Digital food delivery is a fast-growing market for some retailers and restaurants, but it’s also growing at a slower pace than the retail sector.
Digital underground is a term used to describe a small number of online retailers, cafés, and restaurants that offer a more convenient, lower-cost way to order food online.
But the digital underground also includes a number of other food delivery services, from online ordering to delivery of products through mobile devices.
The digital food delivery market is projected to be worth about US$2.2 billion by 2020, according to eMarketer, which predicts that digital food will be the fastest-growing segment of the food delivery industry by 2021.
The market for digital food is expected to reach US$3.5 billion by 2022, according the company.
But there are still challenges to overcome before the digital food market is a fully-fledged mainstream business.
The biggest hurdle is the cost.
According to the McKinsey Global Institute, food delivery costs about US $4.50 to deliver a package to a customer.
The company that sells the delivery app to its customers will need to pay an additional $3 to cover the costs of the delivery service itself.
That extra charge is an additional barrier for most consumers.
According a study by the Economic Policy Institute, the average cost of a meal delivery was US$4.45 in 2015.
That’s an increase of 6.5% since 2014.
And the McKinseys study estimates that if the price of the meal delivery app is raised to US$8, it would raise the cost of delivering a meal from US$1.75 to US10.
The eMarketers report also points to the challenge of the high cost of delivery to consumers as a reason why some businesses have abandoned digital food as a primary means of ordering food.
“A key challenge is that delivery is often an expensive way to buy food,” said the McKinley report.
“There is a perception that it is a premium delivery service that requires a minimum of expertise to operate.”
This perception has been exacerbated by an increasing number of companies offering a delivery service to consumers that is free.
The average cost per delivery service for restaurants was about US9.40 in 2015, up from about US7.50 in 2013, according eMarkets.
But digital food services are not the only ways to order online food.
There are a number other services that provide delivery services online, such as eMarket, which has estimated that the number of food orders processed online grew from 2.4 million in 2013 to 4.7 million in 2020.
These online food delivery companies include food delivery app My Favourite, which delivers food orders from one location to another using smartphones.
These companies have raised more than US$100 million in funding.
But delivery services are still very much in their infancy, and they are not yet widely used by consumers.
This lack of adoption has led to some companies looking to enter the digital delivery space, particularly in places like China and India, which have a large food delivery population.
“Digital food delivery will be a major growth driver in the near future, but the barriers are there and they’re growing,” said Andrew Lohse, CEO of Digital Food Delivery, a group of food and delivery startups based in Los Angeles.
“The challenges are in the infrastructure, in the cost and in the logistics.”
A number of retailers are now working to address these challenges.
McDonalds is the first major food delivery company to launch its own digital delivery service in the US, in partnership with app-based platform Waze.
In India, where digital food has been growing rapidly, a number more retailers are launching their own digital food deliveries.
These include KFC, which is launching its own delivery app in India and is also partnering with Uber and Deliveroo.
In the UK, Deliveroo is also offering a service to deliver food from restaurants, and Delivero is partnering with several large grocery chains, including Morrisons, Sainsbury’s, Tesco, and Morrisons.
In 2019, Delivero partnered with UK retailer Sainsburys to offer delivery of groceries to the company’s stores.
And in the UK in 2020, Deliveros deliveries have grown from US $1.50 per order to US $5 per order.
“In 2019, we delivered a delivery of 3,000kg of chicken from Sainsburgs warehouse to customers,” said Michael Brown, a spokesperson for KFC UK.
“We are now delivering deliveries of 2,000,000 chicken legs, 4,000 burgers, and 1,000 lollies per day.”
In 2018, Deliveron also launched a new delivery service called E-Dock, which allows customers to order their food online using their smartphone or tablet.
The service has been tested in the United Kingdom and will soon expand to other markets in the Middle East and Asia.
It also offers delivery of food to customers who have pre-ordered a meal