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Exclusive new report on food delivery

Published on September 23, 2019

So, where is going Food Delivery?

Hi,

I don’t think I have to tell you that food delivery is often regarded by media and pundits as the whole of FoodTech. Indeed, it does not require to be an expert to see that the biggest deals have been made there. But that doesn’t tell us where food delivery is going. That’s why we deep dived in this ecosystem in the last few months. We just released a detailed (152-pages long) report on the subject. Here are 5 conclusions we share with you (the report is available here).

#1 – Delivery is a fast-moving ecosystem: as you can see above, there is not a single type of delivery startup, but many, some rising and some shrinking (see Discovery Box).

#2 – Delivery investments are rising: below, you can see in red the investments in FoodTech delivery startups rising year after year to reach $8.6B in 2018. Counterintuitively, this amount can be split almost evenly between marketplaces (grocery delivery by startups such as Supermercato24, Instacart, GoodEggs, etc.) and restaurant delivery. A small, but rising share of the investments, is now dedicated to Cloud Kitchens and in a lesser extent to delivery robots.

#3 – Investments in delivery are rising much faster than other FoodTech categories: along with delivery investments in red below, global FoodTech investments are displayed in blue. In the past 5 years, the share of delivery has risen from 38 to 64% of global FoodTech investments.

Delivery investments - DFL

#4 – Food Delivery is just starting in big markets (but not in Europe): giant marketplaces are developing in the US, China and India (from Instacart to Meicai) but not in Europe where the size of the market of individual European countries is not enough.

#5 – After a lot of investments in some areas (meal kits, restaurant delivery), startups are looking for profitability by expanding in other fields: strategies are diversified with many attempts to go vertical (see Blue Apron’s acquisition of a ranch or Deliveroo’s will to supply ingredients to restaurants), horizontal (Swiggy and PostMates now delivery everything) or both ways (HelloFresh launching Go to deliver hot meals in offices while acquiring land to grow its produce).

Much more is waiting for you in the report:

– investments and deals by geography and activity

– top startups, top deals

– trends

Much more in. the report

If you are interested, you can buy the document alone or with a personalised brief. Pricing information are accessible here.

Have a great read!

Matthieu

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