The demand for restaurant delivery services has been on the rise in Southern Africa.
Customer preferences: The convenience of ordering food online and having it delivered to one's doorstep is a major factor driving the growth of the restaurant delivery market in Southern Africa. Customers are increasingly opting for delivery services due to busy lifestyles, the desire for contactless transactions, and the availability of a wider range of food options. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as customers avoid crowded restaurants and public spaces.
Trends in the market: South Africa is the largest market for restaurant delivery services in Southern Africa, with major players such as Mr D Food, Uber Eats, and OrderIn dominating the market. These platforms offer a wide range of cuisines and delivery options, including contactless delivery, which has become increasingly popular during the pandemic. In Zimbabwe, the restaurant delivery market is still in its infancy, but there has been a recent surge in the number of food delivery platforms such as Munch Zimbabwe and Express Eats. These platforms are capitalizing on the growing demand for online food delivery services among urban consumers.
Local special circumstances: In South Africa, the restaurant delivery market is highly competitive, with major players offering discounts, promotions, and loyalty programs to attract and retain customers. However, the market is also facing challenges such as high commission rates charged by delivery platforms, which can eat into restaurants' profit margins. In Zimbabwe, the restaurant delivery market is still largely informal, with many small-scale food vendors using social media platforms such as WhatsApp and Facebook to advertise their services.
Underlying macroeconomic factors: The growth of the restaurant delivery market in Southern Africa can be attributed to several underlying macroeconomic factors. These include the increasing penetration of smartphones and internet connectivity, rising urbanization, and a growing middle class with higher disposable incomes. Additionally, the COVID-19 pandemic has accelerated the adoption of online food delivery services as customers avoid crowded restaurants and public spaces. However, the market also faces challenges such as high commission rates charged by delivery platforms, regulatory hurdles, and the need to maintain food quality and safety standards.
Data coverage:
The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.Modeling approach / Market size:
Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.Additional notes:
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.
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