United States Online Food Delivery Market Overview
United States Online Food Delivery Market Size was valued at USD 351.25 Billion in 2022. The United states online food delivery market industry is projected to grow from USD 392.6 Billion in 2023 to USD 958.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.80% during the forecast period (2024 - 2032). Convenience and changing consumer preferences are the main market drivers anticipated to propel the United states online food delivery market in the United States.
Figure 1: United States Online Food Delivery Market Size, 2024-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
United States Online Food Delivery Market Trends
Technological Improvements fuel the market growth
Technological advances drive the united states online food delivery market's CAGR. The proliferation of smartphones, along with ubiquitous access to high-speed internet, has radically changed consumer behavior and reshaped the food delivery environment. Aside from that, the convenience of ordering meals via a smartphone app has greatly boosted the market's popularity. Furthermore, user-friendly interfaces, personalized recommendations, and effective tracking systems have improved the entire client experience, indicating a promising future for industry expansion. Aside from that, the incorporation of global positioning system (GPS) technology, which allows for real-time monitoring of delivery progress and instills a sense of transparency and reliability in the process, is helping to expand the industry. The tech-savvy nature of modern customers has allowed for the seamless integration of online meal delivery platforms into their daily routines, propelling market growth.
Individuals' changing lives, marked by hectic schedules, dual-income homes, and a preference for convenience, have fueled demand for time-saving dining options. Online food delivery meets this demand by providing a diverse range of culinary options that can be accessible from the convenience of one's home or workplace. This trend was exacerbated by the COVID-19 epidemic, which drove a large percentage of the population to work and dine at home. Lockdowns and social distancing tactics boosted the adoption of internet meal delivery, resulting in a steady increase in demand. As consumers value safety, the contactless aspect of online orders and payments has become an appealing feature, reflecting the present health-conscious mindset.
United States Online Food Delivery Market Segment Insights
Online Food Delivery Platform Type Insights
The United States online food delivery market segmentation, based on Platform Type, includes Mobile Applications And Websites. The mobile applications segment held the largest revenue share in 2023. The growing demand for online meal delivery mobile applications, which have intrinsic benefits in terms of accessibility, customization, and real-time engagement, is contributing to market expansion. Aside from that, mobile applications give consumers fast access to a wide choice of restaurants and cuisines, allowing them to discover varied dining options without regard for geography. These platforms also provide personalized experiences by allowing customers to filter and customize their orders based on dietary preferences, allergies, and portion sizes. Real-time engagement between consumers, restaurants, and delivery staff via notifications and tracking systems fosters a sense of control and transparency, which improves the entire customer experience.
Figure 2: United States Online Food Delivery Market , By Platform Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Online Food Delivery Business Model Insights
The United States online food delivery market segmentation, based on the business model, includes an order-focused food delivery system, a logistics-based Food delivery system, and a full-service food delivery system. Order-focused food delivery systems are the significant shareholders in the market. The growing need for order-focused food delivery systems is driven mostly by a desire to improve efficiency, minimize errors, and increase overall customer happiness. These technologies improve the ordering process by reducing confusion between customers and restaurants, resulting in more accurate and error-free orders. By allowing consumers to modify their meals directly through the platform, the possibility of misunderstandings is considerably minimized, resulting in a smoother dining experience and adding to their growing demand.
Online Food Delivery Payment Method Insights
The United states online food delivery market in the United States is segmented by Payment Method, which comprises Online and Cash on Delivery. Online mode is the leading segment in the market. The growing preference for online payment is fueled by consumers' desire for cashless transactions, increased security, and simplified convenience. As digital payment methods become more generally accepted and trusted, people prefer the convenience and efficiency of paying for their food orders online. The ability to securely retain payment information within the platform minimizes the need for physical cash transactions. It alleviates concerns about carrying money or making accurate changes, so moving the market ahead. This shift is consistent with general tendencies toward contactless transactions, especially in light of health and safety concerns following the pandemic.
Online Food Delivery Country Insights
The United States online food delivery market is quickly expanding. Food delivery services are becoming increasingly popular among consumers due to the convenience and accessibility of ordering food online in 2024. The market is extremely competitive, with a few significant businesses dominating the industry. The COVID-19 pandemic has hastened the expansion of this business, as many have turned to internet food delivery for meals while at home. The market provides a diverse selection of cuisines and food kinds to meet a variety of dietary tastes and needs. Overall, the United States Online meal Delivery Market is a profitable opportunity for meal delivery companies.
Online Food Delivery Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their Type lines, which will help the United states online food delivery market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new Type launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Online Food Delivery industry must offer cost-effective items.
Major players in the United states online food delivery market are attempting to increase market demand by investing in research and development operations, including Grubhub, Doordas, Uber Eats, Postmates, Domino’s Pizza Inc., Kroger Co., Blue Apron Holdings, and HelloFresh.
Key Companies in the United States Online Food Delivery Market include
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Grubhub
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Doordas
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Uber Eats
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Postmates
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Domino’s Pizza Inc.
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Kroger Co.
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Blue Apron Holdings
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HelloFresh
United States Online Food Delivery Industry Developments
In December 2022, Domino's Pizza Inc. announced its expansion into two more countries: Latvia and Uruguay. Morgacita Ltd., Latvia, would open the first Dominos store at Deglava 100 in Riga, and Alsea, Uruguay, would open the second at 1163 Luis Alberto de Herrera in Montevideo.
In November 2022, Domino's Pizza Inc. will debut 100 bespoke Chevy Bolt electric vehicles in the United States to entice delivery drivers who do not have their own cars. Furthermore, by cooperating with Enterprise Fleet Management, the company will receive maintenance for its electric delivery fleet, finance, telematics solutions, vehicle acquisition, and local hands-on account management.
In December 2022, Grubhub announced a partnership with KiwiBot, a food delivery firm, to distribute meals by robot on college campuses across the United States. This strategic agreement would provide an integrated delivery service that would allow students to use Kiwibot delivery from Grubhub's smartphone. Furthermore, delivery alternatives on college campuses give students more ways to access their preferred cuisine while also creating beneficial interactions with technological advancements that make campus life more efficient and successful.
United States Online Food Delivery Market Segmentation
Online Food Delivery Platform Type Outlook
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Mobile Applications
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Websites
Online Food Delivery Business Model Outlook
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Order Focused Food Delivery System
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Logistics Based Food Delivery System
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Full Service Food Delivery System
Online Food Delivery Payment Method Outlook
Report Attribute/Metric |
Details |
Market Size 2022 |
USD 351.25 Billion |
Market Size 2023 |
USD 392.6 Billion |
Market Size 2032 |
USD 958.5 Billion |
Compound Annual Growth Rate (CAGR) |
11.80% (2024-2032) |
Base Year |
2023 |
Market Forecast Period |
2024-2032 |
Historical Data |
2019- 2022 |
Market Forecast Units |
Value (USD Billion) |
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
Segments Covered |
Platform Type, Business Model, Payment Method and Region |
Countries Covered |
Unites States |
Key Companies Profiled |
Grubhub, Doordas, Uber Eats, Postmates, Domino’s Pizza Inc., Kroger Co., Blue Apron Holdings, and HelloFresh |
Key Market Opportunities |
Integration of technology for improved customer experience |
Key Market Dynamics |
Increasing smartphone penetration |
Frequently Asked Questions (FAQ) :
The United States United states online food delivery market size was valued at USD 392.6 Billion in 2023.
The market is projected to grow at a CAGR of 11.80% during the forecast period, 2024-2032.
The key players in the market are Grubhub, Doordas, Uber Eats, Postmates, Domino’s Pizza Inc., Kroger Co., Blue Apron Holdings, and HelloFresh, among others.
The mobile applications category dominated the market.
The Online mode industry had the largest share of the market.