‘Meteoric' rise of delivery economy to continue: analyst

The average spend per order on delivery services bucked the broader sector trend.

As consumers spent cautiously on the UK’s high street, their appetite for apps, speed and convenience allowed the delivery economy to emerge as the overall success story last year, according to Cardlytics.

The company said delivery services almost single-handedly drove growth in the dining sector with overall spend up almost 20% from 2017.

“In 2018 alone, Just Eat surpassed 400 million orders in the UK while Domino’s recorded its largest ever sales day in the UK– so there’s no doubt that the meteoric rise of the delivery economy will continue,” Cardlytics UK head of restaurant partnerships Chris Harris explained.

“In fact, the average spend per order on delivery services bucked the broader sector trend and even outpaced traditional restaurants, rising to an all-time high of £20.56 in 2018, compared with a steady decline to just under £20 for physical restaurants.”

Harris adds that delivery platforms have witnessed a shift from traditional takeaway orders such as pizza and Chinese food to healthier options, something which he attributes to younger consumers aged 19-28, which helped lunch brands like Leon and Pret A Manger grow in popularity.

“While many attribute the rise of delivery services to Millennials and Gen Z’s, the survival of the model may well hang on its appeal with older consumers having deeper pockets. In fact, those aged 49-58 spent on average £2.50 more per order in 2018 than the 19-28-year-olds,” he added.

Harris forecasts that tapping into areas like door-to-door delivery and click-and-collect, a desire for healthier choices and other new marketing platforms could be “the recipe for success in 2019.”

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