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Evolving Landscape of Food Delivery Industry


The revolutionary upsurge of the Restaurant and hotel industry is not hidden from anyone. The Food Delivery industry was already heading at a frantic pace but the Coronavirus Pandemic has made it a more global approach for daily food consumption.

With more and more startups looking to venture in, the industry has got stiff competition. Only those businesses will survive who adopt more technological revolutions rather than just creating an app. The growth potential of the food delivery industry is really overwhelming. But it can be encashed only with a future-oriented approach, fully loaded with technical support.

Food Delivery Industry: The Overwhelming Trends

Nevertheless, to mention, the Food delivery market is yet to see the maturity period. The growth has not reached its peak yet. The customer demand for convenient food ordering systems is continuously increasing.


Food Delivery Market Insights

Keeping a view with Technavio – Almost 57% of total online food orders will be made by one approach of getting food conveniently. The Food Delivery market is going to establish a benchmark of reaching USD$ 104.45 Billion, by the end of 2023. 

Online Food Delivery Market Report

Renowned tech researcher ExpertMarketResearch predicts that the global online food delivery market will grow at a CAGR of 12% between 2021 and 2026 to reach a value of almost USD 169.4 billion by 2026. The market will be persuaded by the user-friendly food delivery app developments – Research summarized. The idea of convenient and hassle-free delivery will make food delivery popular than ever. 

Custom Software Development Company - Tekki Web Solutions Pvt. Ltd.
Custom Software Development Company - Tekki Web Solutions Pvt. Ltd.

Online Food Delivery Business Models

The revenue generated by the online food delivery model will also see a huge shift. The (1) Restaurant-to-Consumer Delivery and (2) Platform-to-Consumer Delivery both models will see an upward going graph each year. The reports of Statistia signify that Platform-to-consumer delivery will generate more revenue for the business. However, the Restaurant-to-consumer delivery will also manage to get an appealing upward shift.  

Major Challenges Faced by Food Delivery Industry

Besides all the growth trends and market predictions about the food delivery business, it must be mentioned that the food delivery business has also faced lots of complexities while growing. 

A large number of problems such as delivery time, food quality, customer experience, pricing, refunds, trust-building, etc, , food delivery industry has faced too much to reach this level. Certainly, the food delivery business has seen a sudden growth after Covid-19. However, it took extra effort and money to make people realize that their deliveries are safe and disinfected. 

Technology has taken over and speeds up the entire food delivery ecosystem. But, still, the approach of doing restaurant and hotel business in a way, where a person sits and waits all day for a customer to come has not changed much in many places. A large number of problems are still poking the Food delivery business that has adopted technology but only to some extent.  

  1. Customer’s demand and loyalty are being shifted every day. The excessive branding and presence of the latest food items had made the industry stuffed with the competition. One day a customer orders from a restaurant and if he doesn’t like the food for any reason he simply shifts to another restaurant without giving a second chance. 
  2. The fluctuating market price has also made the food delivery business complicated. Hotel and restaurant owners have to keep an eye on the latest market price and label their food accordingly. They need to change the prices daily in order to get more customers. 
  3. It’s a lot tougher to maintain the Quality of food in the delivery business. The challenge of keeping the food fresh and unspoiled is real tough. Even if a restaurant makes the food of utmost quality, still, the standards may get down in the transit process. 
  4. It’s critical to sustain the customer expectation of restaurant owners in order to gain their loyalty. It takes more effort to uphold their food experience with indirect channels. 
  5. Improper food handling plays a major role in lowering the customer base. A number of reasons can be held responsible for this, such as weather, roads, and distance, etc. But improper food handling degrades the customer experience. 
  6. The sudden growth of the food delivery web and mobile apps has captured the attention of big players. Big players have emerged as a threat for local startups that are tight on budget and management. 
  7. The thumb rule of the food delivery business is starting from a local area and expanding as you grow. It’s a big question, whether to keep the deliveries restricted to a smaller area or expand the business. Allocating the right number of vehicles, ensuring the food quality, etc. are some of the critical logistics-related issues that food delivery companies face. 
  8. The more options a customer gets, the cheaper the demands. Maintaining customer loyalty is important. Businesses who don’t maintain their customer base face bitter consequences later. For doing this they are forced to give heavy discounts and profit-lowering offers. 
  9. Many food delivery businesses find themselves incapable of handling large amounts of orders via a manual process.

The Rise in Food Delivery Industry With Digital Transformation

From the customer trends, shifting from going out to ordering food online, ease and accessibility have always been the decisive factor. To address the challenges of the Food delivery industry one should come with a bigger approach to adopt the technology and see its implications. 

Perhaps, these technological adoptions are not limited to getting a brand new food delivery web and mobile app. It’s more than that. Technology has come a long way and it’s influencing all the sectors of management including Food delivery. Thus, you need to adopt technology to survive in the industry. 

  1. Customers love discounts, coupons, and freebies. Winning customer loyalty is possible with discounts, offers, coupons, and sometimes extra that benefits the consumer, ordering food. Many businesses are already using this approach. You can implement the same ideas but with some next-level thinking E.g., Give them points on each order that can be used to order food later, without any cost. 
  2. The price fluctuation can be easily handled with a robust CRM (Customer relationship management) where data of the different restaurants and hotels of your locality can be seen on a real-time basis.
  3. Make it easier for your customer to anticipate the food quality with exact delivery time and possible obstacles. Protective food cases and Better delivery management will be helpful to maintain the food quality. 
  4. Fulfill your client’s expectation by telling him real-time whataboutery of his order. Give them loyalty points on rating the food on the app. Do better branding of your business with the help of custom food delivery solutions.
  5. The route mapping technology can easily reduce the delivery time and give customers and real-time delivered food experience. Load the delivery panel of your current CRM or Mobile app with traffic showing map features that eliminate the more time spent on roads. 
  6. Managing the fleet of delivery vehicles becomes a handy task if you get fleet management software to better manage your deliveries. 
  7. Handling bulk orders efficiently can be made possible with a Good customer relationship management system loaded with user functionalities. 
  8. Right marketing is the weapon to target many food delivery business problems. Brand yourself correctly in front of the right customers at the right time.
  9. Follow Market trends continuously. A small business can evolve efficiently if the market is looked at closely and implements what successful competitors are doing. 
  10. Review and rating matter a lot. The food delivery business is especially dependent on reviews and ratings. To get new customers positive reviews and ratings are required. Provide a platform where user customers can rate and review your business honestly. 
  11. Do not get an app or website with an exact replica of a business of the same niche. Instead, always choose a Custom food delivery app development for better results. 
  12. Implement machine learning in your CRM(Customer relationship management) or web app to get better results. 


The food delivery Business has a bright future ahead. Those who have tasted success in food delivery know that it comes preloaded with technology. All the successful food delivery businesses have Adapted to and adopted the latest technologies in order to survive and bring more business to themselves.

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