Online Food Delivery market in Tanzania has been growing steadily over the past few years. Tanzanians are increasingly relying on online food delivery services due to the convenience and time-saving benefits it offers.
Customer preferences: The majority of Tanzanians prefer to order food online due to the ease of access and the wide variety of food options available. Online food delivery platforms have become popular among the urban population, especially the younger generation who are tech-savvy and prefer to order food online using their smartphones. Tanzanians also prefer to order food online during the weekends and holidays when they want to relax and enjoy their time with family and friends.
Trends in the market: One of the major trends in the online food delivery market in Tanzania is the rise of local food delivery platforms. These platforms offer a wide range of local food options, including traditional Tanzanian cuisine, which is not available on international food delivery platforms. This trend is driven by the growing demand for local food among Tanzanians and the need to support local businesses.Another trend in the market is the increasing use of technology by food delivery platforms. Many food delivery platforms in Tanzania are adopting innovative technologies such as AI and machine learning to improve their services. These technologies are used to optimize delivery routes, predict demand, and personalize food recommendations for customers.
Local special circumstances: One of the unique features of the online food delivery market in Tanzania is the dominance of cash on delivery (COD) payment method. COD is the most preferred payment method among Tanzanians due to the low penetration of digital payments in the country. This has led to many food delivery platforms in Tanzania to adopt COD as their primary payment method.
Underlying macroeconomic factors: The growth of the online food delivery market in Tanzania is also driven by the country's economic growth and increasing urbanization. Tanzania is one of the fastest-growing economies in Africa, and the rising middle class has led to an increase in disposable income, which has driven the demand for online food delivery services. Additionally, the increasing urbanization in Tanzania has led to a change in lifestyle, where people are increasingly busy, and hence, prefer to order food online.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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