It is easy to forget how far food delivery services have come while waiting for the ordered meal and watching Sunday Night NFL. Be it chicken fingers and fries or chicken sandwich or mac 'n' cheese or sushi or pad thai or iced coffee or milk tea or veggie burger- the most ordered online foods - are so quickly delivered that it feels like the food delivery apps have always existed.
For World Wide Waiter(1995), it is perhaps true. However, the popular food delivery apps were incorporated either in the 2000s or 2010s. So, these food aggregators have been lingering in markets for about... a decade now.
Yet these food delivery apps only rose in popularity during the lockdown last year. And perhaps most amazingly, almost every major food aggregator saw its gross merchandise volume and revenue increase by over 100% in 2020.
Thereon things became interesting. In Q1 of 2020, the daily downloads of the food delivery apps in the US dropped from 265k to 185k. It, however, changed in the consecutive quarters. Food incumbents started with 15 minutes contact-less deliveries that turned out to be a game-changer. It turned out to be one of the most valuable and innovative propositions, forging the present landscape.
But what lies ahead for the food delivery app market in the next decade? Let's find out.
Peeping into the Future
Currently, the revenue in the online food delivery sector is at $270.3 billion. Further from 2021 to 2025, said to undergo an annual growth of 10.39%. Thereon market volume will be $401.3 billion by 2025.
Noticeably the platform-to-customer contributed much to the statistics. The segment generated market revenue of $148.35 billion in 2021. The platform-to-customer focuses on online delivery services, providing meals from partner restaurants to consumers. Or, putting it simply, it is - UberEats, GrubHub, DoorDash, Deliveroo, or Swiggy.
The revenue surge in those apps happened due to the rise in the consumer percentage. Many happened to order food online for the first time during the lockdowns. The households fetched delicious cuisines to change the taste of their taste buds, thus contributing to the user count.
Statista, a German-based reliable business data provider, identifies that 23.1% of new users purchased products through the food delivery apps in 2021. While it also suggests that by 2025 the food delivery apps will have around 2.63 billion users.
Meals are incomplete without fine beverages. The beverage industry scrambled in the early days of lockdown. The US three-tier system prohibited the direct distribution of alcohol from producers to US consumers. However, alcohol delivery startups, like Drizly, Thirstie, or Speakeasy, have cropped up to deliver alcohol without destroying the three-tier regulation.
The online alcohol delivery business across ten global markets was around $3 billion in 2019. Thereon reached about $5.6 billion in the consecutive year. Moreover, the alcohol delivery market in the 16 global markets will possibly be more than $42 billion in 2025.
IWSR expects that by 2024 the total value of alcohol e-commerce across the ten global markets, including the US, will exceed $40 billion. And after years of lag, the US alcohol delivery market is to outshine China to take the global lead.
On-demand Food Delivery App: A Consumer Upper hand
Consumer behaviors and landscapes have drastically changed over the years. Most households have switched to digital spaces to fill their needs. Sarcastically, the lockdowns gifted people with on-demand food delivery apps, and people are likely to be with it. The food delivery apps provide consumers with some bumper benefits. Hence, provide scope for app development.
Today, four out of five consumers interact with business apps. In addition, customers expect their favorite restaurant to be available online. As a result, food delivery apps are becoming essential to business growth.
The food delivery app builds a stable relationship with the merchants and consumers. They reduce the waiting time significantly and are available most of the time. Food delivery apps help employees to connect faster to customers and fulfill orders, thus improving customer satisfaction.
The food delivery apps provide consumers direct access to various restaurants and cuisines. Consumers have variety, find convenience and ease through these apps. As a consequence, the US had over 111,000,000 users.
On-demand Food Delivery App: Heads or Tails for Business?
It is difficult for restaurants to catch up with new uncertainties of lockdown. The situation might worsen anytime, and businesses can shut again. But a food delivery app can help you keep up with challenging scenarios.
Apart from aiding in a challenging economy, a food delivery app is always a yes for a business. Studies identify that consumers rely on mobile apps for instant communication with business firms. Whether a restaurant chain owner or a street-side vendor, a food delivery app will improve your audience base and consumer interaction. Studies conclude that: at least eight out of ten consumers use smartphones and spend about 3.3 hours a day.
With each day, businesses are becoming more consumer-centric. They employ consumer data provided by these apps to understand trends and develop winning market strategies, thus boosting sales. Therefore a food vendor onboarding on a digital marketplace- a food delivery app- has an edge in the sector.
The food delivery apps and firms have seen quite a change in market priorities. From the first online menus to the rapid delivery services popping up in all major cities and offering delivery in under 15 minutes. Consumers fancy instant service and are willing to spend extra bucks for them. But catering hot and delicious food door to door has never been easy.
So, the latter part of the previous decade marked the arrival of the 'ghost kitchen.' Initially, it had a different interpretation. In 2015, a news article used the term - ghost kitchen. The article was, however, critical of ghost kitchens in NYC. It said that the restaurant owners were listing their restaurants under several different brands on food delivery apps - Seamless and Grubhub.
The names and addresses of these kitchens faked their locations and identities. As a result, the food delivery apps removed such restaurants and introduced policies to review restaurant information and use delivery applications to provide visibility to their customers.
But as of now, ' ghost kitchen' or 'cloud kitchen' is one of the most creative ideas to cater to rapid food deliveries.
Suggested Reading: How reliable fast food delivery apps are?
Food Delivery App Development: An Outlook
Food delivery apps have evolved in shapes and sizes. Also, there has been advancement in another corridor- technology. The stacks have advanced to provide fluid and reliable user experiences.
Platforms have improved to rapidly build, test, and perhaps deploy mobile apps. Even developers have honed their skills to precisely tailor and scale mobile applications.
However, the steps for food delivery app development (or mobile apps) remain the same.
- Choosing a target market
- Understanding market trends
- Learning from competitors
- Set a budget
Choose a Food delivery model
- Order only app (Delivery.com or Eat 24)
- Order-delivery app (UberEats, DoorDash or GrubHub)
Choose Essential Features
- Restaurant app, admin app, user app, and delivery rider app
- Select the right tech stack
Pick a Right App Development option
- Hire an App development team
- Ready-made app builder
The food delivery apps are competing at their best to drive in consumers.
Dozens of rapid delivery services use 'ghost kitchens' located in city centers to quickly fulfill multiple orders. Location intelligence, road patterns, traffic dynamics, weather, last-mile supply availability, real estate values, and so on, has improved the efficiency of the food delivery apps and services. These have attracted investment and funding into the segment.
Several studies show that food delivery app businesses remain unprofitable, at the same time, there is DoorDash which has made profits. The food delivery business is tough and a high operational efficiency is needed to run it but it is commendable for food vendors to enlist themselves in the food delivery apps.
If you have the formula and skill to run highly efficient operations then this is the sector and time to take the plunge.
AppsRhino has delivered multiple food delivery apps to clients across the globe. If you want a food delivery app within budget, of high quality and delivered in time, then contact AppsRhino.
This user-friendly platform offers a plethora of features that can assist you in developing a mobile app that streamlines and enhances food delivery services.
AppsRhino offers the best Tech-driven solutions for Home services, Laundry delivery, Alcohol delivery, Grocery Delivery, Food Delivery, and Taxi Services:
Contact AppsRhino today and have your demands and cravings met.
Frequently Asked Questions (FAQs)
What is the scope of food delivery app development in the next decade?
The scope of food delivery app development is expected to grow significantly in the next decade as more people rely on online food ordering.
Increased smartphone usage and convenience will drive the demand for food delivery apps.
How will technology advancements shape the future of food delivery apps?
Technology advancements like AI, machine learning, and automation will shape the future of food delivery apps.
These innovations will improve order accuracy, delivery efficiency, customer personalization, and overall user experience.
Will food delivery apps expand their services beyond just delivering food?
Yes, food delivery apps have already started expanding their services beyond food delivery.
In the future, we can expect these apps to offer additional services like grocery delivery, alcohol delivery, meal kits, and more, catering to diverse consumer needs.
What impact will sustainability and eco-friendly practices have on food delivery apps?
Sustainability and eco-friendly practices will have a significant impact on food delivery apps.
This includes implementing eco-friendly packaging, promoting local and sustainable food sourcing, and optimizing delivery routes to reduce carbon footprint.
How will the rise of virtual kitchens or ghost kitchens influence food delivery apps?
The rise of virtual kitchens, also known as ghost kitchens or cloud kitchens, will greatly impact food delivery apps.
These kitchens focus solely on delivery and can provide a wider variety of options for customers, leading to increased opportunities for food delivery apps.
What challenges might arise in the future of food delivery app development?
Future challenges in food delivery app development may include intense competition, ensuring food quality during transit, managing delivery personnel, data security, and adapting to changing consumer preferences and regulations.
Constant innovation and adaptability will be crucial for success.