For instance, fintech firms have managed to generate profits from the online food delivery business by integrating their payment gateways, such as digital wallets, into existing platforms, thereby providing a seamless ordering and payment experience. However, some acquisitions haven’t gone according to recipe the mobility company Ola bought food delivery company Foodpanda for approximately $45 million in 2017 only to suspend operations in 2019 as it failed to keep pace with the competition.Įveryone craves a slice of this pie, even companies from outside the industry. This joint entity would be worth almost $11 billion with a combined customer base of over 40 million users and would be the dominant player across Europe.ĭelivery Hero has also successfully expanded its reach and has a market share of over 70% in the Middle East market due to its purchase of local brands Talabat, Carriage and India’s Zomato in the region. As recently as last month, announced that it was interested in merging with Just Eat, another major global player in the business. It also owns leading market players in Greece, Bulgaria, and Romania. In 2018, the Dutch giant, an aggressive expansionist, bought out the German business of another major player, Delivery Hero, for $1.1 billion. Leading participants in the online food delivery market in 2018 Frost & Sullivan Heavy hitters like Alibaba, Tiger Capital and SoftBank Group have been among the leading investors in this business and continue to be bullish about its growth prospects. In 2018 alone, more than $9.6 billion was pumped into these companies, with Asia receiving almost 60% of these funds. This sort of growth-not just for Uber Eats but for almost any of the online food delivery companies successfully operating today-would be impossible without massive investments. Uber Eats itself is currently valued at a very healthy $20 billion, registers revenues of $1.4 billion annually, has a presence in more than 670 cities on six continents, and delivers almost a billion meals every year. Launched in 2014, the company has grown astronomically across the world on the back of its popular elder sibling, Uber. Investors Are Bullish About Growth Prospectsīut to really understand the growing clout of the online food delivery business, one need only follow the story of one company - Uber Eats. China alone registered over $34 billion in online food delivery revenues in 2018, with two of its biggest players, Ele.me and Meituan Dianping divvying up almost 10 billion deliveries between them last year.
But in terms of sheer numbers, Asia accounts for a massive 55% share of the global online food delivery market, thanks to the Chinese dragon’s seemingly insatiable appetite. Europe also has over 10 providers, with Dutch company Just Eat having a presence in eight countries in the region, and an over 83% share of the U.K. North America is already host to over 10 online food delivery companies with Grubhub, the largest player, accounting for over a one third share of the market.
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