PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1662705
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1662705
According to Stratistics MRC, the Global Online Food Delivery Market is accounted for $464.87 billion in 2024 and is expected to reach $1150.31 billion by 2030 growing at a CAGR of 16.3% during the forecast period. Online food delivery is a service that allows customers to order meals or groceries through websites or mobile applications from restaurants, cafes, or stores. The platform facilitates menu browsing, payment processing, and real-time order tracking. Delivery is carried out by drivers or couriers, providing convenience by bringing food directly to customers' homes or workplaces. This service is popular for its ease of use, time-saving benefits, and accessibility, offering a wide range of cuisines and options for on-demand or scheduled delivery.
Changing lifestyles and urbanization
Changing lifestyles and urbanization, the demand for convenient and time-saving solutions like food delivery services has surged. Increasing work commitments and busy schedules leave less time for meal preparation, making online food delivery a preferred choice. Urban areas also offer a wide variety of cuisines and restaurant options accessible through these platforms, catering to diverse consumer preferences. Additionally, the rise in dual-income households has increased disposable income, enabling frequent use of such services. The integration of technology and mobile apps has further simplified the ordering process, making it an integral part of modern lifestyles.
High operational costs
The expenses associated with delivery personnel, fuel, and vehicle maintenance inflate operational budgets. Additionally, technology infrastructure costs, including app development, maintenance, and data security, strain profit margins. Discounts and promotional offers to attract customers further cut into revenues, making profitability a challenge. Partnering with restaurants often requires commissions, adding another layer of expense. These cumulative costs reduce the financial sustainability of online food delivery services, deterring market expansion and innovation.
Integration of technology
Advanced mobile apps and AI-driven algorithms enable personalized recommendations and real-time tracking, enhancing user engagement. Contactless delivery methods, powered by digital payment systems, ensure convenience and safety for customers. Machine learning and data analytics help companies optimize delivery routes and reduce wait times. Partnerships with cloud kitchens and automated ordering systems streamline restaurant operations, boosting scalability. Additionally, IoT devices and smart kitchens increase food quality and freshness, meeting growing consumer expectations for fast and reliable service.
Food quality and delivery issues
Poor food quality, such as stale or improperly prepared meals, leads to negative reviews and loss of repeat customers. Delayed deliveries disrupt customer schedules and diminish the convenience factor that online platforms promise. Improper handling during transit can result in spillage or contamination, raising safety concerns. These issues collectively damage the brand reputation of delivery platforms and partner restaurants. In a competitive market, unresolved quality and delivery problems drive customers toward competitors or traditional dining options.
Covid-19 Impact
The COVID-19 pandemic significantly boosted the online food delivery market as lockdowns and social distancing measures drove consumers to rely on contactless delivery services. Platforms like Uber Eats, DoorDash, and Zomato witnessed surging demand as restaurants adapted to online orders for survival. Health concerns led to the introduction of safety protocols, including sealed packaging and no-contact delivery. While the market experienced short-term supply chain disruptions and labor shortages, it emerged stronger, with expanded customer bases and accelerated adoption of digital payments, reshaping consumer behaviour toward convenience and safety in food consumption.
The online segment is expected to be the largest during the forecast period
The online segment is expected to account for the largest market share during the forecast period, by ensuring a steady supply of fresh and quality ingredients for restaurants and food service providers. As consumer demand for farm-to-table meals increases, food delivery services source locally grown produce, enhancing sustainability and flavour. The integration of smart farming technologies allows for more efficient and precise food production, reducing waste and improving cost-effectiveness. Additionally, partnerships between food delivery companies and local farmers support the growth of community-based food networks. As a result, this symbiotic relationship fosters market growth and enhances customer satisfaction in the online food delivery industry.
The travel and tourism segment is expected to be the largest during the forecast period
Over the forecast period, the travel and tourism segment is predicted to witness the highest growth rate, due to increased demand for diverse and convenient food options. Travellers often seek easy access to local and international cuisines through online platforms, especially when staying in unfamiliar locations. Hotels and resorts collaborate with food delivery services to offer guests a broader range of meals, enhancing their overall experience. Additionally, the growing trend of business trips and leisure travel encourages consumers to use online food delivery for convenience. As a result, online food delivery services expand their reach and cater to the needs of tourists across various destinations.
During the forecast period, the Asia Pacific region is expected to hold the largest market share driven by increasing smartphone penetration and digitalization. Consumer demand for convenience and a wide range of food options has accelerated market expansion. Major players like Zomato, Swiggy, and Foodpanda dominate key markets such as India, China, and Southeast Asia. The rise of cloud kitchens and partnerships with restaurants has further boosted the sector's development. Additionally, urbanization and changing lifestyles have led to an increase in demand for quick and affordable food delivery services. The market is expected to continue expanding due to growing disposable incomes, improving delivery infrastructure, and evolving consumer preferences.
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, owing to the increased consumer demand for convenience. Major players like Uber Eats, DoorDash, and Grub hub dominate the market, offering a wide range of cuisines and delivery options. The rise in mobile device usage and internet penetration has further fuelled the demand for food delivery apps. Additionally, subscription-based services and the integration of AI for personalized recommendations are transforming customer experiences. With continuous innovations and the expanding focus on health-conscious and sustainable food options, the market is expected to grow steadily in the coming years.
Key players in the market
Some of the key players profiled in the Online Food Delivery Market include Uber Eats, DoorDash, Grubhub, Deliveroo, Just Eat Takeaway, Zomato, Swiggy, Postmates, Foodpanda, Meituan Dianping, Delivery Hero, Glovo, Instacart, ChowNow, Olo, Waitr and iFood.
In January 2025, Uber Eats and BP have announced a global strategic partnership to enhance convenience delivery. The partnership aims to make over 3,000 retail locations available on Uber Eats by 2025, expanding their reach in markets such as Australia, New Zealand, Poland, South Africa, and the US.
In December 2024, Uber Eats has formed an exclusive partnership with Loop Restaurant to enhance its takeout and delivery services. This collaboration aims to improve customer access to the restaurant's menu while ensuring secure packaging and real-time tracking for deliveries.
In May 2024, Uber Eats has partnered with Lightspeed Commerce to integrate Uber's delivery services into its hospitality platform. This collaboration is designed to help merchants streamline their delivery processes and expand their reach through the Uber Eats marketplace.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.