Well, more than your matches on Tinder, you will find the online food delivery application options available on your mobile. Do you agree? Be any part of the world, online food delivery applications such as Grubhub, Seamless, UberEats are constantly on the rescue to satisfy the dinosaurs dancing in your stomachs!
The food delivery apps are enjoying a windfall. Why are food delivery apps so successful? After all, With the Covid-19 crisis, everything has changed overnight. Customers have now subscribed to convenience since the apocalypse. Okay, I’ll take a note down – “The Pandemic”! That’s why online food delivery applications have become valuable. Customers can order food online from the comfort of their homes and get it at their door. And that’s the reason why millennials are insanely going bananas over the food delivery apps! Call me lazy, but We love food delivery apps!
Furthermore, with the increasing usage of food delivery apps in the USA, the food delivery market has boomed. It is expected to grow at 9.9% CAGR in 2023.
Editor’s Note: No lies found. As, while typing these words, I was eating an overpriced poke bowl that I ordered from UberEats.
How Big is the Food Delivery App Market Size?
Shh… It’s a Multi-Billion Dollar Industry Already!
The global online food delivery market reached a pinnacle value of US $ 106.1 billion in 2021. Looking forward, it is highly expected to reach the newer heights of US $223.7 billion in 2027.
The concept of Food delivery apps has existed for some time. However, the whole business of food delivery has turned out more prominent than before.
If you don’t trust my words, here are the numbers that don’t lie for sure! Below are some statistics that emphasize the point.
- 60% of U.S. Consumers order or choose takeout once a week.
- The food delivery business has seen unprecedented growth throughout the world, with more than 14% CAGR from 2018 to 2020.
- Digital ordering and shipping have increased by 300% compared to Dine-in traffic since 2014.
- According to Statista, in 2024, the income generated by the food delivery platform-to-consumers worldwide will be around 96,864.4 million USD.
It is true to say that it is an ideal time to step foot in the food delivery business. All you need is the best food delivery app and a bank account to receive billions of dollars!
Top Food Delivery Apps
Want to know which are the best food delivery apps in the USA? Don’t sweat it out, I have got you covered.
In this blog, you will read more about the 5 best food delivery apps in America and their niche.
Grubhub
Launched in 2004, Grubhub is the best food delivery app in the US that delivers directly to the front of the customer’s door. After acquiring the Seamless application, Grubhub has become an electric power plant for online and on-demand food delivery apps with more than 22.6 million users worldwide. It ranks 5th in the food delivery application that is most installed in the US. Undoubtedly, it generated 1.8 billion U.S. dollars in revenue in year 2020!!
Revenue Generating Strategy:
- Commission each order:
Grubhub imposes commissions from each restaurant with a permanent percentage.
So, what percentage is the Grubhub charges?
Grubhub usually charges a 12.5% commission on each order from the restaurant. However, the percentage of commissions varies from 5% to 15%, depending on the needs of the restaurant.
- Shipping costs:
Grubhub also charges the shipping fees from its customers. Depending on the distance of the restaurant to the delivery destination, the shipping costs of this food delivery app vary from 20% to 40%.
- Additional commissions for marketing
Grubhub also has a pricing model for restaurants that are willing to register at the top. GrubHub Marketing and Advertising Plans also functions based on commissions. Depending on the ranking hierarchy, the commission rate ranges from 2.5% to 17.5%.
UberEats
Ubereats has been named the best food delivery application in the United States many times throughout the year. Uber is a well-known and respected organization. Uber Eats, like Grubhub, uses the location to show nearby cafes and restaurants.
Moreover, Uber Eats is a similar application to Uber Taxi because it empowers to deliver food on demand. It offers a full menu of restaurants, as well as the option to have food sent to the user’s door. In the United States, it is one of the most widely used food ordering applications.
Revenue Model: How can UberEats make money?
- Charge commissions from restaurant partners for each order they get.
- Shipping costs from customers.
- Through the cost of advertising/restaurant marketing
- Through a surge in the cost of the customer (e.g. in rush hour)
DoorDash
I must say, this is the most loved food delivery app in America! DoorDash is a food delivery application that allows customers to order from their favorite local & national restaurants or get food, snacks, alcohol, and essentials and have them sent to their door. This allows customers to schedule shipping and also provides shipping options without contact. If you are thinking to develop an app like DoorDash than look below to its revenue-generating strategies.
Revenue Model: How does DoorDash make money?
- Charge commissions from partners on each order.
- Charges shipping costs from customers
- Charge a nominal amount of commission from a Dashpass subscription.
Postmates
Founded in 2011, Postmates now serves customers in all 50 states of the United States and Washington, D.C. This platform has a bond with more than 600,000 local traders and restaurants. And, it has around 10 million active users who order around 5 million items every month. WHOA!! That number is quite whooping.
Are you an entrepreneur looking for an alternative way to keep your business growing and running? If yes, you can plan to make your Postmates clone and increase your growth chart. The success of this food delivery app is Hella inspiring!
Revenue Model: How does Postmates make money?
- Shipping costs: For each order processed, Postmates charges a small fee for delivery, starting from as low as $5 of the total shipping costs received per order.
- Convenience costs: Comfort costs, and other sources of income for applications, are charged at 9% per order. While this fee does not have a hat, the user does not refuse to pay because of the demand-supply at their request.
- Surge Price: Postmates sometimes pick up a surge in prices on orders to rebuild the supply balance.
- Small basket fee: For orders under $ 12, Postmates collect users around $ 1.99 as a small train charge.
- Subscription Model: Postmates have engraved fresh flow for income through Unlimited Postmates – Subscription -based membership services.
Seamless – The Oldest Player in the Town!
Seamless is a mirror image of the #1 food delivery app that is none other than- “Grubhub”. It was founded in 1999. Both of them utilize the same technology as well as have an identical interface. Some cities (like New York, where Seamless is established) only recognize one of the others. It is one of the oldest food ordering apps in the USA.
This platform provides the simplest way to order food for shipping or takeout.
In 2013 – Seamless and Grubhub announced a merger smoothly holding 58% and Grubhub held 42% of equity.
Revenue Generating strategy:
- Commission charge for food chain:
The commission is received on every listing. In this way, business tycoons produce several parts of income.
- Third Party Ad:
One more source that produces without big results is an ad campaign. Seamless offers advertising campaigns to new restaurants on the application.
Which Food Delivery App is Winning?
Let’s See What the Stats Say!
DoorDash and UberEats have seen the most development in normal deals per client throughout the course of recent years. At DoorDash, the normal deals per client in the final quarter of 2021 were 104 percent higher than in the final quarter of 2019.
In the final quarter of 2021, DoorDash clients spent the most, with a normal of $309 per client. Uber Eats’ quarterly client spend was the second most noteworthy with a normal of $239, while clients at Postmates and Grubhub spent a normal of $168 and $158, individually.
Closing Thoughts
Cutting it short, the Food delivery app is a sure shot hit! Increased food delivery business is waiting for several players to join the market; Only the best food delivery app is successful, you must note. So, create an application for food delivery that can survive and conquer obstacles and shine among these rivals.
This is the right moment if you are thinking of investing in a Food delivery application. You can change your concept into a profitable effort.
We believe our blog inspired you to develop food delivery applications like Grubhub and conquer competition!
If you are looking for a professional development company, contact us. We at NCrypted recognize any particular business requirements. We will aid you in building a lucrative on-demand food delivery app development according to your needs. Over to you, because now I am hungry again, but this time it’s Sushi from DoorDash!
