Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Convenience culture continues
- Aggregators and delivery services converge
- Rising restaurant costs forcing operators online
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- Figure 1: NMW and NLW rates, by age, April 2016-April 2020
- Dark kitchens booming
- Companies and brands
- Takeaway.com wins competitive bid for Just Eat
- Amazon leads Deliveroo’s latest investment round
- Click-and-collect services launched by key players
- Delivery’s eco-impact on the agenda
- Major supermarkets and C-stores partner with third-party apps
- Competition heats up for third-party platforms
- The consumer
- Takeaway market propped up by affluent consumers
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- Figure 2: Takeaway/home delivery food purchase frequency, November 2018 and November 2019
- Young urbanites crucial
- Third-party usage increases
- Direct ordering declines
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- Figure 3: Takeaway/home delivery purchase channel, November 2018 and November 2019
- Taste most important restaurant choice driver
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- Figure 4: Home delivery and takeaway purchase drivers, November 2019
- Just Eat holds on to first place
- Uber Eats takes second over Deliveroo
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- Figure 5: Third-party services used to order home delivery/takeaway food, November 2018 and November 2019
- Half of diners open to ‘dark kitchens’
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- Figure 6: Willingness to order from dark kitchens, November 2019
- Data sharing a risk for half of takeaway diners
- Novel delivery tech needs promoting
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- Figure 7: Attitudes towards delivery technology, November 2019
- Nearly half interested in adding supermarket items
- Subscription services wanted
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- Figure 8: Attitudes towards delivery value, November 2019
- What we think
Issues and Insights
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- Conscious consumption
- The facts
- The implications
- The next generation of frictionless food delivery
- The facts
- The implications
The Market – What You Need to Know
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- Convenience culture continues
- Third-party apps expand their reach
- Aggregators and delivery services converge
- Rising restaurant costs forcing operators online
- Dark kitchens booming
Market Drivers
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- Convenience culture continues
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- Figure 9: Participation in purchasing home delivery/takeaway food, by employment and parental status, November 2019
- Affluent diners fuelling growth
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- Figure 10: Trends in how respondents would describe their financial situation, December 2018-December 2019
- Third-party apps expand their reach
- Hybrid strategy: aggregators and delivery services converge
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- Figure 11: Home delivery/takeaway purchase channel, November 2018 and November 2019
- Rising restaurant costs forcing operators online
- Employee pay goes up
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- Figure 12: NMW and NLW rates, by age, April 2016-April 2020
- Dark kitchens a savvy solution
Companies and Brands – What You Need to Know
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- Takeaway.com wins competitive bid for Just Eat
- Amazon leads Deliveroo’s latest investment round
- Click-and-collect services launched by key players
- Delivery’s eco-impact on the agenda
- Alternative delivery methods in the pipeline
- Major supermarkets and C-stores partner with third-party apps
- Competition heats up for third-party platforms
Key Players – Online Ordering
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- Just Eat
- Deliveroo
- Uber Eats
Competitive Strategies – Online Ordering
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- Consolidation
- Amazon under pressure from CMA during Deliveroo deal
- Takeaway.com wins competitive bid for Just Eat
- Digital activity
- Uber combines Eats into core ridesharing app
- ‘Click-and-collect’ services launched by Deliveroo and Uber Eats
- Deliveroo introduces dynamic pricing charges
- Media activity
- Just Eat launches first global campaign under McCann
- Just Eat takes over Love Island sponsorship from Uber Eats
- Deliveroo ad banned for misleading consumers
- Distribution changes
- Deliveroo forms new grocery delivery arm
- Deliveroo announces plans to expand reach across the UK
- Just Eat launches delivery services as part of new hybrid strategy
- Deliveroo adds events services to corporate operations
- Uber Eats moves into convenience sector with Costcutter
- Uber Eats launches dark kitchens accelerator
- Deliveroo focuses on healthy virtual brands
Launch Activity and Innovation
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- Delivery’s eco-impact on the agenda
- Deliveroo trials food container reuse service
- Spar and Morrisons join food waste app Too Good To Go
- Alternative delivery methods in the pipeline
- Co-op launches e-bike delivery service
- Google’s sister company explores UK drone delivery
- Food retailers hungry for a slice
- Major supermarkets and C-stores partner with third-party apps
- Kellogg’s offsets sales decline with Deliveroo partnership
- Competition heats up for third-party platforms
- Crosstown Doughnuts founder launches delivery platform
- Online coffee marketplace app COFE set to launch in London
- Traditional operators get with the times
- Just Eat wins Greggs and McDonald’s
- Toby Carvery launches delivery roast dinners
Brand Research
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- Brand map
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- Figure 13: Attitudes towards and usage of selected brands, December 2019
- Key brand metrics
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- Figure 14: Key metrics for selected brands, December 2019
- Brand attitudes: Market leader Just Eat deemed good value for money and high quality
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- Figure 15: Attitudes, by brand, December 2019
- Brand personality: Uber Eats’ ethics under question
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- Figure 16: Brand personality – macro image, December 2019
- Just Eat seen as reliable while Deliveroo deemed cool
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- Figure 17: Brand personality – micro image, December 2019
- Brand analysis
- Just Eat’s appeal down to value for all
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- Figure 18: User profile of Just Eat, December 2019
- Boosting awareness key to unlocking Uber Eats’ potential
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- Figure 19: User profile of Uber Eats, December 2019
- Deliveroo’s youthful urban skew key to cool factor
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- Figure 20: User profile of Deliveroo, December 2019
The Consumer – What You Need to Know
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- Takeaway market propped up by affluent consumers
- Young urbanites crucial
- Third-party usage increases
- Direct ordering declines
- Taste most important restaurant choice driver
- Just Eat holds on to first place
- Uber Eats takes second over Deliveroo
- Half of diners open to ‘dark kitchens’
- Nearly half interested in adding supermarket items
Frequency of Use
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- Some consumers exited the market…
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- Figure 21: Takeaway/home delivery food purchase frequency, November 2018 and November 2019
- …while the remaining increased order frequency
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- Figure 22: Takeaway/home delivery food purchase frequency, November 2018 and November 2019
- Consumer base dominated by affluent, young urbanites
- Convenience is key
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- Figure 23: Participation in purchasing home delivery/takeaway food, by employment and parental status, November 2019
Purchase Channels
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- Third-party usage increases…
- …while direct purchasing declines
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- Figure 24: Takeaway/home delivery purchase channel, November 2018 and November 2019
- Three quarters use a single method
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- Figure 25: Repertoire analysis of takeaway/home delivery ordering methods, November 2019
Direct Ordering Methods
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- Phone most popular direct method
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- Figure 26: Direct ordering methods, November 2019
- Two thirds prefer to use the same restaurants repeatedly
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- Figure 27: Delivery ordering preference, November 2019
Restaurant Choice Drivers
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- Quality reigns supreme
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- Figure 28: Home delivery and takeaway purchase drivers, November 2019
- Young city dwellers care more for social impact
- Health not as important for takeaways
Third-party Services
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- Just Eat holds the crown but loses share
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- Figure 29: Third-party services used to order home delivery/takeaway food, November 2018 and November 2019
- Customisation will be key to capturing the youth market
- Uber Eats moves into second place
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- Figure 30: Third-party services used to order takeaways/delivery food, by demographics, November 2019
- Deliveroo grows consumer base
- Majority use only one app
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- Figure 31: Repertoire analysis of number of third-party services used, November 2019
- Apps confusing for many
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- Figure 32: Attitudes towards third-party services, November 2019
Third-party Service Choice Drivers
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- User experience and cost paramount
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- Figure 33: Third-party service choice drivers, November 2019
- Promotions important for cash-strapped consumers
Willingness to Order from Dark Kitchens
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- Half of diners open to ‘dark kitchens’
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- Figure 34: Willingness to order from dark kitchens, November 2019
- Operators get smart with in-house dark kitchens
- Hygiene standards under the microscope
Attitudes towards Delivery Technology
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- Personal data a concern for nearly half
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- Figure 35: Attitudes towards delivery technology, November 2019
- Voice control ordering far from being accepted
- A third open to drone delivery
Attitudes towards Delivery Value
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- Nearly half interested in adding supermarket items
- The present: grocery items direct to door
- The future: combining orders from different operators
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- Figure 36: Attitudes towards delivery value, November 2019
- The price must be right
- Everyday low prices
- Limited-time-only deals
- Delivery-only menu pricing
- Dynamic pricing
- Young urbanites want delivery subscriptions
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- Figure 37: CHAID analysis of consumers open to fixed-price home delivery/takeaway subscriptions, November 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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