Market Insights eCommerce Online Food Delivery Meal Delivery

Restaurant Delivery - Uganda

Uganda

Revenue in the Restaurant Delivery market in Uganda is projected to reach US$24.85m in 2024.
The market is expected to show an annual growth rate of 7.61% (CAGR 2024-2029), resulting in a projected market volume of US$35.86m by 2029.
In Uganda's Restaurant Delivery market, the number of users is expected to amount to 0.7m users by 2029.
User penetration is projected to be 1.0% in 2024 and is expected to increase to 1.2% by 2029.
The average revenue per user (ARPU) is expected to be US$49.62.
In global comparison, United States is projected to generate the highest revenue in the Restaurant Delivery market, reaching US$36,950.00m in 2024.
South Korea, with a projected user penetration rate of 53.1%, has the highest user penetration in the Restaurant Delivery market.
Uganda's restaurant delivery market is experiencing a surge in demand due to the increasing urbanization and busy lifestyles of its population.

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Analyst Opinion

The popularity of restaurant delivery services has steadily increased in Uganda over the years.

Customer preferences: The convenience of having food delivered to one's doorstep has made restaurant delivery services a popular choice among Ugandan consumers. Busy work schedules and traffic congestion in major cities have made it difficult for individuals to dine out, leading to an increased demand for restaurant delivery services. Additionally, the COVID-19 pandemic has led to a surge in demand for food delivery services as more people opt to stay at home.

Trends in the market: The restaurant delivery market in Uganda has seen a significant increase in the number of players offering delivery services. This has led to increased competition and improved service quality. Many restaurants have partnered with delivery companies to offer their customers a wider range of food options. The use of mobile applications to order food has also become increasingly popular, with many delivery companies offering mobile payment options to their customers.

Local special circumstances: The Ugandan market is unique in that there is a high demand for traditional Ugandan cuisine. Many delivery companies have capitalized on this by partnering with local restaurants that offer traditional dishes. Additionally, the market is heavily influenced by cultural and religious events, with many people ordering food for events such as weddings and funerals.

Underlying macroeconomic factors: The Ugandan economy has been growing steadily over the years, with an increasing number of people entering the middle class. This has led to an increase in disposable income and a greater willingness to spend on convenience services such as restaurant delivery. Additionally, the country's high youth population has led to a greater demand for technology-driven services such as mobile food delivery apps.

Methodology

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.