A Look Into The Growth Of Online Food Ordering And Delivery Business

The businesses of online ordering and delivery for food are transforming. This transition is fueled by the rise of high-speed internet and smartphone usage. The huge potential of the industry has resulted in the rise of a plethora of online food business platforms, each with its unique selling proposition. Consumers may now obtain food items available on the internet and have them delivered to their doorsteps in a matter of seconds.

Furthermore, customer flexibility in the sort of no minimum order value and a multitude of payment alternatives such as internet banking, digital wallets, and cash on delivery has boosted the efficiency of all potential consumers. According to forecasts that vary by location; online food delivery business is anticipated to expand to more than $220 billion by 2025; and this accounts for nearly 40% of total restaurant income.

The Growth Of Online Ordering And Food Delivery Business

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With all of the advancements in online food ordering and delivery, businesses must remain updated on what’s happening in the marketplace. It is a perfect time to discover new market opportunities and invest your money where it matters. The statistics clearly show that the increase in digital food ordering and delivery is not a hoax.

Food Delivery Businesses are on the Rise

More than 50% of all client orders are now delivered straight from restaurants’ websites; or mobile apps following industry reforms. Restaurants and other food enterprises are increasingly using a range of methodologies to handle online ordering and food delivery.

Also, third-party platforms such as Uber Eats, Zomato, Food Panda, Swiggy, and Delivery Hero have become increasingly popular. Food delivery has evolved into a field of its own, with various online platforms competing for market share.

Despite drawing significant funding and a premium valuation, these online platforms revolutionize the food delivery sector.

The food sector has indeed been revolutionized by digital technology; which now has altered the way food is delivered. Consumers directly place orders through a food delivery solution instead of walking to the restaurant.

Restaurants, on their part, ensure that their offerings are convenient and transparent. When a customer gives an order online, then the restaurant fulfills it by verifying that the food is deliverable to its location.

Also Check: 5 Best Food Delivery Business Ideas – How Can One Be Profitable?

Changes in Online Food Business Model

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A change in the economic model used by restaurants is one of the reasons for the advancement of online ordering and food delivery. Food delivery models in restaurants have become a standard, and a few types of fleets have developed over time.

It includes services such as same-day or same-time delivery and party delivery. Single fleets, multi-fleets, in-house fleets, and crowd-sourced fleets are all seeing expansion. Curbside pickup, delivery from a store, and delivery from robotic warehouses are among new delivery strategies that have arisen.

Revolution and the emergence of unique business models have strongly influenced the food delivery industry. As a result of this further industrial upheaval, customers are increasingly drawn to businesses by the convenience of services.

Also Check: Top Online food delivery services and their strategies

Online Food Business Trends

The bright future for online food ordering and the delivery business sector has sparked the curiosity of several small businesses and startups looking to get a presence in this thriving industry.

However, as the risks climb, so does the market’s preparedness for upheaval. In such circumstances, it is vital to know the business intimately. Many new trends are being introduced in the food business:

A Look Into The Growth Of Online Food Ordering And Delivery Business 4

1. Cloud Kitchen

Cloud kitchens, aka ghost kitchens, are entering a new age in the foodservice industry. Moreover, cloud kitchens only deliver food, and they do not possess their own dining space.

2. Centralized Ordering System

A centralized purchasing system manages the acquisition of goods and services for the overall industry. You can find the purchasing department mainly in the company’s headquarters, where it would be responsible for all of its procurement.

3. Novel Distribution Networks

It allows consumers to place online orders using many platforms, such as websites, smartphone apps, virtual agents, social networks, and intelligent devices.

4. Initiate Your Own Delivery Service

Restaurant-to-consumer delivery is a system that enables restaurants to have absolute control over food order delivery.

Starting your own delivery service comes with many advantages, including full command over your personnel, quicker delivery schedules, and excellent customer service.

5. Contactless Delivery

After the coronavirus outbreak, people consciously avoid any physical contact; ultimately, the practice of contactless delivery will grow in popularity.

Also Read: Top 8 Advantages of Online Shopping

Consumer Preferences Have Changed

Consumer preferences are evolving, which has aided the expansion of on-demand food delivery app development. Smartphone applications to place food orders online are gradually becoming the standard among restaurant patrons.

Given that customer retention is the most crucial aspect in the profitability of the food industry, restaurants must respond and take necessary actions to meet the changing user preference to turn a profit.

With the advent of on-demand food delivery solutions, restaurants and customers now have the opportunity to make food delivery faster and more efficient.

Also Read: 11 Must-Have Features Of A Food Delivery App

Digital-Era Society Boosting Development

The digital era society is mainly responsible for expanding online ordering and food delivery. Most Millennials and Generations have been buying items online and waiting for them to arrive. The market share grows as more consumers from these and older generations embrace this online ordering and food delivery trend.

In addition, organizations recognize the changes in the marketplace and adapt accordingly. As a result, numerous firms are tapping into the food industry and introducing emerging styles.

Also Read: 6 Top Digital Marketing Tips and Tricks – Learn to Boost Your Online Store


Consumers will benefit from the continuous expansion of on-demand food delivery solutions. Consumers can purchase their favorite foods online and have them delivered to their preferred location.

The industry has effectively driven itself forward by optimizing its offerings to satisfy the growing demand of its consumers. This ultimately implies more competitiveness.

So, restaurants and other cuisine enterprises must be more innovative in their business solutions. The food business will be an intriguing area to monitor in the long run, with so many innovations and expansion anticipated.

Also Check: 5 Steps To Follow When Buying Online Packaging Designs

Images by mohamed Hassan and Simon

Mushahid Khatri

Author Bio: Mushahid Khatri, who is the Chief Executive Officer of Yelowsoft. It is one of the leading grocery delivery app development providers. He thinks in sharing his strong knowledge base with leaned concentration on entrepreneurship and business.

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