Delivery Apps Lose Ground as Restaurants Build Direct Channels

Delivery apps have seen significant decline in usage as restaurants increasingly build their own direct channels for customers. According to industry trackers, platform disintermediation has led to a roughly 15% drop in orders placed through third-party delivery services over the past year alone.

In Europe, companies such as Uber Eats and Deliveroo are facing stiff competition from homegrown alternatives like Germany's Foodora, which is owned by the German retailer Otto Group. The latter now accounts for around 30% of all online food orders in the country, surpassing its competitors' market share.

Similarly, in Asia, restaurants have been leveraging mobile apps to bypass commission-heavy intermediaries. A Tokyo-based restaurant association spokesperson reported that nearly half of their members are using proprietary delivery apps or partnering directly with logistics companies.

Restaurants Shift Focus

As consumers become increasingly comfortable ordering through digital channels, restaurants are seizing opportunities to streamline operations and reduce costs associated with third-party platforms. Maria Okonkwo, hospitality analyst at Mercer, notes: "Restaurants that were once dependent on intermediaries can now establish direct relationships with customers, allowing for more control over customer data and loyalty programs."

In the US, food delivery apps like Grubhub and DoorDash have seen their market share erode as restaurants begin to offer curbside pickup or in-store ordering. David Lindqvist, partner at a Stockholm legal consultancy, observed: "With consumer expectations shifting towards convenience and personalized experiences, it's no surprise that restaurants are taking matters into their own hands."

Industry observers predict that this trend will only continue, with more restaurants opting for direct-to-consumer sales channels to cut costs and expand customer engagement. With nearly 40% of global restaurant owners planning to implement their own delivery services by the end of the year, the market is likely to witness significant consolidation in the coming months.