Online Food Delivery - Uganda

  • Uganda
  • The Online Food Delivery market in Uganda is expected to reach a revenue of US$34.67m by 2024.
  • It is projected to have a compound annual growth rate (CAGR 2024-2029) of 13.18%, resulting in a market volume of US$64.40m by 2029.
  • In the Grocery Delivery market, a revenue growth of 18.6% is anticipated for 2025.
  • The projected market volume for Grocery Delivery in Uganda is US$24.26m in 2024.
  • When compared globally, China is expected to generate the highest revenue, reaching US$450.50bn in 2024.
  • The average revenue per user (ARPU) in the Grocery Delivery market is projected to be US$14.38 in 2024.
  • In the Grocery Delivery market, the number of users is expected to reach 7.3m users by 2029.
  • The user penetration rate in the Grocery Delivery market in Uganda will be at 8.9% in 2024.
  • Uganda's online food delivery market is experiencing rapid growth due to the increasing popularity of smartphone usage and improving internet infrastructure.
 
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Analyst Opinion

Uganda, a country in East Africa, is experiencing a surge in the Online Food Delivery market.

Customer preferences:
The Ugandan population is increasingly turning towards convenience and time-saving options, which has led to a rise in demand for online food delivery services. The young and urban population, who are tech-savvy and have busy schedules, are the primary customers of these services. Additionally, the COVID-19 pandemic has further accelerated the adoption of online food delivery services as people prefer to stay at home and avoid crowded places.

Trends in the market:
The online food delivery market in Uganda is witnessing a trend of increased competition among players. Several international and local players have entered the market, leading to a rise in the number of options available to customers. The market is also witnessing a trend of diversification, with players offering a variety of cuisines and food options to cater to different customer preferences.

Local special circumstances:
Uganda has a diverse cuisine influenced by various cultures, including Indian, Chinese, and African. This has led to a rise in demand for different cuisines, which online food delivery services are catering to. However, the market faces challenges such as poor road infrastructure, which can delay deliveries, and a lack of trust in online payment systems, which can hinder customer adoption.

Underlying macroeconomic factors:
Uganda is experiencing economic growth, which has led to an increase in disposable income and consumer spending. This has had a positive impact on the online food delivery market as customers are willing to spend more on convenience and time-saving options. Additionally, the government's efforts to improve internet connectivity and promote e-commerce have further boosted the market's growth.

Methodology

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.

Overview

  • Revenue
  • Analyst Opinion
  • Users
  • Global Comparison
  • Methodology
  • Key Market Indicators
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