Few factors contributes to the rapid transformation of the food delivery market in the last several years, including rapid digitization and rising consumer demands. Food delivery platforms have brought significant convenience to the lives of customers, as they can select from a wide range of restaurants and dishes for example one can commander mcdo at the touch of a finger. Just a decade ago, the comfort of this level was even impossible to imagine. The business of food commander en ligne is witnessing intense competition around the globe. Despite the pandemic, food delivery platforms across America, Asia, the Middle East, and Europe, are competing to attract more investments to increase their market valuation. It is expected that the online food delivery market will reach $23.5 billion by 2025. Some food delivery startups have already crossed the big one billion dollar valuation mark.
Where does the market stand?
The market for food delivery amounts to as much as €83 billion and the growth is estimated to grow 3.5% for the next five years. The traditional food delivery model involved the customer ordering their food and the respective hotel delivering the placed order with the help of its own resources. The advancement in digital tools has resulted in multi-restaurant delivery software that offers a wide range of restaurants on a single platform ensuring transparency and convenience for users.
The models of online food delivery
The online food delivery businesses run on two different models. The Aggregators & New Delivery Providers. Let’s know more about them.
The aggregators provide food delivery apps to the customers where they can choose their food, compare, write reviews and place orders. The aggregators get a fixed commission from their partnered restaurants where the customers don’t have to pay anything. Millions of people use aggregators to get their food every day, which has gained them wide popularity. As a result, there have been several interruptions that have caused aggregators to change their working methods. As a result, aggregators ensure the following:
- They build a brand through marketing and offer their users additional discounts and offers to beat the competition.
- The company pays attention to setting standards for its partner restaurants and regulating the quality of food they provide.
- Both parties benefit from it as the aggregators focus on generating leads and improving services through their brands and popularity while the restaurants focus on their food quality.
The delivery providers, like the aggregators, provide users with a variety of restaurants and dishes to choose from. Customers can place an order, review restaurants, compare food prices, and discover new places. In addition, the delivery providers assist restaurants with logistics, acting as an extension of their services. Previously, the higher-end restaurants failed to deliver. This has provided new possibilities to the food delivery business that have resulted in many big, or small companies joining the ecosystem.