Third-Party Food Delivery Service Market Size, Share, Growth, and Industry Analysis, By Type (Software-based & Web-based), By Application (Personal, Family & Enterprise), and Regional Forecast to 2033

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THIRD-PARTY FOOD DELIVERY SERVICE MARKET OVERVIEW

The global Third-Party Food Delivery Service Market size was USD 87.6 Billion in 2024, is expected to rise to USD 95.92 Billion in 2025, and is forecasted to reach USD 197.1 Billion by 2033, expanding at a CAGR of 9.5% throughout the period.

Rapid growth in the third-party food delivery service market is due to more people wanting to order and pay for food using technology. They work as a link between customers and different restaurants using online channels or mobile apps. They manage food orders, process payments, and ensure food is delivered easily to both diners and restaurants. Since urbanization and smartphone usage are on the rise, the market is growing rapidly around the world. The food industry is changing because this sector makes food more available and allows people to choose from a wider range.

COVID-19 IMPACT

Third-Party Food Delivery Service Industry Had a Positive Effect Due to lockdowns, changing eatinghabits permanently during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The rapid rise in third-party food delivery services during the COVID-19 pandemic made it a necessity rather than only a convenience. With the pandemic lockdowns and social distancing, using food delivery became more important for many people. Demand rates increased a lot, helping DoorDash, Uber Eats, and Grubhub to see huge growth in revenue. Combined, their earnings in 2020 were twice what they were in the previous year. Through the internet, entrepreneurs who started these online ordering systems provided a stable income for restaurant owners and their employees during the time when diners couldn’t access the restaurant. The pandemic caused the use of advanced technology in delivery logistics, which made the process faster and more satisfying to customers. Because of this, food delivery services have become a regular part of how many people eat, as a lot of them keep using them after the pandemic, suggesting eating habits have changed for good.

LATEST TRENDS

Technological progress and changing customer demands drive market growth in food delivery servicesthrough AI

Technological progress and changing what customers want are causing rapid changes within the third-party food delivery service market. A key development is using Artificial Intelligence (AI) in the delivery process. AI makes it easier for users by suggesting meals they have liked before, finding the best way to deliver orders, and letting customers track their orders in real time. This technology eases operations and is able to meet the rising desire for individualized services at the same time. As AI develops further, food delivery services are set to change, giving people faster and more personal experiences.

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THIRD-PARTY FOOD DELIVERY SERVICE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Software-based & Web-based

• Software-based: Third-party food delivery services that use software first focus on making ordering via dedicated mobile apps quick and user-friendly. Using these apps, people can follow their orders in real time, use safe payment methods, and receive personal recommendations. Most of the time, they tie in with restaurant point-of-sale systems to make order handling easier. Higher numbers of phones and a requirement for convenience at all times help this segment succeed.

• Web-based: Website-based food delivery services operate through websites accessible on any internet-enabled device without app installation. These are easy menus to browse, order online, and pay through the web browser. This segment targets those users that are reluctant to download apps or are limited in phone storage. Web platforms continue to be one of the platforms to ensure wide accessibility, and they can also be updated quickly for new restaurant listings or promotions.

By Application

Based on application, the global market can be categorized into Personal, Family & Enterprise

• Personal: Personal applications for third-party food delivery services target individual consumers in search of convenient food options for quick meals. Third-party delivery systems provide all kinds of cuisines and allow for ordering with custom modifications per client's taste. They stress easy use through mobile applications or web pages, providing for fast checkout and delivery. This segment is building on the busy lifestyles and the increasing preference for solo dining convenience.

• Family: The family application segment deals in larger meals that have to be shared amongst a few people. Services may be offering combined meal deals, large portions for families, and also kids' menus. This segment supports times when the family dines together, prioritizing convenience and variety. It saves time for working families in meal preparation and accommodates diverse preferences under one order.

• Enterprise: Enterprise applications serve businesses offering catering and food delivery in bulk for the office, meetings, and special events. They provide scheduled deliveries with specific menus and invoice billing to cater to the needs of corporate meal management. They accomplish this by enhancing employee happiness so that diverse food options are provided anytime during work hours. With the increased practice of working remotely or hybridly, this segment has gained importance, requiring a more flexible dining solution.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Urban demand for convenience fuels market growth in food delivery

Rapid urbanization results in a growing population of cities, where time remains a very precious commodity. As people battle long work hours and exhausting commutes, the demand for an easy meal grows substantially. Third-party food delivery services act as practical solutions for saving time on buying groceries and cooking. In essence, this convenience keeps the growth trend with more urban consumers going online to order food.

Technological advances and smartphone access support market growth, driving customer loyalty

With smartphones able to reach the masses and with the internet better connected, food delivery online has become easily accessible. Real-time tracking, simple payment gateways, AI-backed suggestions, and so on, all serve to enhance the experience. App interfaces designed with smoothness in mind ensure repeated use and brand loyalty. Thus, this third-party food delivery market owes quite a bit to these technological advancements.

Restraining Factor

High commission fees on restaurants by delivery platforms limit market growth in the food deliverysector

A key market restraint must be the high commission fees charged to restaurants by delivery platforms. Small and independent eateries may find that these fees eat into their profit margins sufficiently, making it difficult for these establishments to sustain themselves through long-standing partnerships with the delivery agencies. Consequently, some restaurants may prefer to curtail their association with third-party services or shun them entirely. This strife between platforms and restaurants can constrain growth in the market and lessen the availability of little dining options.

Rural and suburban expansion boosts market growth for food delivery

Opportunity

A key growth opportunity of Third-Party Food Delivery Service Market Growth is expansion into untapped rural and suburban zones. This emerges as new customer bases come into being with the improvements in rural internet access and smartphone use. Specialized delivery services for groceries or meal kits can also become an attractive avenue for a larger user base. Collaborations with local restaurants will help in the regional customization of offerings. Such expansions can provide a spike into the next big growth chapter for the market beyond the traditional urban setups.

Logistical challenges and delivery workforce strain limit market growth in the food delivery service sector

Challenge

Another big challenge faced by the third-party food delivery service market is providing speedy and efficient delivery amidst logistic complexities. In such cases and man-made factors, traffic congestion, meteorological conditions, and a sudden change in an order can very well hamper the delivery process itself, thereby affecting admiring customers on the other side. Another is maintaining a strong backbone of delivery men and women while keeping optimum spend management. All these are putting pressure on the service quality and hence on their profitability.

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THIRD-PARTY FOOD DELIVERY SERVICE MARKET REGIONAL INSIGHTS

• North America

North America's tech adoption and urban lifestyle drive market growth

North America holds a paramount position in the third-party food delivery service market due to high smartphone penetration levels and developed digital infrastructure as well as an ever-busy urban lifestyle. The region benefits largely because the leading food delivery platforms have maintained a firm grip on the market while continuously upgrading customer service. The United States holds the most importance within North America United States Third-Party Food Delivery Service Market is first in revenue and user-base growth. The rapid acceptance of ordering systems based on apps and expanding coverage areas is fuelling this particular growth. So, due to its mature market and tech-savvy populations, the act offers leadership to the region in this aspect.

• Europe

Europe's eco-friendly focus boosts market growth

Europe contributes tremendously to the Third-Party Food Delivery Service Market Share because of its rich culinary culture and internet penetration. The region witnessed direct growth in the number of food delivery app users and adopters, mainly from cities with busy lifestyles. In compliance with food safety regulations, demand for contactless delivery is ever-increasing—and finds its way into various practices shaping the market. Keeping an eye on the environment, European countries have invested well in green delivery options—the appeal of which requests environmentally conscious consumers.

• Asia 

Urban internet users, rising incomes, and multicultural tastes drive market growth in Asia's food deliverysector

The large and expanding number of internet-using city dwellers in Asia are driving the third-party food delivery service market. Moving towards digital services and higher incomes is pushing people to order convenience foods. China and India are ahead in the market due to the many local and foreign platforms competing actively. At the same time, a taste for multicultural food and busy schedules cause the industry to steadily expand in Asia.

KEY INDUSTRY PLAYERS

Leading firms drive market growth by innovating, expanding services, and enhancing food deliveryexperiences globally

The actions of leading firms in the industry have a major impact on the third-party food delivery service market through new ideas, wider service areas, and setting standards for competitors. Technology is used by companies such as DoorDash, Uber Eats, and Grubhub to enhance the way customers can place orders and follow their deliveries. They also join forces with several restaurants so customers have more selection, and the business gets a wider share of the market. Such marketing methods bring in new customers and keep existing ones, which leads to more sales. Moreover, they strive to improve how products are delivered, aiming to be faster and cheaper, which is helping build the global food delivery industry.

List Of Top Third-Party Food Delivery Service Companies

• Waiter.com (U.S.)
• Mr. D food (South Africa)
• Doordash (U.S.)
• Deliveroo (U.K.)
• Zomato (India)

KEY INDUSTRY DEVELOPMENTS

May 2025: DoorDash announced the acquisition of Deliveroo, a UK-based food delivery company. This strategic move aims to expand DoorDash's international presence and enhance its service offerings in the competitive European market. The acquisition is expected to integrate Deliveroo's established network and customer base with DoorDash's technology and operational expertise. By joining forces, the companies plan to provide a more comprehensive and efficient food delivery service across multiple regions. This development underscores the ongoing consolidation in the third-party food delivery service market as companies seek to strengthen their positions globally. The deal is anticipated to be finalized between October and December 2025, pending regulatory approvals.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.