Online food delivery is a service that allows customers to order food online from the desired restaurant. This can be done by going directly to the website and placing the order, or using a mobile application. The global online food delivery market is fueled by the convenience of ordering food through these apps, which provide easy comparisons of different restaurant menus. In addition, these companies always deliver food to the desired location, which positively impacts the sector. The industry is gaining traction with ease of payment and limiting the dependability on cash through these platforms, as consumers are increasingly looking for virtual payment options that also offer multiple discounts on the market. The increasing penetration of smartphones in the world has led to the emergence of several food delivery companies in the food industry, as a large part of this business depends on digital mediums.
Earlier in April, 2021, Indian start-up Zomato, backed by Chinese group Ant, has demanded an IPO of up to $1.11 Billion to take advantage of a pandemic-induced online order boom. Zomato faces rivals like Amazon and Accel-backed Swiggy. However, Zomato and Swiggy dominate the Indian online food delivery market.
The global online food delivery service market is bifurcated based on type, channel, payment method, and regionally. By type, the online food delivery service market is diversified into platform-to-consumer and restaurant-to-consumer. Based on the type of channel, the online market for food delivery services is divided into mobile sites and applications. Based on the payment method, the online food delivery service market is divided into online payments and cash payments.
Region wise, Asia Pacific is expected to show significant growth trend during the forecast period. Regional growth can be driven by growth in per capita income and changes in millennium benefits. In addition, the increasing use of smartphones by Generation Y and the rapid adoption of advanced technologies such as voice assistants are contributing significantly to the growth of the regional market. North America already had a controlling stake in the global market due to presence of the leading platforms in the region. The regional market is experiencing healthy growth thanks to the great advantage of consumers in relation to fast food and changes in lifestyle.
The companies offering their services in the online food delivery market comprise Grubhub Inc, DoorDash Inc., Uber Technologies, Deliveroo, Takeaway.com, foodpanda, Swiggy, Zomato, and, among others. Considering the business nature of this segment, the players in the competition are aggressively applying strategies that can help them retain their global presence and leverage business growth.