The US online food delivery market size reached a value of USD 24.96 billion in 2024, and it is expected to grow at a CAGR of 10.50% between 2025 and 2034, reaching an estimated USD 67.74 billion by 2034. The market’s rapid growth is fueled by increasing consumer demand for convenient, fast, and diverse food delivery options. With the advancement of mobile apps, technology, and a growing trend in food-on-demand services, the online food delivery sector is set to dominate the foodservice industry in the U.S.
US Online Food Delivery Market Outlook
The United States online food delivery market has seen tremendous growth in recent years, and this trend is expected to continue in the coming decade. The growth is driven by several factors including a shift in consumer behavior towards online shopping, an increase in the number of dual-income households, and the growing demand for convenience. With busy lifestyles, many consumers are opting for the ease and speed of online food delivery services that allow them to access a wide variety of food options without leaving their homes or offices.
The advent of food delivery platforms and the growing popularity of mobile applications are also helping to drive market expansion. Services like DoorDash, Uber Eats, and Grubhub continue to innovate, making it easier for consumers to order food from their favorite restaurants and have it delivered at their doorstep. The market is expected to continue expanding as more consumers turn to online food ordering as their preferred method of dining out.
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Challenges and Opportunities
Challenges
High Delivery Costs: The high cost of delivery, including labor and transportation costs, is a significant challenge. Consumers may be reluctant to pay high delivery fees, particularly for smaller or lower-priced items. Balancing delivery costs while maintaining competitive pricing remains a key challenge for food delivery platforms.
Competitive Market: The online food delivery market is highly competitive, with several key players vying for market share. This competition makes it difficult for new entrants to establish themselves without significant investment in marketing and technology. Additionally, pricing pressure from competition can lead to reduced margins for businesses.
Food Quality and Packaging: Maintaining food quality during delivery can be challenging, particularly for items that require precise temperature control. Packaging solutions are critical in ensuring food arrives in good condition. This challenge is compounded by consumer expectations for high-quality meals that maintain freshness.
Opportunities
Expansion into Untapped Markets: There is significant potential for growth in smaller cities and suburban areas where online food delivery is still growing. Expanding delivery services to these regions presents a substantial opportunity for growth. Partnerships with local restaurants and expanding delivery networks will be essential in tapping into these untapped markets.
Integration with Meal Kit Services: Another opportunity lies in integrating meal kit services with traditional online food delivery platforms. Consumers are increasingly interested in meal kits that allow them to cook at home. Offering a combination of ready-to-eat meals and meal kits could increase consumer engagement and attract a broader customer base.
Sustainability and Green Initiatives: There is an opportunity for food delivery platforms to invest in eco-friendly packaging and offer more sustainable options to appeal to environmentally conscious consumers. By adopting green initiatives, companies can differentiate themselves and gain a competitive advantage.
US Online Food Delivery Market Segmentation
By Platform
Mobile Applications
Websites
By Business Model
Order Focused Food Delivery System
Logistics-based Food Delivery System
Full-Service Food Delivery System
By Payment Method
Online
Cash on Delivery
By Region
New England
Mideast
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
Key Players
DoorDash, Inc.
Uber Technologies Inc.
Just Eat Takeaway.com N.V.
Delivery.com
GoBrands, Inc.
Frequently Asked Questions (FAQs)
Q1. What is the size of the U.S. online food delivery market in 2024?
The market size reached USD 24.96 billion in 2024.
Q2. What is the expected growth rate of the U.S. online food delivery market?
The market is expected to grow at a CAGR of 10.50% from 2025 to 2034.
Q3. What are the main business models in the U.S. online food delivery market?
The key business models are order-focused, logistics-based, and full-service food delivery systems.
Q4. Who are the leading players in the online food delivery industry?
Leading players include DoorDash, Uber Eats, Just Eat Takeaway, Delivery.com, and GoBrands.
Q5. What are the challenges in the U.S. online food delivery market?
Challenges include high delivery costs, intense competition, and food quality during delivery.