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Hungry at Home: Popularity of Food Delivery Services During the Pandemic
The Covid-19 pandemic has impacted the world both globally as well as individually. Businesses were forced to close down due to restrictions and regulations, and citizens of many countries were required to quarantine in their homes. As a result, people were unable to go out to restaurants, shops, and other public places. This forced company owners to think out of the box and quickly devise viable solutions to prevent themselves from further losing revenue and potentially going bankrupt.
Restaurant owners, in particular, adapted quickly and began to have their employees prepare food for delivery and pick up, to support themselves and their business. Thus, many people looking for a safe and convenient way to eat their favorite meals at home, turned to third-party delivery services, such as Uber Eats, Grubhub, and DoorDash, to support the restaurants and have restaurant-made meals delivered to their door.
As a result, the popularity of food delivery services during the pandemic has grown, as has their revenue. According to Forbes, by September of 2020, Doordash witnessed its top-line growth triple since its last quarter. Additionally, Grubhub’s second-quarter revenues, according to Restaurant Business Online, were $459.3 million, marking a rise of 41%. The website also states that on average, daily orders increased to 647,100, which is an increase of 32%. Along with restaurants, online grocery delivery services are also witnessing an increase in revenue. Amazon, a well-known E-commerce company, delivers groceries from Whole Foods Market and has seen its online grocery sales triple year-over-year as reported by Supermarket News. The rise in popularity of Amazon grocery delivery is a result of the spread of coronavirus, as many people either feel unsafe or are restricted from going to the grocery store in person.
Although the spread of Covid-19 has negatively impacted many of our lives, it has significantly benefited several online delivery services. The question now is, will the sudden success of third-party delivery services remain? While the owners of many delivery companies are confident that their businesses will continue to prosper, the only way to answer this question requires life to “go back to normal.” For now, food services are continuing to flourish in big numbers.
