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Aug 10 2021
At the beginning of the pandemic, this rule worked for the food industry, «If you do not arrange your own delivery or do not join the delivery aggregator, you are lost». Despite the calls to support local cafes and restaurants, people more often ordered food where everything was simply organized and quickly delivered right to the doorstep. A year and a half has passed, and people’s habits seem to have changed forever — they do not want to go to the supermarket once again or waste time cooking, so the demand for food delivery apps and services and prepared meals only goes up.
Statistics confirm this. The number of food apps users has already reached 1.5 billion in 2019 and are expected to grow by 800 million by 2024. The market is expected to expand and reach a CAGR of 11.51%.
Other experts from Absolute Markets Insights estimate that the global food delivery market will grow at a CAGR of 23.31% thanks to constant innovations.
About the growth dynamics. In most of the analyzed markets, the growth in the number of sessions during the year was observed in Q2 and Q3, and the all-time high was in Q4 of 2020 — everything is сlear here, because the lockdown has begun. By country, in the USA, Argentina, Great Britain, Indonesia and Russia, the growth compared to the previous year in Q4 of 2020 was 60%, 65%, 70%, 80% and 105%, respectively.
Obviously, the niche of delivery mobile apps has expanded and competition has increased dramatically. Let’s see, who’s in the lead for now and what model they use.
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Back in 2019, when COVID-19 didn’t exist, the Asia Pacific was the largest region in the food delivery services market, with North America ranking second. However, according to 2020 statistics, you can see how Uber Eats conquered Japan. Recently, also here in Japan, another major American company appeared — the DoorDash company.
About DoorDash, we can confidently say that it is one of the market leaders in the U.S. — with a market share of 55%, it dominated the online food delivery market in the United States as of March 2021. In the midst of coronavirus restrictions, DoorDash’s revenue grew more than 200%. Leaders also include the food delivery app Grubhub and almost global Uber Eats. All of these apps use the marketplace model — users can order food from different restaurants, cafes and nearby grocery stores right to the doorstep.
The same model works in Europe too. For example, in London the most popular apps are Deliveroo, the same Uber Eats and Just-Eat. Delivery food startups like Getir (grocery deliveries) from grocery stores have also become popular. And France fell in love with Cajoo, delivering groceries on e-bikes in 15 minutes.
If we talk about Russia, then the marketplace model is here working too (Yandex.Eda and Delivery Club), but here it’s a part of super apps (Yandex, Sberbank). It is also hard to find a resident of Moscow or St. Petersburg who doesn’t use the express delivery of grocery products like Samokat, Yandex.Lavka or Sber.Market.
Prepared meal delivery services. Let’s discuss the unifying model of Russia and the United States — the demand for healthy prepared meals has grown. It saves your time and it’s perfect for people watching what they eat. Americans hook into apps like Daily Harvest. Grow Food, Level Kitchen and similar sets for a week or by subscription are available in many big cities of Russia.
Delivery from supermarkets. There is a growing trend for supermarkets to have their own apps. Retail chains want to get rid of the commission of delivery aggregators, so they come up with their own loyalty programs and invest a lot of money in promoting their own apps.
Delivery aggregators, deliveries from supermarkets — both from the retail chains themselves and startups like Russian igoods or British Getir, Dija and Weezy, express food delivery «in the hood», deliveries from restaurants, as well as weekly meals delivery are popular in the food delivery market now. But the market is dynamic — what’s up be next? Let’s take a look at the emerging trends.
Delivery in small towns. The Vietnamese Mio is an example here, it focuses on delivering fresh groceries to small towns and villages. Only residents of big cities can order quick delivery, but the small towns don’t have options like these. Taking this into account, Mio has organized a social network for couriers and intermediaries in small communities.
Robot delivery. In South Florida, the startup Kiwibot has deployed a small fleet of robots to deliver food and other goods. Alibaba plans to develop self-driving trucks with logistics subsidiary Cainiao, aiming to introduce 1,000 autonomous delivery robots over the next year. Rovers from Yandex are already delivering food in Moscow, but the geography will not be limited to that. Yandex plans to expand its robot delivery to the U.S. In short, the future is at hand.
AI-driven telemetry. In Los Angeles, the Tortoise project for the robot delivery of meals and groceries was launched. It’s not an autonomous bot, but a cart driven from home by a teleoperator. In Japan, the two largest retail chains FamilyMart and Lawson use remotely controlled robots to place food products on shelves; and a coffee chain DAWN Café has also opened, where robots, remotely controlled by disabled people, make drinks for customers.
Let’s get back to Uber Eats, which was named one of the leaders in the region in the report. We wanted to check how it’s doing in 2021. You can see that it’s better to work on user reviews and closely monitor changes in the graphic and text ASO of competitors.
Spying on competitors is faster with Checkaso‘s Comparative Analysis. For example, here you can see that Uber Eats wins in reviews, and Grubhub did a better job with its name and description — more popular keywords are used.
However, if you look at the graphics, Uber Eats could have tested a different design — this time without dark color to stand out among competitors in the search.
If you don’t want to figure it out on your own, we can run a demo for free and tell you how everything works with us.
The delivery app industry is only growing, especially for prepared meals, groceries from supermarkets, predesigned menus. Despite a dynamic development of the niche, it is difficult to compete here — you need to do everything quickly and without complaints, because today people are not ready to wait, and 45 minutes — it’s a very long time for delivery. To speed up the processes, the owners use robots, which can be given at least part of the automated processes, but the era when the machines will work autonomously is not far off. Keep up with innovations and think about how you can get your job done faster.
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