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Industry Insights, Market Size, CAGR, High-Level Analysis: Online Food Delivery Services MarketThe global online food delivery services market size was valued at USD 23,539.40 million in 2018 and is expected to register a CAGR of 15.4% over the forecast period. The increasing use of smartphones and internet penetration are contributing to the market growth. The growth of the overall food delivery industry that allows customers to order food from an array of restaurants is playing a pivotal role in driving the market growth. The expansion of delivery aggregators such as Zomato and Swiggy in the Indian market over the last couple of years has further contributed to the market growth. In addition to the abovementioned factors, the growing number of dual income families and changing lifestyle & eating patterns are anticipated to favor the market growth over the forecast period. Furthermore, the growing demand for quick access to food at affordable prices is also driving the growth. Benefits offered by online delivery services include attractive discounts, rewards & cashback offers, doorstep delivery, and multiple payment options. Furthermore, providers of food services are setting up large warehouses to store fresh produce for offering high-quality food and encouraging the adoption of online delivery services. Considerable funding in the food shipment space offers avenues for market expansion. In addition to these investments, several changes in user preferences are also contributing to the growth of the market. For example, the demand for fresh food, quick home delivery, and easy accessibility is augmenting the adoption of online food delivery services. Furthermore, the demand for online food delivery services among millennials is also gaining traction. Additionally, increasing infrastructural advancements in emerging economies are offering growth opportunities to vendors operating in the market. They enable companies to expand their restaurant partner network and delivery network in different cities. Furthermore, the integration of IoT is enabling users to opt for online food delivery services through voice commands, which is further easing the delivery process. Such technological advancements are anticipated to further drive the market growth. Though the market is currently in its growth phase, several factors such as fluctuating pricing models and availability of multiple food delivery service platforms are anticipated to intensify competition. In addition to this, the quality of food delivered deteriorates when the number of food orders is high, which also requires additional resources to deliver the food. Thus, failure of restaurants to cater to multiple deliveries and inefficiency to cope with volumes are limiting the market growth. However, the emergence of virtual restaurants and delivery-only kitchens is expected to provide significant market growth opportunities.
Type Insights of Online Food Delivery Services MarketBased on type, the online food delivery services market is categorized into restaurant-to-consumer and platform-to-consumer. The platform-to-consumer segment is estimated to register a CAGR exceeding 15% over the forecast period. The platform-to-consumer model deals with the logistics and resource aspects of food delivery while simultaneously offering shipment services to the restaurants that do not have in-house delivery resources. The increase in number of investments in this model is driving the segment growth in capital cities. The restaurant-to-consumer type segment accounted for a prominent market share of more than 40% in 2018. In this model, restaurants deal with the shipment aspect while the providers of online food delivery services manage the ordering process. The players operating with this model offer loyalty and subscription programs to consumers in order to penetrate the market. The integration of several restaurant chains with aggregators such as DoorDash is further driving the segment growth. Channel
Type Insights of Online Food Delivery Services MarketBased on channel type, the market for online food delivery services is split into websites/desktop and mobile applications. The mobile applications segment is estimated to register a CAGR exceeding 14% over the forecast period. The growth of the segment can be attributed to the growing smartphone penetration, coupled with technological advancements such as 3G and 4G networks. Additionally, many restaurants offer various discounts to end users ordering food via mobile applications. The website/desktop segment accounted for a significant market share exceeding 40% in 2018. The growth of the segment can be attributed to the increasing number of restaurants, who are endeavoring to increase foot traffic by expanding their online presence through websites. The growth of e-commerce is further fueling the adoption of the website/desktop channel for ordering food online. Additionally, the integration of AI/VR in desktop/laptops is expected to also propel the segment growth.
Payment Method InsightsBased on payment method, the market for online food delivery services is segmented into cash on delivery and online payment. The online payment segment is expected to witness considerable growth with a CAGR of more than 13% over the forecast period. Online payment services include payments through payment portals, net banking, or credit/debit cards. The growing awareness of digital money among consumers and number of partnerships between banks & the online food delivery services providers are responsible for augmenting the adoption of the online payment method. The cash on delivery segment accounted for over 30% of the market share in 2018. The segment growth can be attributed to the fact that several customers prefer paying by cash since they are skeptical about the security of their online payment transactions. However, banks are focusing on enhancing security and offering additional services to users, which is anticipated to help change the scenario over the coming years. Additionally, cash on delivery is the most preferred payment method in many emerging economies such as Sub-Saharan Africa and India.
Regional Insights of Online Food Delivery Services MarketThe Asia Pacific market is expected to register a CAGR of over 15% over the forecast period. The regional growth can be attributed to the increasing per capita income and changing preference of millennials. Additionally, growing use of internet-enabled smartphones by millennials and rapid adoption of advanced technologies such as voice-assistant apps are contributing significantly to the regional market growth. The growth of the e-commerce sector in developing countries such as India and Japan is further contributing to the adoption of food delivery applications in the region. North America accounted for more than 20% of the overall revenue share in 2018. The regional market is witnessing healthy growth due to significant consumer preference for fast food and due to changing lifestyles. Furthermore, the presence of several online food service providers such as Just Eat Holding Limited and Postmates Inc. is further boosting the regional market growth. The market players operating in the region are offering live customer service, delivery execution, and other related services, which is further fueling the regional market growth.
Market Share Insights of Online Food Delivery Services MarketThe market is highly fragmented and characterized by high competition due to the presence of established local players. The key players operating in the market include DoorDash; Just Eat Holding Limited; Swiggy; Takeaway.com; and Uber Technologies Inc. The companies are particularly focusing on offering attractive discounts and enhancing their customer base. Reduced shipment charges have resulted in increased price competition among the key players in this space. The companies are focusing on scaling up their order volumes either by partnering with restaurants or launching advanced delivery & ordering options. Companies are also emphasizing on improving their customer experience and are aiming to reduce their operational costs using parachutes, robots, and drones. For instance, in December 2018, Project Wing delivered burritos in Australia using drones. In September 2017, Flytrex launched commercial drones for deliveries in Iceland. Furthermore, the companies are also focusing on strengthening their logistics network in order to expand their market reach. For instance, in September 2017, Zomato acquired a logistics startup named Runnr to strengthen its logistics services and enhance its delivery fleet capacity in India and the UAE.
p2 Segments covered in the reportThis report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global online food delivery services market report based on type, channel type, payment method, and region:
Type Outlook (Revenue, USD Million, 2019 - 2030)
Channel Type Outlook (Revenue, USD Million, 2019 - 2030)
- Mobile Applications
Payment Method Outlook (Revenue, USD Million, 2019 - 2030)
- Cash on Delivery
Table of Contents Chapter 1. Methodology and Scope 1.1. Research Methodology 1.2. Research Scope and Assumptions 1.3. List of Data Sources 1.4. List of AbbreviationsChapter 2. Executive Summary 2.1. Online Food Delivery Services Market - Industry Snapshot & Key Buying Criteria, 2014 - 2025 2.2. Market Summary 2.3. Online Food Delivery Services Market, 2014 - 2025Chapter 3. Online Food Delivery Services Market Variables, Trends, and Scope 3.1. Market Segmentati | read more...