We All Need to Eat: A Dive Into Modern Day Food Foraging

Area Vice President, Consumer Insights

Take Out Brands

Getting food delivered to your doorstep is getting easier and easier and the market for convenience is getting more and more crowded. 

According to a recent report published on TechCrunch, the takeout and delivery market is $70 billion overall, with 12.9% of that, or $9 billion coming from online (or app) based sales. 

Recent research from 1010data shows the online food delivery market has grown approximately 40% in 2015 compared to 2014 in both total number of orders and in total dollars spent. 

These services typically work in one of two ways. One could be considered the more traditional model (restaurant controlled) of a major chain having a fleet of employees delivering orders (think the Domino’s Pizza guy).  The second is closer to the Uber/Lyft model of having independent contractors, who will then pick up and deliver orders from a multitude of local and chain restaurants. 

In 2015 our love for pizza at home grew. Domino’s, Pizza Hut, and Papa John’s combined to account for 45.1% of total food delivery sales, up from 40.3% in 2014. Maybe this has to do with us chilling at home, binge watching House of Cards and Narcos on Netflix. 

Pizza Hut is averaging the largest order size amongst the big three. Its average order size is $21.60 while Papa John’s is $18.45 and Domino’s is almost 20% less at $17.34. 

Who is Winning? 

Overall the king of food delivery is Seamless*, accounting for 18.8% of total dollars in 2015, followed by Domino’s (15.4%), Pizza Hut (14.4%), GrubHub* (13.5%), and Papa John’s (11.25%).

*Though one company, we measured Seamless and GrubHub separately as they are separate services to consumers.

percentage_of_sales_online_food_delivery

How big are the orders? 

Order sizes vary across the board with the average order size in 2015 being $16.92. Postmates, Doordash, and Caviar all have order sizes averaging more than $25. 

Below is a list of the average order size for some popular delivery services –

Average Order Size Food Delivery

What is Ahead?

The coming months will be fascinating to watch as many of the current players footprints grow and new entrants such as Uber start to compete in the white-hot space.

We expect the growth trajectory of these delivery services to hockey stick even further this year.

Methodology

1010data utilizes a number of sources of consumer spending data representing millions of consumers to provide an accurate assessment of online and offline retail sales and market share. Our data enables clients to track consumer behavior using high-quality, granular datasets that are often difficult to source, cleanse, and consolidate.