Over the last five years, the food distribution industry has expanded significantly. Food distribution has grown from takeaways to anything and all, thanks to platform-to-consumer platforms like DoorDash and Uber Eats, potentially capturing billions of dollars in revenue.
Global Online On-Demand Food Delivery Services Market
Despite the COVID-19 crisis, the global market for online on-demand food delivery services, which was estimated to be worth US$42.7 billion in 2020, is expected to rise to US$269.7 billion by 2026, with a CAGR of 29.5% from 2020 to 2026. One of the report’s segments, order-based food delivery services, is expected to grow at a 27.5 percent CAGR and hit US$223.5 billion by the end of the study period.
Following an early assessment of the pandemic’s market ramifications and the resulting economic downturn, the Logistics-based Food Delivery Services segment’s growth is updated to a revised 52.2 percent CAGR for the next seven years.
Key drivers of the global online food delivery market
- The rapid adoption and accessibility of a wide variety of online dishes inspire consumers to order online food. Furthermore, online food supply applications cover many deals, discounts and forms of payment such as online payment and cash-on-living. This lets customers select various dishes from a variety of restaurants.
- Market in Asia Pacific to Expand Rapidly
- Geographically, there are five regions in the world’s on-demand food supply market: Europe (EU), North America (NA), the Middle East and Africa (MEA) Asia Pacific (APAC), and South America (SA).
- Different advantages or offers provided by food supply applications increase customer accessibility, which is expected to increase the growth in market growth for online food supply services over the forecast years.
- Country-level coverage of North America includes the United States, Canada and the rest of North America. The Asia Pacific also covers the whole of Asia Pacific, India, China, Japan and India. Markets in Germany, France, the United Kingdom and the rest of Europe provide analysis and projection of Europe’s online market for food services supplied.
On-line study and projection of the GCC nations, South Africa, and the Rest of the Middle East & Africa requires an analysis of the market for on-demand delivery of food services. The online food services sector in South America is divided into Brazil and South America.
- The United States, Japan, Italy, the United Kingdom and Australia are the world’s largest online market for the online marketing of food services. The US is the world’s largest food supply market.
This is due to increased investments by suppliers to increase logistics efficiency and the increasing willingness of the consumers to opt for this service which promotes market growth in the area.
Key Players Operating in the Global Market
Estimates are made to show a growing demand for these services in the forecast period for key players working on the online market for food delivery services. The rivalry and fragmentation are expected to develop in the coming years and the market is fragmented and competitive.
Vendors concentrate on acquisition and growth strategies and cooperation with startup firms, in addition to contractual alliances and distribution arrangements, in order to achieve a larger share of the market.
Cab Company Uber negotiated in December 2019 to spend US$100-200 million in new capital as part of selling its Indian food supply business to local rival Zomato. When the merger happens, UberEats and Zomato will dominate a highly contested and cash-intensive online food delivery market in terms of the size and number of orders in front of Swiggy.
Zomato collaborated with the FarEye (digital logistics company) in August 2019 to enable restaurants to remain in adherence with the Food and Standards Authority guidelines of India (FSSAI).
Some of the major players on the global online food services market on demand are:
- Zomato Media Pvt. Ltd.
- Uber Technologies Inc.
- Delivery Hero SE
- Just Eat Holding Limited
If you want to build an on-demand delivery app, that’s the golden time for you. The food supply sector is rising and the demand is not very saturated. The food supply industry is rising increasingly and has tremendous future prospects.
So, what are you stopping? Start building your own on-demand food supply app taking all the main considerations and functions mentioned in the article into account.
An on-demand delivery app development with the desired characteristics will provide the company with consistent revenues. However, to make the app profitable, you should take these considerations into account.
A comprehensive service network supporting your app and food supply company must also be established. And if you need a robust On-Demand Food Delivery solution quickly, you can contact us.
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Author – Bio
Mushahid Khatri is a Chief Executive Officer of Yelowsoft which is one of the leading taxi dispatch app development. He believes in sharing his strong knowledge base with leaned concentration on entrepreneurship and business.