Food Delivery Services in the US - Industry Market Research Report

Food delivery services have benefited from the Internet boom and technological advancements in mobile software. The user-friendly interface of the mobile application has enabled food delivery service companies to draw new customers to try food delivery services. The industry especially enjoyed a substantial surge in demand during COVID-19 as people complied with the social distancing order. By offering no-contact delivery, customers can enjoy the food from their homes. Overall, industry revenue is expected to increase 29.5% to $13.9 billion over the five years to 2024, including 3.0% growth in 2024 alone. However, the workforce expansion during COVID-19 has also boosted industry wages significantly, cutting industry profit. In 2024, industry profit is expected to reach 1.6% of industry revenue.

Trends and Insights

• Food delivery service has expanded strongly over the past five years.
• Industry services benefited from the increasing number of internet users and mobile device owners. Despite food delivery service companies offering both delivery and pickup services, customers will choose one or another when placing an order.
• Therefore, demand for these services moves in the opposite direction. The industry is highly competitive as food delivery service companies offer almost identical core services.
• As a result, industry competition is mainly based on price and customer service.

Industry Overview

Industry revenue has grown at a CAGR of 29.5 % over the past five years, to reach an estimated $13.9bn in 2024.

Trends and Insights

Food delivery services on the rise Companies in the Food Delivery Services industry offer local food delivery services and act as middlemen between end customers and restaurants.

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

• The industry will face potential challenges
• Industry demand is anticipated to be somewhat pressured by an increase in the healthy eating index. As consumers have become increasingly aware of issues related to weight, nutrition, and food safety, they will eventually reduce the purchase of food away from home, including on food delivery services.