Market Size: Food Delivery Apps

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App Food Delivery Market Size

In the United States, consumer demand for digital food delivery is growing rapidly. Mobile app technology, reduced delivery fee, and the preference to dine at home are the driving factors of this industry. The total online food delivery market in the United States amounts to $19.472 billion in 2019. Of this amount, the platform-to-consumer delivery app segment accounts for $6 billion and the restaurant-to-consumer delivery segment accounts for $13.472 billion. With a CAGR of 5.9%, the digital food delivery market is expected to reach $24.461 billion by 2023.

App Food Delivery Market — Overview

The online food delivery market has experienced significant growth over the years and is expected to continue to grow at a rapid pace. According to USA Today, the online food delivery market recorded a revenue of about $17 billion in 2018 and reached $19.472 billion in 2019. Morgan Stanley's restaurant analyst, John Glass, stated that consumer demand for digital food delivery would grow rapidly and will cater to about 40% of the total restaurant sales by 2020. Many restaurants in the country, including popular fast food chains, are ensuring that digital food delivery is a part of their overall strategy.
According to Morgan Stanley Research, in 2017, about 47% of Americans make their orders directly over the phone, 34% of them prefer to do it online, while 18% order through third party delivery service apps. A survey conducted by eMarketer on “The State of Food Delivery” revealed that over 52% of all respondents utilize a restaurant’s app or website to order their meals. It was also found that over 34% of them prefer to use GrubHub’s app, 20% use Uber Eats, 17% use Eat24, 16% use Delivery.com, 11% order through Amazon restaurants, 11% use DoorDash, 9% use Postmates, 8% use OrderUp, and 5% use Caviar. While there are a number of food delivery apps, the key players in the online food delivery market are GrubHub, DoorDash, and Uber Eats.
The app food delivery market is broadly categorized into two segments —
  • Platform-to-consumer delivery segment: This segment of the online food delivery market focuses on digital delivery services (apps), such as Uber Eats, that offer consumers the ability to order meals from partner restaurants/outlets that do not necessarily provide delivery services themselves.
  • Restaurant-to-consumer delivery segment: This segment of the online food delivery market accounts for food delivery orders placed via apps owned by restaurants, such as Domino’s.
The app food delivery market size for the years 2017 to 2019, in the United States, are presented below,
  • In 2019, the total online food delivery market amounted to $19.472 billion with over 105.6 million users. Of the total market, the platform-to-consumer delivery segment accounted for $6 billion and the restaurant-to-consumer delivery segment accounted for $13.471 billion.

App Food delivery market size projection

Statistics show that the online food delivery market in the United States is predicted to reach $24.461 billion by 2023 at a CAGR of 5.9%. The following are the revenue figures of the app food delivery market for the period 2023-2023 -
  • In 2020, the total online food delivery market in the United States is expected to reach $20.958 billion with over 111 million users. Of this amount, the platform-to-consumer delivery segment will account for $6.542 billion and the restaurant-to-consumer delivery segment will account for $14.415 billion.
  • In 2021, the total online food delivery market in the United States is expected to reach $22.332 billion with over 116.1 million users. Of this amount, the platform-to-consumer delivery segment will account for $7.045 billion and the restaurant-to-consumer delivery segment will account for $15.286 billion.
  • In 2022, the total online food delivery market in the United States is expected to reach $23.517 billion with over 120.7 million users. Of this amount, the platform-to-consumer delivery segment will account for $7.483 billion and the restaurant-to-consumer delivery segment will account for $7.483 billion.

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App Food Delivery Market Share

Doordash has the largest market share in the app food delivery market at 27.6%. It is followed by GrubHub and UberEats at 26.7% and 25.2% respectively. Postmates has the lowest market share at 12.1%.

MARKET SHARE FOR DOORDASH, POSTMATES, UBEREATS, AND GRUBHUB IN THE APP FOOD DELIVERY MARKET

  • Doordash has a market share of 27.6%.
  • GrubHub has a market share of 26.7%.
  • UberEats has a market share of 25.2%.
  • Postmates has a market share of 12.1%.
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