UNVEILING THE LATEST TRENDS & FORECASTS FOR THIRD-PARTY DELIVERY APPS
December 19, 2023
In a world where convenience meets cuisine, third-party delivery apps have revolutionized the way we experience our favorite meals. Whether it’s the lightning-fast deliveries of DoorDash, the extensive restaurant options on Grubhub, or the seamless integration of Uber Eats into our daily lives, these services have become synonymous with the modern dining experience. As we step into 2024, we’ll examine the ever-evolving landscape of food delivery, uncover the trends that shaped 2023, and explore the future of these platforms.
Driving Forces: A Breakdown of Leading Platforms
Commonalities among the leading third-party apps include ordering and delivery processes, a delivery commission fee of roughly 15-30%, robust promotions and loyalty programs, and real-time tracking, allowing customers to monitor their delivery drivers’ progress. Still, the competition among third-party delivery services is intense, with each platform vying for a larger share of the market and one platform standing out amongst the rest.
- With a market share of 66 percent, DoorDash and its subsidiary Caviar dominated the online food delivery market in the U.S. in 2023.1 Known in the industry as a major player in the delivery game recognized for its speedy delivery time, DoorDash operates in most major cities and partners with many of the largest chain restaurants in the industry, along with small businesses.
- Uber Eats ranks in second place holding 23 percent of sales as of November 2023 data.2 The platform benefits from its vast Uber network, which also includes Uber users who subscribe to the popular ridesharing service.
- Coming in third, at 8 percent of consumer spending3, but steadily growing is Grubhub, known for its collaborations with an extensive array of restaurants, presenting customers with a wide selection of cuisines and dining choices.
No matter the platform, partnering with these delivery apps provides restaurants a gateway to a broader customer base, extending beyond physical locations and enhancing exposure and brand recognition
Top Trending Deliveries Of 2023
Diverse food orders characterized 2023, with each platform showcasing unique trends:
Source: Getty Images
According to DoorDash’s list of most ordered foods:4
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- Top five: Fries, Chicken Quesadilla, Mozzarella Sticks, Garlic Naan, and Spicy Chicken Sandwich
- On the days after holidays like St. Patrick’s Day, Halloween, and New Year’s Eve, DoorDash said it saw orders spike for ibuprofen
- The most unexpected DoubleDash pairings included hot sauce and cinnamon twists, hashbrowns and soda, and fries and chili
- Vodka, seltzer, and tequila were the top three ordered alcohols
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Source: Getty Images
From the 2023 Uber Eats Cravings Report:6
- As more and more people head back to the office, Uber Eats saw “no onions” as the number one request on orders
- The most unexpected food combos included Steak + jelly, cottage cheese + mustard, condensed milk + avocado, and seaweed + pasta sauce
- The top dessert ordered was apple pie and Uber Eats delivered nearly two million apple pie orders nationwide
- During Dry January 2023, non-alcoholic beverages experienced 75% growth compared to the year prior
Source: Getty Images
Grubhub’s 2023 Delivered Trend Report reveals:7
- Heat took the hot seat with over 53 million items ordered with added spice
- Late night coffee cravings scored big with over 10 million coffee beverages ordered after 5 p.m.
- Over 600,000 customers ordered their salad paired with french fries in 2023
- Pickles had the largest increase since last year with an 89% increase, totaling over 6.9 million pickles ordered in 2023
What Does the Future Hold
Consumer use of online delivery services has grown substantially since 2020 and revenue is expected to exceed 85 billion U.S. dollars by 2024.8 Furthermore, according to Statista data, the Online Food Delivery market in the United States is projected to grow by 13.21% (2023-2028) resulting in a market volume of US$534.60bn in 2028. Routific forecasts even higher growth noting that revenue for online food delivery platforms is expected to grow at nearly 13% per year from 2023 to 2027, with a projected market volume of US$1.65 trillion by 2027.9
As the industry experiences exponential growth, third-party delivery services must adopt strategies for sustained success:
- Forming partnerships with the nation’s top chain restaurants, convenience store chains, and even meal kit subscription services such as Blue Apron
- Implementing AI can help with personalization of orders and optimizing delivery routes, reducing wait time, and improving customer satisfaction
- Expand the range of restaurants and cuisines available on the platforms to cater to diverse customer preferences
- Partner with local businesses, including grocery stores and specialty shops, to offer a wider array of products.
- Offer responsive customer support through various channels, including chat, phone, and email to keep customers informed about order status and any potential delays.
In Summary
Third-party delivery apps have completely transformed our traditional approach to mealtimes. Looking ahead in this rapidly evolving landscape, the competition will be intense, and only those who adapt and innovate will secure a substantial share of the flourishing market. For more industry insights, trend reports, and digital strategy development, connect with our team today.
