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Online Food Delivery Services Market

Online Food Delivery Services Market: Information by Type (Restaurant to Customer and Platform to Customer), Channel (Mobile Applications), Payment (Online), and Region — Forecast till 2029

Published At : 17 Mar, 2020
Updated At : 19 Apr, 2022
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Market Snapshot
Base Year:
Study Period:
12 %
Fastest Growing Market:
Largest Market:

Global Statistics Representing Online Food Delivery Services Market Scenario

The ubiquity of smartphones and high internet penetration have seen a steep rise in the number of online food orders. The millennial populace, particularly in the U.S., is a key driver for the online food delivery services market, as millennials prefer to order in rather than going to restaurants. The emergence of online food delivery services has reduced long queues and waiting times for food delivery. According to a research study by the Food Information Council, 55% of the millennial population in the U.S prefers convenience over taste. In the present scenario, robots, pizza drones, and parachutes are also being used to deliver food to customers. Online orders by virtual assistants, tweets, smartwatches, and television screens are also a part of the online e-commerce segment. Well-known pizza chains such as Pizza Hut, Dominos, and Papa John’s have been investing significantly in food delivery software for the past few years. These players have developed ordering systems for connected cars, smartwatches, and gaming consoles as well to further increase market penetration.

Growing Popularity of Online Food Delivery Services

Online food delivery services enable customers to order food from a wide variety of restaurants and suggest choices as per their preferences, thereby leading to increased acceptance for online food services. Increasing disposable income and changing lifestyles and eating patterns are also contributing to market growth. With today’s sedentary lifestyle, people prefer convenient and easy solutions. The rising demand for quick access to food at affordable costs is another key factor propelling the market growth. Online food delivery services provide various benefits, including discounts, cashback offers, rewards, and multiple payment options.

Considering the overall food ordering market, an estimated 42% of orders are placed online. A research study by GlobalFood Tech SRL calculated that 86% of the global population uses online delivery services once a month. Furthermore, growing infrastructure developments in emerging economies also portray lucrative opportunities for the vendors operating in the market. The integration of the Internet of Things also allows users to order food through voice commands, further adding easement to the delivery process.

In contrast, several factors, including fluctuating prices and availability of multiple food delivery platforms, are envisaged to amplify the market competition. Moreover, when the number of food orders is high, the quality of food delivered reduces, requiring additional resources for order fulfillment. Therefore, the failure of restaurants to meet simultaneous multiple deliveries and inefficiency to deal with volumes inhibit market growth. However, the introduction of virtual restaurants and delivery-only kitchens is anticipated to offer considerable market expansion opportunities.

Platform to Consumer Segment to Witness Strong Growth in Coming Years

The platform to consumer model is pegged to register relatively high growth with a CAGR of 12% during the forecast period. This

model deals with the resource and logistics aspects of food delivery and also provides shipment services to the hotels and restaurants that do not own in-house delivery resources. The rising number of investments in this model are projected to drive the growth of the segment in the years to come.

The restaurant to consumer segment, where restaurants directly deliver to consumers, accounts for a significant market share. In this model, consumers can order food via restaurant websites or platforms. Companies operating in this segment provide a subscription program to customers to increase customer loyalty.

Technological Advancements to Support Growth of Mobile Application Segment

The mobile application segment is expected to grow with a high CAGR, owing to the increased penetration of smartphones and tablets, coupled with faster internet connectivity. Moreover, restaurants offer attractive discounts to consumers who order food via mobile applications. While the mobile application segment is expected to record faster growth, the website/desktop segment held a larger market share in 2018. A large number of restaurants are taking cognizance of the business potential online and enhancing their online presence via websites. The escalating growth of e-commerce is also augmenting the adoption of the website channel for online food ordering services. The implementation of VI/AI is also estimated to provide ample opportunities for this segment during the forecast period.

Cash on Delivery Segment to Hold a Larger Value Share Among Segments by Payment Mode

Consumers remain apprehensive about online payment due to security concerns; thus, the cash on delivery segment leads the market. However, banking organizations are focusing on improving security and providing additional services to customers by partnering with online food delivery platforms. Despite the many strives taken by the banking sector, the population in emerging economies such as India continues to prefer cash on delivery over online transactions.

The online payment mode is growing at an astonishing rate due to the technological advancements in developed and developing economies. Online money transactions have been gaining traction over the last few years, and the populace is shifting towards this emerging trend. Online payment modes include net banking, payment via payment portals, credit cards, and debit cards. Rising awareness regarding digital currency and partnerships between food delivery platforms and banks are the key factors propelling the growth of the segment.

Regional Insights

Growing consumer preferences for fast food and changing lifestyles have seen North America emerge as the leader in the global online food delivery services market. The U.S. is expected to be a key contributor to the growth momentum in the region. The American population prefers to get their food on the doorstep over preparing it at home. According to a research study by Restaurant Online Survey, 45% of the American populace orders food from online platforms as they lack food preparation time due to hectic schedules, and 38% of the population in America orders food online, owing to the convenience provided by it. Promotions offered by restaurants with reward points attract 37% of the consumers and increase customer loyalty. New York, California, and Texas are the most promising cities in the United States for the online food delivery services market. Moreover, the presence of prominent players such as Uber Eats and DoorDash further propels the market growth in this region. Key market players in North America also offer live customer service, delivery execution, and related services to further facilitate market expansion.

Asia-Pacific is projected to witness rapid growth in the online food delivery services market, led by China, Japan, and India. Rising disposable income, busy schedules, changing preferences among millennials, high penetration of smartphones, and rapid adoption of advanced technologies are among the key factors fostering market growth in the region. Several global players have taken note of the market potential in the region and seek entry to the lucrative market. For instance, Amazon.com, Inc. plans to launch online food services in the flourishing Indian market in 2019. The company has partnered with Catamaran Ventures, located in India, to establish an online food service in the country. Local players, however, hold the most significant market shares in key economies across the region. For instance, India’s online food delivery services market is dominated by the Indian start-ups Zomato and Swiggy.

Europe’s online food delivery services market is rapidly growing due to the expansion of players in the market. End users in Europe are experimenting with various cuisines, and 60% of the total population in the region actively uses online food delivery services. Europe also provides lucrative opportunities for the market with the introduction of dark kitchens (cloud kitchens) and virtual brands. Dark kitchens cook food exclusively for delivery purposes with no consumer restaurants. Technological developments such as robot delivery are also creating significant opportunities for the European market.

Key Players

Some of the key players in the online food delivery services market include DoorDash, Just Eat Holding Limited, Swiggy, Takeaway.com, Uber Technologies Inc., Delivery Hero SE, Grab Holdings Inc., Zomato, Grubhub Inc., and Domino's Pizza, Inc. The market is highly fragmented with the presence of a significant number of local players, and the competition continues to intensify as participants offer attractive deals in a bid to capture a larger consumer base. Moreover, to enhance order volume, online food service platforms are partnering with restaurants and hotels.

Online Food Delivery Services Market Segmentation

By Type

  • Restaurant to consumer
  • Platform to consumer

By Channel

  • Website/Desktop
  • Mobile application

By Payment Mode

  • Cash on delivery
  • Online

By Region

North America

    • The U.S.A
    • Canada
    • Mexico


    • The U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe


    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia-Pacific


    • Brazil
    • Saudi Arabia
    • South Africa
    • Rest of LAMEA

Frequently Asked Questions (FAQs)

DoorDash, Just Eat Holding Limited, Swiggy, Takeaway.com, Uber Technologies Inc., Delivery Hero SE, Grab Holdings Inc., Zomato, Grubhub Inc., and Domino's Pizza, Inc. are the top players in Online Food Delivery Services Market.
Cash on Delivery Segment is expected to be the leading segment in Online Food Delivery Services Market during the forecast period.
Increasing disposable income and changing lifestyle and eating patterns, rising number of investments in this model, rising awareness regarding digital currency are the key factors expected to drive Online Food Delivery Services Market during the forecast period.
North America is expected to hold the highest market share in Online Food Delivery Services Market.
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Report Metric Details
Market Size USD in Billion By 2030
Historical Data 2019-2020
Base Year 2021
Forecast Period 2022-2030
Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered by Type (Restaurant to Customer and Platform to Customer), Channel (Mobile Applications), Payment (Online)
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors DoorDash, Just Eat Holding Limited, Swiggy, Takeaway.com, Uber Technologies Inc., Delivery Hero SE, Grab Holdings Inc., Zomato, Grubhub Inc., and Domino's Pizza, Inc.
Key Market Opportunities Rapid Growth In Technology Industry Enhances Online Food Delivery Services Market
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