Food Sector Apps that Benefit the UK

Globally, there is an 83 billion Euro market of food delivery, which is 1% of the food market as a whole. Four percent is sold through fast food and restaurants, a maturing market. Growth over the next five years is predicted to be no more than 3.5%. Traditional food delivery continues to be the most popular method. This means that an order is placed with a food chain directly, and it is then delivered. This category has long held some 90% of the full market share, with customers using the telephone to place their order.

The telephone continues to be used, but how it is used is changing rapidly. People are now used to shopping online, and this is being reflected in food delivery as well. In the United Kingdom, this development is incredibly fast.

There are two key types of platforms that have brought online shopping to the food sector. First, there are the aggregators, appearing around the year 2000. The newest are the delivery players, which started around 2013. Both these apps allow menus to be compared, reviews to be posted and read, and orders to be placed.

Aggregators are similar to the traditional food delivery option. Restaurants pay the app developer a commission. This market has become saturated to a certain degree, with the four key players – Just Eat, GrubHub, Foodpands, and Delivery Hero – having a global reach. Just Eat is the most popular in the United Kingdom.

The delivery players also allow menus to be compared and orders to be placed. In addition, these also provide a delivery service. This means that a customer places an order and the delivery player picks it up and brings it to the customer. They are paid a commission for each order by the restaurant, as well as the cost of delivery. The cost is higher for the restaurant, therefore, but it also means they reduce their overhead costs. Plus, it has enabled restaurants that do not offer traditional delivery services, such as fast food chains like McDonald’s and Subway, to have their foods delivered.

Both the aggregators and the delivery players have brought tremendous benefits to consumers and restaurants alike. Consumers are happy to pay slightly more for the convenience of not having to drive to their chosen restaurant and be able to compare the different offerings. Restaurants, meanwhile, have a minimal investment to make through these apps and a very large potential for return for investment. Overall, the food sector has changed significantly as a result.