Restaurants Strike Back in Food Delivery War

Restaurants Strike Back in Food Delivery War

While the U.S. online food-delivery market continues to burn hot, data from KeyBanc suggests growth in restaurants offering the service may be slowing. That could limit the whole sector’s long-term growth, as restaurant selection is key to consumer adoption of delivery apps.

Key findings

KeyBanc shows the number of total unique restaurants with online delivery grew 10% from February to June 2019. That compares to growth of 36% across platforms over the same period last year.

While delivery apps have demonstrated success in bringing many restaurants new business and repeat customers, some eateries pay dearly with commission rates reportedly as high as 30%.

U.S. online food-delivery revenue is approaching $20 billion, according to various estimates, so the prize is certainly worth fighting for. To keep up growth however, the industry will have to offer its restaurant customers better value.

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