Food delivery apps are a revolutionary aspect of modern technology. They are no longer a luxury for your customers rather, they have become a necessary part of them. The food sector was transformed by the pandemic. Food delivery business revenue skyrocketed since 2020.
The food delivery business is growing exponentially. So many giant rivals are competing to stay ahead in the food delivery game. You can expand your restaurant business by connecting with the right food delivery platform that will fit your needs. Your restaurant can’t earn much revenue without a proper business model, marketing strategy, and online exposure.
Here food delivery apps or software come into play. With these platforms, a restaurant’s online presence is strengthened, which can make all the difference. Through these apps, you can reach new customers and stay ahead of the competition. Restaurants partner up with these delivery apps to increase their profitability while promoting a better customer experience.
After reading this blog, you will have a clear idea of how the food app delivery industry works, which are the most popular apps, how they earn revenue, and which one you should choose for your business.
What is a Food Delivery App?
Food delivery apps are third-party restaurant delivery services that connect customers with restaurants located in the same area. Through the app, restaurants display and promote their products so consumers can see, select, and order desired goods. Upon confirmation of a new order, the restaurant is sent a notification to prepare, package, and deliver the food to the destination address. Through the app, restaurants can track sales, manage inventory, supervise order management, food management, delivery management, and other business aspects.
Food Delivery App Industry
Some major components come into play in the operation of the food delivery app industry. The food delivery apps provide restaurants with a platform to showcase their versatile food options and diverse cuisines.
The app earns revenue through commission and subscription. Apps cut off a fixed percentage as commission from the restaurant’s profit margin which typically ranges from 15% to 30%. In addition, they earn through commissions from deliverymen. Apps can also make a profit from restaurants through subscriptions. Another way restaurants can earn is through promotional services offered to restaurants. If a restaurant wants to use promotional service (videos, banners) they will have to pay for it.
Using the app customers browse restaurant menus, place orders, and make payments. Restaurants earn directly from each payment of individual orders. Through the apps, restaurants can reach a wider consumer in a short period increasing online orders compared to dine-in orders. Businesses can highlight their product and promote sales. They can also boost sales by offering coupons and other tempting deals or discounts.
The restaurant business took a huge hit during the pandemic as dining outside came to a sudden stop. The food industry had to take a serious step to keep their business going. People no longer had access to physical stores which turned them to the alternative option- online stores/services. There was a huge demand for online food delivery.
A huge number of restaurants approached delivery platforms like DoorDash and Postmates to meet their customer’s needs. According to statistics COVID contributed to 70% of the food delivery industry growth. Since the pandemic, the restaurant sector has transformed through the food delivery business.
According to the statistics reported by Statista, the online food delivery industry is estimated to reach $1.20tn in 2024. Revenue in the Grocery Delivery Market is expected to grow 20.0% in 2025. In the food industry, the most noteworthy operators are DoorDash (45%) and Uber Eats (22%).
Also Read: How to Build a Food Delivery App Like Uber Eats?
Revenue Generated by Food Delivery in Different Countries
Compared to other countries China is in the leading position in the food delivery business. Its revenue reached $46.6 billion in 2023. Meituan contributed about $38 billion of the total revenue, making it the world’s largest delivery app.
Top Food Delivery Apps
The restaurant business is one of the fastest-growing businesses around the globe. With that, the food delivery market is expanding. There are so many competitors in this field. It is important to know who the leading competitors are. So here is a list:
1. Uber Eats:
Setting your business apart from others is no easy task in this age of digital media. Through platforms like Uber Eats you can promote your small business without investing a lot in marketing. This app will help you with online exposure to spread your restaurant name far and wide to reach potential clients across 11,000 cities.
With Uber Eats you will get more time to concentrate on your food preparation and ensure quality rather than worrying about delivery. Uber Eats is trying to cut its costs through “dark kitchens” which only focus on delivery and are situated in cheaper locations.
Launched in 2014 this delivery app is one of the most popular choices. Uber’s ultimate competitor is DoorDash.
Statistics of Uber Eats:
- As of 2023, Uber Eats has 88 million users, internationally.
- More than 800,000 restaurants are working with Uber Eats in 11,000 cities.
- Within Q4 of 2024, Uber Eats revenue has already reached 3,293 million
2. DoorDash:
DoorDash is the most popular food delivery platform in the US. Small or big companies can deliver to their customers with DoorDash.You just need to integrate your POS or website with DoorDash and enable local delivery. Your business can expand its customer base by reaching people who don’t have the time to eat out, who don’t have a car, or who are working from home. Businesses can promote their food items to drive more sales and enhance exposure on the app among 37 million active users.
Statistics of DoorDash:
- DoorDash has 37 million active users, majorly from the United States
- It has a 60% market share in the US
- About 4000 cities around the United States, Canada, and Australia can order food through this American food delivery service
- In quarter 2 of 2024, the net revenue margin of DoorDash was 13.3%
3. GrubHub:
With Grubhub build a loyal customer base and boost your restaurant growth while ensuring long-term success. To increase your restaurant’s order volume and engage new customers using a promotional strategy has no alternatives, this is where GrubHub comes to your aid. You can enhance your visibility through special offers and discounts which will motivate consumers to order and reorder.
Just Eat Takeaway is the parent company of GrubHub since 2021. Currently, there are, more than a few third-party payment gateways that make GrubHub more convenient. It has an outstanding reputation for speed, which is exactly what most consumers are looking for. In January 2024 GrubHub estimated 17.6 million visits to its website.
Statistics of GrubHub:
- In 2023 GrubHub had around 24.6 million active users
- Over 300,000 restaurants are partnered with GrubHub across 4000 locations to serve its consumers.
4. Dileveroo:
To maximize your restaurant’s visibility and expand its reach Deliveroo is another good option. You can promote your brand and boost your reach through Deliveroo’s channels. Restaurants can keep track of their performance with this app through business analytics. Deliveroo provides excellent tech support which enhances the efficiency of the delivery system.
Deliveroo was founded in 2013. Over 180,000 restaurants are on this platform. With its super fast delivery system Deliveroo has earned quite a reputation.
Statistics of Deliveroo:
- In 2024 Q1, Deliveroo’s revenue was 514 million.
- The majority of Deliveroo users are in the UK. There are 7.1 million active users of Deliveroo.
5. Just Eat:
If you need to reach a potential audience while ensuring consumer satisfaction Just Eat is for you. Over 12 million active users visit Just Eat every month which is a great opportunity for your business to increase its visibility. You can enhance your business operations, improve delivery speed, and boost ratings which will increase your traffic. For each order, they will take a cut of 10%-15% commission from you.
Just Eat has a rather successful business model. It has partnerships with brands like McDonalds, Greggs and Subway. It has expanded by acquiring Menulog, GrubHub, and Skip the Dishes.
Statistics of Just Eat:
- Just Eat has 60 million users
- It has partnered with over 374000 restaurants
- In the first half of 2024, the revenue of Just Eat was €2.57b
7. Instacart:
With the help of Instacart use digital methods to serve your consumers in an optimum way. By partnering with Instacart local and small businesses are more likely to observe a spike in their profit, sales, and employment. Instacart technologies improve the financial performance of restaurants.
Statistics of Instacart:
- It has over 85,000 retail partners.
- It is available in over 14,000 cities in Canada and US.
- It has 14 million active users.
Challenges in the Food Delivery (App) Industry
The food delivery platforms are commission-based which may result in lesser revenue. Quality control is one of the major issues of online food delivery systems.
Maintaining dine-in services besides online orders can interrupt the natural workflow of the restaurant. Managing these two simultaneously might require more manpower which will cost the restaurant more expenditure.
Meeting customer expectations in a limited time while maintaining food quality can take time and effort. There are thousands of restaurant businesses offering diverse food options, and fast delivery which makes the competition more fierce. Keeping up with this marketing competition is a complex task.
Online food deliveries require proper food packaging that can preserve food until drop off, which comes with additional costs. Retaining customers among so much competition is one of the most complex and important tasks a restaurant has to accomplish which will define its success.
Final Words
The food industry has gone through a major transformation since the inception of food delivery apps. Food delivery applications are expected to grow exponentially. Grocery delivery alone is supposed to reach a revenue growth of 20.6 in 2024. Ordering food online ensures comfort and saves time which has made it a popular trend in the last few years. This blog is enriched with data about the food delivery business revenue, usage, and statistics that will give you a clear idea about which platform to choose for your online food delivery system.
FAQs
1. Which food delivery app has the most users?
DoorDash has the most active users as of March 2024.
2. What should I consider before using a food delivery app?
You should consider the app’s performance, delivery fees, service quality, delivery speed, and user reviews.
3. Which country has the largest market for food delivery?
China has the largest market for food delivery.
Say hello to Fatema! A creative technical writer who is resilient in crafting words to bring her readers informative content. With her Computer Science background and passion for writing, she turns complicated ideas into compelling content. When Fatema isn’t writing she enjoys watching series, reading books and listening to music.