In the recent past, online food delivery services have projected significant growth owing to several global factors. The market has developed majorly in several countries across the world. Several new business strategies and the emergence of new players have fueled the growth in the global online food delivery services market. It offers a variety of food items at the desired destination, connecting customers to numerous cafes, restaurants, and other food outlets in the city with convenient payment options and several discounts & offers.
The growth in the food & beverages sector, better availability of strong internet connection, and rising usage of smartphones are some of the driving factors behind the accelerating demand in the global online food delivery services market. The players have stepped up their game in the market by introducing several offers, increased food range, and numerous delivery & payment options like digital wallets, cash on delivery, pay later, etc., further giving market growth a significant boost
The COVID-19 pandemic has contributed notably to the growth of the global online food delivery services market. Options such as touchless delivery and of daily essential needs have made more and more people rely on the services helping them gain credibility. The market has helped the food & beverage industry by delivering the food items from the hotels and restaurants that were shut for dining options, fueling the demand in the global market.
The market is widely classified on the basis of payment mode, type, region, and channel. In terms of payment mode, the global online food delivery services market is bifurcated into online delivery and cash on delivery. On the basis of channel, the market is divided into desktop/websites and mobile apps. As per type segment, the market is sub-divided as restaurant-to-consumer and platform-to-consumer.
Geographically, Europe and North America are foreseen to exhibit exponential growth with the highest market share. Improved online food delivery services network, rising participation of a number of food joints, the presence of big market players in the regions, and improved mobile connectivity are some of the drivers boosting the growth in the regional markets. In addition, Asia Pacific is also estimated to witness significant growth during the forecast period. This is due to the surge in disposable income of the people, increasing items on the menu, and changes in food habits. Moreover, investment by several players is also supporting the regional market growth.
The major players leading the global online food delivery services market are Deliveroo, Swiggy, Uber Technologies, DoorDash Inc., Grubhub Inc., FoodPanda, Takeaway.com, and so on. Zomato, a famous Indian online food delivery app acquired Uber Eats in January 2020 for US$350 million. Such acquisitions, mergers, and collaborations are the key factors responsible for the growth in the global online food delivery services market.