Online Food Delivery Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

The online food delivery market attained a value of USD 167.62 Billion in 2024. The industry is expected to grow at a CAGR of 13.20% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 579.15 Billion.

The easy access to flexible payment options, such as digital wallets, BNPL, UPI, even crypto to cater to a wide user base is reinforcing the online food delivery market forecast. These diverse payment methods reduce friction in transactions, enhance convenience, and expand the customer base across different economic segments and regions. According to a new study from Juniper Research, the rate of digital wallet adoption across the globe is likely to hit 15.3% rise by 2029. This inclusivity helps platforms expand across regions and customer segments, overcoming barriers to entry.

AI-powered route optimization is reducing delivery times and costs, adding to the uptake of food delivery services. Several platforms are experimenting with drones and autonomous vehicles to offer quick deliveries. For instance, in June 2025, Deliveroo launched a drone delivery service in Blanchardstown, Dublin, powered by Manna, for delivering meals within a 3 km radius in just three minutes. Such moves ensure faster, reliable service, particularly in densely populated regions.

White-label delivery is complementing the online food delivery market analysis by enabling restaurants and businesses to offer delivery services under their own brand without investing in their own logistics infrastructure. In June 2025, Just Eat launched Jet Go, a white-label delivery-as-a-service for Co op and retailers while enabling partner brands to get customer orders via their own channel. This model allows restaurants to focus on food preparation while third-party providers handle delivery, reducing operational costs and complexity.

Key Trends and Recent Developments

June 2025

BigBasket, under Tata Group, disclosed plans of rolling out a 10-minute hot food delivery service in India by March 2026, using its expanding network of 1,000-1,200 dark stores. After a successful Bengaluru pilot, the online platform is challenging Snacc, Bistro, and Zepto Café with in house Tata menus.

May 2025

Meituan announced plans to introduce its international food delivery brand Keeta in Brazil, supported by a planned USD 1 billion investment over five years. The expansion follows launches in Hong Kong and Saudi Arabia, aiming to build a nationwide logistics network, uplift local restaurants, and create meal delivery jobs.

April 2025

Deliveroo introduced Deliveroo Express in the United Kingdom and Ireland as a white-label, on demand delivery service for grocers and retailers. The new service leverages the company’s logistics platform and rider network to offer delivery solutions for grocers and retailers, supporting their expansion efforts.

December 2024

Toast broadened its partnership with Uber, positioning Uber Eats Direct as the chief white-label delivery partner for its Toast Delivery Services. Although DoorDash Drive remains available, Uber Direct is now the default. This move offers restaurants lower fees, broader reach, and access to Uber’s robust logistics network.

AI-Driven Personalization

The rising AI integration in online platforms to analyse order history, location, weather, and personal preferences to tailor meal suggestions, push notifications, and loyalty campaigns is impacting the online food delivery market outlook. In February 2025, Zomato launched Nugget, a no-code, AI-powered customer support platform for autonomously resolving up to 80% of queries and reducing resolution time by 20%. These hyper-personalized experiences increase order frequency, customer loyalty, and average order value.

Subscription/Loyalty Programs

The surge in memberships and loyalty programs is encouraging retention and creating predictable revenue streams in online food deliveries. By offering free delivery, discounted fees, and exclusive deals, these programs incentivize customers to place orders more frequently. In April 2024, Amazon launched an unlimited grocery delivery subscription for Prime members in select cities in the United States. This not only boosts repeat orders but also helps companies secure steady, predictable revenue streams through subscription fees.

Cloud (Ghost) Kitchens

The concept of Ghost kitchens is proliferating in urban centres, subsequently adding to the online food delivery industry value. Many services are launched to enable quick launch of new brands without expensive storefronts. As per IBIS World, there was 7,606 Ghost Kitchens across the United States businesses in 2024, depicting a rise of 0.2% from 2023. This trend is helping to optimize food quality, delivery time, and menu experimentation, helping platforms scale faster and diversify offerings.

Sustainability & Eco-Friendly Practices

The stronger consumer demand towards carbon-neutral deliveries and reduced waste is pushing online food delivery platforms to adopt biodegradable packaging. Brands are optimizing routes and offering reusable containers. Supporting with an instance, in February 2023, Chuk launched backyard-compostable food delivery containers, made from sugarcane bagasse in multiple sizes. These practices appeal to eco-conscious users as well as also enhance brand image.

Integration with Smart Devices

Surging integration with smart devices to streamline ordering is making way for multiple online food delivery market opportunities. While AR menus provide immersive experiences, smart lockers are used for secure, contactless food pickups in offices and residential complexes. Voice-enabled ordering allows users to place or reorder meals hands-free. In August 2023, DoorDash introduced voice ordering for restaurants, allowing AI to answer phone calls and recommend meals. These technologies help to streamline the ordering and delivery process and open new avenues for personalization, operational efficiency, and customer loyalty.

Online Food Delivery Industry Segmentation

The report titled “Online Food Delivery Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Platform Type

• Mobile Applications
• Websites

Key Insight: Mobile applications remain the dominant platform in the online food delivery industry due to their convenience, speed, and user-friendly interfaces. Consumers increasingly prefer ordering food through apps, which offer personalized recommendations, real-time tracking, and easy payment options. The widespread use of smartphones and mobile internet access is driving the growth of app-based orders. In January 2025, Swiggy launched Snacc, a standalone app promising ultra fast snack, meal, and beverage delivery across Bengaluru in just 15 minutes, making this segment the largest contributor to revenue in food delivery.

Market Breakup by Business Model

• Order Focused
• Logistics Based
• Restaurant Specific

Key Insight: Order-focused platforms are propelling the online food delivery market share by connecting customers to a wide range of restaurants without managing the delivery logistics themselves. These platforms focus on aggregating restaurant listings, customer reviews, menus, and online ordering features. In June 2025, India’s two‑wheeler ride‑hailing unicorn Rapido launched its standalone order‑focused platform Ownly in Bengaluru, India. This model allows for rapid expansion and low operational overhead. Zomato, for instance, initially thrived as an order-focused aggregator by helping users discover restaurants while letting eateries manage the final mile, making it the largest market segment in several countries.

Market Breakup by Payment Method

• Online
• Cash on Delivery

Key Insight: The online segment leads as a major payment mode in the online food delivery market due to its convenience, security, and speed. Customers use digital wallets, credit/debit cards, UPI, and net banking to pay through apps, such as Swiggy, Zomato, and Uber Eats. For instance, in July 2024, Swiggy launched a UPI payment plugin to simplify transactions, reduce payment failures, and speed up order processing seamlessly. Online payments also enable seamless refunds, promotions, and subscription services. With higher smartphone penetration and digital literacy, this segment accounts for most order in urban and semi-urban markets.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: North America online food delivery market share is growing with high smartphone penetration, widespread internet access, and mature digital payment infrastructure. As per DataReportal, about 40.44 million cellular mobile connections were active in Canada during early 2024. Major players like DoorDash, Uber Eats, and Grubhub have transformed food delivery with advanced logistics, expansive restaurant partnerships, and innovative tech. Consumers value convenience and contactless payments, especially post-pandemic, making North America a highly competitive and innovation-driven market in online food delivery.

Online Food Delivery Market Share

Online Food Delivery Websites to Gain Popularity

Websites are largely contributing to the online food delivery market due to less accessibility and convenience on mobile devices. Many users prefer the quick, dedicated experience of an app rather than accessing food delivery through a browser. Several companies maintain strong web platforms for catering to users who plan orders in advance or use desktops at workplaces. Websites also remain a vital channel, especially for detailed browsing and corporate food ordering. For instance, in May 2025, 10Web launched its AI-powered website builder tailored for restaurants and to offer menus, contact info, reservation buttons in few minutes.

Huge Demand for Logistics Based & Restaurant Specific Online Food Delivery

Logistics-based platforms handle both food ordering and delivery, making them more operationally intensive and highly scalable in urban areas. Apps including Swiggy, DoorDash, and Uber Eats control the entire delivery experience, offering real-time tracking, standardized delivery times, and integrated payment systems. Logistics-based services excel in densely populated regions where fast, reliable delivery is critical. These platforms have been gaining ground, especially post-pandemic.

Restaurant-specific platforms are recording popularity in the online food delivery market as they are developed by individual restaurants or chains to manage orders directly, bypassing third-party aggregators. Several brands operate their own websites and apps, providing customers with exclusive deals, loyalty programs, and direct engagement. In September 2024, Olive Garden, owned by Darden Restaurants, began offering third-party delivery for individual orders via Uber Direct.This model also ensures better profit margins and customer data ownership but is limited by brand reach and customer loyalty.

Cash on Delivery to Boost Online Food Delivery Sales

Cash on Delivery (COD) remains a significant payment mode in many regions, especially where digital penetration is limited, or customers prefer cash transactions. In India, several platforms still offer COD to cater to rural and less digitally connected populations. For instance, in August 2024, Zomato launched a COD feature that credits extra cash payments to customers instantly to their Zomato Money account for future use. Peak festival seasons ae also spiking the COD orders as customers prefer paying upon delivery.

Online Food Delivery Market Regional Analysis

Europe & Asia Pacific to Witness Significant Online Food Delivery Presence

Europe holds a significant share of the online food delivery market, backed by the strong presence of platforms, such as Just Eat Takeaway, Deliveroo, and Delivery Hero in the United Kingdom, Germany, and the Netherlands. European consumers prioritize sustainability and quality, prompting platforms to explore eco-friendly packaging and carbon-neutral deliveries. Regulatory frameworks also impact market growth, with GDPR and labour laws influencing operational strategies, making Europe a mature yet evolving segment in food delivery.

The Asia Pacific region is rapidly expanding with India, China, Japan, and Southeast Asia showcasing exponential growth led by rising internet users and smartphone adoption. According to Sensor Tower, India recorded a 43% growth in downloads of food as well as drink apps leading to total 353 million downloads in 2024. Swiggy and Zomato in India and Meituan in China dominate their respective markets. Southeast Asia, led by GrabFood and foodpanda is growing rapidly but remains fragmented due to diverse regulations and payment behaviors.

Competitive Landscape

Key players in the online food delivery market are adopting several key strategies to stay competitive and meet the evolving consumer demands. One major approach is partnership expansion, where platforms collaborate with a broad network of restaurants to increase customer choices and enhance market reach. This allows them to cater to various cuisines and dietary needs, making the service more appealing to a wider audience. Some companies are pursuing vertical integration by investing in cloud kitchens or managing their own delivery fleets, which helps control costs and ensure quality.

Technology integration is allowing companies to use AI and data analytics to personalize user experiences, optimize delivery routes, and predict customer preferences. This not only improves efficiency but also boosts customer satisfaction. In tandem with this, marketing and promotional efforts such as discounts, referral bonuses, and loyalty programs are used aggressively to attract new users and retain existing ones. Additionally, sustainability initiatives like eco-friendly packaging and carbon offsetting programs are being implemented to align with growing environmental concerns.

Uber Technologies Inc.

Founded in 2009, Uber Technologies Inc. is headquartered in San Francisco, the United States. Initially known for ride-hailing, the company has since diversified into food delivery through Uber Eats to connect customers with local restaurants while offering a wide range of cuisines and flexible delivery or pickup options through its mobile app.

DoorDash, Inc.

DoorDash, Inc., established in 2013 and based in San Francisco, the United States, operates as a leading food delivery platform in North America. The company partners with local restaurants and convenience stores, enabling users to order meals, groceries, and essentials online for home delivery through its user-friendly website and mobile application.

Delivery Hero SE

Founded in 2011 and headquartered in Berlin, Germany, Delivery Hero SE operates a global network of online food delivery services. The company provides logistics support and order processing for restaurants in over 70 countries, enabling customers to browse, order, and receive meals from nearby food outlets via its digital platforms.

Meituan Inc.

Meituan Inc., launched in 2010 and headquartered in Beijing, China, is a major player in the food delivery and local services market. In addition to meal deliveries, Meituan offers services including hotel bookings, travel, entertainment, and grocery delivery, all accessible via its multifunctional mobile platform used widely in China.

Other players in the online food delivery market include Just Eat Takeaway.com N.V., Domino's Pizza, Inc., Roofoods Ltd, Yum! Brands Inc., Demae-Can Co., Ltd, Bundl Technologies Private Limited, Zomato Limited, Yandex.Eda, LLC, and Rappi Inc., among others.

Key Features of the Online Food Delivery Market Report

• In-depth quantitative analysis of market size, share, and growth trends.
• Detailed segmentation by platform type, business model, payment method, and region.
• Competitive landscape with profiles of major industry players and strategies.
• Forecast insights for 2025 and beyond, with emerging market opportunities.
• Consumer behaviour trends shaping the future of food delivery platforms.
• Technological innovations and their impact on operational efficiency and service models.

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