- Eli Richardson
Food Delivery Startups Look to Continue Momentum
Updated: Feb 21, 2022
February 20, 2022
Last year saw unprecedented investment and growth for online food and grocery delivery services. With restrictions starting to ease these companies are looking for ways to continue growth. This means reevaluating what startups can offer. Some companies are looking to focus on sales and inventory management for grocery store operations while others are looking to further enhance the delivery process. A large focus for many of these companies is just continuing to innovate and make delivery more convenient even as pandemic restrictions ease.
Investment, from venture-capital firms, in online grocery startups in 2021, amounted to $18.4 billion and $6.8 billion in food-delivery startups (The Wall Street Journal & PitchBook Data Inc.). This level of investment is over double what it was the previous year.
The entire industry wants to continue this momentum gained from the increased public interest in food and grocery delivery. It is expected that the overall number of people using these services will increase over time, however not at the rate there has been. The technology associated with food delivery will also continue to develop in waves and investment will follow the technological improvements.
During the pandemic many found food delivery to be a necessity and that spurred this increase in demand. Food delivery and grocery delivery will continue to develop as tech looks to increase convenience in people's lives.
Source: ("Food Delivery Startups Look for New Ways to Sustain Growth" By Angus Loten)