With the growing number of food delivery apps, online food ordering, and meal delivery services, the food delivery industry has been evolving at a continuous pace. The market has seen phenomenal growth in the last few years and is projected to reach USD 1.79 trillion by 2028, expanding at a CAGR of 11.47%.
This growth is driven by increasing convenience, revenue growth, expanded choices for customers, operational efficiency, and other diverse advantages. 3PL (Third Party Logistics) platforms, in particular, are playing a critical role in optimizing the food delivery ecosystem with a long line of benefits, such as delivery optimization, cost savings, greater transparency, and much more. Let uEngage take you to The Ultimate Guide to Food Delivery Apps in 2024.
Food Delivery Consumer Trends and Preferences
Consumers today are constantly in search of convenience in most aspects of their lives, and the convenience of online food delivery tops the list. With the enormous potential of the delivery market, numerous food delivery apps have emerged, each with its own USP. Restaurant owners who understand the evolving preferences of customers are willing to take full advantage of this fast-growing sector.
Statistics have shown that more than 50% of customers may abandon an online food order if the checkout process is too time-consuming or cumbersome. At the same time, contactless delivery options have become much more popular as a huge percentage of diners now prefer this option. Promotional offers and discounts further attract customers to download food delivery apps and order their meals online.
Customers now prioritize checking out reviews and ratings when placing an order from food delivery apps. More than 75% of customers look through multiple restaurant reviews before choosing where to order from. Customers mostly rely on these user-generated reviews and ratings to lead how they order.
According to recent data, customer engagement is on the rise with food delivery apps that offer a vast range of healthy and customizable options. As a result, multiple restaurants started offering niche menu specialization through online deliveries. These niche players witnessed higher user retention rates by offering an exceptional level of personalization for each order they received.
Top 10 Food Delivery Apps
Have a detailed overview of the Top 10 Food Delivery Apps that have rooted a niche in the market:
Zomato is one of the leading food discovery and delivery platforms that simplifies the food ordering experience for people. It operates on a commission-based model and involves a basic commission of 25-33% per order, with 1.84% payment gateway charges and 5% GST. Zomato offers a wide reach to restaurants by connecting them with a vast customer base. Furthermore, a user-friendly interface for finding restaurants, detailed menus and rich images, easy ordering and checkout process, and order tracking are some of the key features of Zomato.
Based in Bangalore, Swiggy is another popular food ordering and delivery platform in India. Swiggy has tie-ups with more than 1,00,000 restaurants in over 500 Indian cities, including metropolitan cities like Delhi, Mumbai, Hyderabad, Bengaluru, Chennai, and many more. Swiggy charges 15-25% commission from restaurants on the total order value, with GST added on top of the menu price. The customer-driven approach and excellent unit economics of Swiggy position it for continued leadership in 2024 and beyond.
UberEats is a global food delivery service that operates in more than 45 countries. It enables users to have convenient on-demand food delivery, with a strong network of Uber drivers for efficient pickup and drop-off. Some of the key features of UberEats include real-time order tracking, round-the-clock support, exclusive offers, a diverse selection of restaurants, a feedback rating system, etc. UberEats does not have any subscription plans, unlike platforms like DoorDash and GrubHub which impose monthly fees on top of commissions.
DoorDash is next among the list of the Top 10 Food Delivery Apps that have expanded swiftly to take a reputable position in the food delivery sector. The popularity of DoorDash can be attributed to its unique features and user-friendly interface, along with unlimited free deliveries offered by its "DashPass" subscription.
Founded in 2011, Postmates offers a straightforward business model that allows customers to order almost anything from any restaurant that delivers around the city. It charges merchants a commission on each order, ranging from 18-30%. However, unlike some competitors, PostMates does not charge commissions to restaurants for orders that are rejected or canceled.
Also check: The ultimate guide for delivery management software.
GrubHub is another market leader in online food ordering and delivery with an extensive network of restaurant partners and around 32 million active users. Its primary focus lies in providing eateries with more flexible delivery options. GrubHub charges a commission of 5% to 20% to restaurants on pickup orders and deliveries, along with marketing services costing $40 per month.
Deliveroo is next on the list of Top 10 Food Delivery Apps that deserves strong consideration for its flexible pricing models, wide availability, and rich selection of unique features. It offers vast suburban and metro coverage that allows businesses to reach a large pool of customers. The commission structure of Deliveroo ranges from 10-35%, based on average order values, peak time surges, and certain other factors.
Faasos offers a cost-effective and seamlessly integrated solution to restaurants for strengthening their takeout and delivery operations. It optimizes the whole online ordering process with exceptional features, such as easy menu uploads, real-time synchronization of menus and prices, direct integration with the POS system, order tracking, marketing integration for targeted SMS and Email campaigns, detailed analytics on top-selling items, and much more.
Positioned as a prominent food delivery service, FreshMenu has been continuously leveraging technology and innovation to offer high-quality, freshly prepared meals. Its intuitive interface, wide selection of restaurants, and prompt delivery service considerably benefit customers who are bound with time. The app aims to further separate itself by leveraging its core strengths, including a mobile fleet, a diverse range of products, and market data insights for businesses.
10. Domino’s Pizza
With more than 19,000 pizza outlets, Domino’s owns one of the biggest pizza chains worldwide. It is known for its promise of 30-minute delivery. A clear menu layout, eye-catching visuals, and plenty of customization choices promote higher-order values. Moreover, features like order tracking and convenient payment options are other aspects that improve user satisfaction and encourage repeat business.
3PL Apps Making an Impact
Restaurant supply chain processes are being redefined by third-party logistics apps, which offer on-demand delivery services and logistics solutions. Emerging players in the 3PL (Third Party) space are making a strong impact by enabling faster deliveries for restaurants. While traditional food delivery apps only connect restaurants with customers, 3PL apps streamline the complete delivery process and go beyond. Popular 3PL apps that are making a robust impact include:
Flash is the Best Delivery Management and Order Tracking Platform that helps businesses of all sizes resolve all their delivery problems. Its on-demand rider network has been created to complement the perks food delivery apps provide to businesses as well as end customers. Flash offers robust technologies to restaurants to manage different arenas of food deliveries. Its strength lies in enabling restaurants to assign verified riders for one or multi-drop deliveries with real-time order tracking.
Shipsy focuses on empowering restaurants with advanced logistics solutions. This user-friendly platform enables operational efficiency and offers complete visibility into first, middle, and last-mile operations. It offers end-to-end visibility using digital control towers and in-app tracking so businesses can send live tracking links and real-time notifications to customers.
Leveraging AI, ML, and Chatbots to Optimise Operations and Costs
Food Delivery Apps can witness tremendous growth by leveraging modern technologies like AI, ML, and Chatbots. While AI-powered route optimization algorithms can reduce delivery times and save fuel costs, Machine Learning (MI) can offer tailored promotions and recommendations to boost user engagement.
Furthermore, chatbots integrated within apps enable the accurate handling of common customer service queries related to delivery estimates, order status, cancellation requests, and more. By successfully leveraging these technologies, food delivery apps can generate higher revenues while reducing costs and optimising operations.