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03/31/2021

Motus Report Reveals Food Delivery Services Surged 164% During the Last Year

More than 45 million Americans used a food delivery app, representing a 25% year-over-year increase.
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Motus, a workforce solutions provider, released its 2021 State of Delivery Report, which reveals key data related to current delivery trends. As the pandemic placed restrictions on in-person dining experiences, the report found that the delivery industry experienced unprecedented growth. Sales for meal delivery services collectively grew 164% in 2020. Last year alone, more than 45 million Americans used a food delivery app, representing a 25% year-over-year increase.

As takeout and delivery become a more dominant part of the American routine, 68% of consumers reported that they are more likely to purchase takeout from a restaurant than before the pandemic. With 17% of restaurants in the U.S. forced to shutter their doors, the dining industry also experienced a massive evolution in the way they conduct business. In 2020, two in five restaurants began offering food delivery services because of pandemic-related closures.

“While the tremendous growth in food delivery services might not come as a total surprise, delivery services have grown in other sectors,” said Ken Robinson, Market Research Manager for Motus. “Consumer preferences have steered commerce away from in-person shopping over the course of the pandemic. Over the last year, for example, nearly 24 million households increased their use of grocery delivery services in 2020. Although consumer preferences may shift again as the year unfolds, the desire for convenience is not going away. Delivery services offer businesses across industries a way to satisfy this important consumer preference.”

As delivery became a requirement for many consumers—and not simply a luxury—adoption expanded beyond the traditional focus on food. Retail, pharmacies and convenience stores all exploded into the delivery scene. For example, convenience stores like 7-Eleven and CVS experienced significant sales through third-party delivery app sales, which escalated 346% in 2020.

The report also found that consumers are overwhelmingly willing to support improved working conditions for delivery workers employed by third-party delivery platforms. For example, 55% of customers are willing to pay an additional 10% in fees and 82% are willing to wait 10% longer for their orders from a platform that offers better working conditions.

“Improving delivery experiences and working conditions for drivers is vital to the industry’s continued growth,” said Robinson. “One frequently overlooked opportunity to improve working conditions is taking an accurate approach to mileage reimbursement. Delivery drivers use their personal vehicles, one of their most valuable personal assets, to perform their job duties. However, the cost of using this asset depends almost entirely on the delivery area. For example, driving costs in the Chicago metro area can vary by as much as 3.3% per mile due to variance in fuel, license and insurance costs. Reimbursing drivers using an approach that considers these individual geographic factors creates a substantial benefit for delivery workers.”

To access the full report, please visit: https://resources.motus.com/reports/2021-state-of-delivery-dining-in-report.