New Report Examines Growing Global Trend Of Ordering Food Online And Through Mobile Apps

The business of delivering food is undergoing rapid change as new online platforms race to capture customers that seek expanded choice and convenience. Image: The Economist

NEW YORK, NY -- 7Park Data, the technology company providing data-driven market insights to businesses around the world, released a new Insight Series Report today that analyzes domestic and international trends related to online and mobile food and grocery delivery.

The report, based on anonymous mobile app usage data and transactional data insights from tens of millions of consumers around the world, examines the role of food delivery services -- GrubHub, UberEats, Seamless, Eat24, Postmates, DoorDash, Caviar, Foodler, Just Eat, and many more -- in the wider $536 billion retail restaurant market.

Also read, US-based food delivery startup Favour abruptly shuts down Toronto operations.

"The business of delivering food is undergoing rapid change as new online platforms race to capture customers that seek expanded choice and convenience," said Brian Chaitoff, Director of Insights at 7Park Data.

"In this report we unveil the current business landscape of the United States and global online food and grocery delivery industry. The report provides an overview of market dynamics and competitive data across industry events, including performance measurements, insights into the growth strategies of the leading players, and unique views of consumer behaviors that are shaping this fast-changing market."

Top insights from "Online Food & Grocery Delivery: New Food Economy" include:

• Food delivery growth potential is huge - United States takeout market size has enormous growth potential as consumers begin spending less time dining out at restaurants and more time ordering in. Food and grocery delivery remains one of the largest retail markets still overwhelmingly offline. Currently, only 5% of all takeout food in the United States is conducted online, but will grow its share to 25% over the next decade.
• Different yet converging models; consolidation looms - The delineation among various models is blurring, and, as a result, we have both a noisy multiplayer marketplace and a clear market leader. Because the economics of food order and delivery are tough to manage and scale, the overcrowded space will continue to experience consolidation by way of acquisitions and strategic integrations.
• Order volume is growing, and not only on the weekends - The overall number of food delivery orders has been steadily growing over the past two years. As regional successes go national, off-premise food order volume will outpace overall restaurant industry traffic growth over the next decade. Monday order volume has been increasing since 2014, suggesting that the convenience inherent in online and mobile ordering is breaking down the traditional weekend-only ordering trends and expanding the market.
• GrubHub currently runs the table in the U.S. - GrubHub is the singular force in top U.S. cities driving adoption as it shifts its business from a pure online transactional marketplace to one that offers delivery services at scale.
• China market seeing high penetration; Just Eat losing ground in U.K. - After a couple years of fierce competition, China's online food delivery market is stabilizing among three leading players that control a dominant share, with annual sales from food delivery apps expecting to cross $25 billion in 2016. Just Eat has a 40% market share based on gross merchandise value and a dominant minutes market share. Few competitors have threatened its position, yet that is changing given the rise of Uber and other larger platforms.

SOURCE 7Park Data