Since we launched Uber Eats in Europe just over three years ago, we’ve been overwhelmed by the positive response from the restaurant industry. Today we are helping over 60,000 restaurants grow their business in Europe, 70% of which are small and medium sized restaurants.
We’re passionate about helping restaurants grow their businesses – whether it’s by using delivery to reach new customers, providing access to valuable data and insights to optimise operations, or pursuing new business opportunities like virtual kitchens.
We strongly believe that food delivery can have a positive impact on the cities and communities we serve – benefiting customers, restaurants and couriers alike.
That’s why we’ve been working with Deloitte on a report to better understand the impact food delivery apps are having on the restaurant sector. Published today, the report has found food delivery apps like Uber Eats are enabling restaurants in London, Madrid, Paris and Warsaw to increase sales, turnover and profits.
The Delivering Growth report found:
- Third party platforms have increased the number of restaurant meals sold by over 4% in Paris and London and 1.5-2% in Madrid and Warsaw, helping restaurants sell a cumulative 1.6 million extra meals each week.
- Independent restaurants in particular have benefited from the rise of third party platforms, accounting for roughly half (729,000) of the extra meals sold.
- Restaurants in London saw the biggest increase in revenue and profit, up £323m (1.4%) and £189m respectively.
- In Paris turnover has increased 1.1% to €94m, with profit up €18m.
- While restaurants in Warsaw benefited from a similar increase (1%), as revenue rose by 110m zł and profit 46m zł.
- Madrid was the only city where restaurants saw a bigger increase in profit (€36m) than revenue (€23m), due to the improved margins when higher cost direct delivery orders are substituted for third party platform delivery orders.
Responding to ‘significant shifts in consumer preferences’
It will come as little surprise to our users that apps like Uber Eats are helping restaurants respond to a significant shift in consumer preferences, with demand for more convenient ways to eat rising. According to Deloitte 71-80% of 18-39 year olds are ordering food on via an app at least once a week, driven by the ease of ordering and payment and having less time to cook at home.
This will be particularly beneficial for the one in three Uber Eats restaurants in London, Paris and Warsaw who are offering food delivery for the very first time.
Growing the pie
Deloitte says the food delivery market will grow 10% a year to be worth $25bn in Europe by 2023, with food delivery apps the primary growth driver. While this is a huge opportunity for restaurants, interestingly delivery accounts for just 2-5% of meals eaten at restaurants today. Despite this, food delivery apps are helping restaurants grow their sales by 20%, helping the industry take a larger share of meals consumed.
Deloitte said apps like Uber Eats are likely to have an even bigger impact on growth in the sector, with Uber Eats partners reporting sales increases between 59-74% since joining the platform in London, Paris, Warsaw and Madrid.
A one-stop shop for growth
Finally, Deloitte found that food delivery apps are providing restaurants with a number of other benefits to help them adapt and grow their business, such as:
- Additive growth: creating opportunities for restaurants to grow their overall share of meals purchased in the industry. E.g. by offering premium or healthier fast food options.
- Better asset utilisation: increasing the utilisation of otherwise idle assets (e.g. during quieter mid-week or afternoon periods). This can help increase recovery rates for fixed costs during these periods.
- New customers: providing access to a large network of potential customers and investing in marketing, restaurants are reaching customers that would not have ordered from them without third party platforms.
- Expansion and innovation: facilitating access to technology and insights, restaurants can identify data-drive growth opportunities such as virtual restaurants. Operators who run virtual restaurants in France and the UK have seen sales increase by more than 50% according to Uber Eats.
While we’ve come a long way in a short space of time, we are only scratching the surface of the potential food delivery market which is estimated to be worth $800bn globally.
Looking ahead, it is our top priority to help restaurants adapt and thrive in the growing food delivery market. Whether a local business or international brand, we are committed to providing restaurants with access to the technology, insights and expertise they need to grow their delivery business.