Food-Delivery Companies Undergoing Aggressive Expansion


TORONTO — Online food-delivery companies are a go-to option for customers looking to order restaurant food without leaving home. 

Frost & Sullivan’s latest research — Future of Global Online Food Delivery Services Market — predicts sector revenues will rise from $82 billion in 2018 to $200 billion in 2025, at a Compound Annual Growth Rate (CAGR) of 14 per cent, as a result of increasing global penetration, strategic mergers and acquisitions and adoption of new technologies, such as artificial intelligence, AR/VR, drones and autonomous vehicles.

“Automotive OEMs (Original Equipment Manufacturers) will actively participate in the development of specific autonomous vehicles, such as drones and ground bots, for the online food-delivery industry, either through their own programs or acquisitions,” says Viroop Narla, team leader, Automotive & Transportation at Frost & Sullivan. “A combination of autonomous aerial and ground-delivery methods is expected to make the future of food delivery more efficient and cost-competitive.”

North America has the highest concentration of online food-delivery companies. Uber Eats has the highest presence globally, operating in more than 670 cities. However, in certain countries, local players dominate only their home markets, such as Meituan Dianping in China, Swiggy in India and iFood in Brazil.

“Online food-delivery companies will increasingly look at new revenue streams to stay ahead of the competition,” says Narla. “Cloud or dark kitchens are expected to become a very popular setup for these companies to either prepare food or rent space to other food businesses.”

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