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US Online Food Delivery Market
US Online Food Delivery Market
Dublin, July 30, 2024 (GLOBE NEWSWIRE) — The “US Online Food Delivery Market Forecast Report: By Business Model (Platform to Customer Delivery, Restaurant to Customer Delivery), By Platform Type (Website, App), By Payment Method (Cash on Delivery, Online), By City, Company Analysis 2024-2032” report has been added to ResearchAndMarkets.com.
The U.S. online food delivery market is expected to grow at a CAGR of 9.93% between 2024 and 2032, reaching USD 66.54 billion by 2032 from USD 28.37 billion in 2023.
The market is witnessing robust growth due to rising internet and smartphone penetration and customer preference for quick and prompt services.
With an effective ordering software in place, restaurants can sell directly to customers without the need for a third-party gateway. In this method, customers can place orders directly through the restaurant’s website. To meet different customer preferences, these apps and websites also include various filtering and payment choices such as cash on delivery, net banking, prepaid cards, etc. The outlook for the online food delivery market in the US is being influenced by the emergence of many delivery services such as Grubhub, Uber Eats, etc., in collaboration with restaurants to deliver meals to customers.
The National Restaurant Association argues that the Far West, which includes California (83,501 restaurants) and Washington state (16,379 restaurants), has a high concentration of restaurants, which drives online food delivery. In 2022, Uber Eats partnered with 825,000 restaurants to bolster its online delivery service in the U.S., according to company documents.
The drivers of online food delivery in the US
Technological advances
Technology is driving the CAGR of the online food delivery business in the United States. The rise in mobile phones and high-speed internet connections has significantly changed the food delivery landscape. This, along with the ease of ordering food via smartphone apps, has also greatly increased the popularity of the market.
Moreover, user-friendly interfaces, customized recommendations, and efficient tracking systems improve the overall customer experience, suggesting a bright future for the industry’s growth. In addition to that, the adoption of Global Positioning System (GPS) technology, which allows for real-time tracking of delivery progress and fosters openness and trust in the process, is driving the industry’s growth. Today’s tech-savvy consumers can easily incorporate online food delivery services into their daily schedules, thus facilitating the expansion of the market.
Acquisitions and Strategic Alliances
The story continues
The rise of the online food delivery sector in the United States is largely driven by an increased focus on strategic alliances and acquisitions. Leading companies are partnering with grocery stores, restaurant chains, and other food service providers to expand their market share and enhance their service offerings. Through these partnerships, food delivery services can offer a wider range of food choices to a more diverse user base. Grubhub and Homewood Suites by Hilton partnered in June 2023 to provide visitors with dining options at nearly 500 locations across the United States. Tourists can quickly order from nearby restaurants using location information and quick response (QR) codes in the Grubhub app and enrich their dining experience with a variety of options.
Additionally, market leaders may acquire smaller delivery services or technology companies to strengthen their position, increase productivity, and seamlessly integrate new technologies. Additionally, partnering with major supermarket chains to introduce grocery delivery services benefits consumers and creates new revenue streams. These tactical choices support innovation and productivity, expanding the overall market and strengthening the competitive advantage of major players.
Marketing and promotional campaigns
Aggressive marketing and promotional strategies are a key driver of the online food delivery industry. As outlined in the US online food delivery market forecast, companies are investing heavily in advertising across various platforms, including social media, television, and online channels, to increase brand awareness and attract new customers. Promotional deals such as discounts, free delivery, and loyalty programs are essential to retain existing customers and encourage frequent service usage.
For example, in June 2023, Grubhub and Amazon extended the free Grubhub+ promotion for U.S. Prime members for another year, offering free shipping and exclusive discounts on restaurant orders. This collaboration increased the value of Prime by offering members deep discounts and unique dining experiences through Grubhub’s platform.
Additionally, collaborating with well-known events and influencers during certain times of the year increases brand awareness and human interaction. These marketing strategies are particularly effective when converting traditional dine-in customers into online delivery customers. By using creative marketing techniques, delivery platforms can continually connect with their audience, gaining a competitive advantage, driving user acquisition, and continuing to grow their market.
Florida’s Online Food Delivery Market
As a result of broader trends of convenience and digital commerce, the online food delivery industry now has a large place in Florida’s food and beverage industry. Big cities like Miami, Orlando, and Tampa are home to a variety of dining establishments that engage in delivery services like Grubhub, DoorDash, and Uber Eats. Locals and guests alike can use these services to browse menus, place orders, and have meals delivered right to their home, workplace, or hotel. Factors such as Florida’s vibrant metropolitan lifestyle, diverse culinary scene, and high tourist numbers all contribute to the market’s growth.
Local eateries gain more exposure and access to larger customers, while customers have access to a variety of dining options, from gourmet to home-cooked meals, and frequently receive special offers and discounts. Thanks to developments that are becoming the norm, such as contactless delivery and real-time tracking, online meal delivery businesses in Florida are constantly innovating to accommodate changing customer preferences and boost the state’s hospitality sector.
US Online Food Delivery Company News
May 2024 – Uber Eats and Instacart partner up to provide food delivery services in the U.S. Through the Instacart app, customers can order from hundreds of thousands of restaurants.
November 2023 – DoorDash has expanded its alcohol delivery services to New Jersey, capitalizing on growing demand for easy delivery of alcoholic beverages. The move reflects a changing e-commerce landscape in the alcoholic beverage market, which coincides with the trend for top aggregators to offer customers a greater selection of beer, wine and spirits.
October 2023 – Pizza Hut, LLC extended hours at thousands of stores, staying open until midnight or beyond, to satisfy consumers’ late-night cravings. Pizza Hut leveraged partnerships and technology to ensure accessibility and quality remained intact for late-night deliveries.
Key attributes:
Report Attributes
detail
number of pages
180
Forecast Period
2023 – 2032
Estimated market value in 2023 (USD)
$28.37 billion
Market value forecast to 2032 (USD)
$66.54 billion
Compound Annual Growth Rate
9.9%
Target area
America
Key Players Analysis: Business Overview, Recent Developments, Sales Analysis
Grubhub
DoorDash
Uber Eats
Postmates
Domino’s Pizza Inc.
Kroger Co.
Blue Apron Holdings
Hello Fresh
Business Model – Market Analysis from Two Perspectives:
Platform Type – Market Breakdown from Two Perspectives:
Payment methods – market analysis from two perspectives:
Pain types – market breakdown from two perspectives:
Cities – Market Breakdown 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
For more information on this report, please visit: https://www.researchandmarkets.com/r/l3wdxz
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