But there are already many food delivery apps that promise to deliver fast. You're totally right! cookies, McKinsey_Website_Accessibility@mckinsey.com. This is the pattern we’ve seen, for example, in the more mature flight-booking category, which has seen a dramatic channel migration over the past 10 to 15 years, as well as for selected food-delivery players, such as Domino’s Pizza in the United States. Crucially, the players in this category also provide the logistics for the restaurant. With the top five global players having reached a combined valuation of more than €10 billion, the key question is what a sustainable level of profitability will be for the online-food-delivery business models. Meal delivery services are a great option for busy parents and families. This is especially attractive to customers looking for healthier alternatives to pizza. Search engine optimization (SEO) is an important component of online marketing for any business. After a long day at the office, what could be better than that? Introduction • Foodpanda is a global online food delivery marketplace headquartered in Berlin, Germany, and operating in more than 40 countries across four continents. Carsten Hirschberg is a senior partner in McKinsey’s Berlin office, Alexander Rajko is a consultant in the Cologne office, Thomas Schumacher is a partner in the Düsseldorf office, and Martin Wrulich is a partner in the Vienna office. You need to have a well-designed website to promote your food delivery services. It’s hard to overestimate the role of content for mobile application marketing. Consolidation is advanced in most markets and will likely continue. Aggregators build on the traditional model for food delivery, offering access to multiple restaurants through a single online portal. With new delivery, consumers can dine at home with the same quality food they would enjoy at a fine restaurant. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. This online food delivery platform records TV ads, such as one with giant food items, offers generous promo codes for customers, hands out branded merchandise, and cooperates with food bloggers. We can help. To market food delivery apps, social media and some marketing strategies are great way to do this. hereLearn more about cookies, Opens in new There is no additional cost to the consumer. The challenge now is for them to deliver on that belief. However, there is potential for greater disruption if more high-end customers opt to consume restaurant meals at home. The opportunity for new delivery is to extend food delivery to a new group of restaurants and customers. GrubHub has a blog where, in addition to articles, they entertain readers with quizzes like “Are You a Hot Dog or a Hamburger?” Don’t forget to let your readers share their results with friends. This is a popular demographic for meal delivery services, as college students and young adults live fast paced lives. Want to replicate the success of Uber Eats? Market Segmentation . Gesoo, for instance, delivers only from Asian restaurants and targets the Asian population in the US. Check out our approach and services for startup development. Select topics and stay current with our latest insights, By Carsten Hirschberg, Alexander Rajko, Thomas Schumacher, and. Although investment continues to pour in (Delivery Hero and Foodpanda, for example, both attracted €100 million in new investment in 2015), most of the consolidation in this subcategory has already occurred. See our Privacy Policy and User Agreement for details. Subscribe to our newsletter! Moreover, this type of contest has social value, helping the company build trust with customers and improve its image. Working professionals, especially men, are gravitating toward meal kit delivery services. With the help of a USP, you’ll be able to tell your potential customers what problems your food delivery app can solve. Players include brands that operate globally such as Deliveroo and Foodora, which are continuing to capture new regions. It doesn’t matter which platform you choose to build your food delivery app for. McKinsey research shows that just 26 percent of traditional-delivery orders are made online today, but we expect this share to increase rapidly. Clipping is a handy way to collect important slides you want to go back to later. Something went wrong. Find out what to expect from food delivery in the near future. New-delivery operators can control the complete customer experience.