Numerous platforms for online food delivery are there for consumers to choose and order their favorite food with just a tap from their Smartphone. These online food delivery platforms are magnetizing extensive investment and revenue. According to the research by McKinsey that consists of six-month study covered 16 countries over the globe, provides an overview of this rapidly changing market.
Online food delivery market today
Globally, the business of online food delivery reached €83 billion. We can say that 1% of the entire food market along with 4% of foodstuff sold through restaurants as well as fast food points.
The most famous way of delivery is the one where customers order food online through their phone and waits for the delivery person to provide the food at their door. This traditional way possesses a 90% market share.
The way digital technology is renewing the market in various other sectors. Consumers are habitual to shop online while using apps and websites that are convenient for them are looking forward to the same practice when they want to order dinner.
Types of online food delivery
There are two types of online platforms. The first one is “aggregators” that emerged almost 15 years ago while the second one is “new delivery” that appeared in 2013. Both of them are there to permit customers to evaluate the menu, post review, and order food online for delivery to various restaurants with just one click. The aggregators come into the category of a traditional way of delivery. They take orders and provide to the restaurants that will handle the delivery themselves.
On the contrary, new delivery players make their personal logistics networks and provide delivery to the restaurants that do not have their personal drivers. It provides a substitute for eating in a restaurant. The customers can enjoy the same food at home that they would love to eat at the restaurant.
Therefore, online food delivery service will grow along with the rise of digital technology, as the Smartphone users will definitely take advantage of this technology.