Food deliveries amid growing urbanization: An indispensable part of the lifestyle

Introduction

With the coming into being of technological advancement, increased internet penetration and easy smartphone adoption, came a set of evolved needs for having food, conveniently and luxuriously. What only accelerated the pace of online food deliveries was the covid-19 pandemic that left the world at a standstill, with no options for consumers to move out, but rely on doorstep delivery solutions. Food delivery services ever since the onset of the pandemic have become even dearer to consumers and businesses for a myriad number of reasons.

The way the world eats is changing considerably. In fact, there has been an active change in the way we have perceived food over the years, and in modern times as of ours, the culture of eating out has been on a steady rise. From catering to main social events to going out for an occasional meet up or experimenting with different cuisines, we are increasingly getting accustomed to eating outside food or relishing a delicacy that can be home delivered no sooner than we think about it. Yes! There are various food delivery software and apps that not only allow for easy ordering from the comfort of your home or a vacay hotel room but also bring the food right at your doorstep from any top chain restaurant or a standalone food outlet that just pampers your taste buds.

The indispensable element of food delivery apps

Over the years, several delivery start-ups have sprung open around the globe that are fast revolutionizing the restaurant industry and food delivery services. For city dwellers, these apps are touted to be a blessing as they guarantee to deliver hot food on demand from any restaurant, be it from a fast-food or upscale, at an unbelievably quick pace. This level of ease and convenience in ordering food, tracking its delivery, receiving it and providing feedback are factors that contribute to these digital delivery systems, which are fast becoming the go-to service for food order. Restaurants are now adapting to respond to the changes in the market and are readily taking up orders through these different channels.

Many food start-ups, dark kitchens and culinary entrepreneurs are meeting such evolved needs and preferences of consumers through instant doorstep delivery solutions and last mile deliveries. What’s pretty amusing is the fact that consumers are liking it and hence frequenting food delivery software and apps every now and then. This is so because availing food delivery services through food delivery apps has become an indispensable part of their lifestyle to the extent that it is as normalized as any daily habit. Restaurants and online food businesses are finding to their delight that customers are getting increasingly ravenous for such delivery services and doorstep solutions. The unsatiable hunger of consumers is a major contributor to the humongous statistics and figures of food delivery industry.

With generation Y and generation Z cohort impacting consumer preferences and contributing heavily towards a culture that is obsessed with binging and instant gratification of needs, the food delivery industry has seen massive technology advancements and growth of third-party food delivery apps promising superfast deliveries over the past few years.

Below mentioned are few of the statistics which will give gainful insights into how food deliveries have become a rage among the global consumers, and why the entire food delivery industry appears all set to make a resonating sound in the most thumping fashion in the times to arrive.

1. According to a study, 70 percent customers prefer ordering food online and want it delivered at their doorstep.

2. A study by Statista maintains that 43 percent people say that they prefer to order online food because they don’t like cooking.

3. Online food order, as per a study by Frost & Sullivan, predicts that online food ordering is expected to be $200 billion by the end of the year 2025.

4. The number of users in the online food delivery industry are expected to reach to a whopping 2,656 million by 2026. (Statista)

5. A study by Restaurant Business says that about 60 percent of operators say that offering delivery services has accelerated the pace of ordering and generated incremental sales.

6. Fundera, through a study reveals that 59 percent of restaurant orders from millennials are either takeout or delivery.

7. In a study conducted by Statista, it was revealed that 34 percent of consumers order up to a sum of $50 when buying food online.

8. According to Mintel, 60 percent of generation Y consumers say they have restaurant food delivered to watch a movie or television show.

9. According to a story published in Upserve, customers habitually spend more on online orders than on on-premise orders. The same study maintains that digital ordering is growing at around 3x higher rate as compared to on-site ordering.

10. In a study by Zippia, it was known that online food ordering now accounts for roughly 40 percent of the total restaurant sales.

11. China is the largest and USA is the second-largest consumer of online food orders, as revealed by statistics in BusinessofApps.

12. A study by Tacit reveals, one in three customers in the US use online food ordering services at least twice a week.

13. A study by Upserve maintains that customers who place an online order with a restaurant will visit that restaurant 67 percent more frequently than those who don’t.

14. 63 percent of consumers, according to Upserve, agree that it is more convenient to get delivery than dining out with a family.

15. 87 percent of Americans who use third-party food delivery services say that it makes their lives easier, a study by Upserve reveals.

16. A report by HotelTechReport mentions that 27 percent of people say they would be willing to pay extra for their food to arrive faster.

17. According to a report published by HotelTechReport, nearly 75 percent people are using mobile phones to order food.

18. In a study by SevenRooms, people have two delivery apps on their mobile phones and they use them three times per month on an average.

19. In a similar report, 60% of restaurateurs report that offering delivery has led to an increase in revenue.

20. According to Insider Intelligence, currently, there are 45.6 million people who use mobile food delivery apps. This number is expected to reach a whopping 53.9 million by 2023.

Future of food delivery in the world of ravenous consumers

With increasing need to get urbanized, easy smartphone adoption rate, and growing sedentary habits and luxury preferring lifestyles are things around which food delivery services are revolving. All these factors plus a few more have led to a significant growth in the way we buy and consume food. The need for safe, easily accessible, luxury providing, time saving and convenient services fit perfectly with the existing models offered by food delivery apps. By optimizing their services to meet the increasing demand, the industry has propelled itself successfully. By offering user-friendly experiences, food delivery apps have positioned themselves brilliantly — leaving users hungry for more.

The food delivery app vertical is set to continue growing and evolving as markets take shape in a post-pandemic world and in a world where seeking food delivery services has become a habit. To flourish, it’s essential that food delivery apps partner with the restaurants and vendors that best suit their user’s needs, and that they find clever and innovative ways to incentivize continued use in this more-competitive-than-ever space. Developing loyalty programs, offering coupons or digital stamp cards, or investing in gamification are just a few examples of methods that can be leveraged into successful user acquisition and retention strategies in the food delivery app vertical.

Wrapping up

Food delivery services, by and large, are getting a global acknowledgement and a whole hearted embrace from contemporary consumers and businesses alike. After all, their need for availing and providing quick and convenient deliveries, respectively is a thing to cherish and something which does not seem to be waning any time soon.

Instead, with food delivery services having spread themselves in several country markets across the globe, the food delivery service providers appear perfectly set to be gaining big in terms of capturing consumers and generating sales. After all, they are being highly driven by the consumers’ increasing sedentary lifestyle choices and growing need for urbanization, and food delivery apps and services are showing them an easy, economical and convenient way into it.