When it comes to UK food delivery, this is a business model that is thriving. Whilst more traditional businesses have struggled over the last year or so, due to the Pandemic, UK food delivery continues it’s upward path. Could this be a business model that you could join, or invest in? Consider 3 outstanding facts about UK food delivery which will give you plenty to chew over.
Fact 1: More Than One Third Of The UK Population Use Food Delivery
If you cast your mind back to 2017, less than a quarter of people in the UK used food delivery services according to businessofapps.com. Fast forward to today, and what do we learn? The percentage of users, based on a UK population of 67.22 million, is now well over a third, and shows progress that is in no way slowing down yet!
This outstanding fact makes UK food delivery one of the outperforming business models in recent times, and one that is well worth consideration for your hard earned pound.
In addition, recent lockdowns and social distancing means that traditional dine in venues were closed, resulting in an even greater number of people who have ordered food, when, under normal circumstances, they would not have…and so have become familiar with, and likely repeat users of food delivery services.
Fact 2: Food Delivery Revenue Has Doubled In Five Years
Not only are the number of users in the UK rising exponentially for food delivery services, but the upward trend in revenue from those services will likely also continue to climb.
An outstanding fact about food delivery is that the revenue from the services has climbed massively in five years, now doubling it’s figures. Reaching a figure of 11.4 billion pounds in 2020, the total amount is now double what it was in 2015. Will this trend continue in the difficult year of 2021?
Recent figures show that companies such as Lumina dropped 7.6% in 2021, however this figure is still a whopping 37% higher than it’s 2019 market value. With this in mind, the trend for revenue in the sector is still up, and as long as eat in restaurants still face the threat of lockdowns, the trend has no reason to reverse.
UK App Market Share – An Uber Experience!
The third amazing fact about UK food delivery relates to newcomers in the sector, and how well they have performed.
Long standing participants, such as Dominos have slightly decreased their market share..down from around 4% in 2015, to 3% in 2021. Whilst that is reasonably steady, others have fared even worse. Take, for instance, Just Eat.
With an app market share of a whopping 75% in 2015, their share has fallen in 2021 to only 45% of market share, as newcomers strangle their dominance. However, which of the newcomers appear to be eating away at their share. One of the most impressive is Uber Eats.
With 0% of market share in 2015, Uber Eats has grown steadily, and consecutively to reach a market share of 27% in 2021. Another great performer over the same period is Deliveroo. Deliveroo had just 5% of market share in 2015, but has now grown to a respectable 26% in 2021.
So, whilst Just Eat is still, by far the biggest player in the Food Delivery App Market, Uber and Deliveroo are chipping away at their dominance, and, if things continue in the same trajectory, will overtake Just Eat within the next five years or so.
So, How Good Are UK Food Delivery Companies
Whilst a lot of the players for food delivery in the UK market are global brands, and not necessarily local UK companies, recent times have emphasised what key players some of these companies are.
The trend for these is staggeringly positive. So, with time pressures, and Pandemic restraints likely to continue to plague us for some time to come, food delivery may well continue to be an outperformed in the UK market. As such, those who have invested in these services have likely profited in a large way over the last few years. However, given the projected growth in revenue(predicted to rise from $6.5 billion this year, to $9.4 billion in 2025), investors will likely continue to place their pounds, euros, and dollars into the market leaders in the sector..companies such as Deliveroo and Uber Eats. Will those delivery services be part of your economic plan? It is worthy of consideration.