2020 – A year to forget for conventional businesses and a year that elevated proceedings for on-demand delivery businesses. With people spending most of the year under closed doors, the need for doorstep deliveries has emerged inevitably. The trend began with the wake of lockdown situations, wherein people diversified into the ‘panic buying’ phase. With retail stores running empty and fear of contracting the virus increasing, people were on the lookout for an alternate & efficient medium. And it appears that on-demand delivery apps seem to be the only light in their tunnel.
The on-demand delivery business has witnessed unprecedented growth, with several new players emerging triumphant in the sector. New businesses, especially alcohol & medicine delivery, took off massively since the pandemic outbreak. Typical food delivery & grocery delivery startups too soared tremendously, finding it challenging to cope with the people’s demands.
Are you an entrepreneur who aspires to launch an on-demand delivery app solution? If so, here’s a blog that outlines delivery trends & market projections, paving the way for you to make informed business decisions. Without further ado, let’s discuss some of the top delivery services & their projections in 2021.
Positive Impact of COVID-19 – Thriving Delivery Businesses
Numerous delivery startups have witnessed massive spikes in order volume & revenue ever since the March lockdown initiation. Here are some delivery sectors that emerged as a disruptive force.
On-demand Grocery Delivery:
With retail grocery stores running out of stock, people leaned towards the online medium for groceries. Popular grocery delivery platforms like Instacart, Walmart Grocery, and Shipt witnessed daily download rates surge by 218%, 160%, and 124%, respectively. With total sales order volume-enhancing by 193%, grocery delivery apps that utilised the situation have hit the jackpot. In an exciting turn of events, 35% of US consumers began shopping groceries via on-demand apps in June 2020, and interestingly, these numbers have elevated 3X since August 2019. These stats signify that grocery delivery apps have emerged as the next big thing in the on-demand app sector. With people realising the convenience of shopping groceries online and availing doorstep deliveries, it appears that the market will continue to grow exponentially in the upcoming years.
On-demand Food Delivery:
Restaurant foot traffic in the US declined massively by 67% since March’s pandemic situation. With expenses mounting, restaurants had no choice but to collaborate with third-party delivery platforms. Grubhub joined hands with 20,000 restaurants in March following the lockdown. The UK’s food delivery sector experienced an 11.5% increase in revenue compared to last year. The market forecasts a double-digit CAGR of 11.51%, reaching from $111.32 billion in 2020 to $154.34 billion in 2023. Recent hot topics like the Uber-Postmates deal, JustEat Takeaway-Grubhub deal, UberEats surpassing Uber ride-hailing division in terms of bookings, etc., are all positive signs that the market steers towards a positive trajectory for years to come.
On-demand Alcohol Delivery:
Major liquor stores have ended up being empty due to COVID-19 restrictions. In such a scenario, alcohol delivery apps rose to the occasion. With the global alcohol market standing tall with a $528.5 billion valuation, there’s no doubt in the fact that the on-demand alcohol delivery market will thrive. An Average Revenue Per Capita of $203.41 in 2020 invariably explains the vastness of the sector. Drizly witnessed a 300% increase in sales since March. Overall, the average alcohol & spirit orders elevated by 20% since the COVID-19 outbreak in March. With such prominent numbers, the alcohol delivery market has the firepower to grow massively in no time.
Apart from food, grocery, and alcohol, numerous other delivery services, including medicine delivery, flower delivery, etc., have experienced positive turnarounds this year.
Trends To Look Out For in 2021
While market projections help justify investments, trends go a long way in sustaining and captivating the audience. Here are some trends worth-considering in the ‘new’ normal of 2021.
Delivery Via Robots:
With progressive advancements in Artificial Intelligence (AI) & Machine Learning (ML), delivery via robots can come in handy. This way, you can promise accurate delivery timings and needn’t worry about work efficiency. Delivery giants like Amazon, DoorDash, etc., are in the advanced stages of exploring robots as a delivery option.
Meal Kit Delivery:
The COVID-19 pandemic situation has reiterated the need to stay healthy. As a result, meal kit delivery options can break the charts here as more people will lean towards nutritious food. With restaurants facing a decline in sales, meal kit delivery can be the ideal way to reduce raw materials and food items in the menu while expanding the consumer base significantly.
Multiple Orders & Single Delivery Simultaneously:
Food delivery platforms like Swiggy showed shades of a Super app, catering to customers’ multiple delivery needs like grocery, alcohol, etc., in March. Multiple orders from different stores via a single app can be another trendsetting option in 2021. A Gojek clone app can encompass 50+ on-demand services, paving the way for ultimate convenience & reliability.
Safety Strategies are Crucial To Sustain
Safety becomes the top priority among people worldwide. Hence, incorporating safety add-ons in your delivery app solution can do the trick here. Some safety strategies worth-considering include,
- Contactless delivery (or) Zero Contact deliveries
- Safety gear for service providers
- Safety ratings & reviews
- Face mask recognition software
- Knowledge banners
- Safety badges for service providers
- High-touch surface information
- Takeaway option
Ensuring the community’s safety, especially the supply chain becomes critical in sustaining and succeeding with an on-demand delivery app.
With smartphone penetration becoming inevitable, the on-demand delivery market will continue to grow in numbers for years to come. The fact that multiple delivery platforms are thriving is a concrete example of the above statement. All you need is a feature-rich, ultra-modern delivery app that can help you manage deliveries seamlessly and captivate the audience in no time. Reach out to an expert app development company and launch your on-demand delivery app right away.