A little under two decades ago, food delivery was limited to cuisines like Chinese. In this day and age, food delivery has become a global market and is worth more than $150 billion. With the majority of millennials and the younger generation preferring to order food online, the demand for online food delivery is increasing every day.
In this post, we will list the biggest food delivery companies in the world. When you’re ready to create your own food delivery app, you can count on Suffescom Solutions.
DoorDash is a US-based food tech giant that operates an online food ordering and delivery platform. At present, it has a market capitalization of $47.6 billion. DoorDash, in its latest fourth-quarter earnings report, said that its sales jumped by 226%, with 273 million orders. Strikingly, it acquired 82 million orders in the same quarter the previous year. The fourth quarter earned it $970 million.
The company serves 4,000 cities across the US, Canada, and Australia. The application offers a good recommendation engine for discovering restaurants, serving a wide array of local eateries and national chains. Additionally, it features monthly DashPass subscriptions to reduce service fees.
DoorDash makes money under three categories:
DoorDash delivers from the restaurant to the doorstep of customers ordering online through DoorDash. The platform charges a commission on every order delivered, which is around 20%.
DoorDash also charges restaurants for marketing and advertising on the app.
DoorDash hires its own drivers, and the delivery rate depends upon the distance traveled and ties-up with the restaurant in consideration.
DoorDash takes control of the delivery process. The value it brings to different concerned parties are listed as follows:
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Uber Eats, also known as Uber Delivery, is the food delivery vertical of the ride-hailing giant. The brand witnessed a YOY growth of 130% in December 2020.
It has a nearly perfect rating on the App Store and Google Play. The food delivery app has managed to close the gap that exists between the customers and restaurants.
With no minimum order amount, it bags the second position among the world's biggest food delivery companies. Customers love the fact that UberEats delivers food for a flat-rate booking fee.
Uber Eats, being one of the biggest food delivery companies in the world, makes money in the following ways:
Uber Eats receives a 30% commission from the restaurants on the order’s cost.
Uber Eats runs exclusive promotions for brands to help them get more traction and sales. In return, the company charges a commission.
Uber Eats charges its customers for the food delivered. The delivery depends on the customers’ location and the courier availability.
There are different value propositions that Uber Eats offers.
Grubhub is one of the largest food delivery companies in the world and is based in America. The company is owned by Just Eat Takeaway. It has a valuation of $5.5 billion. In the latest fourth quarter, its total orders touched 61 million. Its December revenue stood at $504 million.
Not only has Grubhub simplified the food ordering mechanism for people, but it also has set a benchmark in the food ordering industry. Whether it is in terms of the user base, revenue, or sales, Grubhub has managed to maintain its spot amongst the most preferred largest food delivery companies in the world.
Grubhub's business model is centered on charging eateries a percentage-based per-order commission. Grubhub provides delivery services to restaurants on its network in various markets. When diners make an order on the company's platform, the company earns revenue.
Restaurants can set their own commission rate, which might be lower or higher than the base rate. Restaurants with a higher commission rate have more exposure to guests on the platform.
Restaurants that use Grubhub's delivery services must also pay an extra fee. Diners are also charged for the delivery services it offers. Grubhub typically sends net proceeds to eateries at least once a month.
Grubhub offers the following values to different segments.
Delivery Hero, as the name suggests, pioneers in delivering an amazing experience to its customers. Its services are available in around 50 countries and operate a wide range of local brands that share a common mission of enhancing delivery experience.
The company processed 791 million orders in the third quarter of 2021, which equals a YOY growth of 52%.
Surprisingly, it also claims to deliver the items themselves, and riders from the network delivered 50% of all orders in the second quarter of 2021.
Working with an extensive global ecosystem of riders, restaurants, shops, and partners, it also delivers groceries, flowers, coffee, medicine, and more.
As per Nasdaq, Delivery Hero takes a normal commission of 10 or 11 percent on each request, which turns out to be generally €1.60.
The platform generates revenue through fees levied on the participating restaurants. It charges a setup fee and a monthly subscription fee for restaurants to enable them to receive orders through the marketplace.
Delivery Hero brings various benefits for riders, restaurants, and customers
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Just Eat Takeaway is a Netherlands-based food delivery company. The marketplace connects consumers with over 580,000 restaurants. The company was created in January 2020 and merged two of the world’s most successful food delivery firms: Takeaway.com (founded in 2000 in The Netherlands) and Just Eat (founded in 2001 in Denmark).
Being one of the biggest food delivery companies in the world, it facilitates online ordering, payment, and fulfillment of orders. The platform uses a hybrid model, which is based on the marketplace heritage (where restaurants do their own delivery) with logistics capability (where restaurants do not have their own delivery sources).
Just Eat has three revenue streams:
The platform generates revenue from the one-off fee that restaurants pay to join the services.
Revenues are generated from commissions that the company charges for every order completed and from the amount charged to restaurants for processing customer card payments.
The platform charges fees from restaurants for higher placement in search results and branded commodity products.
Just Eat Takeaway is a bringer of value for every party involved.
Finally, the company's the brand/status provides a value proposition for both consumers and eateries. It claims to be the obvious market leader in 12 of its 15 markets, with 13.4 million active users. It has also received a number of important awards. Selection for the "UK Fast 50," a list of the country's fastest-growing tech enterprises, two Digital Masters Awards, and three Drum Marketing Awards are among them. All of this success distinguishes it from other services, encouraging customers to try it first and restaurants to collaborate with it.
According to the JM Financial report, the Chinese food and grocery delivery giant has reached a valuation of $257.7 billion. The platform is for locally found consumer products and retail services like entertainment, dining, delivery, travel, and other services.
In November 2020, Meituan chief executive Wang Xing had told Financial Times, “Grocery retail is an enormous market opportunity. We aim to “deliver everything to customers’ homes.”
The company operates numerous apps and websites to offer various services.
How Meituan Makes Money?
Meituan's primary revenue streams are commissions and advertisements. Commission income from merchants and suppliers such as restaurants, store owners, and other vendors is Meituan's primary source of revenue. As a middleman, they receive a set amount of compensation for each request.
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Deliveroo is a UK-based online food delivery platform that operates in over 200 locations across the U.K., Netherlands, France, Ireland, Spain, Belgium, Australia, Hong Kong, the U.A.E., Kuwait, and Singapore.
Deliveroo Editions and its subsidiary focus on developing a network of ghost kitchens. You will be amazed to know that Deliveroo is associated with the most prominent chain restaurants in the U.K., and the majority of them are accessible through the app and other independent restaurants. The app provides delivery services along with marketing and order taking. It provides food from restaurants that do not offer delivery services.
Salient Features Of Deliveroo Model
How Deliveroo Makes Money?
Deliveroo's business strategy is based on delivery fees, service costs, onboarding fees, subscriptions, and cloud kitchen sales.
Furthermore, direct clients account for the majority of Deliveroo's revenue. They charge £2.50 for shipping as well as commission fees from their partners, which range from 10% to 20% for every order (if the restaurant has more than one delivery partner, the commissions are higher).
Deliveroo's business model generates a significant chunk of its revenue through promotions and partner incentives to partner restaurants, for which Deliveroo charges a fee.
Value Propositions Deliveroo Offers
Deliveroo offers rich value propositions to customers, drivers, and restaurants.
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Postmates is one of the world's biggest food delivery companies. It is
a USA-based food delivery service and quick e-commerce owned by Uber. The application offers a wide range of local delivery options of restaurant-prepared meals.
Salient Features Of Postmates Model
How Does Postmates Makes Money?
Postmates makes money by collecting fees and from its premium subscription called Unlimited.
The company collects a percentage of the sale price and also makes money via delivery fees that are paid to ship the item.
Unlimited is a premium subscription that allows customers to save money on deliveries and receive benefits in return for paying a monthly or annual fee.
Value Propositions Postmates Offers
Postmates offers multiple benefits as follows:
Counted amongst the biggest food delivery companies in the world, Swiggy has a quick pickup and dropoff service. The application has a ‘no minimum order’ clause, which makes it highly popular.
Swiggy has been able to achieve rapid growth not only due to exceptional talent but also because of the “customer-backward thinking”, first-principles thinking, efficient execution that focuses on raw problem-solving skills.
Salient Features Of Swiggy Model
How Swiggy Makes Money?
Swiggy charges a 15-20% commission on the total order bill, and the amount depends on factors like the number of orders, the restaurant’s location, the commission charged by competitors, and more.
Value Propositions Swiggy Offers
Flushed with money, the companies are now jostling to enter consumers’ minds and make more money. Technology is empowering the above-mentioned largest food delivery companies in the world, and this is why they are recognized across the globe.
In a world where companies clone each other’s offerings in no time, Suffescom Solutions is your go-to app development partner that can help you compete with the food delivery giants. We are here to empower you with the solutions you have been seeking.
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