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What Is The Global Online Food Delivery Market Growth Analysis and Forecast

Online food delivery has begun with pizza delivery in certain regions. But not as an online ordering system, calling to restaurants and order food online.

There was no online ordering trend when Pizza Hut and Dominos entered the food delivery market. After their entry, the food delivery service got a boom and a major portion of the things have changed from that point forward.

As per different generations, food delivery service has changed its operation.

Let’s see the evolution of on-demand food delivery services:

1st Generation – Order over Phone

The first phase of food delivery was begun on calls as mentioned before. The steps for this were, calling a restaurant, placing in an order, preparing the order by a restaurant, delivering it to the customer. Along the quality of food, they also needed to take care of the delivery service.

Around billions of people used to call the restaurants to order. As the market was growing the second generation had offered us more. What's more, the calling percentage of customers dropped.

2nd Generation – Mobile Marketplaces

And then comes the online era. The growth in the usage of the internet among all the people was expanding step by step. Thus, the rapid increase of online enabled devices made each industry have an online presence. The second generation was not an undeniable delivery platform but working just as an aggregator.

In simple terms, the restaurants were listed on the app however the delivery service was from the restaurant. The customers had the option to see the restaurant menu but order it through the restaurant. Apart from this, because of different offers and discounts, many people were also turning towards online ordering.

The most important factor behind that was the comfort for customers that lead to consumer loyalty. The top apps in the food delivery market were Zomato, uber and so on. Worldwide food delivery platforms were making a huge trend of online ordering and that will continue step by step.

3rd Generation – Full-service platform

As per the second stage, the aggregators began logistics too, which is a delivery service to customers. A portion of the apps that began this trend were UberEats, Swiggy, Rappido, and so on.

The restaurant has an important change. Presently the restaurant doesn't need to build its own website or app. Just list their restaurant on the app and start taking orders. The app is responsible for allotting an order to the restaurant till the time it reaches at the customers including delivery service.

What's more, this is the time of growing the presence on social media. Social media is key for restaurants to connect with the target audience and engage with them. A few restaurants are social media platforms to extend their customer base. This trend is required to positively impact the growth of the global on-demand food delivery services market sooner.

4th Generation – Ghost restaurants

While there is a change in each industry, the same can be found in the online food ordering system business. The ghost restaurants, also called cloud kitchens. These kitchens don't have any physical presence. This model will have a high ability of earning profits for restaurants.

Due to cloud kitchens, restaurants will have the option to save the land costs, staff, insurance and much more which is required to build a restaurant. It can also help in keeping up the quality and will also get time to consider new strategies.

The food delivery apps are quite popular within the millennial and the younger generations. The biggest customer portion to use online services falls in this generation.

Popular on demand online food ordering services include a range of restaurants that allows customers to analyze menus, prices, cuisines and also able to see reviews by past customers. While analyzing, restaurant reviews are considered for the growth of the business.

Facts about online ordering system market:

  • The market's biggest segment is Restaurant-to-Consumer Delivery with a market volume of £4,934m in 2020.

  • The online food ordering delivery market will reach £23.5 billion by 2025.

  • As of now, 26% of traditional food delivery orders are ordered online and this figure is expected to increase in the following years.

  • The UK food delivery market alone is required to develop by 79% in the following 5 years.

  • Food ordering and delivery business is relied upon to develop by £30 billion at a yearly development pace of 12% throughout the following five years.

  • Aside from the Millenials, online ordering and delivery is also turning into a most loved among the customers in the age group of 35-44

  • The top five players right now a joined valuation of £11.52 billion.

  • In worldwide comparison, most income is produced in China


Lauren Deol

Lauren Deol is Takeaway Genie's Content Strategist. She writes about the trends, tips and other things that enable customers serve better and be more helpful awesome overall. She also writes about the need and importance of having a website for a takeaway business to run their business successfully.