Did you know that DoorDash increased its revenue by 241% in 2020?
It took a little adjusting, but we got used to being indoors most of the time. It helped that the new niche in food delivery services expanded with the steady demand.
Yet, now that the world begins to open up again, one wonders what’s in store for the future of the food delivery market. We know that food delivery is not a new service, but it has carved a path into the mainstream.
But, if you aren’t sure what the future holds for the industry, here’s some food for thought. Keep reading for a look at where the food delivery market could be heading.
A Brief Food Delivery Market History
Can you remember back to the days when the first food delivery companies came on to the scene? Before Uber Eats and DoorDash existed, pizza chains began promoting fast delivery. The promise of 30 minutes or free became so common, and it created a viable need among consumers.
Today, almost any local pizza store will deliver a fresh-baked pie to your door. Society became accustomed to the new service. And these businesses thrived as a result.
But, now, the game has changed for a variety of reasons. First, the pandemic kicked the steady demand for food delivery into high gear. Yet even before that, the gig economy discovered a new niche for more significant profits.
COVID and Convenience
As we sat and binge-watched our favorite shows, food delivery took on new meaning in our lives. For a while, restaurant delivery was our only connection to the outside world. But, like the fast pizza delivery mantra, the new service crept into our psyches.
The food delivery market knows that consumers feed on convenience. So, the easier it is to get your food, the quicker the industry carved a path to our doors. But does that mean the new niche will continue to grow?
Two factors are beginning to work against the steady demand for food delivery. First, leaders in the industry have struggled with fair pricing from day one.
Restaurants desperate to stay afloat feel squeezed. They seem stuck between the high commission charges of food apps and the rise in operating costs. In addition, supply chain issues have forced the price of produce to go up.
The second reason food delivery may experience challenges is our newfound freedoms. Let’s face it, most of us can’t wait to be among people again. And the first place a lot of people will want to go is a local restaurant.
Meeting the Challenge
If there’s one thing the food delivery market has proven, it’s that there is a viable need for this niche service. Yet, it will be crucial for the delivery industry to adjust to changes in people’s habits. It will also be important to find a price range that meets the expectations of all involved in the sector.
Like pizza delivery, the new service food delivery market will survive. There will still be a steady demand for this niche service. But, its growth will likely be more of a gradual climb.
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