With their asset-light model, aggregators post earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of 40 to 50 percent. There is no additional cost to the consumer. The aggregators collect a fixed margin of the order, which is paid by the restaurant, and the restaurant handles the actual delivery. By logging in to the site or the app, consumers can quickly compare menus, prices, and reviews from peers. AggregatorsĪggregators build on the traditional model for food delivery, offering access to multiple restaurants through a single online portal. In contrast, the new-delivery players build their own logistics networks, providing delivery for restaurants that don’t have their own drivers. ![]() The aggregators, which are part of the traditional-delivery category, simply take orders from customers and route them to restaurants, which handle the delivery themselves. Both allow consumers to compare menus, scan and post reviews, and place orders from a variety of restaurants with a single click. The first type is the “aggregators,” which emerged roughly 15 years ago the second is the “new delivery” players, which appeared in 2013. Two types of online platforms have risen to fill that void. Consumers accustomed to shopping online through apps or websites, with maximum convenience and transparency, increasingly expect the same experience when it comes to ordering dinner. However, as in so many other sectors, the rise of digital technology is reshaping the market. This traditional category has a 90 percent market share, and most of those orders-almost three-quarters-are still placed by phone. It has already matured in most countries, with an overall annual growth rate estimated at just 3.5 percent for the next five years.īy far, the most common form of delivery is the traditional model, in which the consumer places an order with the local pizza parlor or Chinese restaurant (although many other kinds of restaurants, particularly in urban areas, now offer delivery) and waits for the restaurant to bring the food to the door. Worldwide, the market for food delivery stands at €83 billion, or 1 percent of the total food market and 4 percent of food sold through restaurants and fast-food chains. ![]() Research from McKinsey, based on a six-month study covering 16 countries around the globe, provides insight into this fast-changing market. Although these new Internet platforms are attracting considerable investment and high valuations-already, five are valued at more than $1 billion-little real knowledge about market dynamics, growth potential, or customer behavior exists. The business of delivering restaurant meals to the home is undergoing rapid change as new online platforms race to capture markets and customers across the Americas, Asia, Europe, and the Middle East.
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