The latest market research report by Technavio on the global online on-demand food delivery services market predicts a CAGR of close to 32 percent during the period 2017-2021.
The report segments the global online on-demand food delivery services market by business model (order-focused food delivery services and logistics-focused food delivery services) and by geography (the Americas, EMEA and APAC). It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends and industry-specific challenges.
Here are some key findings of the global online on-demand food delivery services market, according to Technavio consumer and retail researchers:
- Convenience and easy accessibility is a major market driver.
- In 2016, order-focused food delivery services dominated the market, accounting for a share of more than 92 percent.
- In 2016, the Americas dominated the global online on-demand food delivery services market and accounted for a share of more than 40 percent.
- Delivery Hero, GrubHub, Just Eat Holding, Deliveroo and DoorDash are the leading players in the market.
Convenience and Easy Accessibility
Convenience and easy accessibility are one of the major factors driving the global online on-demand food delivery services market. The demand for online on-demand food delivery services is increasing because of the preference for convenience and easy accessibility to food delivery. These services are popular with the millennial population, the largest consumer segment to use internet services. Additionally, consumers are accustomed to shopping through websites or apps that provide utmost convenience and transparency, resort to online food delivery options and expect the same experience when it comes to ordering food. Popular on-demand food delivery services include a range of restaurants that allow users to compare menus, prices, and several reviews provided by former customers.
Americas Represent Largest Market
The online on-demand food delivery services market in the Americas is fragmented due to the presence of many players. The high smartphone penetration in the United States is facilitating the increasing demand for online on-demand services. The demand for these services is also increasing in South America because of the growing number of start-ups that are taking advantage of the well-connected population and building successful on-demand solutions for food delivery. Owing to the growing demand for on-demand food delivery services, the Americas will remain the largest market for online on-demand food delivery services during the forecast period.
According to Narendra Nandaigari, a lead analyst at Technavio for research on retail goods and services, “Owing to the high competition in the market, the vendors are competing based on the type of online on-demand service that they provide and are also expanding their operations to other regions."
Competitive Vendor Landscape
The global online on-demand food delivery services market is highly competitive. It has the presence of a few major players and many small- and mid-size vendors. The major players include Delivery Hero, GrubHub Inc., Just eat Holding, Deliveroo, and DoorDash. These major players are very competitive in terms of their service offerings. These four major vendors contributed almost between 10 and 12 percent of the global revenue in 2016.