Online On-Demand Food Delivery Services Market
By Business Model;
Order-Focused Food and Logistics-Focused FoodBy Type;
Restaurant-To-Consumer and Platform-To-ConsumerBy Platform;
Mobile and WebBy End-user;
Family, Office Buildings and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031)Online On-Demand Food Delivery Services Market Overview
Online On-Demand Food Delivery Services Market (USD Million)
Online On-Demand Food Delivery Services Market was valued at USD 81,196.97 million in the year 2024. The size of this market is expected to increase to USD 243,691.78 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 17.0%.
Online On-Demand Food Delivery Services Market
*Market size in USD million
CAGR 17.0 %
Study Period | 2025 - 2031 |
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Base Year | 2024 |
CAGR (%) | 17.0 % |
Market Size (2024) | USD 81,196.97 Million |
Market Size (2031) | USD 243,691.78 Million |
Market Concentration | Low |
Report Pages | 300 |
Major Players
- Alibaba Group Holding Ltd.
- Delivery Hero SE
- Glovoapp23 SL
- Grab Holdings Inc.
- Grubhub Inc.
- Just Eat Takeaway.com NV
- Meituan Dianping
- Postmates Inc.
- Roofoods Ltd.
- Zomato Media Pvt. Ltd.
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
Online On-Demand Food Delivery Services Market
Fragmented - Highly competitive market without dominant players
The Online On-Demand Food Delivery Services Market is rapidly expanding as consumers increasingly embrace digital convenience for their dining needs. Nearly 65% of customers now order meals online weekly, highlighting a strong behavioral shift toward app-based services. Features like easy payments, broad menu options, and faster accessibility are accelerating this trend.
Shift in Consumer Dining Habits
Modern consumers are leaning toward contactless and personalized food delivery, driving consistent market demand. Around 55% of users cite real-time tracking and easy-to-navigate apps as their main reasons for using these platforms. The focus on speed, convenience, and variety has established online delivery as a staple in daily dining.
Technological Advancements Enhancing Experience
Innovative use of AI, automation, and data-driven logistics is optimizing the delivery ecosystem. Nearly 40% of platforms deploy advanced algorithms to streamline delivery routes and minimize waiting times. Enhanced features such as smart recommendations and voice-enabled ordering are transforming customer experiences and boosting long-term engagement.
Growing Collaborations with Food Outlets
More than 70% of restaurants are now collaborating with food delivery platforms to expand customer reach. These partnerships enhance brand visibility, increase sales, and provide consumers with a wide selection of meal options. This collaborative growth model ensures mutual benefits for both restaurants and delivery platforms.
Positive Growth Prospects
The on-demand food delivery market continues to evolve with rising consumer spending on premium services. Over 60% of customers are willing to pay extra for faster delivery times, reflecting strong growth potential. Continuous innovation, seamless digital adoption, and consumer trust are set to keep the market on an upward trajectory.
Online On-Demand Food Delivery Services Market Key Takeaways
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Mainstream adoption is redefining on-demand food delivery, with urban lifestyles and smartphone penetration driving the service into everyday consumer behavior.
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Asia-Pacific drives growth, expanding at over 10% as dense urban centers demand fast and convenient meal delivery solutions.
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Platform-to-consumer models dominate, capturing more than 70% of industry share as platforms remain the central link between restaurants and consumers.
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Digital payments prevail, with nearly 80% of orders processed via online and in-app channels, emphasizing secure and seamless payment integration.
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Profitability pressures intensify, as leading players face margin erosion due to subsidy wars and rising competition despite increasing revenues.
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Innovation focus strengthens, with investment in AI, drone delivery, and centralized kitchens to optimize costs and ensure long-term sustainability.
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Regional boosts in markets like India stem from favorable fiscal policies and festive demand, pushing growth from around 18% toward 20% in upcoming quarters.
Online On-Demand Food Delivery Services Market Recent Developments
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In June 2022, Grab joined forces with Mastercard in Southeast Asia to enhance digital commerce through integrated payment solutions. The collaboration aimed to streamline transactions within Grab’s food delivery services, offering users a seamless and secure checkout experience. This strategic move strengthened Grab’s ecosystem while boosting Mastercard’s presence in the region’s fast-growing digital economy.
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In October 2023, Deliveroo launched a new group ordering feature across Europe, designed to simplify meal coordination for families and corporate gatherings. The feature allows multiple users to add items to a single order, creating convenience and efficiency. This innovation strengthens Deliveroo’s appeal by addressing diverse customer needs in the competitive food delivery market.
Segment Analysis
The Global Online On-Demand Food Delivery Services Market is segmented by business model into Order-focused food delivery and Logistics-focused food delivery. Order-focused platforms, such as Just Eat and Grubhub, act as intermediaries connecting consumers with restaurants but do not handle the logistics of delivery. In contrast, logistics-focused platforms like Uber Eats and DoorDash provide both order placement and delivery services, ensuring convenience for restaurants without their own delivery infrastructure. The logistics-focused model has gained popularity due to its seamless service and extensive delivery networks, allowing smaller restaurants to participate in the market without operational challenges.
By type, the market is divided into Restaurant-to-consumer and Platform-to-consumer delivery. The restaurant-to-consumer model involves direct orders from a restaurant’s own platform or application, such as Domino’s or McDonald’s, offering better brand control and cost efficiencies. The platform-to-consumer model, on the other hand, includes third-party aggregators like Zomato and Deliveroo, which provide a broad customer base and diversified food choices. The increasing preference for platform-to-consumer services stems from their ability to offer multiple cuisines and optimize last-mile delivery with the help of data analytics and AI-driven logistics.
Geographically, the market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. North America and Europe are mature markets with high adoption rates, driven by busy lifestyles, strong digital infrastructure, and established food delivery brands. The Asia-Pacific region is experiencing rapid growth, led by China and India, where rising disposable incomes and smartphone penetration have fueled demand for on-demand food services. Meanwhile, the Middle East & Africa and Latin America are emerging markets with significant potential, supported by increasing urbanization and a growing middle class. However, challenges such as logistics inefficiencies and regulatory hurdles may slow growth in these regions.
Global Online On-Demand Food Delivery Services Segment Analysis
In this report, the Global Online On-Demand Food Delivery Services Market has been segmented by Business Model, Type and Geography.
Global Online On-Demand Food Delivery Services Market, Segmentation by Business Model
The Global Online On-Demand Food Delivery Services Market has been segmented by Business Model into Order-focused food and Logistics-focused food.
This model involves platforms like Uber Eats, DoorDash, and Deliveroo acting as intermediaries between restaurants and consumers. It provides consumers with a wide range of restaurant choices and delivery options. These platforms typically charge restaurants a commission on orders processed through their app or website, making revenue primarily from these fees.
In this model, restaurants manage their own delivery operations using dedicated staff or partnering with third-party delivery logistics providers. Companies like Domino's Pizza and Subway operate under this model, allowing them to maintain control over the entire delivery process from order fulfillment to delivery, ensuring brand consistency and customer satisfaction.
This model integrates both platform-to-consumer and business-to-consumer elements. Platforms like Grubhub and Just Eat work with restaurants that manage their deliveries. This hybrid approach allows restaurants to leverage the platform's customer base and logistics while retaining control over their delivery operations. It offers flexibility to restaurants while benefiting from the platform's marketing and order management capabilities.
Cloud kitchens operate purely on delivery orders without a dine-in option. Companies like Kitchen United and CloudKitchens provide shared kitchen spaces for multiple restaurant brands, allowing them to operate delivery-only kitchens. This model reduces overhead costs associated with traditional dining establishments and caters specifically to the growing demand for convenience and speed in food delivery.
Each business model in the global online on-demand food delivery services market addresses specific market segments and operational needs, reflecting the evolving preferences of consumers and the dynamic nature of the food service industry.
Global Online On-Demand Food Delivery Services Market, Segmentation by Type
The Global Online On-Demand Food Delivery Services Market has been segmented by Type into Restaurant-to-consumer, and Platform-to-consumer.
The Global Online On-Demand Food Delivery Services Market is segmented by type into Restaurant-to-Consumer and Platform-to-Consumer models, each catering to distinct consumer needs and business strategies. The Restaurant-to-Consumer model involves food establishments managing their own delivery services, either through their own fleet or third-party logistics providers. This model enables restaurants to maintain direct customer relationships, control food quality, and set pricing without intermediaries. Popular examples of this segment include major fast-food chains and restaurant franchises that operate their own online ordering and delivery systems.
On the other hand, the Platform-to-Consumer model involves third-party food delivery platforms that connect restaurants with consumers while handling the logistics of food delivery. These platforms provide customers with access to a diverse range of restaurant options, from small local eateries to large restaurant chains, without the need for each establishment to manage its own delivery operations. Companies such as Uber Eats, DoorDash, and Deliveroo dominate this segment, offering convenience for both consumers and restaurants while generating revenue through commission-based structures and service fees.
Both segments contribute significantly to the growth of the online food delivery market by addressing varying consumer preferences and business capabilities. The Restaurant-to-Consumer model allows well-established restaurant brands to maintain their branding and customer loyalty, whereas the Platform-to-Consumer model enables smaller businesses to reach a wider audience without the complexities of managing a delivery system. As digitalization and consumer demand for convenience continue to rise, both segments are expected to expand, driven by technological advancements, evolving customer expectations, and competitive market dynamics.
Global Online On-Demand Food Delivery Services Market, Segmentation by Geography
In this report, the Global Online On-Demand Food Delivery Services Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Online On-Demand Food Delivery Services Market Share (%), by Geographical Region, 2024
The global online on-demand food delivery services market is experiencing robust growth across various geographical regions, driven by increasing consumer demand for convenience and a wide variety of food options available at their fingertips. North America, as a mature market, continues to lead with substantial adoption of these services in major urban centers. The region benefits from high internet penetration, busy lifestyles, and a strong culture of dining out or ordering in.
In Europe, the market is also expanding rapidly, supported by densely populated urban areas and a growing preference for restaurant-quality meals delivered to homes and offices. Countries like the UK, Germany, and France are key markets, with platforms offering diverse cuisines and efficient delivery logistics.
Asia Pacific represents a dynamic region for online food delivery, fueled by rapid urbanization, increasing disposable incomes, and widespread smartphone usage. Countries such as India, China, and Southeast Asian nations are witnessing significant growth, driven by the convenience-seeking millennial population and technological advancements in logistics and mobile payment systems.
Latin America and the Middle East & Africa are emerging as promising markets with rising internet connectivity and urbanization rates. In these regions, platforms are tapping into the burgeoning middle-class demographic eager for convenient dining solutions. Despite challenges such as infrastructure and regulatory frameworks, the potential for growth in these regions remains high, driven by expanding urban populations and changing consumer lifestyles.
The global online on-demand food delivery services market is poised for continued expansion across diverse geographical regions, driven by technological innovation, changing consumer preferences, and a competitive landscape among platform providers.
Online On-Demand Food Delivery Services Market Forces
This report provides an in depth analysis of various factors that impact the dynamics of Online On-Demand Food Delivery Services Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.
Comprehensive Market Impact Matrix
This matrix outlines how core market forces Drivers, Restraints and Opportunities affect key business dimensions including Growth, Competition, Customer Behavior, Regulation and Innovation.
Market Forces ↓ / Impact Areas → | Market Growth Rate | Competitive Landscape | Customer Behavior | Regulatory Influence | Innovation Potential |
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Drivers | High impact (e.g., tech adoption, rising demand) | Encourages new entrants and fosters expansion | Increases usage and enhances demand elasticity | Often aligns with progressive policy trends | Fuels R&D initiatives and product development |
Restraints | Slows growth (e.g., high costs, supply chain issues) | Raises entry barriers and may drive market consolidation | Deters consumption due to friction or low awareness | Introduces compliance hurdles and regulatory risks | Limits innovation appetite and risk tolerance |
Opportunities | Unlocks new segments or untapped geographies | Creates white space for innovation and M&A | Opens new use cases and shifts consumer preferences | Policy shifts may offer strategic advantages | Sparks disruptive innovation and strategic alliances |
Drivers, Restraints and Opportunity Analysis
Drivers:
- Convenience
- Variety of Choices
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Time Efficiency - Time efficiency is the ability to accomplish tasks in the shortest time possible while maintaining quality. Various factors, known as drivers, influence time efficiency in different settings, such as workplaces, supply chains, and production lines. One key driver is process optimization, where workflows are streamlined to eliminate bottlenecks and redundant steps. Automation and digital tools, such as project management software or AI-driven analytics, help speed up repetitive tasks, ensuring that work is completed faster with fewer errors.
Another critical driver is resource allocation, which involves assigning the right people, tools, and materials to tasks based on priority and urgency. Proper scheduling, workload balancing, and eliminating inefficiencies in human resource management play a vital role in reducing wasted time. For example, in manufacturing, predictive maintenance of machinery ensures that breakdowns do not disrupt production schedules, improving overall time efficiency. Similarly, in corporate environments, clear communication and delegation prevent delays caused by misunderstandings or unclear responsibilities.
Decision-making speed significantly impacts time efficiency. Organizations or individuals who can make informed decisions quickly are less likely to experience delays caused by hesitation or excessive analysis. Access to accurate data, experience-based judgment, and structured decision-making frameworks contribute to faster responses. Moreover, fostering a culture of adaptability allows businesses to adjust to unexpected challenges without unnecessary slowdowns, ultimately improving overall efficiency in time-sensitive environments.
Restraints:
- Delivery Costs
- Quality Concerns
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Market Saturation - The online on-demand food delivery services market has experienced significant growth over the past decade, driven by increasing consumer demand for convenience and digitalization in the food industry. However, in recent years, market saturation has become a prominent challenge.
Initially, the market witnessed a rapid proliferation of platforms offering diverse cuisines delivered to consumers' doorsteps with ease. This expansion was fueled by the rise of smartphone usage, urbanization trends, and changing lifestyles that favored dining at home. As a result, numerous startups and established companies entered the fray, intensifying competition.
Today, market saturation is evident as many regions, particularly urban centers in developed economies, boast a multitude of competing platforms. This saturation has led to price wars, thin profit margins, and heightened customer acquisition costs for service providers. Moreover, consumer loyalty has become harder to secure, with users often switching between platforms based on promotional offers and convenience.
Opportunities:
- Technological Advancements
- Market Expansion
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Catering to Health Conscious Consumers - The online on-demand food delivery services market is increasingly catering to health-conscious consumers, reflecting a growing trend towards nutritious and balanced eating habits. This shift is driven by consumers' heightened awareness of health and wellness, prompting them to seek convenient yet healthy meal options delivered to their doorstep.
Key players in the online food delivery market are responding by expanding their menus to include a variety of health-focused choices. This includes options such as organic, gluten-free, vegan, and low-calorie meals, accommodating diverse dietary preferences and requirements. Additionally, these platforms often provide detailed nutritional information, helping consumers make informed choices about their food selections.
Technology plays a crucial role in enhancing the efficiency and appeal of these services. Advanced mobile apps and websites enable users to easily browse, order, and track their meals in real-time. Integration with fitness apps and wearable devices further promotes healthy eating habits by providing seamless access to nutritional data and personalized recommendations.
Online On-Demand Food Delivery Services Market Competitive Landscape Analysis
Online On-Demand Food Delivery Services Market is increasingly defined by heightened competition, where major players pursue diverse strategies to strengthen market presence. The environment is shaped by rapid growth, continuous innovation, and dynamic consumer expectations. Companies emphasize collaboration and new models to enhance efficiency, foster loyalty, and secure long-term positioning within an evolving ecosystem.
Market Structure and Concentration
The market shows moderate to high concentration, with leading platforms holding significant share, while regional players fuel competitive diversity. Industry leaders rely on merger and partnerships to reinforce dominance. Smaller firms focus on niche strategies and differentiated value propositions. The balance between concentrated power and emerging entrants continues to shape growth trajectories across the sector.
Brand and Channel Strategies
Brands prioritize multi-channel strategies, integrating mobile platforms, direct ordering, and third-party collaboration for wider consumer reach. Strong brand equity is reinforced through targeted marketing, customer loyalty programs, and channel innovation. Companies aim to build seamless experiences that enhance growth potential, ensuring consistent visibility while addressing evolving consumer habits and preferences.
Innovation Drivers and Technological Advancements
Technological advancements serve as the backbone of market innovation, with platforms adopting AI-driven recommendations, automated logistics, and real-time analytics. Companies leverage strategies focused on automation and personalization to boost efficiency and consumer satisfaction. Investment in digital infrastructure, alongside continuous growth in innovation ecosystems, underpins competitive differentiation in this rapidly evolving service landscape.
Regional Momentum and Expansion
Regional expansion is driven by local consumer preferences, regulatory environments, and infrastructure readiness. Leading firms employ strategies that blend partnerships with regional operators to accelerate market penetration. Momentum is reinforced through targeted collaboration and adaptive business models. This regional adaptability ensures continued growth and sustainable presence across diverse economic and cultural landscapes.
Future Outlook
The future of the market is defined by sustained growth, rising digital integration, and deepening collaboration between technology and service providers. Companies will pursue innovation in logistics, payments, and personalization, aligning with consumer-centric strategies. Ongoing expansion across developed and emerging economies will shape competitive intensity and drive long-term transformation of the sector.
Key players in Online On-Demand Food Delivery Services Market include:
- Delivery Hero
- DoorDash
- Just Eat
- Deliveroo
- Uber Eats
- Swiggy
- Zomato
- Delivery.com
- Yelp
- Amazon (food delivery venture)
- Rappi
- Grab
- Yum! Brands
- Foodpanda
- Meituan
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Business Model
- Market Snapshot, By Type
- Market Snapshot, By Platform
- Market Snapshot, By End User
- Market Snapshot, By Region
- Online On-Demand Food Delivery Services Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Convenience
- Variety of Choices
- Time Efficiency
- Restraints
- Delivery Costs
- Quality Concerns
- Market Saturation
- Opportunities
- Technological Advancements
- Market Expansion
- Catering to Health Conscious Consumers
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Online On-Demand Food Delivery Services Market, By Business Model, 2021 - 2031 (USD Million)
- Order-focused food
- Logistics-focused food
- Online On-Demand Food Delivery Services Market, By Type, 2021 - 2031 (USD Million)
- Restaurant-to-consumer
- Platform-to-consumer
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Online On-Demand Food Delivery Services Market, By Platform, 2021 - 2031 (USD Million)
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Mobile
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Web
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Online On-Demand Food Delivery Services Market, By End User, 2021 - 2031 (USD Million)
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Family
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Office Buildings
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Others
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- Online On-Demand Food Delivery Services Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Online On-Demand Food Delivery Services Market, By Business Model, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Delivery Hero
- DoorDash
- Just Eat
- Deliveroo
- Uber Eats
- Swiggy
- Zomato
- Delivery.com
- Yelp
- Amazon (food delivery venture)
- Rappi
- Grab
- Yum! Brands
- Foodpanda
- Meituan
- Company Profiles
- Analyst Views
- Future Outlook of the Market