When the whole world sheltered in their homes during the global pandemic, the food delivery services and sales reached new heights. Our data reveal that the online food delivery market grew from $115.07 billion in 2020 to $126.91 billion in 2021 at an annual growth rate of 10.3% globally. This incredible growth has stemmed from the online food delivery services carrying on their operations throughout the pandemic.
In America, Uber Eats, Postmates, DoorDash, and Grubhub have been in the spotlight during COVID-19 and the pandemic created a stir in their businesses. While on one hand, DoorDash in December 2020 made one of the biggest IPO debuts in the market, Uber on the other hand took away Postmates to enhance the market share and increase profitability. Uber has also been vigorously diversifying its business by launching a grocery delivery service, partnering with Nimble for prescription delivery, and procuring alcohol delivery company Drizly.
In the short term, most of the restaurants across the nation couldn't help but sign-up with these food delivering apps to keep their sales activity going. And the customers, on the other hand, were spoilt for choices with tons of coupons and promo codes rolled out by all food delivery apps. Therefore, Food delivery services became salient for both the customers and restaurants in these times of crisis. As a result, apps like Postmates, DoorDash, UberEats, and Grubhub raked twice the revenue worth 5.5 billion in FY 2020-21 as compared to $2.5 billion in FY 2019-20.
- DoorDash's order in 2020-21, i.e, during the pandemic, totaled 543 million as compared to only 181 million orders in 2019-20
- UberEats' business grew 135% during the pandemic and the revenue surged 125%
- Grubhub witnessed a 53% surge in its revenue during COVID-19
US Food Delivery App Market Share
These third-party delivery companies also noted an increase in the average order size per consumer during the pandemic, maybe because of the larger average checks contributed by the families since we were all stuck at home. Another reason could be customers ordering an extra meal to consume later. For instance, some people have been ordering breakfast and lunch or lunch and dinner together in an attempt to cut down on that pet-peeving delivery fee.
Companies Compete For Restaurant Partners
Food delivery companies forming partners with the country’s most popular restaurant chains is another incredible strategy of boosting growth. Some of the most recent partnerships are as follows:
- DoorDash partnered with Little Caesars Pizza,
- Starbucks contracted with UberEats,
- Popeyes reached Postmates, etc
Most restaurants have credited these popular food delivery companies for increasing their sales and revenue amidst the pandemic.
Discount Coupons And Promo Codes Boosts F&B Industry
Give discounts, attract customers, and repeat! This has been a successful growth mantra for the nation's popular food delivery companies like Postmates, DoorDash, Grubhub, etc.
Today, more people are turning to discount coupons for food delivery and online shopping. Everyone tends to look for offers, promo codes, and promotions before placing an online order. Giving food discounts has always tempted customers to bounce back and order more than they usually would, increasing the sales volume manifold.
Some of the most redeemed promo codes and coupons are as follows for food delivery are as follows:
Cost Of Supply Chain And Logistics Impacts Rise In Food Delivery Services
After all the impressive growth rates and figures, there's something that could be a key restraint in the rise of online food delivery services. I'm talking about the cost incurred in the supply chain and logistics. This cost includes the cost of order fulfillment, delivery cost, last-mile connectivity, and more. Other costs include costs of cardboard packaging, gas, mileage, and hiring delivery agents. These costs have to be intact to repudiate the spoilage of food. As per a study conducted by Capgemini, in 2019, restaurant owners could lose as much as 26% of their total profit if they fail to keep their logistics system upgraded and ensure on-time delivery.
So, the Cost of supply chain and logistics have to be incurred by the retailers no matter what and this, in turn, may restrain the overall growth of the online food delivery services market.
Top Food Delivery Apps Revenue & Usage Statistics
The Food delivery market as we know already has seen tremendous growth during the pandemic. Top players like Doordash, Postmates, undereats, and Grubhub expanded their services from takeaways to everything while allowing users to avail themselves of Discount coupons and promo codes, adding billions of dollars in potential revenue capture.
Moreover, employing more riders and incorporating route optimization technologies has catalyzed the growth in revenue by fostering faster and cheaper delivery.
The US has the world's most competitive food delivery markets. Flash through the following graphs to know more about Food delivery apps' revenue and usage statistics.
US Food Delivery App Revenue
Estimated US Food Delivery App Revenue
US Food Delivery App Users Jumped By Over 25%
Besides substantial revenue increase, the pandemic also triggered a significant jump in the number of users signing up for food delivery apps.
The US is the second-largest market in terms of generating revenue from online food delivery in 2021 amounting to $28.4 billion. A straight-up 30% increase in two years.
Conclusion:
Online food delivery services sure rose amidst the pandemic, building strong what was already in popular demand throughout the world. A lot of people ordered food online for the first time during COVID-19, propelling the F&B industry a few years in the future. So, we expect the next five years to be the years of consolidation for online food delivery services in not just the US but across the world.
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