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I am Planning to Start Food Delivery App, Is it Profitable in 2020?

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Perhaps the most important question that comes to the mind of every business owner or an entrepreneur who is planning to start a new business in the food industry is ‘I am Planning To Start Food Delivery App, Is it Profitable in 2020?’ Therefore, to begin with, let’s have a look at some important stats and predictions by Statista for 2019 and beyond. 

The online food delivery market generated a revenue of $94.385 billion in 2019. Further, it is estimated to grow to a market volume of $134.49 billion by 2023 at a CAGR of 9.3%. These stats answer the question about how profitable the food delivery market will be in 2020 and the following years. So, we would further gain a deeper insight into what is causing this market to boom. What you as a food delivery app owner or a food business owner can do to boost your revenue?

What are the food delivery app usage statistics?

The restaurant-to-consumer delivery segment has a larger market share with $58 billion in the year 2019. As per research, restaurants receive about 70% of digital orders through mobile apps and the remaining 30% through third-party apps. This is largely due to the loyalty programs, rewards, and discounts given by restaurants to their customers. On the other hand, leading food delivery apps such as GrubHub, UberEats and Doordash constitute 40% of the 20 most-used mobile apps. 

The growth of the food delivery apps segment can be credited to the busy lives of the population. The adults in today’s world prefer ordering out instead of cooking to save time left after their work. Moreover, restaurants want to grab market opportunities and are diving into the online food delivery market.

Further, Millenials spend the most on food delivery as compared to other generations. They have higher spending power and therefore prefer an effortless food ordering experience with quick delivery. Therefore, food businesses have been seeking different channels and strategies in satisfying the largest segment of their customers.

What are the online food delivery upcoming trends?

With the constant challenges and competition in the online food delivery market, it is essential for the food businesses to provide their users with a unique and different experience to sustain. Stats reveal that 55% of adults in the US seek an easy food ordering system. Moreover, 63% of the people in the US leave the platforms for takeout orders pertaining to a poor experience. Therefore, businesses are closely knitting their operations with emerging technology to offer differentiated yet simplified food ordering experiences to their customers. They are leveraging driverless cars, social media, drones, virtual assistants, smart devices, etc.

If you as a food business owner want to accelerate your sales and revenue, you can consider experimenting with the upcoming trends in food delivery.

#1 Driverless Cars & Drones Delivery

Artificial Intelligence as one of the emerging technologies. It is making a huge contribution to the online food delivery segment through self-driving delivery cars. These smart robots and driverless cars are intriguing to the customers as well as making food ordering a fun experience. For instance, Eat24 has partnered with Yelp and Marble, a tech-startup. Further, it is using autonomous delivery robots to deliver food to its customers. The robots are designed to avoid bumping into people and other objects on the footpath. They utilize cameras, high-resolution 3D maps, and Lidar sensors to reach their destination. 

Similarly, in the UK, Just Eat and Starship Technologies has collaborated to develop 6-wheeled droids that can cover up to 4 miles an hour and deliver takeaways within a 10-mile radius. The other ingenious food delivery trend is through drones to avoid traffic and reduce delivery time. Drones such as Domicopter by Domino’s, Tacocopter, and Burrito Bomber are all examples of food delivery through drones.

#2 Social Media & Virtual Assistants

Industry giants such as Dominos have taken to Twitter and chatbots to enable its customers to order pizza in a fun and creative way. For instance, Dominos lets it’s customers order pizzas through a pizza emoji tweeted on Domino’s Twitter account. Similarly, the company also created a bot known as Dom for Facebook. The customers can order pizza by sending a word or an emoji as a message to Dom. They can also ask about vouchers and deals. GrubHub and Just Eat have also integrated with Alexa to enable customers to order food with ease.

#3 Smart Devices

The smartwatch trend has been rising, and people prefer taking calls, checking messages, or even accessing different apps through their smartwatch instead of pulling their smartphones out of their pockets every time. Seeing an opportunity, many food delivery apps have found their place on Android and Apple smartwatches. They are allowing customers to order food and track food delivery in just a few taps on their watch.

Restaurant chains and food businesses are also leveraging smart TVs and Cars to enable customers to order food. Papa John’s makes pizza ordering through Apple TV as easy as streaming a movie. Similarly, Pizza Hut in partnership with Accenture and Visa developed an in-car system to order pizzas and pay through the pizza checkout, just by speaking into the system.

#4 Apps Tapping into New Niches

As a startup, it is advised to find a unique niche to avoid stiff competition. Also, offer a different experience to customers that may fulfill what they have been looking for. Businesses are thinking out-of-the-box to enter into new niches such as offering organic or vegan meals, health-focused smoothies and meals, etc. The upcoming trend in food delivery-related apps is pet food apps, food waste apps, etc. 

#5 AR/VR

Augmented Reality and Virtual Reality aid food delivery business in marketing, increasing brand visibility and even providing virtual training to their staff. Businesses can use AR to advertise their food offerings in a creative way. For instance, Just Eat used Facebook Messenger to promote its new food items wherein, the customers could view the food items floating into their mouths using the camera. Further, providing virtual training to employees proves to be more cost-efficient and provides a better learning curve.


Although statistics and future predictions about the online food delivery industry prove to be profitable, however, whether your business will succeed or be able to leverage the lucrative market totally depends on your strategies and the niche you enter. Utilizing the advanced technologies and finding new niches to provide an exceptional experience to your customers is the key to sustaining the fierce competition in the market. Hopefully, this should have answered your question ‘I am Planning To Start Food Delivery App, Is it Profitable in 2020’, and gets you started on your own journey of implementing that ingenious idea you have in mind.

Last modified: 9 Jul 2020