Online Food Delivery Industry: Growth, Trends, and Future Scope

The online food delivery industry is experiencing substantial growth globally. This growth is driven by factors such as evolving consumer behavior, rapid innovation, and increasing digital adoption. From ordering office lunch to families ordering dinner on weekends, food delivery platforms have transformed how people access meals.  

According to Statista, the global online food delivery market is expected to generate revenue of $1.40 trillion by the end of 2025. Additionally, the number of customers is expected to reach over 2.6 billion by 2026. The given stats present a large number of opportunities for aspiring entrepreneurs looking to enter this proliferating industry. This growth is not only driven by convenience but also by various trends, including the emergence of cloud kitchens, quick commerce, voice-activated ordering, and much more.

In this blog, you will explore the rise of the industry, the top trends, opportunities for entrepreneurs, challenges and their solutions, and how Yo!Yumm can help you launch your online food delivery platform quickly.

Rise of the Online Food Delivery Industry

The online food delivery industry has come a long way. Earlier, food ordering was limited to phone calls or simple websites, but today, highly intuitive apps have dominated the market. Let’s have a look at the rise of the online food delivery industry. 

• Global Valuation: According to a report by Statista, revenue of the online food delivery industry is projected to reach the market volume of $2.02 trillion by 2030, with an annual growth rate (2025-2030) of 7.63%.
• Top regions: Countries such as China ($499.14 billion), the United States ($430.85 billion), India ($54.97 billion), the United Kingdom ($51.64 billion), and Japan ($42.22 billion) collectively generate the highest revenue. 

• Popular Niches: Restaurant-to-customer delivery, cloud kitchens, specialty meal services, and more are among the most popular niches of the online food delivery industry.
• Mobile Domination: Over 70% of all food delivery orders are placed using mobile apps.

Top Trends: Shaping the Online Food Delivery Industry

Trends are shaping the future of the rapidly growing online food delivery industry. Thus, for aspiring foodpreneurs, it becomes crucial to understand these trends to build a successful platform that stands out in this competitive market. Some of the top trends are mentioned below:

• The Rise of Quick Commerce

Quick commerce, or q-commerce, is one of the most popular trends in the online food delivery industry. Customers prefer quick delivery of their meals, and to fulfil this expectation, platforms such as Uber Eats, DoorDash, and more are expanding their services into hyperlocal delivery networks. Apart from it, these platforms are also investing in drone deliveries to provide unparalleled convenience and rapid delivery services to their customers. 

According to Statista, revenue generated by the quick commerce market is projected to reach $286.75 billion by 2030. This number represents the benefit and growth potential of following this trend. 

• Emergence of Cloud Kitchens 

In recent years, cloud kitchens, also known as ghost or dark kitchens, have gained immense popularity. These are delivery-only kitchens that operate without dine-in service. Cloud kitchens allow foodpreneurs to start their food delivery venture without a high financial investment. Moreover, with their flexibility, easy scalability, and more, cloud kitchens are becoming a go-to choice for entrepreneurs. 

According to a report by Statista, the global cloud kitchen market size is forecasted to reach $177.85 billion by 2032. These stats show that cloud kitchens are one of the fastest-growing verticals in the food delivery ecosystem.

• Rewarding Loyalty Programs

Customer loyalty and customer retention are the backbone of a successful business. Most of the food delivery platforms offer reward points, exclusive discounts, and subscription plans for their customers. These programs keep the user engaged and boost repeat orders on the platform. Moreover, they help in building a loyal customer base.

Thus, new businesses can leverage this trend by introducing welcome offers, referral programs, and more to attract customers on the platform and achieve success.  

• Expansion in Tier 2 and 3 Cities

In urban areas, there are numerous options for food delivery services. But in recent years, suburban areas and tier 2/3 cities have presented high demand for food delivery, whereas options in these areas remain limited. Thus, some leading and emerging online food delivery platforms are focusing on these high-demand areas. Furthermore, increasing use of the internet and improved technology are contributing to this rising demand and opening doors to numerous opportunities for aspiring foodpreneurs.

• AI-Powered Personalization

Artificial Intelligence (AI) has revolutionized the online food delivery industry. AI-powered chatbots, personal recommendations, route optimization, and smart ordering are some significant features that food delivery platforms are integrating to enhance user experience. Other than that, these integrations help digital food delivery platforms streamline operations and reduce costs. 

• Voice-Activated Ordering

Due to increased usage of smart devices such as Amazon’s Alexa, Google Assistant, Apple’s Siri, and many more, voice-activated ordering is gaining popularity. It allows customers to place their food orders just by giving voice commands. Moreover, voice ordering expands the potential customer base by providing accessibility to users with disabilities. Thus, investment in this growing technology offers a competitive edge and attracts more customers to the platform.

Major Players in the Online Food Delivery Industry 

The global online food delivery market is dominated by major players, such as DoorDash, Uber Eats, Just Eat, and more. For an entrepreneur, it becomes crucial to analyse these players to understand market dynamics, customer behavior, and gain a competitive advantage. Here are some of the leading players:

1. UberEats 

• Founded in: 2014
• Country: Santa Monica, California, United States
• Revenue: $13.7 Billion

UberEats is one of the leading food delivery marketplaces that operates in over 50 countries and has millions of active users. The platform uses the latest technology and artificial intelligence to provide a seamless experience to its customers. Integrated with advanced features and functionality, it allows customers to schedule their orders for future deliveries. Moreover, features such as route optimization and more streamline the delivery process.

2. DoorDash 

• Founded in: 2013
• Country: Palo Alto, California, United States
• Revenue: $10.72 Billion

DoorDash is one of the major food delivery platforms. Integrated with an advanced set of tools, this platform enables its partner restaurants to easily manage their operations. Beyond food delivery, DoorDash delivers beauty essentials, pet care, flowers, and more to customers’ doorsteps. Furthermore, powered by AI, the platform provides personalized recommendations to its customers based on their previous orders and food preferences. 

3. Grubhub 

• Founded in: 2004
• Country: Chicago, United States
• Revenue: $2.13 Billion

Grubhub is an American-based online food ordering and delivery platform. Operating in over 4000 cities across the nation, it has 20+ million active users. Its highly intuitive ordering interface streamlines the user experience. Furthermore, Grubhub is partnered with 300,000+ restaurants, offering a wide range of food items to its customers.

4. Just Eat 

• Founded in: 2001
• Country: Kolding, Denmark
• Revenue: $3.9 Billion

Just Eat is a leading online food delivery marketplace operating in Europe, Australia, and Canada. Partnered with independent takeaway food outlets, the platform offers delivery and takeaway options to its customers. It attracts the environmentally conscious segment of customers by providing eco-packaging and green delivery options. Apart from this, Just Eat enhances the customers’ experience with its user-friendly apps.

Opportunities to Enter the Online Food Delivery Industry: Future Predictions

For aspiring foodpreneurs, the online food delivery industry presents several opportunities. They can adopt technology and look for innovative ways to capture the market and gain a competitive edge. Thus, some niches and key strategies are mentioned below:

Emerging Business Models & Niches

• Meal Kit Subscription Services: Meal kit subscription services allow customers to order pre-portioned ingredients and recipes to cook the meal. The subscription option reduces the hassle of offering meal kits repeatedly. Thus, for customers, it provides convenience, whereas for entrepreneurs, this niche creates a steady revenue stream. Moreover, meal kits delivered can be customized according to the dietary preferences of the consumer, such as vegan, gluten-free, and others.
• Late-Night Food Delivery Platforms: Late-night food delivery platforms cater to the needs of students, night-shift employees, and others. From traditional meals to diverse cuisines, these platforms offer a variety of food options to their customers. Moreover, due to lack of alternative food delivery options at night, there exists a huge market gap. Thus, aspiring foodpreneurs can leverage this opportunity and capitalize on this niche.  
• B2B Meals Delivery: B2B food delivery platforms offer bulk meal delivery to offices, corporate clients, and events. These platforms provide the option of scheduled deliveries and customization as per dietary requirements. Further, subscription services can be offered for employee meals, meetings, and events. 
• Vegan Food Delivery: Vegan food delivery caters to the health-conscious segment of consumers. They provide plant-based food options, including healthy and protein-rich snacks, and avoids animal products. This niche presents a lucrative opportunity for entrepreneurs seeking to enter this industry.
• Sustainability Focused Platforms: With the increasing awareness about the environment, more and more consumers are preferring sustainable options in food delivery, such as reusable, recyclable, and biodegradable packaging. With more focus on the environmentally aware segment of consumers, this niche offers carbon-neutral delivery and various programs to cut down on waste. Additionally, it offers several opportunities for “green entrepreneurs” or “ecopreneurs” to position themselves in eco-conscious world.
• Grocery and Meal Integration: Businesses can cater to a wider customer base by integrating grocery and meal delivery on one platform. Already established businesses can also opt for this approach and expand their services. 

Market Expansion and Strategies

• Geographic Expansion: The rising trend of online food ordering in suburban and Tier 2/3 cities presents numerous opportunities for aspiring foodpreneurs. Thus, by launching an online food ordering and delivery platform that operates specifically in high-demand, low-availability areas, entrepreneurs can gain a competitive edge in the industry. 
• Exclusive Restaurant Partnerships: To stand out in this competitive industry, one of the most effective ways is to partner with exclusive restaurants and offer national and international cuisines to the customers. Moreover, partnerships with high-end restaurants lead to high-quality service, premium menu offerings, and boost brand loyalty.

Challenges in the Online Food Delivery Industry and Solutions to Address Them

With the rising growth, the online food delivery industry presents many challenges. For entrepreneurs, it becomes necessary to identify these challenges. Thus, some of the major challenges are given below, along with the ways to tackle them.

• Difficulty in Acquiring and Retaining Customers

Attracting new customers and retaining the already existing ones is the biggest challenge. With the large number of players present in the industry, gaining customer loyalty is an uphill battle. 

• Volatile Market Prices

Market price is based on various factors such as price of key ingredients, logistics and delivery cost, and more, which leads to price volatility. Moreover, these fluctuating prices directly impact the profit margins, making it difficult for businesses to provide a stable price to their customers. 

• Meeting Evolving Consumer Expectations

With the passing time, customers are becoming more demanding in terms of variety, speed, and quality of online food delivery. With the large number of options present in the market, it becomes a necessity for businesses to meet the evolving customer expectations.

• Managing On-Time Deliveries

One of the biggest pain points of the online food industry is timely delivery. Late deliveries often affect the customer retention rate and can impact your business negatively. 

To learn more about such software solutions, check out our blog post: Top White-Label Food Delivery App Software List.

• Identifying The Most Suitable Marketing Strategy

With so many big players present in the industry, it becomes difficult to stand out. Thus, the major challenge is to develop a suitable marketing strategy to effectively reach the target customer base. 

All-in-one Food Delivery Software Solution to Launch Your Own Food Delivery Marketplace/App

Yo!Yumm is a robust and feature-rich food delivery software. It helps foodpreneurs launch their food delivery marketplace with ease. Built by a team of experts, this readymade food delivery software supports diverse business models and niches. 

By leveraging the cutting-edge capabilities of Yo!Yumm, entrepreneurs and established businesses can enter the market quickly. Though it is equipped with all the latest features and functionality, it provides customization to fulfill any specific requirement. Furthermore, it comes with user-friendly mobile apps for customers, delivery partners, and restaurants. 

Key Advantages of Yo!Yumm

With its advanced set of features and functionality, Yo!Yumm stands out in the industry. It provides a robust set of tools that streamline the operations on the platform. In addition to this, Yo!Yumm provides many advantages. Let’s have a look at some of them:

• 12 months of free tech support
• Free personalized demo
• Available at a one-time payment
• Support several niches
• Integrated with 12+ APIs
• User-specific readymade mobile apps 
• Lifetime ownership
• Equipped with Industry-specific features

Conclusion

The online food delivery industry is transforming. With evolving consumer expectations, businesses are adapting to trends like quick commerce, cloud kitchens, AI personalization, and more. This growing industry also presents several challenges. However, aspiring foodpreneurs need to invest in the right technology to enhance customer experience and increase operational efficiency to achieve success in this competitive market. With platforms like Yo!Yumm, emerging foodpreneurs have the perfect opportunity to enter this thriving industry.

FAQs

Q 1. Is it the right time to enter the online food delivery industry?

Ans. Yes, with the growing number of online food delivery services, it presents the right time to enter this proliferating industry. The market value of the industry is projected to reach $2.02 trillion by 2030, with an annual growth rate of (2025-2030) 7.63%. Thus, this globally expanding industry offers opportunities for both niche players and large platforms. 

Q 2. How do Food Delivery industry giants like Uber Eats and DoorDash make money?

Ans. Food delivery industry giants like UberEats and DoorDash operate on a multi-faceted approach to generate revenue, including commission, subscription plans, advertisements, and more. Let’s explore some of them:

• Commission: The primary source of revenue generation for giants like UberEats and DoorDash is commission, charged from listed restaurants in exchange for each order placed using the platform.

• Subscription Plans: Various subscription plans are offered by these platforms that provide benefits to customers, such as free and fast delivery, access to exclusive coupons, and more. 

• In-app Promotions: Restaurants pay a fee to platforms such as UberEats and DoorDash in order to advertise their food items and restaurants on the platform. 

• Delivery Charges: Food delivery apps charge a certain amount as a delivery fee, depending on the distance, urgency, or demand. 

Q 3. Which regions show the most potential for food delivery business growth?

Ans. Regions such as Southeast Asia, Latin America, and the Middle East are experiencing rapid growth in the food delivery industry. Factors such as rapid urbanization, the rise of cloud kitchens, the internet, and smartphone penetration, and more are driving the growth of the online food delivery industry in these regions. Thus, along with developed countries, developing countries also show a massive growth potential. 

Q 4. What business models are most popular in the food delivery industry?

Ans. The online food delivery industry operates on various business models, including order-only, order and delivery, a fully integrated business model, and more. However, most platforms opt for an order-only or order and delivery business model in the initial stages and shift to a fully integrated business model with business expansion. 

Furthermore, it is suggested to choose a solution like Yo!Yumm, which can support several business models and help expand your business over time. 

Q 5. How can businesses quickly launch their own food delivery platform?

Ans. Launching a food delivery platform in today’s time is much faster and cost-effective if you know about the right ready-made solutions. Businesses can opt for a food delivery software like Yo!Yumm. It comes with pre-built features such as restaurant listings, order management, secure payments, delivery tracking, and more, which help entrepreneurs quickly launch a feature-rich food delivery marketplace. 

Q 6. Is launching an online food delivery platform a profitable venture?

Ans. Yes, launching an online food delivery platform is a profitable venture, especially now when the demand for online food ordering is growing at an unprecedented rate. The rising number of online food deliveries, combined with multiple revenue streams, presents numerous opportunities for aspiring entrepreneurs seeking to enter this thriving industry.