Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Grocery Wars

The Rise in Popularity of Food Delivery Apps Throughout Covid-19

Prior to March 2020, there were a lot of businesses and people who intentionally avoided using food-delivery apps because the costs of them were too high. Afterwards though, as more businesses were shut down while the unwelcome pandemic swept the globe, food delivery apps saw a huge increase in popularity.

They became incredibly important for both business owners (specifically those who worked in hospitality) and their customers, given more and more people started ordering takeout food as they were unable to go out.

There was also a huge increase in the number of people taking up delivery jobs. Thanks to the pandemic and the negative impact it had on a multitude of industries, there was a lot of people who were left looking for work and delivery driving is incredibly accessible. There were larger jobs available for those who drive vans and trucks such as the load board range  advertised on Shiply, plus for smaller deliveries such as those carried out by food delivery apps, people who owned cars, mopeds and bikes could start earning an income.

The Most Popular Food Delivery Apps

The most popular apps throughout the pandemic included:

  • DoorDash Inc
  • UberEats
  • Postmates

Over 2020, these companies managed to rake in a combined total of around $5.5 billion in revenue. This is more than twice as much as their figure from the previous year, which came to around (a still impressive) $2.5 billion.

What Does This Mean for the Future of Food Delivery Apps?

It remains unclear exactly what this means for the future of food delivery apps as there is currently uncertainty surrounding whether this increase in demand will continue in a post-pandemic world.

 Realistically, in previous years, despite the large amount of revenue generated, these apps were in hot water given that their costs remained too high to post sustainable long-term profit. As such, other stakeholders involved in the business, including their delivery drivers and restaurants, wished to cap their fees.

The success of these companies will depend on what a new normal actually means once lockdowns fully ease. Will people return to restaurants as they did pre-pandemic or will the idea of staying in to eat become a habit for some people? The answer to that will determine whether these apps will continue making such high profits and growing.


Throughout 2020, many different industries saw a loss in income, including those of hospitality, travel and tourism.

While some suffered, a lot of online organizations thrived, in this instance, food delivery apps. This is because of the increased number of people who started ordering food to their home and because of how many jobs are available working in these types of organizations.

The most popular apps collectively saw a net profit $3 billion higher than that of the previous year; however, whether or not they can continue on this trajectory remains in question. As the vaccine continues to be rolled out and lockdowns ease, we will get a better idea as to whether people will start going out again to pre-covid levels or whether these apps increased popularity will continue.