Market Research Reports - Ken Research Online Food Delivery App Download US | Page 3

opted to order through phone for online or takeout food delivery orders in year 2015, clearly
explaining reason for high share of the segment.
Online orders contributed ~% revenue share in mode of food delivery in 2016. The increase in
number of smart phone users over the years has been observed as the major reason for
changing consumer behavior towards online ordering. This has increased food delivery market
revenue generation through online medium. The number of online orders doubled from ~
million in 2010 to ~ million in 2015, showing the trend of offline delivery shifting towards online
delivery.
How are US Online Food Delivery market positioned?
The food delivery business in the country witnessed a rapid change majorly owing to
introduction of new online platforms in the country. The online food delivery industry has been
transforming over the years and the market incorporates two types of business models. The
most common form of delivery method is still the traditional model in which the consumer
places an order with the local restaurant over the phone and waits for the restaurant to bring
food to the customer’s doorstep. This traditional model has occupied maximum share in the
market and most of the orders are still placed on phone. As the digital technology is reshaping
the customers are getting accustomed to placing order through mobile applications or
websites. In terms of revenue, US online food delivery market witnessed positive growth with
revenues increasing from USD ~ billion during 2011 to USD ~ billion during 2016 at a CAGR of
~% during 2011-2016. Online food delivery players allow consumers to compare offerings and
order meals from a group of restaurants through a single website or app. Availability of multiple
cuisines and various restaurants on a single platform for a minimal delivery charge attracted
customers towards online food delivery.
Which Factors are expected to Drive Future Growth of the US Food Delivery Market?
Online Grocery market will grow at a tremendous rate in coming future. The market will
increase at a CAGR of ~% during 2016-2021 to reach at USD ~ million in 2021 owing to changing
consumer trends of choosing food delivery over dining. The innovative technology such as
drone delivery announced by Amazon shall attract more customers to the food delivery market
due to the factors such as time-saving and convenience. More technological advancements like
this are expected to be introduced in the market during the forecast period, hence driving the
market. The food delivery services are expected to penetrate further in more cities and reach
more consumer base leading to a positive impact on this industry.
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