The growth of UK food ordering and delivery platform

Published on 08/25/2021 Author: Michelle Li

The UK food delivery market is the largest in Europe and has experienced significant growth over the past five years, with platforms such as JustEat, Deliveroo and UberEats dominating the market. The food delivery industry experienced 22.9% growth in revenue in 2020, an increase of 8.6% compared to the growth shown in 2019. Third-party delivery services have revolutionised the relationship between consumers and food, and the hospitality industry’s relationship with technology.

Exhibit 1: UK food delivery revenue 2015–20

The demand for restaurant-quality food without having to cook at home during lockdown was matched with an increasing number of restaurants joining third-party delivery services to keep their business afloat, maintain their relevance and diversify their revenue streams. These platforms have allowed businesses to offer convenient delivery services without the high fixed costs involved, and a simple ordering process for customers where deliveries can be tracked easily. In 2020, the number of food delivery users rose by 24.6%, nearly double of the growth experienced in 2019. The pandemic has shifted takeaways from being a weekly treat to a more regular occurrence, with some consumers in London ordering around seven takeaways a week (Mirror).

Exhibit 2: Number of food delivery users in the UK 2015–2020

Although food delivery has been around for a while, this growth in revenue and users is expected to continue as the new technology has made it easier than ever to order food to your doorstep.