Can You Really Gain Dominance Over The Competition In The Online Food Delivery Industry?

Kala samayapuri

03 Jun 2022 on Business · 8 min read

Online food delivery industry

8 min read

I always have an intense craving for Cheesecake brownies and KFC bucket chicken. Sometimes I will just listen to my stomach to grab a little bite of my favorite food in between my tight work schedules.

As a working woman, it didn’t work me for most of the time to go out and buy the food items I love. I believe that a few years ago, most of you out there would have faced similar scenarios like me when they could not have their favorite food items at the desired time and convenient place due to their work commitments and daily chores.

Am I right?

But, these days, food delivery apps are available that help in getting the foods from the restaurants we like right at our doorsteps with just a few taps on the screen.

So, same as many people out there, I eventually became a regular user of the food delivery app.

But, while ordering food online, many questions will keep on whirling in my mind like

Which food delivery app is best for me and cheaper?

What other food apps are available for easy delivery? etc.

Do you also have questions like these about the online food delivery?

If yes, here are some short bites for you to grab a little about online food delivery

  • Online food ordering and delivery service was first launched in 1994.
  • It has been estimated that the number of users using food delivery apps will reach $54 million approximately by the end of the year 2024
  • Since Covid19, around 60% of restaurants with food delivery apps globally have witnessed a steady increase in their revenues
  • The online food delivery is expected to grow at 21% share of the whole restaurant market by 2025
  • 63% of the people in the age range 18 – 29 are likely to utilize food delivery applications

Do these stats kindle interest in you to know more about the online food delivery?

Then delve into the topics with no further delay.

Online food delivery overview and statistics

How big is the online food delivery industry?

The market size of the online food delivery sector – Estimated to reach 130.2 billion U.S dollars in 2022

According to Statista, by 2027, this amount is expected to grow to 223.7 billion U.S dollars

Online Food delivery market size

How much did the food delivery industry make in 2020?

Do you have any guesses?

It generated around 26.5 billion dollars in 2020

Who has the biggest market share in food delivery?

Doordash – With a market share of 59%

As of March 2022, it dominated the online food delivery market in US
Second highest market share holder – Uber Eats with 24%.

Market share of Doordash and UberEats

Online food delivery Industry growth

How fast is food delivery growing?

The annual growth rate of the online food delivery sector – About 15 – 20%

By 2025, the online food delivery rate is expected to grow by more than 220 billion dollars. This accounts for about 40% of the whole restaurant sales

How much is the online food industry worth?

Online Food delivery sector Revenue – Estimated to reach 66.56 billion US dollars in 2022

According to Statista, Online Food delivery sector revenue is predicted to show an annual growth rate (CAGR 2022 – 2026) of 9.69%. This will result in a market volume of 96.37 billion US dollars by 2026

How many people use food delivery apps in the world?

The number of food delivery app users –From 36.4 m in 2019 to 45.6 m in 2020.

According to Statista, This growth is predicted to continue with an estimated user count of 53.9 million by 2023

Study on food delivery app

Types of food delivery apps

Order only Business model

App owners provide a platform for restaurants to provide online food delivery services to their customers. Restaurants will be solely responsible for providing delivery services.

Obviously, this model will require only minimal capital investment

Order with Delivery business

In this food delivery business model, app owners will be responsible for logistics, ie app owners will take the orders of users and will provide food delivery support by working with several courier providers

Full-stack food delivery apps

In this model one service provider serves the whole food chain. Popular restaurants that prefer to offer additional amenities to their customers will choose this business model

But this model requires a huge upfront capital investment

Comparison of best online food delivery service apps in 2022


Food delivery appsReasons to useReasons to avoid
GrubhubSupports delivery from multiple local restaurants and national chains Supports various payment optionsIncludes delivery fees for service from some restaurants
DoordashBest app for discovering restaurants with great food delivery service Serves a wide range of national chains and local eateriesNot extensive reach as Grubhub Varied delivery fees
UberEatsReal-time delivery track and cashless payment supportIncludes a 15% service fee
CaviarFocuses mainly on local restaurants Real-time GPS tracking Offers in-app exclusive dealsNot extensive reach as other services
PostmatesRound the clock food delivery service based on the operating hours of restaurantsSurge pricing can drive up the cost


What food app has no delivery fee?

To support restaurateurs, Uber Eats is offering $0 delivery fees for all local restaurants.

Food delivery app revenue statistics

Top Revenue generating country – China with revenue of $27.3 billion in 2021

Food delivery app industry revenue-generating countries

What we can learn from successful food delivery apps?

Key success factors of some popular Food delivery apps

  • Ensuring better customer services
  • Real-time tracking of delivery progress
  • Multiple ordering and payment gateways
  • Options to browse restaurants of multiple cuisines and locations, Group orders, ‘schedule later’ to delay the delivery, and Simple re-orders
  • Intuitive search capabilities and seamless GPS facilities

Pitfalls of some popular delivery apps

  • Some food delivery apps are charging extra service fees in case of ordering from non-partner restaurants.
  • I hope you would have also come across this case where your final order cost was higher than the one anticipated.
  • Not all food delivery apps provide ultimate convenience for users to create a smooth shopping experience. This is due to the weak app design that fails to be consistent and could not survive when the load is high
  • Have you come across many interesting freebies and deals in the food delivery app you are using regularly?
    Some apps would have missed this which is also a pitfall that the food delivery app must concentrate
  • Some food delivery apps suffer from poor business models. Those apps fail to support the areas that they have claimed earlier and this is mainly due to the fact that they have missed analyzing their target markets and demands.
  • At times, many out there would have waited for a long time to get the ordered food items, right? This is also a bigger drawback for some food delivery apps.

Developing a food delivery app

How much does it cost to develop a food delivery app?

App development cost depends straightly on the total number of hours spent on developing the app and the hourly rate

The cost of developing a food delivery app when you approach an app development company depends on various factors like

  • The complexity of the app
  • Features to be included and mobile app design
  • Based on the platforms across which the app need to be developed (Android/iOS)
  • App testing and launch process

How do you make a food delivery app?

  • Analyze and fix your food delivery app idea and model
  • Finalize the main features to be included
  • Decide on the Tech stack to build a robust app base
  • Concentrate on app design and other tech factors
  • Approach the right app development partner

What makes a good food app?

Check out the below list of things to consider to make your food app and online food delivery services effective

  • Simplicity in use and design is of prime importance
  • Wide range of restaurants to choose from
  • Must provide great service with a stellar online menu option, state-of-the-art technology to accept orders, search food, etc
  • Smooth GPS functionality to find restaurants nearby, track orders without any hassles
  • Flexibility – Support multiple orders from restaurants
  • Commitment to offer quality food with on-time delivery
  • 24/7 customer support
  • Wallet option to enable users in paying transactions from stored balance

Why can you go for clone scripts?

Building your food delivery app from scratch will cost you more and will take all of your time. Because it needs more research and development time to arrive at your desired food delivery app

I hope you would have known this from the previous sections. Am I right?

So, what you can do?

As said earlier, reach an apt app development company from which you can get a felicitous clone script for your online food delivery business model. This will help you in developing your food delivery app within your budget and in a short span of time.

But, spend some time picking the right clone script provider to get a perfectly built food delivery app script for your business

Final Thoughts

This blog would have made you understand that you are not the first to come up with the idea of developing a food delivery app.

The competition is fierce and so you can follow either of the two below mentioned paths:

You can just let the competition in the online food delivery industry discourage you to turn back and drop the idea of developing your food delivery app

Or else you can boost up your confidence and go ahead in your food delivery app development

If you firmly believe your idea, then will the right strategy and technique you can create your food app that will ensure to become a mass favorite in no time at all!

So, if you have a fresh concept, reach us now!!

Reach us Now…

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online business venture?

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Kala Samayapuri, an experienced Technical and SEO content writer working for Hitasoft Technology Solutions Pvt. Ltd has extensive experience in writing content for clone scripts and mobile/web app development. She focuses on developing content that can accurately reflect the company ideals with a precise writing style and a plethora of information. She likes to make her writing in a way that readers can connect to it in some way by generalizing the ideas and opinions she is writing about.