consumer. Owing to quick food demands of customers restaurant –to- consumer segment holds large share in the market. Further, different channels through which customers can order online food include websites/desktop and mobile applications.
Major players in the market are focusing on organic growth strategies such as mergers and acquisitions to expand their business, key players in the market include Meituan Waimai, Ubereats, Delivery Hero SE, Grubhub Inc., Just Eat Takeaway.com N.V., DoorDash Inc., Deliveroo, Zomato Media Pvt. Ltd., Glovoapp23 SL, and ELEME Inc. among others.
Trends and Future Outlook:
- Increase in buying power of the global middle-class population
- Hectic working hours that leave little to no time to cook or eat out
- Affordable pricing and offers on food items by leading players
