Food Delivery Apps Have Seen Their Sales Skyrocket During Covid-19

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Food Delivery Apps Have Seen Their Sales Skyrocket During Covid-19

Missing your favorite restaurant? Why not check the Food Delivery Apps?

The COVID-19 pandemic presented a difficult challenge for businesses, particularly those in the restaurant industry. Several cafes, restaurants, and bars closed down after they failed to adjust to the many government restrictions. Those that were able to switch to the takeaway mode managed to survive.

COVID-19 has not only changed lifestyles. It has also revolutionized the food and restaurant industry. Some restaurants remained open, but not for long, as owners were faced with the problem of reduced customers and declining income. This continued as most people either opted or were forced to stay inside their homes to avoid catching the virus.

Advantages and Disadvantages of Food Delivery Apps

“The establishment of our takeaway menu and our temporary food delivery offering kept us going during the past three months,” says Matthew, chef at factory 51 restaurant in Brisbane. Factory 51 is an Italian Restaurant and Pizzeria that also provides a venue for private functions. It is one of the several restaurants in Australia that has adjusted to the crisis by introducing a takeaway menu and a food delivery option. While it has stopped its food delivery, now that dine-in has been allowed, Factory 51 customers can continue to enjoy its takeaway menu.

Food Delivery Apps

Just like Factory 51, many other restaurants have managed to survive by partnering with an increasing number of delivery companies. Surprisingly, the delivery option that helped sustain the operations of these businesses has become popular not only during the quarantine period but also even after that.

Most businesses managed to earn during the pandemic, thanks to the food delivery apps. However, some restaurant owners claim that the increasing commission charges of the food delivery apps are starting to eat into their profit margins. Unfortunately, restaurant owners fear that they will not be able to survive if the trend continues.

Delivery Services: Were They Always Popular?

Research shows that food delivery apps were already favored even before COVID-19.  In 2019, Azoth Analytics attributed the growth of the food delivery business not only to the increasing number of young people and their changing lifestyle but also to improving access to the internet. The popularity of smartphones has also given rise to online food delivery platforms. 

Food Delivery Apps

For those connected to the internet, food delivery apps have proven to be more convenient than going out to buy or eat food. The research also took note of the increasing number of players in the food delivery business. A closer look at the number of employees and the generated revenue of these companies shows how big the industry has become.

Here are some of the popular food delivery apps

Deliveroo

This London-based food delivery business has 5,699 as of 2019 and thousands of self-employed couriers. Four years after its establishment in 2013, the company’s revenue was pegged at 277.1 Million GBP. Deliveroo is known for its extensive list of a diverse mix of restaurants from local favorites to health and comfort food. It is found in several other countries such as Australia, HongKong, and Singapore.

Foodora

This is one food delivery business that boasts of having a well-curated list of restaurants that serve only the best cuisines. Most of these restaurants do not really deliver food. Thus,  the opportunity to have your orders delivered to your homes or offices has made this online food app very popular. Foodora is based in Berlin, Germany, but has acquired Suppertime in Australia, which was later rebranded to Foodora.

Foodora is one of the premium food apps in Australia that deliver cuisines only from the best of the restaurants. The app displays a curated list of reputed restaurants and follows a streamlined process of ordering and delivery of food. Since this online food app delivers eatables from restaurants that otherwise traditionally don’t deliver, it is gaining a lot of momentum. Its revenue is pegged at $21.4 Million.

Menulog

This is a homegrown food delivery app that claims to be a favorite. It has 255 employees and a revenue of $45 Million. The business had an early head start in 2006.

Yelp, which provides information on various businesses, reported the growth of food delivery orders since COVID-19 started. Not surprising at all, considering that with lockdown in almost all areas, restaurants are highly dependent on these delivery services. But whether or not the skyrocketing sales of these food delivery apps will continue to the end, that will all depend on the continued existence of these restaurants.