PUBLISHER: Mordor Intelligence | PRODUCT CODE: 2066550
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 2066550
According to Mordor Intelligence, the online food delivery market size was valued at USD 257.74 billion in 2025 and estimated to grow from USD 284.73 billion in 2026 to reach USD 468.51 billion by 2031, at a CAGR of 10.47% during the forecast period (2026-2031).

This report is Segmented by Business Model (Aggregator To Restaurant and Restaurant To Consumer), Service Type (Platform Delivery and More), Payment Mode (Online Payment Mode and More), Platform (Mobile/Tablet Applications and More), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).
Urban consumers within the online food delivery market, who are increasingly time-constrained, are driving the growth of online food delivery services. Busy professionals and workers are choosing to order meals instead of cooking or dining out, as it helps them save valuable time. This trend in the online food delivery market is supported by high global employment levels, with the International Labour Organization estimating a 95.1% employment rate in 2024, indicating widespread workforce participation. The rapid adoption of digital platforms and mobile ordering has made food delivery a convenient solution, particularly for individuals residing in densely populated urban areas. Features like shorter delivery times and real-time tracking have encouraged repeat usage, even when menu prices increase. For example, in markets like India, the combination of rising smartphone usage and higher disposable incomes in urban areas has significantly boosted the online food delivery industry.
The increasing use of digital wallets in the online food delivery market is playing a significant role in boosting online food delivery services. Digital wallets make the checkout process faster and easier, encouraging more impulse purchases. In 2024, 58% of United States adults used digital wallets, with adoption even higher among younger consumers aged 18 to 34, at a rate of 72% as per the Federal Payments Improvement Organization. This indicates a strong preference for mobile and app-based payment methods among younger demographics. Features like one-click checkout on platforms such as Uber Eats and DoorDash allow customers to place orders almost instantly without needing to manually enter card details. This convenience encourages repeat orders, particularly for smaller, spontaneous food purchases. As payment processes become quicker and more user-friendly, businesses see an increase in customer lifetime value. On the other hand, platforms that fail to offer popular digital wallet options risk losing customers due to higher cart abandonment rates, even if their menus and pricing remain competitive.
One of the major challenges for the online food delivery market is the lack of control over the last-mile delivery process, as platforms depend heavily on third-party riders and gig workers to deliver orders. This reliance can lead to issues such as delays, incorrect orders, food arriving at the wrong temperature, or poor handling, all of which negatively impact customer satisfaction and the restaurant's or platform's reputation. Even if the food quality is excellent, problems during delivery can result in unhappy customers, negative reviews, refund requests, and even loss of repeat business. These issues also increase operational costs for both delivery platforms and restaurant partners. As the number of orders continues to grow, especially during peak times or adverse weather conditions, ensuring consistent and reliable delivery becomes even more challenging. This makes the last-mile delivery process a critical weak point in an otherwise technology-driven business model.
Other drivers and restraints analyzed in the detailed report include:
For complete list of drivers and restraints, kindly check the Table Of Contents.
Restaurant-to-consumer platforms led the online food delivery market in 2025, holding 68.75% of the total market share. This growth is driven by large restaurant chains and groups that have developed their own branded apps and delivery services. By doing so, these restaurants can directly connect with customers, manage pricing and promotions, and avoid paying high commissions to third-party aggregators. Features like loyalty programs and personalized offers further strengthen customer relationships, making these platforms a key revenue source for restaurants in the online food delivery market.
Aggregator-to-restaurant platforms in the online food delivery market are expected to grow the fastest, with a projected CAGR of 11.47% through 2031. These platforms attract consumers by offering a wide variety of food options, convenience, and coverage across multiple locations. For small and mid-sized restaurants, aggregators provide access to a larger customer base without requiring significant investment in delivery infrastructure. Advanced logistics, marketing tools, and subscription programs help increase customer engagement and frequency of orders. As more consumers prefer platforms that offer multiple restaurant choices, aggregators are becoming essential to the growth of the online food delivery market.
In 2025, restaurant-managed delivery accounted for 37.82% of online food delivery revenue, underscoring the success of pizza chains and quick-service restaurants that operate their own delivery fleets. These businesses benefit from better control over food quality, delivery times, and customer satisfaction, which helps maintain their brand reputation and encourages repeat orders. By managing their own delivery, these restaurants avoid paying platform commissions, enabling them to offer competitive pricing and enhance their profit margins. As a result, many large quick-service restaurants and pizza chains continue to rely on in-house delivery to maintain their scale and customer loyalty.
In the online food delivery market, platform-based delivery is expected to grow at a 12.31% CAGR through 2031, driven by aggregator apps that provide extensive courier networks for quick and flexible delivery. This model allows small and medium-sized restaurants to expand their reach beyond their local areas without the need to invest in their own delivery infrastructure. Aggregators also offer tools like marketing support, customer discovery features, and subscription services, which help increase order visibility and frequency. As consumers increasingly demand faster service and more variety, platform-based delivery is becoming a key driver of growth in the online food delivery market.
In the online food delivery market, North America contributed 37.54% of online food delivery revenue in 2025, driven by the strong presence of major platform operators and widespread use of app-based ordering by consumers. Subscription models, efficient logistics systems, and strong partnerships with restaurants have ensured steady cash flows and frequent orders. However, increasing regulatory pressure on commission rates and courier wages is impacting the profitability of platforms in some key cities. Canada and Mexico are contributing to the region's growth, while cross-border collaboration is enhancing innovation and digitization efforts in the restaurant sector.
The Asia-Pacific region is the fastest-growing online food delivery market for online food delivery, with a projected CAGR of 12.53%. The increasing use of smartphones fuels this growth, the adoption of digital payment systems, and the rapid development of platform ecosystems. Leading companies in the region are heavily investing in logistics, cloud kitchens, and integrating services into super-apps to expand their reach. Southeast Asia remains a competitive market due to its diverse consumer preferences and infrastructure challenges. Meanwhile, countries like India are seeing growth beyond major cities, and markets such as Japan and Australia continue to provide stable demand with high spending.
Europe, South America, and the Middle East and Africa present a varied growth landscape for online food delivery. Europe faces stricter regulations that influence platform operations and cost structures, but consumer demand remains strong. In South America, Brazil leads the market, with delivery platforms becoming an integral part of urban lifestyles. The Middle East is experiencing rapid growth due to increased platform investments and rising consumer demand. In Africa, the online food delivery market is still in its early stages, with urbanization and the adoption of mobile payment systems driving expansion opportunities.