Three food-delivery apps set to serve some growth

Greater internet penetration, higher standards of living in developing countries and an increase in mobile usage are cooking up a lucrative dine-at-home culture

Vikram Barhat 7 August, 2019 | 1:04AM
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Uber Eats

The explosion of food-delivery apps is upending the food industry like never before. The stay-at-home culture among busy urban professionals has been fuelling the mega-trend of meal-delivery services. Time-starved and tech-savvy younger consumers are forgoing the traditional dining out experience, opting for the convenience and choice inherent in online takeout platforms.

As more households choose to order in, the online food-delivery market is projected to grow from US$35 billion globally in 2018 to a staggering US$365 billion by 2030, representing an annual growth rate of 20%, at which point it will represent about 10% of the global food market, according to a UBS report.  Near term, Morningstar equity analyst Ali Mogharabi estimates the market to be north of US$200 billion over the next five years, growing at 35% per year. Greater internet penetration, higher standards of living in developing countries and an increase in mobile usage are the key drivers of this growth.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating Inc3,380.05 USD1.09Rating
Uber Technologies Inc44.87 USD1.15Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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