With over 52 million downloads, Zomato was the most popular online food delivery application worldwide in 2023. Uber Eats ranked second, with global consumers downloading the app just over 41 million times that year.
Pandemic gains
Following the start of the COVID-19 pandemic, there was an online food delivery boom which came as a result of people all over the globe being stuck at home and behind their screens. This in turn led to an increase in investment in the sector, and in 2021 more than 400 financing deals were completed for an overall value of approximately 19.1 billion U.S. dollars. For instance, Berlin-based Delivery Hero had raised funds worth nearly 10 billion U.S. dollars as of January 2023.
Post-pandemic comedown
After boom usually comes bust, and this phenomenon did not spare the food delivery segment following the global economic downturn that began in 2022. As of the third quarter of 2022, online food and meal delivery deals decreased significantly from their peak of 19 billion dollars the year before. In addition, many online food delivery operators resorted to mass layoffs as they grappled with the impact of stagflation. In multiple rounds of layoffs, Gopuff reduced its workforce by approximately 2,300 employees.
