Food Delivery Apps - Consumer Journey (1)
Twenty-four percent of smartphone owners use food delivery apps regularly. In comparison, 82% of smartphone users use social media apps. This low number of users choose their favorite food delivery app based on a number of factors. Consumers will choose a food delivery app based on the location of the customer, the restaurant that they have in mind, the fees they will have to pay, any available discounts, technological features, and recommendations from friends and family.
Location of the Customer
- Based on location, 30% of smartphone users in the Northeast regularly use food delivery apps, 25% of users are in the South, 21% are in the West, and 19% are in the Midwest.
- The Northeast has high usage because there are many users in cities such as New York City and Washington D.C. that have a high number of professionals with disposable incomes living in neighborhoods with a lot of restaurants.
- Also, cities in the Northeast such as New York City, Boston, Philadelphia, and Washington D.C. have the lowest car ownership rates.
- UberEats is preferred in cities such as Vancouver, which ironically is a city where Uber ride-sharing is not legal.
- New Yorkers prefer Seamless while people from Los Angeles prefer Postmates.
- Location is important because it also determines the amount of time the food will be delivered. 31% of people expect not to wait longer than 30 minutes for their food. On average, customers are willing to wait for an average of 40 minutes for their food.
Customers Have a Restaurant in Mind
- Fifty-four percent of customers will pick an app based on the restaurant that they have in mind. 46% of customers will browse before deciding.
- Twenty percent use their favorite food delivery app because it has better restaurant options.
- Apps like Doordash form partnerships to offer better food options. However, apps like Postmates that don't partner with restaurants send people to order food on behalf of the customer, which greatly increases the restaurant options.
Low or Lack of Fees
- The lack of fees keeps customers coming back.
- Many smartphone users, especially in cities like New York City that have a longstanding take-out culture, prefer not to pay any delivery fee.
- Thirty-sevent percent of people will spend $6 to $10 on delivery fees, service fees and a tip combined.
- Thirty-five percent of people will spend no more than $5 on fees, while 28% of people are willing to pay up to $15 in fees.
- Eighteen percent of food delivery app users prefer apps with better discounts.
- Some customers will prefer features such as seeing the delivery worker and the estimated time of delivery, such as what Postmates provides. Eighteen percent prefer those with better technological features.
- To increase customer loyalty, apps are starting to launch membership programs that offer rewards and other perks for using the app.
- Apps like Postmates and DoorDash have launched their membership programs and apps like UberEats have free rewards programs where customers can gain points and use them to get rides in the ride-sharing section of the Uber app.
- This kind of model appeals to younger consumers, which make up a large percentage of food delivery app users. Ninety percent of millennial parents order takeout at least once a week.
Friends and Family Use the App
- Sixteen percent of smartphone users use their favorite app because their friends and family use the app.
- About 68.95% of people find mobile apps through friends and family. Mobile apps are downloaded and used based on recommendations from close ones and trusted sources.
- Additionally, 39.52% of consumers will pick an app based on what their friends share on social media.
- Sixty percent of customers will tell their friends and family about a brand that they're loyal to.