Five years ago, ordering food meant pizza or Chinese takeout, and the adventure usually involved calling a restaurant and hoping the voice on the other end got the order right.
Fast forward to today, and food delivery is no longer a novelty but a staple, an industry worth hundreds of billions of dollars globally. With smartphones, a whole ecosystem of apps, and more drivers than ever before, food delivery has transformed so profoundly that what was once a luxury is now as essential as Wi-Fi.
Food delivery has evolved far beyond its modest beginnings. The first hints of home-delivered meals date back to the late 19th and early 20th centuries, when a few restaurants in bustling cities began to offer meal delivery as an added convenience. By the 1950s, pizza chains like Domino’s had taken delivery up a notch, making it faster and more popular across the United States.
The 1980s and 1990s saw a shift to phone-based ordering, letting customers call their favorite spots for takeout and delivery. However, the true revolution arrived in the early 2000s with the arrival of the internet in the food industry. Digital platforms like Denmark’s Just Eat (founded in 2001) and the US-based Grubhub (launched in 2004) redefined ordering, moving it online and allowing customers to browse menus and place orders with a few clicks.
Let’s dive into how food delivery changed during the past 5 years, how it transformed from a clunky, hit-or-miss affair to a high-stakes industry reshaping our dining habits, the forces fueling this evolution, and what this runaway trend might cook up next.
The pandemic, of course, accelerated things, but food delivery was already on the rise.
If we rewind to 2018, there was already a shift in how we approached dining.
Back then, the convenience of apps like Uber Eats, Grubhub, and DoorDash was mostly popular with busy professionals and college students. They weren’t yet the backbone of the restaurant industry as they are today, and delivery accounted for just a small slice of restaurant sales.
But here’s the funny thing: people love convenience and freshness, especially when they can get it through their phones. Early adopters quickly spread the word, and by the time 2020 rolled around, food delivery apps were starting to hit their stride.
Then, lockdowns hit. With many people stuck indoors, restaurants shuttered for dine-in service, and the general population looking for anything resembling normalcy, food delivery became a lifeline. That boost in demand wasn’t just temporary; it built habits that now seem likely to stick around.
The technology and strategies that made it happen
So, how did we go from novelty to necessity? The answer is obviously technology – and some impressive logistical wizardry. Here’s a breakdown of the key innovations and tactics that powered this transformation:
1. AI and machine learning for smarter logistics
To make delivery efficient, companies needed to do more than just hire drivers. They needed to analyze routes, estimate demand, and allocate resources with almost military precision. Algorithms now predict the number of orders at a given time and route drivers to maximize efficiency.
2. Ghost restaurants
To speed things up, many restaurants opened “ghost kitchens,” where they prepare food for delivery only. Some ghost kitchens even serve multiple brands from one location. This minimizes overhead costs and means quicker food prep.
3. Multi-brand platforms
Some apps now offer “multi-brand ordering,” letting customers order sushi, pizza, and dessert in one transaction from different “virtual” restaurants, all working out of the same kitchen. It’s a logistical feat that’s only possible through digital ordering and shared kitchen space.
4. Subscription models
Monthly subscriptions have helped attract loyal users, and they’re catching on fast. For a small monthly fee, users can get free delivery on every order, which encourages frequent use and builds steady revenue streams for the platforms. DashPass (DoorDash) and Uber Eats Pass are two popular options that have turned casual users into committed regulars.
5. AI recommendations and personalization
Food apps have started using recommendation algorithms that feel almost psychic. They consider everything from dietary preferences to previous orders and the time of day, prompting users with exactly what they’re craving before they even know it themselves. This personalization keeps users coming back.
Despite its growth, the food delivery industry faces significant challenges. High delivery fees, a heavy reliance on gig workers, and the continual pressure on restaurants’ already thin margins all raise questions about the industry’s long-term sustainability. Here’s a look at the main hurdles:
The gig worker debate: At the heart of the food delivery economy are drivers, couriers, and “last-mile” workers. Most are classified as gig workers, meaning they’re not entitled to benefits like health insurance or minimum wage guarantees. Labor advocates argue that this model exploits workers, while delivery companies counter that it provides flexibility and work on demand. Laws and regulations could significantly alter this dynamic – and soon.
Sustainability concerns: Food delivery, while convenient, comes with environmental downsides. Single-use plastics, disposable packaging, and the carbon footprint of thousands of drivers are difficult to ignore. Both governments and companies are beginning to crack down on these practices, which may lead to new innovations – or increased costs.
High fees and profitability struggles: One of the industry’s worst-kept secrets is that food delivery isn’t particularly profitable. Restaurants pay significant fees to these platforms, and the delivery companies, in turn, often operate at a loss or break even, relying on investor funding to grow. If investors begin pulling back, the fees or service models could shift.
Customer expectations and “Food quality fatigue”: Let’s face it—food from a box doesn’t always taste as good as it would in a restaurant. When people first discovered delivery apps, they didn’t mind paying a premium for the novelty. But as customers become accustomed to having food at their fingertips, they’ve also become pickier, expecting restaurant-quality meals to survive the trip home. This pressure has prompted restaurants to get creative with packaging, but not without raising costs.
As we move forward, a few trends are likely to shape the future of food delivery in new, even more transformative ways. Here’s a sneak peek into what’s coming up:
Robot delivery and drones
Automation is no longer a pipe dream; it’s necessary for companies looking to reduce labor costs. Many companies are experimenting with drones, which can drop off food in areas too remote for cars, and sidewalk robots, which navigate urban streets to bring food right to customers’ doors. While regulatory challenges still exist, it’s likely only a matter of time before automation makes food delivery even faster and cheaper.
Contactless delivery is gaining popularity. For example, the University of Minnesota recently partnered with Starship Technologies to launch robot food deliveries on campus.
The program started just a month ago, and 600 deliveries have already been completed. Now, robots bring hot meals to students from spots like Panda Express and Erbert & Gerbert’s in the Student Union.
Expansion of virtual brands and micro-kitchens
Ghost kitchens aren’t going anywhere, and in fact, we can expect more “virtual brands” that exist solely on delivery apps. These brands might operate out of micro-kitchens – small, efficient spaces designed specifically for food delivery. This setup allows companies to target specific neighborhoods and cater directly to customer preferences without a full-scale restaurant.
Hyper-local focus and ultra-fast delivery
We’re already seeing an arms race between companies offering faster delivery, especially in urban areas. Startups focused on “15-minute delivery” are cropping up, promising food and essentials in record time. As the competition heats up, major players must get creative to keep up with demand.
Sustainable packaging innovations
Expect to see compostable, biodegradable, and even reusable packaging take off as environmental regulations become stricter. Some companies are already piloting reusable packaging programs, where customers pay a deposit and can return containers through the app.
More integration of AI and data
The future of food delivery is deeply entwined with data. Companies are already using machine learning to suggest orders, but this is likely to become even more refined, with hyper-personalized recommendations based on everything from users’ dietary goals to seasonal trends. Imagine a future where your food app knows you’re on a fitness kick and nudges you toward healthy, protein-packed meals – or when it senses, you’re in the mood for comfort food and suggests just the right guilty pleasure.
The food delivery industry has come a long way in the past five years, transforming how we interact with restaurants, technology, and our own meal choices. But as fast as it’s growing, it’s also grappling with big questions about ethics, profitability, and environmental impact.
Will food delivery become even more omnipresent, or will rising costs and stricter regulations curb its growth? Could drones and robots really replace human drivers, or will legal and logistical hurdles slow things down? And perhaps most importantly, will we still have restaurants as we know them—or will the future of dining exist mainly on screens, through a delivery app?
One thing’s for sure: food delivery isn’t going away. It’s a product of a convenience-driven culture that’s only becoming more reliant on speed, tech, and accessibility.
So, whether it’s robot couriers or hyper-local kitchens, the future promises to be exciting – and, necessarily, very well-fed.
By the way, we already wrote about ghost kitchens. Click here.
