Major players in the online food delivery services market are takeaway.com, Doordash, Deliveroo, Uber eats, Zomato, Swiggy, Domino's pizza, Grubhub, foodpanda, and Just eat.
The Global
Online Food Delivery Services Market is expected to grow from
USD 107.44 billion in 2019 and to USD 111.32 billion in 2020 at a growth rate
of 3.61%. The slow growth in 2020 is mainly due to the economic slowdown across
countries owing to the COVID-19 outbreak and the measures to contain it. The
market is then expected to grow and reach USD 154.34 billion in 2023 at CAGR of
11.51%.
The online food delivery services market consists of sales of online food delivery services and related services primarily for household consumption. The online food delivery services market includes all companies involved in distributing the packages received from hospitality establishments and have an online portal or an application for their sales. The food can be either ready-to-eat food or food that has to be specially prepared for direct consumption. Online food delivery service has two segments, restaurant-to-consumer delivery includes delivery of order directly by the concerned restaurant, whereas, Platform-to-consumer segment involves online delivery services that deliver orders of partner restaurants.
Asia Pacific was the largest region
in the online food delivery services market in 2019. North America was the
second largest region in the online food delivery services market in 2019.
In January 2020, Zomato, an Indian
food delivery services company, has acquired Indian operations of Uber Eats for
USD 350 million in an all-stock transaction. The combined entity of Zomato and
Uber Eats India is expected to corner more than a 50-55% market share in terms
of the number and value of orders. Uber Eats is an online food delivery services
vertical of Uber, a US-based ride-hailing company.
An increase in smartphone users has
given a boost to online food delivery services worldwide. Smartphone users are
the primary online shoppers for the F&B industry and an increase in the
number of smartphone users reflects a potential increase in online shopping for
food and beverages. The world F&B e-commerce users reached 1.5 billion in
2019 and are expected to grow by 800 million, with an average of 25% y-o-y
growth, by 2024. Indian food delivery platform, Zomato, has 80 million monthly
active users and has set targets of reaching 20 million over the next few
years. Hence increase in smartphone users and internet penetration is driving
growth in online food delivery services.
Upgradation of the distribution
network to a more decentralized system, Distribution 4.0, is trending in the
food delivery services market. In Distribution 4.0, suppliers partner with
multiple players for the best market coverage between urban and rural markets,
focusing their efforts on marketing, branding, and in-store merchandising to
create best-in-class shopper experience. They are likely to partner with
aggregators, e-comm delivery companies, rural distribution companies, and
distribution arms of modern trade to drive coverage. E-commerce aggregator
Amazon, has announced plans to team with many small scale businesses, retail
outlets, and rural supermarkets, to increase their last-mile connectivity.
Therefore, the trend of Distribution 4.0 is envisioned to bring in some positive
effects on the online food delivery services.
Cost of supply chain and logistics
will be the key restraint for the online food delivery services market. This
cost includes the cost incurred for order fulfillment, delivery cost, adjusting
business resources to dynamic market demand and last-mile connectivity.
Besides, there are costs of cardboard boxes for packaging, gas, mileage and the
cost for hiring a driver. The supply chain and logistics has to be in place in
order to avoid the spoilage of products with limited shelf life. According to
the report by Capgemini, in 2019, the retailers could lose up to 26% of their
profit if they fail to upgrade their logistics system to ensure on-time
delivery despite the increased online grocery system. Therefore, the costs
incurred by the supplier side may restrain the growth of the online food
delivery services market.
For More Information, Click on the Link Below:-
Global
Online Food Delivery Services Market
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing &
Communications
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