There is one inspiring news for entrepreneurs.
Now, you must be thinking what, Right?
This is one such news will surely inspire you to have your food delivery business as soon as possible.
Recently, three-minutes Meal-delivery Startup ‘Freshly’ has raised $77 million funding. A big funding round was led by a big name – the U.S. division of food and beverage giant Nestle.
On 20th June 2017, Freshly announced it’s new Series Crowdfunding round and it was also supported by its existing investors including Insight Venture Partners, Highland Capital Partners, and White Star Capital.
Founded in 2015 and led by CEO Michael Wystrach, Freshly is well-known for delivering Direct-to-Consumer (DTC) healthy prepared meals, presently it supplying consumers in 28 states of USA with weekly shipments. Since 2015, the startup has raised $107 million, a figure that comprises the Series Crowd financing.
Current Status of Food Delivery Startups
Globally, the food delivery market stands at €83 billion, or 1% of the total food market and 4% of food sold through restaurants and fast-food chains. So, the market is being matured in various countries, with an overall annual rate estimated at just 3.5% for the next five years.
Talking about the ordinary form of delivery, it is still the traditional model, where consumers are placing an order to the nearest pizza centre or restaurant and waits for the order to arrive at the home. This traditional category has a 90% market share, as most of the orders are still placed by phone.
But the on-demand digital technology is reshaping the entire food delivery market. As it is developing a new habit among consumers of shopping online through the use of apps or websites. Today, customers are expecting the same experience while placing their food order.
As per Statista Report, the revenue of the restaurant industry in the United States reached 782.67 billion U.S. dollars with fast food industry contributing an estimated 206 billion U.S. dollars to this figure. In addition to this, consumers spending on food delivery in 2015 was worth approximately 30 billion U.S dollars and out of which four billion U.S. dollars was accounted by online delivery sales.
Among U.S. consumers, delivery services are extremely popular, as a November 2016 survey found out that 20% of respondents use food delivery at least once a week. Gradually, online food delivery platforms are growing and offering different choice and convenience, enabling customers to order directly from an application with a single tap.
Why Consumers Prefer Digital Meal Order Approach?
Change is the only constant and accepting change and stepping up to the technological revolution from the traditional approach has enormous benefits to deliver. Today, more and more consumers prefer to order a meal online using food delivery applications. They use an app for meal delivery because of varied reasons that are as follow:
- Decision Convenience – Using the app for food ordering is extremely convenient for users as they can easily order a variety of food with just a few taps.
- Safe and Secure Transaction – With an app, users can securely make payments as they can use cards, wallets or PayPal accounts.
- Access Complete Info About Menu – Users love to get complete information about the menu, so a food delivery app is a great option for them as they can get desired information about the menu and then order the food.
- Post-Benefit Convenience – In the app, you only need to enter your address and payment details for once, so next time, you only just need to log in and select things in seconds that you want to order.
Still, there is a Big Room for Entrepreneurs, who are Interested in Food Delivery Startup
As per Brita Rosenheim, an experienced strategist and advisor within the food and lifestyle industries, said “There is definitely a lot more money pouring into food. Everybody eats — if there isn’t a bigger market opportunity than that, I don’t know what it is”
So, if you are thinking to invest in a food delivery startup, you should not waste your time as still there is a huge space in the industry, where you can fit and start your own startup that delivers fresh and healthy meals. To make delivery and serving your consumers easy and convenient, you can make a meal delivery app that will connect you with your consumers and help you to serve them a rich experience.
If you have any confusion related to it and want to get an instant solution, you can discuss it with our team of experts, who will help you out. Just fill out the contact us form and our team of developers, who have already worked on various food delivery app projects, will get back to you. Below, you can find food delivery apps that developed our app developers. that you can check out below: