Online food delivery in France – statistics & facts
After a boom in food delivery demand spurred by the COVID-19 pandemic, the online food delivery market is consolidating in Europe, and France is no exception. In 2022, most of European foodtech investment went to food delivery and online supermarkets, with 3.2 billion and 1.7 billion U.S. dollars in venture capital investment, respectively. In France, the online food delivery market grew significantly in recent years, going from 3.7 billion euros in revenues in 2017 to nearly twelve billion euros in 2023.
In such a highly competitive market, mergers and acquisitions have multiplied, as food delivery operators compete for a larger share of the market in pursuit of profitability.
Brick-and-mortar seized the opportunity
As e-commerce demand surged during the pandemic, brick-and-mortar grocers had capacity to invest in delivery services, offering consumers both drive-thru and home delivery options. Within grocery delivery, nearly twelve billion euros in revenues were generated in the drive-thru segment, a particularly popular sales channel among French consumers. Long-established supermarket and hypermarket chains like Carrefour, Monoprix, and Auchan expanded their product offerings for customers shopping online, as many kept the habit of ordering groceries online even after the pandemic ended. In 2023, approximately 42 percent of French Millennials were buying groceries online on a monthly basis. Within grocery e-commerce, a market leader emerged uncontested: E.Leclerc Drive racked up more than five billion euros in revenues from drive-thru services, compared to 1.6 billion generated by rival Carrefour Drive. However, Carrefour may catch up quickly, as the retailer further strengthened its partnership with UberEats, the leading food delivery app in France, offering users of the UberEats app access to a wide range of Carrefour’s product offerings.More consolidation in a highly competitive market
In addition to brick-and-mortar grocers venturing into the digital realm and racking up sales, they are now challenged by quick commerce players. These companies promise customers ultra-fast delivery from so-called ‘dark stores’ located in urban areas that they use as micro-fulfillment centers. In 2022, there were a total of 176 dark stores in all major metropolitan areas in France, with 123 of them located in the capital Paris. However, most of these quick commerce operators like Getir, Gorillas, and Flink are still failing to turn in a profit despite significant amounts of funding received at the height of the pandemic.In such a highly competitive market, mergers and acquisitions have multiplied, as food delivery operators compete for a larger share of the market in pursuit of profitability.
