Food Delivery Mobile Application Market
The mobile applications for food delivery are gaining popularity worldwide with more and more people, especially the younger generation opting for mobile apps for online ordering of food. This is because the food delivery apps overcome the disadvantages of the traditional queueing system. They also make ordering food hassle free and simple. Orders are generated without having to explain it to a restaurant staff and the food is delivered right at the customer's doorstep without him or her requiring any traveling. The platforms allow you to browse menus from your favorite local restaurants, select what you wish to eat, and submit your order with a click of a button. The payment is usually cashless via a credit or debit card if it's an online delivery or via cash if it's a cash on delivery. The food then gets delivered to your doorstep after some time. Some of the popular online food delivery apps include Grubhub, Uber Eats, Food Panda, Zomato, Swiggy, DoorDash, Seamless, and Postmates.
The growing use of smartphones, high penetration of internet, and the rise in living standards of consumers in the developing nations drive the growth of the food delivery mobile application market. Moreover, the growing investment in digitalization, as well as the teaming up of different restaurants with the application developers, are reshaping the market. As per the report published by Allied Market Research, the food delivery mobile application market is likely to garner $16,605 million by 2023, growing at a CAGR of 27.9% from 2017 to 2023.
The number of food delivery mobile app startups are growing rapidly leading to the rise in competition between these startups and the food delivery section of the restaurant market. Businesses are coming up with new tech products that effectively address the needs of consumers or expanding their services to cater to a wider group of consumers. Zomato, India's most preferred food app recently announced its plans to extend its food delivery services to four new cities by partnering with 500 restaurants. Grab, a South Asian ride-hailing company launched the beta version of its on-demand food delivery service called GrabFood in Singapore. Careem, a ride-hailing app in Dubai announced its plans to launch its food delivery service in Pakistan as well as in the Gulf countries.
Zomato Expands its Food Delivery Services
Zomato plans to expand its online ordering and food delivery services to four cities by collaborating with 500 restaurants. The cities include Surat, Vizag, Bhopal, and Bhubaneswar. With the launch of services, the company's online ordering services are now spread out across 21 cities in India, including Delhi NCR, Mumbai, Bangalore, Hyderabad, Kochi, Kolkata, Chandigarh, Jaipur, Chennai, Ahmedabad, Pune, Indore, Coimbatore, Vadodara, Nagpur, Lucknow, and Ludhiana. Zomato plans to provide its consumers with live order tracking, an average delivery time of 35 mins, personalized customer service, multiple payment options, and a range of restaurants to order from via their own delivery fleet in Surat, Vizag, Bhopal, and Bhubaneswar.
Grab Launches Food Delivery Service
In July 2018, Grab announced its plans to launch its food delivery service called GrabFood in Singapore. GrabFood provides several advantages to customers including no minimum order requirement, order scheduling feature, and reward points. For their drivers, the services provide anytime cash-out scheme and insurance program. The company says that an S$250-300 million (US$186-373 million) addressable market exists in Singapore for food delivery, and around 4,000 restaurants and 12,000 hawker stalls are still not served by food delivery services. GrabFood will be available in 6 markets including Indonesia, Thailand, Philippines, Malaysia, and Vietnam by Q2 2018. "As we build out an everyday app that offers transport, food and package delivery, and mobile payments, Grab is focused on creating a seamless experience and unlocking value for our customers by offering complementary services on one platform. From the moment you wake up, you can plan and book your entire journey across different transport modes in one tap, shop and receive discounts on-the-go, and have your favorite foods and shopping delivered right to your doorstep - all enabled by one mobile wallet, within one everyday app," said Lim Kell Jay, the Head of Grab Singapore.
Careem Plans $150m Investment
Careem plans to raise US$150m investment to finance its food delivery business called CareemFood in Pakistan in September 2018. The delivery business will be subsequently launched in the UAE, Saudi Arabia, other Gulf countries and Egypt. Careem entered the food delivery business in February 2018 with the acquisition of RoundMenu, online restaurant discovery platform which runs in 18 cities across nine countries.