2020 saw the arrival of what many call the "New Normal" concerning daily life and how we work. With the COVID19 Pandemic changing so much, existing businesses had to adapt and startups founded to address the new normal. One such sector that had to adjust and that entrepreneurs have taken advantage of is food delivery.
More than just Pizza
Once the Pizza and Kebab Delivery domain, today everything from Sushi to Sunday dinner is keeping restaurants alive. Since 2017 there has been a rise in Food Delivery services that serve as an ideal alternative to cooking.
No matter how bad personally, from a business perspective, 2020 was a boost. One for an industry that was already worth $25 Billion in the US and expected to grow to $97 Billion by 2025. Everything from fully cooked meals to ingredients with instructions to cook at home are transforming dining and eating habits.
From Drive-Thru to Drive to You
Drive-thru restaurants often focused on fast food, were an almost instant hit when first established. Today "Drive to You" is a massive hit, partly because people became obliged to use them in a pandemic but mainly because of technology. In just five years, Food Delivery App Users rose from 66 million in 2015 to 111 million in 2020. Apps of all kinds are attracting funding in increasing volumes.
Have Food Delivery Companies reached a peak
Food Delivery Apps saw a peak in funding in 2018 of $11 Billion that dropped to under $4 billion in 2019; however, investment funding is still steady. The concern among investors is that the app market is congested and that profitability among the competition is uncertain.
In terms of standard food delivery apps, the peak may well be over, but for innovative entrepreneurs and disruptors, there is always opportunity.
Homemade Meals Delivered
The likes of food delivery app giants such as Uber Eats and Grub Hub may have a large share of the market, but niche players are finding their space. WoodSpoon is a niche food delivery that delivers food made by home chefs, real food delivered to your door.
Founded by Lee Reshef, Merav Kalish Rozengarten, and Oren Saar in 2019, the small company has raised $2 million. The simple idea became a successful platform in 2019, and in 2020 it has grown steadily.
Get the best price for your meal
Similar in thinking to Uber with best-adjusted prices for rides, Gebni does the same for restaurant food delivered to your door. Founded in 2016 and focused around New York and the North East Coast, founders Ali Dahmani, Mohamed Merzouk, and Sid Merzouk raised a total of $400k, of which $180k was seed capital.
Gebni has an innovative approach to its business with its demand-adjusted prices to boost restaurants' sales, improve margins and save users money
Startups addressing new normals
Food Delivery is just one of many new normals that the world is becoming used to, and innovative startups are addressing. There are many new and creative startups addressing the new normal and Fundz has the essential information you need to get the inside track on some of the most promising.
Sources
https://www.businessofapps.com/data/food-delivery-app-market/
