food industry trends, industry insigts, food delivery

Industry Focus: Food Delivery

Are you a final year university student, worrying about your future career goals? Are you a school leaver in need of a great income within the next 3-5 years? Or, are you a job seeker, wondering which job or company will suit you best? Above all, do you crave food? If you’d love to work in the food delivery industry (lots of free food and a good salary), then you are in the right place!

The Evolution of the Food Delivery Industry

People often used to go out and dine in restaurants. Now, however, many people are too busy to go out for a meal. Also, technological innovation is creating and developing smart cities, with the aim of making everyday objects and processes work more efficiently. In some restaurants, you can order food over the phone. However, online ordering has become more popular as it is more convenient and simple. Many restaurants even deliver the food to your doorstep, although if you prefer, you can collect it yourself.

Customers love online food-delivery platforms as they are convenient, simple, and time efficient. As a result, the food-delivery industry is expanding. The current industry has evolved from being aggregators and, in the future, droids will be integral. In fact, some companies have already begun to test their droids.

Aggregators

Aggregators form the traditional model of food delivery. This business model was invented 15 years ago. It consists of an online portal from which the consumer can compare menus, prices and reviews from different restaurants, to order online. With this model, the food delivery company only gains a fixed margin of orders from the restaurant.

New delivery

In 2013, the new delivery model was invented. This is the same as the aggregator model with the addition of logistics for the restaurant. It benefits the customer as it allows them to explore higher end restaurants. This model is also more profitable for the food delivery company as it gets a small flat fee from the customer along with the restaurant’s fixed margin.

Food Delivery, Ordering Food Online, Food Order

What are the Benefits of New Food Delivery Systems?

The new delivery system benefits everyone in the food industry, including the restaurant, the customer and also the food delivery company.

Restaurants benefit because online ordering platforms such as GrubHub, DoorDash, etc. provide them with free online marketing. They also see an increase in revenue sources. Because online ordering and delivering is possible, customer numbers will increase.

As stated previously, the customer will be more than happy to order food online with this new delivery portal; it is more convenient, easy to order, there are more dishes to choose from high-end restaurants, and the food is delivered within a shorter time frame. According to McKinsey statistics, 82% of customers order food from home, 16% from their place of work, and there are much higher rates of orders on Friday, Saturday and Sunday.

Food delivery companies benefit because they can enhance customer satisfaction. Customers are the most valuable aspect for any delivery company to become successful, because of this becoming able to enhance custom satisfaction (ability to provide many menus from high-end restaurants, simplicity, delivering on time, more convenience and many more) through new system is profitable. With this system, they even get a higher volume of large orders, from high-end restaurants partnered with the company.

European Food Delivery Industry: Market Size

In a world where smart cities are becoming the new trend, the worldwide food delivery industry is worth €83 billion. The food delivery industry covers 1% of the total food market. According to market analysis, the Chinese food delivery market was worth $29.8 billion in 2016, which marks China as the country with the largest food delivery sector in the food industry.

Compared to other food industry sectors, the food delivery market is the one of the most competitive. Food delivery industries are major contributors to the European economy. Delivery Hero is the market leader in Germany, Austria, Finland and Sweden, whereas JustEat is at the top of the food delivery market in the United Kingdom, Denmark, Norway and Switzerland.

European Food Delivery Industry: Growth Rate

Market research has revealed that the compound annual growth rate (CAGR) in Europe is growing, at 23.5%. The food delivery industry is forecast to grow in the next 4 years (2017-2012) with CAGR increasing by 15.25%. In this year (2017) the online food takeaway revenue will be USD 22,178.9 million, whereas online food delivered by restaurants will reach up to USD 45,999.8 million. Current estimation on the food delivery industry growth rate by 2021 is that it will increase by USD 50 billion. These figures are supported by another estimation regarding an increase of users: the European adult population will rise by 38 percent (Research and Markets, 2017 and Statista, 2016). The food delivery industry will continue to grow, mainly due to expansion of the internet and an increased use of smart phones. Nowadays, even young children know how to use the internet and smart phones. With that in mind, you should probably keep your smart phones and devices away from children, because they might end up making you bankrupt.

European Food Delivery Industry: Top 3 New Trends

Expanding food delivery companies with other customer requirements is a trend in this competitive food delivery market:

1. New Ideas

To compete with others in this growing market, companies have to introduce new ideas. The consumer’s interest in healthy food could lead food delivery companies to come up with new, healthy recipes. Alternatively, a company can grow and combine with other sub-sectors, to fulfil other customer requirements and desires. An example of this is the UK’s Monster Pet Supplies. Monster Pet Supplies is the UK’s first company to provide and deliver pet supplies (online ordering of pet supplies).

2. Avoiding waste and conserving the environment

Food is wasted in many ways and, perhaps unknowingly, companies are also wasting money. Investing in food technologists and scientists can help a company to identify healthy and nutritious elements of their food that are being wasted. With expert chefs and scientists’ findings, the company can come up with new and unique dishes that avoid waste.

3. Innovations in technology will affect the food delivery market:

Much of the food delivery industry’s growth has been due to new technologies (smart phones and the internet). Technology is a key factor in the growth rate of any industry. Some companies have already come up with ideas for the use of robots as deliverers (experiment level). Droids and other forms of artificial intelligence will make a significant difference to the food delivery industry. Domino’s ‘Dom’ is a good example of this.

Food Delivery, Delivery Service

Food Delivery Ecosystem

European food delivery company details were researched, compared and collected from databases such as: indeed, paysa, crunchbase, owler, and Linkdin company profiles.

1. Grub Hub

Founded in 2004, in Chicago, Illionis by Matt Mcloney (CEO), and Michael Evans. In 2013, it combined with Seamless (1999)

1000 employees

Salary: average $149k, base $108k, annual bonus $12k, annual equity $28k, one-time sign in bonus $8k

Benefits: health insurance, dental insurance, retirement plan, equity incentive plan, 401K plan, stock options, family and parenting benefits, vacation and paid time off, perks and discounts, free lunch or snack

Competitors: Eat24, Door Dash, Fluc, and Order Up

2. Order Up

Founded in 2009, Battimore, MD by Jason Kwcien (founder), and Chris Jeffery (CEO & co-founder)

160 employees

Salary: average $101k; base: $101k; 0.19 percent equality

Benefits: fun workplace, flexible hours, casual attire, health, dental, disability, and visual insurances, weekly catered lunch, flexible PTO, games, flexible spending accounts, and many more

Competitors: Eat24, Eat Street, delivery.com, GrubHub, Postmates, Food to Eat, Deals Meals, Caviar, and Door Dash

3. Eat Club

Founded in 2010 by Rodrigo Santibanez (founder), and Mike Griffith (CEO)

1000 employees

Salary: average $112k, base $112k, 0.12 percent equity, one-time sign in bonus: $11k

Benefits: personal lunch

Competitors: Postmates, Munchery, Sprig, Spoon Rocket, and Door Dash

4. Eat Street

Founded in 2010, in Madison, Wisconsin by Matt Howard (CEO, co-founder), Alex Wyler (CIO, co-founder) and Eric Martell (CIO, co-founder)

100 employees

Salary: average $86k, base $86k, 0.20 percent equity, one-time bonus $5k

Benefits: competitive salary, life insurance, medical, dental and vision benefits, Apple equipments, weekly happy hour, fully stocked coffee & soda bar

Competitors: Fluc, Eat24, Seamless, Grub Hub and Door Dash

5. Delivery Hero

Founded in 2010, in Berlin, Germany by Niklas Ostberg, Kolija Hebenstreit, Nikita Fahrenholz, Claude Ritter, David Bailey and Markus Fuhrmann

7000 employees

Salary: average $262k, base $139k, annual bonus $36k, annual equity $87k, one-time sign up bonus $11k

Benefits: employee discounts, company social events, free lunch or snacks, gym membership, and commuting allowance

Competitors: Just-Eat, Amazon, Zomato, and Deliveroo

6. Postmates

Founded in 2011, San Francisco, US by Sam Street (co-founder), Sean Plaice (co-founder), and Bastian Lehmann (CEO, co-founder)

223 employees

Salary: average $185k, base $135k, annual equity $50k, one-time bonus: $17k

Benefits: pay 100% of employee medical, dental and visual insurance, equipments provided, good salary and equity

Competitors: Thumbtack, and Task Rabbit

7. FoodJunky

Founded in 2011, in Chicago, IL by Travis O Johnson (CEO, co-founder)

50 employees

Salary: average $86k, base $86k, 1.2 percent equity

Benefits: private employee discounts, exclusive pricing, and friends and family sales

Competitors: Eat24Hours.com, Seamless, and GrubHub

8. Caviar

Founded in 2012, in San Francisco, CA by Abel Lin (founder), Jason Wang (CEO), Shawn Tsao (co-founder), and Andy Zhans (co-founder)

180 employees

Salary: average $99k, base $99k, 0.64 percent equity

Benefits: insurance, health and wellness, retirement plan, 401K plan, stock options, equity incentive plan, family and parenting benefits, vacation and time-off, free lunch or snacks, discounts, and professional support

Competitors: Postmates, Spoon Rocket, Sprig, Munchery, and Door Dash

9. Fluc (Food Lovers United Co)

Founded in 2013, in Melno Park, California by Pako Magdaleno (founder) and Tim Davis (CEO, founder)

Also known as Miles & Company Services

50 employees

Salary: average $164k, base $164k, one-time sign in bonus $18k

Benefits: health insurance, stock options, vacation and paid time-off, free lunch or snacks, pet friendly workplace, and professional support

Competitors: Munchery, Sprig, Tapingo, Door Dash and Postmates

10. Door Dash

Founded in 2013, in Palo Alto, CA by Tony Xy (CEO), Stanely Tang, Andy Fand, and Evan Charles Moore

840 employees

Salary: average $131k, base $131k, 0.023 percent equity, one-time sign in bonus $12k

Benefits: health and wealth, 401K plan, competitive salary, free food and more

Competitors: Postmates, Fluc, Caviar, Munchery and Sprig

Food Delivery, Ordering Food Online, Food Order

Job Opportunities in the European Food Delivery Industry

  • Admin / executive assistants
  • Contractor operations
  • Drivers/ Deliverers
  • Engineers
  • Entrepreneurs
  • Finance officers
  • Food technologists
  • Human Resources
  • Managers
  • Operations
  • People Ops
  • Sales Managers

Skills For a Successful Food Delivery Career

  • Applied Science
  • Computer Science
  • Web Engineering
  • Web Technology
  • Software Engineering
  • Web Design
  • Business Studies
  • Economics and Finance
  • Entrepreneurship
  • Creative and critical thinking
  • Leadership
  • Driving

Top 10 European Universities that Develop the Skills Required by the Food Delivery Industry

Top 4 Online Universities to Gain the Required Skills in the Food Delivery Industry

Hopefully, the questions you had about working in the food delivery industry have now been answered. It’s your turn to research more thoroughly into universities so that you can develop the required skills to work in the food delivery industry. If you already have a Bachelors, MSc or Phd, apply to work for one of the listed European food delivery companies.

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This article was published first on our sister website smartcity.careers.

Theresa Kern

Theresa Kern

Business Development at beta|careers
Theresa is a management student and team member of the 2017 class at beta|careers.

Her responsibilities include growing and nurturing our platforms and, occasionally, taking care of bus tickets for the team. In her free time, she can be found on horseback out in the woods.
Theresa Kern

Ecosystem Basics