For the first time, grocery delivery startups worldwide are raking in more cash than their meal delivery counterparts, according to Forbes. In China, fierce competition and market oversaturation are largely responsible for the funding influx.
Grocery delivery companies globally raised $429 million so far this year, according to data from CB Insights. Meal delivery companies raised $352 million during the same period.
China has the largest online grocery market, which is expected to be worth about $180 billion by 2020, according to data from the Institute of Grocery Distribution (IDG). The market is currently valued at $41 billion.
Food delivery companies cater to Chinese consumers’ transportation habits. While vehicle ownership rates are rising, the majority of people still use public transportation to go to work and shop. About 40 percent of Chinese consumers buy food online, according to a McKinsey report. In the United States, just 10 percent of consumers buy food online.
The largest funding deals for both meal delivery and grocery delivery startups have come out of the Middle Kingdom.
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