The online food delivery industry has cemented its position as one of the leading e-commerce categories in Europe. The meal delivery segment generated around 41 billion U.S. dollars in
in 2023, double the amount generated pre-pandemic in 2019. Combined with the grocery delivery segment, market revenues were estimated at just over 120 billion dollars in 2023. The European market for online food delivery is expected to exceed the 200-billion-dollar-mark by 2028, increasing in tandem with a forecasted increase in the
Biggest players and where they operate
The largest European market for food delivery can be found in the United Kingdom, where
revenues from online food delivery amounted to 40 billion U.S. dollars in 2023. Already popularized by its success in the United States, Uber Eats also found a place to stay in the UK, achieving around 2.3 million
app downloads in 2023, coming in fourth place after Tesco, Just Eat, and Deliveroo.
In Germany, which trails behind the UK as the
second-biggest European market for online food delivery, a local player dominated the food delivery market in 2022. Lieferando, a brand owned by Just Eat, captured around 76 percent of all
online food orders made by German consumers. While Just Eat maintains a strong grip on the European food delivery market, it is by no means an uncontested industry leader. Since entering the European market, Uber Eats has gained significant traction among consumers, capturing more than
two-thirds of French online food delivery bookings in 2023, and ranking second in terms of app downloads in countries like
Germany and
Spain.
A spectre is haunting Europe
Once a cradle for start-ups, the European continent turned into the epicenter of a global recession in 2022. Big players in the European food delivery market that were once
large beneficiaries of start-up funding saw their pandemic-fueled growth come to a grinding halt. As of February 2023, Delivery Hero had raised nearly ten billion U.S. dollars in funding, followed by Just Eat Takeaway at 2.8 billion dollars. However,
online food delivery funding and deals significantly decreased across the world, as global markets battled a recession in 2023. That year,
venture capital investment in European food delivery experienced further declines, down from a peak of 6.7 billion U.S. dollars in the previous year. In addition to the funding drought, the European food delivery market was also hit by several rounds of
mass layoffs, the most recent of which affected Berlin-based Delivery Hero employees in December 2023.
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