Online Food Delivery Services Market

Global Online Food Delivery Services Market Size (2024 to 2029)

Global Online Food Delivery Services Market size was at USD 116.93 Billion in 2024 and is anticipated to reach over USD 200.51 billion by 2029 with a CAGR of 11.39% throughout the outlook period (2024 - 2029).

Online food delivery is a service that allows customers to buy food through a website or app. These platforms register and maintain accounts to facilitate frequent food orders. Payment is made online with credit card, debit card, digital wallet and net banking, or by Cash on Delivery (COD). As online food delivery systems reduce errors, labor costs, long lines, and waiting times, their use is increasing around the global

Global Online Food Delivery Services Market Drivers and Restraints:

The increasing use of smartphones and the penetration of the Internet are contributing to the growth of the market. The rise in the overall food delivery industry, which allows customers to order food from a variety of restaurants, is playing a central role in the growth of the Online Food Delivery Services Market.

In addition, the growing number of dual-income families and the change in lifestyle and eating habits are supposed to promote market growth during the outlook period. Considerable funding in the area of ​​food shipping offers opportunities for market expansion. In addition to these investments, various changes in user preferences are also contributing to the growth of the Online Food Delivery Services Market. For example, the demand for fresh food, fast home delivery, and ease of access are increasing the acceptance of online food delivery services. Additionally, the demand for online food delivery services among millennials is also gaining traction. In addition, the growing advances in infrastructure in emerging economies offer growth opportunities for providers operating in the market. They allow companies to expand their network of catering and delivery partners in different cities. Also, the integration of IoT allows users to opt for online food delivery services through voice commands, making the delivery process even easier. These technological advances are expected to further stimulate market growth. Although the market is currently in its growth phase, several factors, such as fluctuating pricing models and the availability of multiple food delivery service platforms, are expected to increase competition. In addition to this, the quality of the food delivered deteriorates when the quantity of food orders is high, which also requires additional resources to deliver the food. Therefore, the inability of restaurants to respond to multiple deliveries and the inefficiency in keeping up with volumes limit Online Food Delivery Services Market growth. However, the emergence of virtual restaurants and delivery kitchens is supposed to offer significant Online Food Delivery Services Market growth opportunities.

Impact of COVID-19 on Online Food Delivery Services Market:

It is important to say that hardly any event in recent history has managed to generate as much clamor and indecision as the coronavirus pandemic. Its social and financial impact on humanity has been colossal and the effects are expected to last for a long time. The coronavirus pandemic has brought important changes in the eating behaviors of restaurateurs in the world. Restaurant closures and social distancing measures have led to a growing demand for online food delivery, both directly through a restaurant's website and through the use of a third-party delivery service. In 2020, the share of the online food delivery industry in the restaurant market was estimated at 13%, before the pandemic this figure was 9%. Post-coronavirus market share is expected to increase by 21% in 2025.

REPORT COVERAGE: 

This research report on the Online Food Delivery Services Market has been segmented and sub-segmented based on type, channel, payment method, and region. 

Global Online Food Delivery Services Market: 

The Global Online Food Delivery Services Market can be divided into

• Type
• Channel Type
• Payment Method

Global Online Food Delivery Services Market – By Type:

• Platform-To-Consumer
• Restaurant-To-Consumer

the online food delivery services market is classified into restaurant-consumer and platform-consumer. The platform-to-consumer segment is estimated to register a CAGR of greater than 15% during the forecast period. The consumer platform model addresses the resource and logistics aspects of food delivery while offering delivery services to restaurants that do not have in-house delivery resources. The increase in the number of investments in this model is driving the growth of the segment in the capital cities.

Global Online Food Delivery Services Market – By Channel:

• Mobile Applications
• Websites/Desktop

the online food delivery service market is divided into desktop and mobile websites/apps. The mobile applications segment is expected to register a CAGR of over 14% during the forecast period. The growth of the segment can be attributed to the increasing penetration of smartphones, along with technological advances such as 3G and 4G networks. Additionally, many restaurants offer various discounts to end-users who order food through mobile applications.

Global Online Food Delivery Services Market – By Payment Method:

• Online Payment
• Cash On Delivery

 the online food delivery service market is segmented into cash on delivery and online payment. The online payments segment is foreseen to experience tremendous growth with a CAGR of over 13% during the outlook period. Online payment services include payments through payment portals, online banking, or credit / debit cards. The growing awareness of digital currency among consumers and the number of partnerships between banks and online food delivery service providers are responsible for the increase in the adoption of the online payment method.

Global Online Food Delivery Services Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa

The Asia-Pacific market is expected to post a CAGR of more than 15% during the foreseen period. Regional growth can be attributed to rising per capita income and the changing preferences of millennials. In addition, the increasing use of Internet-enabled smartphones by Generation Y and the rapid adoption of advanced technologies, such as voice assistant applications, are contributing significantly to the growth of the regional market. The growth of the e-commerce sector in developing countries such as India and Japan further contribute 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 experiencing healthy growth due to strong consumer preference for fast food and changing lifestyles. Additionally, the presence of various online food service providers such as Just Eat Holding Limited and Postmates Inc. further drives the growth of the regional market. Market players operating in the region offer live customer service, delivery execution and other related services, further driving the growth of the local market.

KEY MARKET PLAYERS:

Key market players of Online Food Delivery Services Market are Uber Technologies Inc, DoorDash, Swiggy, Just Eat Holding Limited.

RECENT HAPPENINGS IN THE INDUSTRY:

• Uber has signed a deal to acquire Postmates, a food delivery startup, in a $ 2.65 billion deal. Uber clearly expects the takeout trend to continue as restaurants and bars reopen across the country.
• Zomato, the online restaurant aggregation and food distribution platform, announced on that it has acquired the Uber Eats business in India in an equity deal that will see the transportation company's food delivery business in line will go to Zomato.
• Ending months-long speculation, Amazon India has announced its entry into Bengaluru's online food delivery space with just a few PINs. Various media reports had announced that the Seattle-based giant had launched in various regions of the country in May 2020.