United States Online Food Delivery Market Report and Forecast 2024-2032

United States Online Food Delivery Market Outlook

The United States online food delivery market size attained a value of USD 24.96 billion in 2023. The market is further expected to grow at a CAGR of 10.5% between 2024 and 2032 to reach a value of almost USD 61.35 billion by 2032.

Key Takeaways:

• According to the National Restaurant Association, Far West, including California with 83,501 and Washington with 16,379, showcases high numbers of dining establishments, driving online food delivery.

• Uber Eats collaborated with 825,000 restaurants in 2022, as per company records, elevating online delivery services across the United States.

• Domino's promises delivery within 30 minutes of ordering when placed through their website/app.

Ordering food online entails using mobile apps or websites to request meals, with restaurants and food providers linked to these platforms for doorstep delivery. Customers place orders through dedicated websites or third-party apps, often selecting from nearby eateries or food cooperatives. Many platforms include account management tools to simplify repeat orders, like the convenience of online shopping for other products.

Restaurants can opt for direct sales to customers using efficient ordering software, bypassing external gateways. Through this approach, consumers can place orders directly via the restaurant's website. Additionally, these applications and websites offer various filters and payment options, such as cash on delivery, net banking, prepaid cards, and more, to accommodate diverse consumer preferences. In the United States, numerous delivery services like Grubhub, Uber Eats, and others collaborate with restaurants to deliver meals to customers, thus impacting the United States online food delivery market outlook.

UBER EATS PARTNERED RESTAURANTS 2017 TO 2022

Key Trends and Developments

The United States online food delivery market growth is boosted by changing consumer preferences, sustainable efforts, swift delivery, and technological advancements.

November 2023

Chick-fil-A experimented with drone delivery trials at specific locations in Florida as part of their exploration into innovative delivery methods.

June 2023

Domino's launched Pinpoint Delivery which allows pizza to be delivered to any location marked on the app, eliminating the need for a fixed address.

May 2023

Uber Eats introduced food-delivery robots in several cities across the United States.

May 2023

Wendy’s partnered with Austin-based Pipedream for a trial of an underground robot system, swiftly delivering food orders to specified parking spots.

Changing consumer preferences

Changing lifestyles, including busy schedules and a focus on convenience, have spurred demand for dining solutions that prioritise efficiency. Online food delivery addresses this need by providing a diverse range of culinary options accessible from the comfort of one's home or workplace, accommodating modern living requirements.

Sustainable efforts

The United States online food delivery market growth can further be attributed to the adoption of eco-friendly transportation like electric vehicles and robots to reduce pollution while ensuring customers receive their goods. Third-party delivery chains and restaurants are also using recyclable and eco-friendly packaging materials and cutlery, contributing to sustainability efforts.

Swift delivery

Ordering food online through delivery apps or restaurant websites ensures timely delivery to the designated location. Many platforms offer account management tools to simplify repeat orders, ensuring a quicker and smoother ordering process. Domino's, for example, guarantees delivery within 30 minutes of placing an order.

Technological advancements

United States online food delivery market size is increasing owing to the widespread adoption of smartphones and fast internet which has transformed the way how people order food, boosting the popularity of mobile app ordering. User-friendly interfaces, personalised suggestions, and effective tracking enhance customer satisfaction, driving market growth alongside GPS technology, fostering transparency and reliability, and meeting the demands of consumers.

United States Online Food Delivery Market Trends

The increasing demand for convenient on-the-go meals and efficient home delivery services, offering accessible, affordable, and pre-prepared options, is driving the expansion of the online food delivery market in the United States. This convenient service is prized for its accessibility and the opportunity to relish restaurant-quality meals in the comfort of one's own home.

Extensive partnerships between delivery platforms and restaurants, offering exclusive deals, discounts, and seamless payment methods, have improved the overall customer experience, contributing to sustained growth in the online food delivery market.

Market Segmentation

United States Online Food Delivery Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Platform

• Mobile Applications

• Websites

Market Breakup by Business Model

• Order Focused Food Delivery System

• Logistics-based Food Delivery System

• Full-Service Food Delivery System

Market Breakup by Payment Method

• Online

• Cash on Delivery

Market Breakup by Region

• New England

• Mideast

• Great Lakes

• Plains

• Southeast

• Southwest

• Rocky Mountain

• Far West

Based on platform, the United States online food delivery market share is dominated by mobile applications as they are extensively utilised due to their ease of use and user-friendly interface.

The surging popularity of online food delivery mobile applications is driven by their accessibility, customisation, and real-time interaction advantages, spurring market growth. These platforms provide immediate access to a variety of restaurants and cuisines, enabling exploration without geographical limitations. Users can tailor orders to their preferences, allergies, and portion sizes, while real-time interactions through notifications and tracking systems improve transparency and control, enhancing the overall customer experience.

Restaurants utilise online ordering technology via websites for both pickup and delivery services. Unlike third-party apps, these systems integrate the restaurant's menu directly into their website, enabling customers to place orders directly with the establishment.

Based on the business model, the order-focused food delivery system accounts for most of the United States online food delivery market due to its hassle-free and reliable experience

Order-focused food delivery systems primarily serve as intermediaries connecting customers with local restaurants. They enable customers to browse restaurant options and place orders, streamlining the process and reducing miscommunication. Direct customisation through the platform minimises misunderstandings, enhancing the dining experience and driving increased demand. Real-time updates and tracking features allow customers to monitor order progress and anticipate delivery times accurately.

The main purpose of logistics-focused food delivery systems is to provide delivery services for restaurants that lack their delivery infrastructure. This enables customers to order from their preferred restaurants, even if those restaurants do not offer delivery services independently.

Growing preference for cashless transactions, improving security, and streamlined convenience is propelling the market through online payments method.

As digital payment methods gain acceptance and trust, customers increasingly favour the convenience of paying for food orders online. Secure storage of payment information within platforms eliminates the need for physical cash transactions and reduces concerns about carrying money or making exact changes, driving the United States online food delivery market growth. Additionally, online payment options often include loyalty programs, discounts, and exclusive offers, encouraging customer engagement and fostering loyalty.

Cash on delivery is a popular payment method offered by various food delivery services like DoorDash, Uber Eats, and Grubhub, depending on the individual restaurant's policy. This option often leads to high number of orders.

Competitive Landscape

In the United States online food delivery market, competitiveness arises from fast delivery, sustainable practices, business innovations, and evolving consumer choices.

DoorDash Inc. was established in 2013 and is based in the United States, operates as an online food ordering and delivery platform. Acting as a liaison between local consumers and restaurants, it utilizes independent contractors to facilitate delivery, serving as a bridge in the realm of technology-driven food services.

Uber Technologies Inc. was established in 2009 and based in the United States, introduced Uber Eats in 2014, an online food delivery platform. Utilizing a fleet of couriers employing various modes of transportation including cars, scooters, and bikes, Uber Eats facilitates the delivery of meals ordered online.

Grubhub Holdings Inc. was established in 2004 and is based in the United States, is affiliated with Just Eat Takeaway.com, a prominent global online food delivery marketplace. Grubhub aids restaurants in expanding their operations and exploring innovative concepts while offering drivers flexible earning opportunities through adaptable work arrangements.

Other key players in the United States online food delivery market report are Delivery.com, LLC, GoBrands, Inc., Goldbelly, Inc., ChowNow, Inc., and Others.

United States Online Food Delivery Market Analysis by Country

Changing consumer preferences in the Far West are pushing the market development in the United States.

According to the National Restaurant Association, California boasts 83,501 eating and drinking establishments in 2022, while Washington has 16,379, fuelling the demand for online food delivery in the Far West. Similarly, Texas has 54,685 establishments, and Ohio holds 23,912 in the Great Lakes region, this offers food delivery companies access to a large pool of restaurants and a sizable consumer base, thereby driving up the demand for online food delivery services.

Key Highlights of the Report