The Economic Impact of Delivery Apps

Online ordering for food delivery is more common than ever due to the heavy transition to contactless takeout food options during the height of the COVID-19 pandemic. No longer just one of many virtual concepts for the restaurant industry, delivery apps are the current restaurant revolution fueled by millions of customers no longer able to physically go to their favorite diner or kitchen.

Another of the virtual concepts that has become a reality is the widespread use of ghost kitchens, ones that operate on a delivery only basis. Ghost kitchens are becoming popular with startups and established restaurant chains alike thanks to the lower cost and liability compared to a traditional dine-in establishment. Monitoring this influx in interest, experts are projecting that ghost kitchens could generate $1 trillion in global revenue opportunities by 2030 which will largely be supported by third-party delivery apps for order fulfilment.

More Online Ordering Means More Food Delivery

Many of the food delivery apps available were vital during the pandemic to help keep restaurant closures down while still providing those stuck at home with their favorite meals when they needed them most. On top of this, each delivery app is another source of income for many families who say it lets them better provide for their children and family members, even during the toughest parts of lockdown.

The way any kitchen, traditional or ghost, can keep up with the increased online ordering is by partnering with as many delivery apps as possible, creating a bigger reach and footprint than ever before. Restaurant technology and SaaS have made this possible by helping to manage orders and deliveries all in one place no matter how many apps you use.

Finding ways to optimize your kitchen is how you can get more and more of the revenue food delivery generates which is climbing above the previous $26 billion generated by the food delivery market in 2020 in the US alone. Virtual concepts being rushed into reality due to the lockdowns during the pandemic have truly created possibly the largest restaurant revolution in history, all thanks to the unique restaurant technology created and improved to accommodate such a mass transition.

Economic Impact Is More Than Generated Revenue

As impressive as the current numbers and projected revenue increases are, it's important to remember that the biggest factor saving the industry is the fact that restaurants were able to stay open in a situation that would otherwise ruin them. Here are some statistics from DoorDash's first-ever economic impact report:

  • 67% of restaurants say DoorDash has been crucial to their business during COVID-19
  • 76% of Dashers indicate that Dashing has had a positive impact on their ability to provide for themselves and their family
  • 88% of consumers believe DoorDash has helped restaurants during COVID-19
  • 65% of restaurants say they were able to increase profits during COVID-19 due to DoorDash
  • 90% of Dashers believe DoorDash provides an important service during COVID-19

While the article also dives into the overall market outlook, it's inspiring to see just how much of an impact it had on everyone involved with the online ordering process. Customers were able to help save their favorite establishments, workers who lost their job due to the pandemic were able to find steady and fairly paid work and restaurants were able to keep their food delivery open even when they had to shut their doors for dining in.

These extra connections in the process help to create more incoming market activity within the industry as customers are comfortable paying a little extra in service or delivery fees if it means they still get to have their favorite comfort food from their local restaurants. The drivers get paid for each delivery which means more spending power for them as consumers and the delivery company get a small fee per order to be able to continue offering their platform and service.

Takeout food and online ordering were the unexpected heroes for a majority of food establishments and customers alike. Necessity truly is the mother of invention, giving companies the push needed to realize new virtual concepts and take restaurant technology into the modern era. Now it's standard practice to offer delivery and the industry is only projected to grow thanks to it.

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