Online food delivery market to reach $151 bn in 2021

Global online food delivery market is projected to grow by 11.1 percent in 2021 to $151.53 billion, according to the research data analyzed and published by Comprar Acciones. online food delivery
The global online food delivery market has touched $136.43 billion in 2020 as compared with $107.44 billion in 2019.

In the US, the online food delivery market is set to grow at 7.4 percent in 2021 to $28.49 billion.

Morgan Stanley report indicates the US food delivery penetration rate was at 9 percent in 2019. In 2020, it rose to 13 percent and could go as high as 21 percent by 2025.

DoorDash, Grubhub and Uber Eats dominated the US online food delivery market.

DoorDash became the lead player with a 45 percent market share as of October 2020. Uber Eats was second with 30 percent and Grubhub took the third spot with less than 20 percent.

For Uber Eats, the $2.65 acquisition of Postmates completed in November 2020 boosted its share significantly. It had approached both DoorDash and GrubHub for acquisition deals and failed. Grubhub ended up getting acquired by Just Eat Takeaway for $7.3 billion in June 2020. The deal, which is set to close in Q1 2021, will create the second largest food delivery company outside China.

Part of the reason for the wave of consolidations in the industry is that customers are not loyal to any single service. According to a study by Second Measure, 71 percent of Grubhub customers did not use any other food delivery service in 2018. However, by Q3 2020, the figure had dropped to 49 percent. DoorDash had 53 percent exclusive customers in the same quarter while Uber Eats had 43 percent.