29th May 2023

Research: During the quarantine, the demand for food delivery services in Ukraine grew sharply and then fell by almost half

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GlobalLogic has researched the Ukrainian and global food delivery services market using open data and information from its own sources. According to company analysts, since the beginning of the quarantine in March, there has been the largest number of downloads of food delivery services applications. At the same time, in June, the Ukrainians downloaded them 2 times less often, which indicates the saturation of the market. Raketa became the most popular delivery application during this period.

Glovo app in March ranked 50th on average in terms of the number of downloads in the Ukrainian ranking of iOS and Android apps, while in June the service’s position dropped to 100th lines in the top. The same trend was observed with Uber Eats before it left the Ukrainian market. An exception to this trend was the Raketa app, which also held a high popularity in April.

Delivery services noted an increase in demand during quarantine. According to Glovo, in the Supermarkets and Pharmacy categories, the number of orders through their app increased by an average of 35%. In the Raketa service in March 2020, the number of orders increased by 40%, and in April the figures almost doubled.

However, this trend is not observed in all countries. For example, in the United States, according to Second Measure, by the end of May, the total sales of food delivery services more than doubled compared to last year. Despite this, the profitability of such services remains low. Uber Eats continues to lose an average of $ 1.10 per order in the US. However, this can be considered an increase in profitability, as in mid-2019, according to financial company Cowen, Uber Eats was losing $ 3.36 per order.

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“Quarantine has certainly affected the downloads of food delivery apps and their business performance. Moreover, companies begin to grow through consolidation and mergers and acquisitions (M&A). For example, Uber acquired the American service Postmates in early July.

We expect to see more and more new transactions in the food delivery services market, which will entail an increase in demand for digital services to combine databases and internal infrastructure, ”commented Vladimir Vaskovskiy, junior vice president of engineering, head of e-commerce and technology in GlobalLogic.

Food delivery services are an e-commerce business that, according to the Adobe 2020 Digital Economy Index, reached 77% growth in May 2020 over the same period last year. To reach such indicators under pre-quarantine conditions, the e-commerce industry would take from 4 to 6 years. In turn, these results are driving increased demand for digital business transformation and support for existing online platforms.

Recall that in June of this year, the Uber Eats and Menu.ua applications stopped working, however, a marketplace for Rozetka restaurants was launched and Bolt Food plans to launch in the near future.

Source: GlobalLogic

Vicky O. Torres

My name is Vicky O. Torres. I am a psychologist by profession, and I love my work very much. And in general, I am an active seeker of truth, silence and beauty of the world.

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