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Research on Online Food Ordering Research on Online Food Ordering Table of Contents Executive Summary 2 Investors Are Optimistic Regarding Opportunities For Development 2 Online Food Ordering Key Players 3 Everyone Wants A Piece of The Pie 7 It’s A Fierce Business 8 Innovating to Flourish 8 Food Delivery Companies Are Adding Healthy Snacks To Their Kits 9 Taking Advantage of Cold Chain Logistics 10 Pairing Meals with Salty Treats 11 Can Food Delivery Apps Deliver Profits for Investors? 11 A Sizable Runaway for Delivery 13 The Growing Importance of Chains 14 Questions on Profitability 14 Thinking Rationally 14 The Restaurant Perspective 15 Fighting for Share in the $16.6 Billion Delivery App Market 15 Where Do We Stand Today? 15 It’s All about the Metrics 16 Market Trends 19 7 Hot Trends That Will Change the Future of the Food Delivery Industry 19 Restaurant Online Ordering Statistics 25 Key Trends in the Food Delivery Industry 27 Conclusion 28 2 Online Food Ordering Executive Summary Food delivery idea isn't new. From buying food by telephone to utilizing specialized internet channels connected to a specific restaurant, the ordering process has been as simple as heating a frozen TV meal. In the last 5-7 years, a handful of businesses around the world seem to have zeroed in on a fresh (and now not so secret) magic formula; while earlier models of the digital food ordering program were restricted to a single restaurant or menu, it's now a complete buffet, giving consumers exposure to thousands of restaurants and millions of dishes. Online food businesses consider that consumers are hungry for these services, to their delight. Growth levels in the market have skyrocketed as millions of consumers have been more than happy to get food served by clicking a button rather than wasting extended times cooking ladle in pot. Frost & Sullivan projected the market at $82 billion in gross sales bookings in 2018 which is expected to more than double by 2025, supported by a combined 14 per cent growth rate. The delivery of online food already has a big effect on the dine-in restaurant market. Celebrity chef Jamie Oliver pointed to online food ordering systems as one of the key causes his chain of restaurants went, ahem, belly-up. Indeed, the idea of spending a night at home where one can relax (with Netfilix on-demand) and chow (on your own on-demand dinner) is hard to disagree with. North America now houses more than 10 online food delivery firms with Grubhub, the biggest operator, responsible for more than one third of the sector. Europe already has more than 10 vendors, with Dutch firm Just Eat getting a presence in the area in eight countries with a UK share of over 83 per cent market. Yet Asia accounts for a whopping 55 per cent share of the global online food procurement industry in terms of sheer figures, due to the almost insatiable appetite of the Chinese dragon. In 2018, China alone reported more than $34 billion in revenue from online food distribution, with two of its biggest competitors, Ele.me and Meituan Dianping breaking up nearly 10 billion deliveries between them last year. Investors Are Optimistic Regarding Opportunities For Development But to fully grasp the increasing influence of the online food delivery industry, one just needs to follow one company's story-Uber Eats. Launched in 2014 on the back of its famous elder sibling, Uber, the business has expanded astronomically around the globe. Uber Eats itself is presently estimated at a rather respectable $20 billion, reports total sales of $1.4 billion, has a footprint in over 670 cities on six continents and provides about a billion meals daily. That kind of growth — not only for Uber Eats but for virtually all of today's actively running online food distribution companies — would be unthinkable without substantial expenditure. 3 Online Food Ordering Those firms were injected with more than $9.6 billion in 2018 alone, with Asia earning almost 60 percent of those assets. Heavy hitters such as Alibaba, Tiger Capital and SoftBank Group were among the leading investors in this company and continue to be optimistic about their 1 prospects for development. Key Players Given below are the top 10 food delivery apps that you can use to browse menus from nearby restaurants to place your order via your smartphone. Zomato Zomato, an online restaurant search platform, was founded under the name ‘Foodiebay’ in ​ 2008. The company expanded the features by including food ordering and delivery in the top ​ ​ cities of the world. Zomato is now available in nearly 25 countries all over the world including India, Australia, and the United States. Zomato food delivery app offers the list of best restaurants to its users. Not only does it offer the best restaurant choices, but it also works as a social network like Twitter or Facebook for foodies. Zomato, one of the best food ordering apps, received the latest update, which is built on the foundation of their new design system—Sushi. It brings the following features to the app: ​ ​ ​ ​ ● One search fits all ● Sorted and how ● All answers under one umbrella ● Fastest way to review now ● Brand new profile UberEats UberEats is operational in more than 1000+ major cities in various countries around the world. The app enables clients to choose their preferred food from local restaurants and delivers food to the clients’ place in the shortest possible time. 1 https://www.forbes.com/sites/sarwantsingh/2019/09/09/the-soon-to-be-200b-online-food-delivery-is-rapidly-cha nging-the-global-food-industry/#15a052a6b1bc 4 Online Food Ordering UberEats and Uber are two different apps, they share several similar features such as cashless transactions and expected delivery times. If you trust Uber to drive you safely around the city, maybe you’ll trust them to deliver you good quality food as well. Recently, UberEats acquired Ando: a delivery-only lunch menu that operates out of a couple of industrial kitchens around Manhattan. The UberEats app is a standalone food delivery app, which is currently available in many countries including Brazil, Japan, Mexico, India, and the United States. FoodPanda FoodPanda is quite a famous online food ordering app, which has been operational in 41 countries. The company is headquartered in Berlin, Germany and started service in 2012. The firm has banded together with nearly 40,000 local restaurants in different cities to provide on-time delivery. The reason behind the popularity of the FoodPanda delivery app is the huge database of restaurants from various cities and the accessibility of rebates and offers. The application accepts credit, debit, and cash on delivery payment methods. Swiggy Swiggy is the top-rated mobile app, based in Bengaluru, India. With close to 1,500,000 ​ ​ downloads in the play store, Swiggy has been rated No. 1 online food delivery app in India and is currently available in almost all the cities across the country. Swiggy came up with an idea to provide delivery from the restaurants to big-time urban foodies. Swiggy food app lets customers order their favorite food from their favorite nearby restaurants by detecting the user’s location so that the agent can deliver food as soon as possible. Recently, Swiggy came up with a new upgrade—Wallet Function—where users can store money ​ ​ and pay for transactions on Swiggy. Grubhub GrubHub’s widespread list of more than 30,000 restaurants in more than 800 U.S. urban communities will make sure to satisfy their customers, thereby making it one of the best food ordering apps. GrubHub has offices in Chicago, New York, and London. ​ ​ The GrubHub app was launched in 2004, which allowed the company to set up a partnership and build relationships with various restaurants. All the orders are managed by the company’s 24/7 customer service teams. 5 Online Food Ordering It offers an option to search for your desired food or browse through the list of local restaurants. You can filter as per working hours, customer feedback, coupons, discounts, and so on. You can even save your order details to your top picks for future orders as well. Deliveroo Deliveroo is a London-based food delivery startup, which works in over 200 cities. It is the most ​ ​ ​ popular food delivery app across Europe. It enables customers to order food from restaurant outlets that don’t have a set-up of their own and charges a fee from the customer and the restaurant for the service. Users are charged as per their order, whereas restaurants pay a commission. The quick food delivery options and the coupon deals engage customers who wish to avail the ​ ​ best possible facility. The use of the app is high due to a higher number of customers, world-class client benefit, and higher restaurant choices throughout the world, thereby making it one of the best food ordering apps available across the globe. Domino’s Pizza Domino’s app is a well-known pizza delivery app to place an order without having to call. Also, ​ it’s the first fast-food delivery app to execute online fast food delivery. This delivery app allows ​ ​ you to make quick online orders and guarantees to deliver the order within 30 minutes. Domino’s offers various coupon deals and discounts for customers to pick the best available to satisfy their taste buds with the cheesy and luscious pizza anytime, anywhere with multiple payment options. You can make your payments through an online wallet, credit/debit card, or ​ ​ cash on delivery. Just Eat Just Eat was established in 2001 in Europe.
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