Europe Food Platform-to-Consumer Delivery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Food Platform-to-Consumer Delivery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe Food Platform-to-Consumer Delivery market is expected to grow with a CAGR of 10.52% during the forecast period (2022-2027).

Key Highlights

• In Europe, online food ordering is becoming more popular. One of the major factors propelling the food platform-to-consumer delivery market's growth is the rising penetration of internet connections and smartphones, which provide the option to get food delivered conveniently and quickly.
• In addition, the mobile application allows various payment options, including net banking, debit cards, credit cards, digital wallets, and cash on delivery (COD). Most European customers prefer the online payment method as their knowledge of digital money grows.
• Growing consumer inclination towards convenient and time-saving food delivery services is expected to drive sales in the studied market. A significant rise in the usage of smartphones and easy internet access, coupled with the substantial development in food delivery apps, drives more demand for Europe Food Platform-to Customer Delivery Market.
• COVID-19 has created new growth opportunities for the European online food delivery sector. Millions of Europeans purchased food online when the country was under lockdown. The source of appealing, user-friendly apps and tech-enabled driver networks, connected with changing consumer expectations, has unlocked ready-to-eat food delivery as an essential category.

Key Market TrendsIncreasing Demand of Online Food Delivery Platforms

• The online tracking technology allows the consumers to receive their items on time and connect with the delivery employee if necessary. Tracking and tracing are critical components of last-mile delivery systems. It also assists route management and creating batch delivery systems without requiring manual intervention. This, in turn, expedites the procedure, and they are especially effective when there is a shortage of staff in specific scenarios.
• For instance, COVID-19 pandemic-driven demand for services offered by DoorDash. In September 2021, DoorDash acquired Helsinki-based food-delivery startup Wolt in an all-stock deal worth approximately USD 8.1 billion. Through partnership and acquisition, the company aims to increase delivery competition in Europe, particularly in Germany, where online delivery companies such as Just Eat Takeaway, Uber Eats, and Delivery Hero is already competing.
• Deliveroo and Just Eat are located in the United Kingdom. They are major participants in the online food delivery industry. Both function as a middleman between customers and restaurants, providing an online platform for ordering food delivered to the customer's house. For example, Just Eat handles approximately 100 million orders annually in the United Kingdom, representing the company's largest market.
• For instance, in September 2021, the United Kingdom-based food delivery company, Deliveroo offered free service to Amazon Prime members in Ireland and the United Kingdom. Deliveroo's 50,000 restaurants provide free delivery. All new and current Amazon Prime customers in the two areas are eligible for a one-year complimentary subscription to Deliveroo Plus. They will receive free delivery on orders over USD 34 million.
• The sudden growth in online food delivery systems has been attributed to the COVID-19 pandemic which has increased in the following years. For instance, in November 2021, Europe's largest food delivery group Just Eats, revenue recorded EUR 2.6 billion in 2021, a rise of 51% compared with 2020 revenue. Just Eats also acquired the US-based Grubhub to expand its market share. The acquisition of Grubhub by Just Eat Takeaway is part of a larger strategy to penetrate the US market and compete with Uber Eats and DoorDash.

Aggregators Platform are expected to drive growth in the Platform -to-consumer delivery Market

• Third-party delivery companies have started growing in the Europe food industry. These third-party companies provide aggregators platforms to expand on the traditional meal delivery concept by providing access to various restaurants through a single online gateway. Customers may rapidly compare menus, pricing, and peer ratings by signing in with the application or website. Since third-party companies manage the order deliveries, the Customer doesn't need to worry about the food delivery.
• The growth of numerous meal delivery aggregators, such as Doordash Inc., enhances online delivery. Furthermore, multiple integrations of smart AI and smart technology by food delivery platforms for consumer convenience will likely present the industry with sufficient development opportunities. In addition, technological developments such as food delivery by drones and robots are the current trend in technology that helps the online food delivery industry to accelerate growth in the Food Platform-to-Consumer Delivery Market.
• In Europe, food delivery has evolved beyond takeout to everything led by platform-to-consumer services such as Glovo, Uber Eat, delivery Club, Just Eat, and Deliveroo, adding billions of dollars in potential revenue capture. For Instance, Just Eat's restaurant network, having already purchased Hungry House in the United Kingdom, Pyszne. pl in Poland, 10bis in Israel, and several of Germany's top services such as Lieferheld and Foodora
• In 2021, platform-to-consumer delivery was predicted to have the highest revenue share. The increasing popularity of numerous meal delivery platform applications such as Deliveroo, UberEats, and Grubhub further contributed to the market growth. Furthermore, increased smartphone penetration and considerable development of different innovative food delivery apps are expected to provide significant growth to the market.

Competitive Landscape

Europe's Food Platform-to-Consumer Delivery Market is growing significantly. Few prominent companies in the European food delivery industry hold a significant market share. Major players in the market are Deliveroo, UberEats, etc. These market players leverage strategic collaborative creativity to increase their market share and profitability.

• December 2021 - Delivery Hero SE announced intentions to consolidate its German operations, Foodpanda Germany, into a Berlin-based hub focused on creating new logistics and software solutions for the delivery business. Furthermore, the company announced a timeline for the planned divestiture of its Japanese entity, which also operates under the brand Foodpanda.

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