Online food delivery services continue to climb

The online food delivery services industry has shown no signs of slowing down since the peak of the COVID-19 pandemic and is expected to reach $66.56 billion in revenue by year-end, in growth of 9.69% compared to 2021, according to Statisticala market and consumer data research provider.

Since March 2020, DoorDash deliveries to homes, offices and hotels have increased nearly 300%, along with other online delivery brands: Seamless, up 196%; Uber Eats, up 55%, and Grubhub, up 47%, according to aggregate expense report data from Embarka global research leader in expense management solutions.

The trend continued through 2022. Transaction counts for Uber Eats meal deliveries grew another 88%, Grubhub grew 64%, and DoorDash also grew 64% in Q1 2022.

The average size has also increased, suggesting a growing reliance on delivery services for team events as workers meet in person again. Seamless’s order size nearly tripled to around $162 from 2019 to 2022, while DoorDash’s meals averaged around $66 from around $46; Uber Eats $53, down from around $28; and Grubhub $108 vs around $66.

“The huge increase in volume and size of orders with food delivery services is indicative of some changes we are seeing in the workplace and the need for companies to be more employee-centric in their approach,” said Eric Friedrichsen, CEO of Embark. “As more and more teams return to the office for meetings and collaboration, a free lunch is a great motivator. Most employers know that workers are still reluctant to return to the office, which is why it It’s increasingly common for a manager to order delivery of a team lunch to encourage employees to join in person.

DoorDash continues to control online food delivery market share, earning 59% of U.S. consumer meal delivery sales in April 2022, according to Bloomberg’s second measure. Uber Eats comes in second with 24%, while Grubhub and its subsidiaries, including Seamless and Eat 24, round out the top three with 14%. Fifty-two percent of Americans have placed at least one meal delivery service order, up from 47% a year ago.