United States Online Food Delivery Market Analysis
United States Online Food Delivery Market will reach US$ 66.54 Billion by 2032, up from US$ 28.37 Billion in 2023, with a CAGR of 9.93% between 2024 and 2032. The market is experiencing a robust rise owing to the increased penetration of the internet and smartphone usage, along with the growing preference for quick and fast services among customers.
Online Food Delivery-Market Definition
Online food ordering involves placing meal orders using mobile applications or websites, which restaurants and food suppliers connect to for delivery right to the customer's door. Orders are placed by customers via specialized websites or outside applications, frequently choosing from local restaurants or food cooperatives. Just as online shopping for other products is convenient, several platforms include account management capabilities to make recurring orders easier.By employing effective ordering software, restaurants can choose to sell directly to customers, without the need for third-party gateways. This method allows customers to place orders straight through the restaurant's website. In order to satisfy a range of customer preferences, these apps and websites also include a number of filtering and payment choices, including cash on delivery, net banking, prepaid cards, and more. The outlook for the US online food delivery market is impacted by the collaboration of many delivery services, such as Grubhub, Uber Eats, and others, with restaurants to serve meals to clients.
The National Restaurant Association claims that the Far West, which includes California (with 83,501 restaurants) and Washington (16,379 restaurants), has a large concentration of restaurants, which is what drives online meal delivery.
In 2022, Uber Eats worked with 825,000 eateries, according to corporate documents, enhancing online delivery services in the US.
Driving Forces for Online Food Delivery in the United States
Technological Advancements - Technology is driving the CAGR of the US online food delivery business. The atmosphere surrounding food delivery has undergone significant change due to the widespread use of cellphones and high-speed internet connection. Aside from that, the ease of using a smartphone app to order food has significantly increased the market's popularity. Additionally, the overall customer experience has been enhanced by user-friendly interfaces, tailored recommendations, and efficient tracking systems, suggesting a bright future for industry growth. Aside from that, the industry is growing because of the employment of global positioning system (GPS) technology, which enables real-time delivery progress tracking and fosters a sense of openness and dependability in the process. The ability of today's tech-savvy consumers to effortlessly incorporate online food delivery services into their daily schedules has fueled market expansion.For instance, in August 2021, Grubhub and Yandex SDG launched robotic food delivery at Ohio State University, improving campus dining with 50 self-driving rovers that skillfully deliver food orders to students' doorsteps. This creative partnership provides a quick and easy dining experience, transforming campus food delivery with state-of-the-art technology.
Acquisitions and Strategic Partnerships - The rise of the online meal delivery sector in the United States is majorly driven by the growing emphasis on strategic alliances and acquisitions. Leading businesses are partnering with grocery shops, restaurant chains, and other food service providers in an effort to expand their market share and enhance their service offerings. Through these partnerships, meal delivery services can provide a wider selection of foods to a more diverse user base. Grubhub and Homewood Suites by Hilton joined together in June 2023 to provide food options to visitors at about 500 locations across the US. Tourists could quickly order from nearby restaurants using the Grubhub app's geolocation and rapid response (QR) codes, enriching their eating experience with a range of options. Furthermore, market leaders can fortify their position, boost productivity, and seamlessly integrate new technologies by acquiring smaller delivery services and technology firms. In addition, partnerships with large supermarket chains bring in grocery delivery services, which benefit consumers and create new revenue streams. These tactical choices support innovation and productivity, which expand the market as a whole and strengthen the competitive advantage of significant players.
Marketing and Promotional Campaigns- Aggressive marketing and promotional strategies are critical drivers of the online food delivery industry. As outlined in the United States online food delivery market forecast, companies are investing significantly in advertising on various platforms, including social media, television, and online channels, to enhance brand recognition and attract new customers. Promotional deals, such as discounts, free deliveries, and loyalty programs, are vital in retaining current customers and promoting frequent service use. For instance, in June 2023, Grubhub and Amazon extended their complimentary Grubhub+ promotion for another year for American Prime members, offering no delivery charges and exclusive discounts on restaurant orders. This collaboration added value to Prime by granting members significant discounts and unique dining experiences through Grubhub's platform.
Additionally, working with well-known events or influencers at particular times of the year boosts brand awareness and human interaction. These marketing strategies work particularly well when converting traditional diners to online delivery customers. By using creative marketing techniques, delivery platforms can continually establish a connection with their audience, which gives them a competitive edge, boosts user acquisition, and continuously grows the market.
Florida Online Food Delivery Market
As a result of broader trends in convenience and digital commerce, Florida's eating landscape now prominently features the online food delivery industry. Large cities like Miami, Orlando, and Tampa are home to various eateries involved with delivery services like Grubhub, DoorDash, and Uber Eats. Both locals and guests can use these services to peruse menus, place orders, and quickly deliver meals to their residences, workplaces, or hotels. Factors like Florida's bustling metropolitan lifestyles, varied culinary scene, and high tourism all contribute to the market's growth.Local eateries gain more exposure and access to larger customers, and diners have access to various dining alternatives, from gourmet cuisine to comfort food, frequently with special offers and discounts. Florida's online meal delivery business is constantly innovating to meet changing customer preferences and boost the state's hospitality sector, thanks to developments like contactless delivery and real-time tracking that are becoming standard.
United States Online Food Delivery Company Analysis
The key players in the United States Online Food Delivery Market are Grubhub, Doordash, Postmates, Uber Eats, Domino Pizza Inc., Blue Apron, Kroger Co.Holdings, and HelloFresh.United States Online Food Delivery Company News
May 2024 - Uber Eats and Instacart have partnered to provide food delivery services in the US. Through the Instacart app, customers can place orders from hundreds of thousands of restaurants.November 2023 - DoorDash took advantage of the rising demand for easy alcohol delivery and extended its alcohol delivery service to New Jersey. This move reflects the changing e-commerce landscape in the alcoholic beverage market. It aligns with the trend of top aggregators to provide customers with a more significant assortment of beer, wine, and spirits.
October 2023 - Pizza Hut, LLC extended its hours of operation in thousands of locations, remaining open until midnight or later to satisfy consumers' late-night desires. Pizza Hut ensured that even during late-night delivery, accessibility, and quality were maintained by utilizing partnerships and technology.
Business Model - Market breakup in 2 viewpoints:
Platform to customer delivery
Restaurant to customer delivery
Platform Type - Market breakup in 2 viewpoints:
Websites
Applications
Payment Method - Market breakup in 2 viewpoints:
Cash on delivery
Online
Pain Type - Market breakup in 2 viewpoints:
Chronic Pain
Acute Pain
Cities - Market breakup in 26 viewpoints:
- Seattle
- Pittsburgh
- San Francisco
- Austin
- San Jose
- San Antonio
- Virginia Beach
- Miami
- San Diego
- Los Angeles
- Portland
- Atlanta
- Orlando
- Washington, DC
- Jacksonville
- Riverside
- Houston
- Sacramento
- Denver
- New York
- Tampa
- Tucson
- Dallas
- Salt Lake City
- Phoenix
- Others
All the key players have been covered from 3 Viewpoints:
- Business Overview
- Recent Development
- Sales Analysis
Key Players Analysis:
- Grubhub
- Doordash
- Uber Eats
- Postmates
- Dominos Pizza Inc.
- Kroger Co.
- Blue Apron Holdings
- HelloFresh
Table of Contents
1. Introduction2. Research Methodology3. Executive Summary5. United States Online Food Delivery Market
4. Market Dynamics
6. United States Online Food Delivery Market-Share Analysis
7. Business Model
8. Platform Type
9. Payment Method
10. Cities
11. Porter’s Five Forces Analysis
12. SWOT Analysis
13. Key Players Analysis
Companies Mentioned
- Grubhub
- Doordash
- Uber Eats
- Postmates
- Dominos Pizza Inc.
- Kroger Co.
- Blue Apron Holdings
- HelloFresh
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 180 |
| Published | July 2024 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value ( USD | $ 28.37 Billion |
| Forecasted Market Value ( USD | $ 66.54 Billion |
| Compound Annual Growth Rate | 9.9% |
| Regions Covered | United States |
| No. of Companies Mentioned | 8 |
