Online Food Delivery Market Size And Share Report 2023
The global online food delivery market size was valued at USD 189.70 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.8% from 2022 to 2028
The platform to consumer delivery segment held the largest revenue share of over 60.0% in 2021.
Asia Pacific held the largest revenue share of over 35.0% in 2021 and is expected to register the highest CAGR from 2022 to 2028.
What Are The Benefits Of Making An Online Food Delivery App?
The food delivery app like Ubereats will help you to fuel your business and better reach out to your business on completion. To get the best output on your food delivery app, it should be developed by the best food delivery app development company. Here are some reasons why users are more interested to use a mobile app for ordering meals.
Decision Convenience
Access Convenience
Transaction Convenience
Benefit Convenience
Post-Benefit Convenience
Ordering
Cooking
Delivering
Pros And Cons Of Food Delivery Services
Pros of Delivery Business
Product Stickiness
Network Effects
Supply Prioritization
Pricing Monopoly
No Legal Commitment to Drivers
Cons of Delivery Business
High Operating Cost
Operational Complexity
Why Are Users More Inclined To Use A Mobile App?
Interface
Payment systems
Faster performance
Easy visibility
Can be downloaded
Types Of Food Delivery Business Model
The Order Only Model
For Order allocation
Consumers can place an order on the website anytime
Restaurants can receive the order through fax, email, etc.
Once the order is received, the restaurant notifies the customers by sending a message
Companies start sending orders into a Smartphone app or web app
In some cases, the companies print the order directly into the kitchen using the restaurant’s POS system.
For Delivery
A restaurant employs the delivery boy
A restaurant delivery service employs the delivery boy to deliver the order to the customer’s doorstep
Advantages
1. Firstly, in this type of business model, you don’t have to face any issues that are related to food delivery.
2. Secondly, it’s purely a software business. Hence, for every order placed you can charge a flat commission fee from the restaurants.
Challenges
The Order and Delivery Model
For order allocations
The restaurant should register on your online platform
Using your platform customers can easily place an order from the restaurant
The restaurants receive an order through website or app notifications
As per the convenience, the customers can pay online or cash on delivery
For delivery
To deliver the order to the customer place, the nearest delivery boy receives the notification
A delivery fee is fixed based on the customer’s distance
Customers can add instructions like place an order outside, don’t ring the doorbell, and more
Advantages
Challenges
The Fully Integrated Model
Scheduled Delivery
Allocation
Delivery
The delivery is based on the first-come, first-serve basis
For customers who are near to the delivery boy’s location, the delivery boy serves them first.
How Does An Online Food Delivery Application Work?
Sign Up
Profile Page
Food Search/ Restaurant Locator Page
Easy Order Placement
Multiple Payment Method
Real-Time Tracking
Communication Capabilities
How To Make Money With Food Delivery Apps?
Online Advertisements – Google AdSense can be one of the primary sources of generating revenue through advertisements.
Offline Advertisements – Advertisements can be displayed on the company’s Food packages. In addition to this, more advertising can be made by sending printed pamphlets along with the meal.
Strategic Partnership – People willing to open a restaurant or small kitchen can sign up by paying a small fee to the platform.
Commission of Selling – Online office food delivery businesses can collaborate with restaurants on pre-decided commission rates based on the number of food orders.