Photo by Brett Jordan on Unsplash
The modern 21st century has everything accessible through smartphones; from calling a cab to buying your favorite clothes and now ordering food online as well. The world is a digital hub and we are moving forward with all the advancements.
Imagine you come home after a long day at work and see that your fridge is empty. Instead of calling a cab or going out to get your takeaway food, you can simply use the online delivery services and applications to get yourself dinner from your favorite restaurants, that is what we usually do at WritingMetier.
The activity of delivering meals from restaurants and straight to your homes is going through advance changes as food delivery services are capturing markets all over the world. While the platforms revolve around high valuation, investment and innovation, five of the current delivery businesses are valued at $1 billion.
According to a six-month study by McKinsey which covered 16 different countries around the world, there are notable changes being witnessed in the online food delivery market.
Where Does the Food Delivery Market Stand Today?
The market for delivery of food, worldwide, currently stands at 85 billion Euros; making it 4% of food that is sold through fast-food chains and restaurants and 1% of the total food market. Currently, the most-used method of delivery is the traditional one; at a local Chinese restaurant, a fast-food chain or pizza parlor, a consumer places an order and wait for the rider to bring the food within the specific period of time. This traditional and widely applied method captures 90% of the food delivery market, with 3 quarters of total orders being placed via phone call.
On the other hand, with the rise of digitization and technology changing the outlook of various industries and sectors, consumers are now gearing towards online food delivery applications. Consumers who enjoy shopping online through mediums such as websites and apps share maximum transparency and convenience. These consumers also expect to witness the same experience when they are placing an order online.
Delivery services such as Deliveroo, for instance, are the game-changers in this industry. 8 years ago, Deliveroo was founded in the United Kingdom. Currently, it stands as the 2nd biggest service in online food delivery in the UK with having more than 16,000 restaurants under its wing. And now it has expanded in different parts of Europe, as well as in Australia and Hong Kong as well.
Takeaway.com is another food delivery service that holds a strong market presence in the industry. The service offers strong markets in the Netherlands, Belgium, and Poland; areas where the US food services such as Bite Squad and Delivery.com have zero presence. Takeaway.com was launched in 1999 and was known as Thuisbezorgd.nl. As a service with an experienced marketing team, their marketing strategy targets the Netherlands and its population only when in 2007 it expanded to Belgium and Germany. Since its first expansion in 2007, the food delivery service has managed to reach out all over Europe while holding market share by acquiring small delivery services such as they did in Vietnam. Takeaway.com, currently, is the biggest food delivery service operating in Vietnam as it also uses a great business marketing strategy out there.
Photo by Robert Anasch on Unsplash
Now let’s shed some light on the contribution and market standing of Uber Eats and how it acts as a game-changer in the food delivery industry. Covering one corner to another; from offering its services to Australia and Barcelona, from London to Japan and New York, Uber Eats has definitely contributed the most to the food delivery industry. As of 2018, Uber Eats offers around 127,800 restaurants, covering more than 25 countries all over the world. Earlier this year, the food delivery service announced that soon it will be operating in other major European countries as well; such as Germany and Belgium.
One of the primary reasons why Uber Eats has managed to cover so much all over the world is due to the initial ideology of the organization: delivering its passengers to various locations via car. Uber riders can switch roles; from uber drivers to uber eat couriers, the drivers have the freedom to switch between ride drivers or food do food deliveries as per their needs.
Another advantage to Uber in this context is that the food-service consumers also get to use the cab-hailing service. According to Uber Eats, 40% of the consumers who use Uber Eats for the first time also start using Uber as a cab service.
Also, the biggest game-changer for Uber is that it may buy Deliveroo for $2 billion. Talk about capturing market share; Uber will be over it.
This is the future and we are living in it. Soon, the conventional means of ordering food may be outdated, all thanks to these convenient food delivery services.
Vasyl Kafidoff is a co-founder and CEO at Writing Metier, who has a strong interest in education, modern technology, marketing, and business management. If he is not working, you can find him somewhere in the world attending Rock Concerts with his mates.