In a food delivery statistics study by Gitnux, it was revealed that 65% of restaurant operators confirmed that offering food delivery generated great sales for their restaurants. But is it truly worth investing in?
If you’ve been thinking of expanding or improving your service through delivery services, we’re here to help you decide.
Included in this article are comprehensive numbers, recent industry data, and other interactive restaurant menu software tips that facilitate data-backed decision-making.
Why is online food delivery popular?
Online food delivery has become immensely popular due to its ability to address the demands of modern lifestyles:
Unmatched convenience
Ordering food through user-friendly apps or websites eliminates the need to travel, cook, or clean up.
A 2021 report by App Annie (now data.ai) highlights that food and beverage ordering apps witnessed a 20% year-over-year growth in downloads, showcasing the increasing consumer preference for food ordering software or systems.
Effective time management
Busy schedules need solutions that save time. Online food delivery caters to this need perfectly, allowing individuals to enjoy restaurant meals without the time commitment of dining out.
Diverse culinary experiences
These order and delivery platforms offer a wide array of restaurants, encompassing diverse cuisines often exceeding the options available in a specific location.
This promotes a sense of discovery and caters to broader taste preferences.
Transparency and user-friendliness
Real-time order tracking, a comprehensive menu app and software with accurate pricing information, and convenient cashless payment options improve the overall user experience.
Additionally, certain food delivery and online ordering systems prioritize improvements in driver experience, fostering a more sustainable ecosystem within the industry.
Food delivery statistics: What restaurant food delivery service has the most users?
Keeping a tab on what software is most popular in terms of location and demographics helps you decide which one to partner with.
Uber Eats
Uber Eats has transformed from a humble trial program into a global giant boasting over 88 million users. The company’s success is reflected in its soaring revenue, reaching $12.1 billion in 2023.
This widespread reach allows Uber Eats to offer food delivery from a staggering 890,000 restaurants across 11,000 cities.
Just Eat Takeaway
Just Eat Takeaway’s gross transaction value (GTV) grew across most of their businesses, particularly in Northern Europe, the UK, and Ireland in 2023.
This translates to a significant improvement in adjusted earnings before interest, taxes, depreciation, and amortization or EBITDA, rising from €19 million in 2022 to €324 million in 2023.
Just Eat Takeaway also strategically expanded its offerings, rapidly scaling its global grocery and retail proposition.
By the end of last year, the platform boasted approximately 46,000 stores, further enhancing customer choice and selection. Additionally, their advertising revenue experienced healthy growth, increasing by 28% year-over-year to reach €208 million in 2023, suggesting significant future potential in this area.
DoorDash
DoorDash cemented its position as one of the leaders in the US food delivery market, boasting a dominant 45% market share in 2021.
This leadership translates to impressive user growth, with a staggering 7 million new active users joining the platform in 2022 alone.
The company’s financial performance reflects this success, with its revenue experiencing a significant 34.8% increase to reach $6.58 billion in 2022.
Deliveroo
Deliveroo demonstrated a mixed bag of results in 2022. While they secured £1.9 billion in revenue, marking an 8.2% increase, the company continues to grapple with significant net losses.
Their deficit improved slightly in 2022 compared to the previous year but still amounted to a hefty £245 million. This financial concern is further amplified by a worrying 31% drop in the company’s value following its initial public offering (IPO).
Despite these financial hurdles, Deliveroo maintains a dedicated user base, exceeding 7.4 million, primarily concentrated in the UK.
Postmates
Acquired by Uber Eats in 2020, Postmates now functions as a subsidiary within the larger organization.
With specific user data post-acquisition remaining unavailable, the pre-acquisition period reflects a company with notable growth.
In 2021, Postmates reported 9.3 million monthly active users and revenue exceeding $730 million, demonstrating a 14% year-over-year increase. This highlights a robust user base and positive financial trajectory prior to the merger.
Meituan
Leading Chinese platform Meituan delivered impressive financial results for 2022.
Their core local commerce segment, encompassing food delivery and other services, witnessed a robust 17.6% YOY revenue increase.
Profitability also played significant growth, with operating profit surging by a commendable 56.8% compared to 2021. This positive trend extended to Meituan Grocery, which achieved notable growth and operational efficiency improvements in the fourth quarter.
These results solidify Meituan’s position as a dominant player in the Chinese market, not just in food delivery but also in the expanding grocery sector.
Rappi
Rappi is rapidly emerging as a leading force in Latin American food delivery.
Boasting a presence in 9 countries and over 5.5 million users, the company is valued at a staggering $7 billion, reflecting significant growth. This trajectory is expected to continue, with projections indicating a robust 50% three-year growth rate in their Gross Merchandise Value (GMV).
One of Rappi’s key strengths lies in its cost-effective delivery network, allowing them to undercut competitors.
Furthermore, they strategically leverage a cross-selling approach, encouraging users to explore various service categories beyond just food delivery.
Instacart
Instacart, which was initially a major grocery delivery player, has expanded its service to food delivery from restaurants and projected industry growth to reach $187.7 billion by 2024.
With nearly 10 million active users and the title of the most downloaded grocery delivery app (in 2022), Instacart boasts a dominant user base.
However, despite its strong market position, the company’s valuation dipped from $39 billion in 2021 to $24 billion in 2022, hinting at potential investor wariness.
To stay ahead, Instacart has embraced innovative strategies like collaborating with over 5,500 brands and leveraging popular influencer partnerships to demonstrate a keen understanding of the evolving customer landscape.
Zomato
Zomato’s a big name in food delivery. They rule the Indian market with over 1 million restaurants listed, actively serving 80 million monthly users. This reach extends beyond the Indian subcontinent.
Zooming out, they operate in 24 countries and over 3,200 cities.
And while specific figures are not disclosed in public references, Zomato’s successful IPO in 2021 serves as a strong indicator of the company’s financial potential.
Global food delivery data: Market projections you should know
Fueled by a surge in consumer demand, the global food delivery market is on a fast track to reach a staggering $1.22 trillion by 2024, as indicated by Statista Market Insights.
This impressive growth is further amplified by the projected user penetration rate, which is expected to hit a significant 27.5% within the same year.
Looking ahead, the future of the industry appears even brighter.
It’s expected that the industry will have a robust CAGR of 10.06% between 2024 and 2028. This means that the monumental market volume will reach $1.79 trillion by 2028, indicating a near 50% increase in just four years.
These figures paint a compelling picture of the booming popularity of restaurant food delivery services.
As user bases steadily rise and online ordering habits become increasingly ingrained, the food delivery industry is demonstrably poised for continued expansion and substantial growth in the next four years.
Food delivery market size by country: How big is the food delivery industry?
Restaurant food delivery services have grown across the globe. This means wherever you establish your business, it’s easy to spot a delivery company that you can rely on. Here’s how dense the industry’s market is:
China
China’s food delivery market is witnessing phenomenal growth.
According to Guangzhou-based iiMedia Research, the market size in 2023 ballooned to a staggering $208 billion, more than double the size it was in 2020.
And this trend is projected to continue, with China’s food delivery market forecasted to be the world’s largest, reaching a monumental $448.90 billion in 2024.
Further substantiating this growth, analysts predict the average revenue per user (ARPU) to hit $504.40 by 2024 in the grocery delivery segment.
The market is also expected to maintain a steady upward graph, with an expected CAGR of 8.72% between 2024 and 2028. This could lead to a potential market size of $627.10 billion in 2028.
Moreover, Guolian Securities anticipates an even more ambitious outlook, with the market potentially surpassing a staggering 2.2 trillion yuan by 2030.
United States
The US online food delivery market exhibits robust growth, with a projected revenue of $353.30 billion in 2024.
This momentum is expected to continue, triggered by a compelling CAGR of 10.91% between 2024 and 2028, resulting in a forecasted market volume of $534.60 billion by 2028.
This surge is further bolstered by increasing user penetration, with estimates suggesting over 51% of the population will use meal delivery services in 2024.
The fundamental factors driving this market expansion include the convenience offered by online food delivery services.
US consumers benefit from effortless access to a diverse range of restaurants through user-friendly websites and free mobile app for restaurant ordering, allowing them to explore new culinary experiences from the comfort of their homes.
United Kingdom
The United Kingdom’s online food delivery market is forecasted to reach a substantial revenue of $48.21 billion in 2024.
Analysts anticipate this growth to persevere, with a CAGR of 8.49% predicted from 2024 to 2028. Several factors contribute to this market strength.
One key element is a solid user base, with over 63.7% of the meal delivery market expected to be active users in 2024.
Plus, the consumer spending habits in the UK reveal a clear preference for delivered meals.
On average, a UK household spends approximately $6.40 weekly on takeaways in 2021, leading to an annual individual expenditure of roughly $820 on takeaway food.
South Korea
South Korea’s food delivery market is booming, reaching an estimated $44.42 billion by 2024. This is influenced by several factors, such as:
- Expanding smartphone access: A wider smartphone user base facilitates seamless online ordering, propelling market growth.
- Fast-paced lifestyle: Busy schedules make the convenience and time-saving benefits of online food delivery highly attractive to consumers.
- Strong internet connectivity: Increasing internet penetration strengthens the infrastructure necessary for online food delivery services to flourish.
Furthermore, the market boasts a significant user base, with projections indicating over 68.2 million users by 2024.
Leading companies like Baedal Minjok (Baemin) and Coupang Eats have established themselves as major players, effectively capitalizing on the growing demand for convenient food delivery solutions.
India
India’s online food delivery market is experiencing phenomenal growth, with a projected revenue of $43.78 billion by 2024. This momentum is expected to be sustained, with a robust CAGR exceeding 16.95% between 2024 and 2028, resulting in a potential market value of $81.91 billion by 2028.
This remarkable expansion can be attributed to several key factors:
- Increasing smartphone penetration and internet access: A growing number of individuals now possess the necessary tools to access online food delivery services conveniently.
- Rising disposable income: As household income levels increase, consumers have greater discretionary spending power, fueling demand for delivery services.
- Urbanization and busy lifestyles: Tier 1 and 2 cities, witnessing rapid urbanization, present a demographic with hectic schedules, making online food delivery a time-saving solution.
This surge in the online food delivery market is accompanied by a shift in consumer preferences.
Convenience remains paramount, with a growing inclination towards fast casual restaurants dining. Furthermore, the adoption of online payment methods is steadily increasing, gradually replacing cash on delivery as the preferred mode of transaction.
Zomato and Swiggy have established themselves as the leading players in this dynamic market, capitalizing on the demand for effortless access to a varied selection of culinary experiences.
5 common industry setbacks
Maintaining food quality
Keeping food hot and fresh is tough for delivery services.
Delays, mishandling, or bad packaging lead to unhappy customers with cold fries and soggy food. This means more refunds and bad reviews, hurting both the delivery platform and restaurants.
The main issue? Customers want their food delivered fast, which can pressure drivers to rush over careful handling. Even good packaging can’t always save food on long trips.
Driver management
Just like any job, attracting and keeping drivers takes competitive pay, good benefits, and comprehensive training.
Since delivery drivers often work as independent contractors, food delivery companies might struggle to compete with other options.
Plus, a lack of drivers or inefficient scheduling can lead to longer delivery times and frustrated customers.
These issues can ruin the whole experience. Long waits, incorrect deliveries—not exactly what food delivery companies and customers have signed up for.
Competition
The food delivery industry also grapples with a highly competitive landscape.
Numerous delivery platforms vie for market share, often resorting to price wars through reduced delivery fees or subscription models.
This aggressive competition can potentially jeopardize long-term profitability.
Customer churn is another concern, as users readily switch platforms based on enticing deals, wider restaurant selections offered by competitors, or simply seeking a more favorable overall experience.
Market saturation further intensifies this challenge, making it difficult for new entrants to establish a foothold.
Restaurant integration
Delivering food orders from restaurants to the customers’ doorstep involves more than just speedy drivers. Delivery apps work hand-in-hand with restaurant ordering systems to make sure everything runs like clockwork. Here’s why:
- Order mishaps: Sometimes what the customers see on the app might not always be what the restaurant actually has. Confusing menus or outdated info can lead to wrong orders, which seriously affects the customers’ ordering experience.
- Waiting…and waiting: Integration issues between the food delivery app and restaurants can slow things down, forcing the users to wait longer than expected.
- Hangry customers: Nobody likes a hangry customer. When orders are wrong or take forever to arrive, it can leave a bad taste in everyone’s mouth, literally and figuratively.
These challenges stem from (potentially) incompatible software. Not all restaurants possess up-to-date point-of-sale (POS) systems that can integrate seamlessly with restaurant contactless ordering systems.
Furthermore, manual data entry by restaurant staff to update menus or manage orders can increase the risk of errors and delays.
Technological advancements
New gadgets and software pop up all the time, promising faster deliveries and cooler features like real-time order tracking.
The trouble is, this fancy tech can cost a fortune, and keeping up with the latest and greatest is a challenge.
Fall behind, and operations get stuck in a slow lane with outdated systems.
This can become a huge challenge if competitors offer features like AI-powered recommendations or self-driving delivery cards zooming past customers, leaving some food delivery companies with a shrinking customer base.
Best practices to maximize your food delivery integration based on food delivery industry statistics
Here’s how various strategies help food delivery platforms better serve their market:
Customize your menu
If you want to know how to customize a menu QR code, digital menu, or other smart menus, check out your customer analytics.
Platforms can leverage user data and purchase history to personalize menu recommendations. This caters to individual preferences, potentially leading to higher order values, and customer satisfaction.
Offering targeted deals and discounts based on past orders or demographics can incentivize specific customer segments, boosting sales and engagement.
Ensure a customer-centric digital menu
A user-friendly interface with intuitive search filters and categorization of food items streamlines the browsing and ordering process, reducing decision fatigue and improving customer satisfaction.
Enticing food images and detailed descriptions can spark customer interest and encourage exploration of the menu, potentially leading to higher order values.
Make QR code menus for better accessibility
QR codes offer a contactless and convenient way to access menus, which is particularly appealing in a post-pandemic world. This helps reach a wider audience and eliminates the need for physical menus, enhancing hygiene and safety.
Digital menu QR code systems are updateable, ensuring customers always have access to the latest offerings and pricing information.
Manage orders with an interactive restaurant menu software
Real-time order processing through an interactive menu system minimizes errors and ensures seamless communication between customers, restaurants, and delivery personnel.
Integrating menu software with inventory management systems allows for real-time stock updates, preventing situations where unavailable items are displayed.
Constantly update omnichannel ordering systems
Offering consistent ordering options across various platforms (website, mobile app, third-party delivery services) provides flexibility and convenience to customers, allowing them to order through their preferred channel.
Omnichannel systems facilitate the collection of data from various touchpoints, providing valuable insights into customer behavior and preferences across different platforms. This data can be used to optimize marketing strategies.
The conclusion: QR code menu software rundown
The food delivery statistics have spoken for themselves. Indeed, offering delivery services helps improve your sales, customer retention, satisfaction, and adaptability to the constantly changing industry despite the numerous challenges.
But do take note of the best practices—such as offering a QR code menu or using interactive restaurant menu software—when you’re about to integrate deliveries to maximize their potential.
