The Online Foodservices Industry covers all organizations involved in the distribution of the packages received from hospitality places and has an online portal or application for their sales to be considered part of. There has been an increase in the number of enterprises returning to work and adapting to the new normal while recuperating from COVID-19, which had previously led to restrictive containment measures involving the shutdown of economic activity and social separation.
According to a CAGR of 11%, the market will reach $192.16 billion in 2025.
There is a wide range of online meal delivery services and related services that are sold largely to consumers at home.
The food might be either ready-to-eat food or food that needs to be prepared specifically for consumption. Deliveries from restaurants to customers are categorized as either restaurant-to-consumer (restaurants deliver directly to customers) or platform-to-consumer (platform delivery services deliver orders from partner restaurants).
According to this study, the worldwide online food delivery services market is split by type into platform-to–customer, restaurant–to–customer; by-channel type into websites, mobile apps; and by payment method into cash on delivery and online payments.
- Among the regions examined in this paper are the Asia-Pacific region and Western and Eastern Europe.
- Online food delivery businesses will be hampered by high logistical and supply chain costs.
- This covers the cost of order fulfillment, shipping costs, the adjustment of corporate resources to dynamic market demand, and the last-mile connection.
- In addition, you’ll have to pay for packaging materials like cardboard boxes, gas, mileage, and the cost of a driver.
- Products with a short shelf life necessitate a well-functioning supply chain and logistics.
As a result of the growing popularity of online grocery shopping, Capgemini predicts that retailers would lose up to 26% of 2019 profits if they do not improve their logistics system to assure on-time delivery. Online meal delivery services may experience a slowdown in their market expansion because of the high costs that suppliers must bear.
- In a stock-for-stock deal completed in January 2020, Zomato, an Indian food delivery firm, acquired Uber Eats’ Indian operations for $350 million.
- With the united Zomato and Uber Eats India company, more than 50% to 55% of all orders would be handled by the two companies.
- Ride-hailing service Uber operates an online food delivery service called Uber Eats.
Insights about Online Foodservices Major Companies and Market Share
Due to the presence of established local firms, the market is highly fragmented and competitive. DoorDash, Just Eat Holding Limited, Swiggy, Takeaway.com, and Uber Technologies Inc. are some major participants in the business. In order to attract new customers, the corporations are particularly concerned about offering enticing discounts. Reduced shipping costs have sparked pricing wars among the industry’s major competitors.
To increase their order numbers, the corporations are either partnering with eateries or introducing new delivery and ordering options. Parachutes, robots, and drones are also being used to improve the client experience and save operational expenses. Project Wing, for example, used drones to distribute burritos in Australia in December 2018. Iceland’s first commercial drone delivery service was started in September 2017 by Flytrex. In addition, firms are working to improve their logistical infrastructure in order to broaden their market reach. Zomato, for example, purchased Runnr, a logistics company, in September 2017 to expand its delivery fleet capacity in India and the United Arab Emirates.
The following companies dominate the Online Foodservices market:
- Just Eat Holdings
- The Uber Corporation
Online Foodservices firms around the world have benefited from an increase in smartphone users.
As more people use smartphones, there is a potential increase in the number of people shopping for food and beverages online, which is a reflection of an increase in the number of smartphone users.
There were 1.5 billion F&B e-commerce customers worldwide in 2019, and that number is predicted to rise to 2.0 billion in 2024, with an average y-o-y increase of 25%. According to Zomato, an Indian meal delivery service, there are currently 80 million monthly active consumers. Because of this, the expansion of Online Foodservices is being driven by an increase in smartphone users and internet penetration.
A more decentralized distribution system, known as “Distribution 4.0,” is becoming increasingly popular among food delivery firms. Rather than competing against one another for urban and rural markets, suppliers in Distribution 4.0 collaborate with numerous players to provide the greatest possible shopper experience by focusing their efforts on marketing, branding, and in-store merchandising. Distributors, e-comm companies, rural distribution firms, and other modern commerce distribution arms are expected to join forces with aggregators to expand their reach. With the help of small businesses, retail outlets, and rural supermarkets, Amazon intends to expand its last-mile delivery network. As a result, internet meal delivery services should benefit from the Distribution 4.0 trend.
Over the next few years, the industry is expected to benefit from factors such as the increasing number of dual-earner households, as well as changes in lifestyle and dietary habits. As a result, there has been an increase in demand for fast and economical cuisine. Online food delivery services provide enticing discounts, rewards and rebates, door-to-door delivery, and a variety of payment choices. Furthermore, food service providers are constructing massive warehouses to preserve fresh products in order to offer high-quality food and encourage the usage of Online Foodservices .