Australia Online Food Delivery Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Market Overview

The Australia online food delivery market is significantly driven by evolving consumer preferences for convenience and time-saving solutions. The ability to order meals from home, without the need for cooking or dining out, supports demand growth. This is reinforced by 24/7 availability, appealing to time-poor professionals and families. Notably, the pizza foodservice sector alone witnessed a 37% growth in 2021-22, with average business sales surpassing AUD 600,000, according to the Australian Taxation Office (ATO).

Digital transformation has made Australian food delivery platforms highly intuitive, with streamlined interfaces enabling seamless ordering. The accessibility of mobile apps, along with tailored user experiences, accelerates consumer adoption, impacting the Australia online food delivery market revenue. The integration of real-time order tracking and multiple payment options enhances satisfaction. These operational efficiencies directly contribute to higher market revenue and user retention rates, reinforcing the sector’s long-term viability.

Australia Online Food Delivery Market Growth

The Australia online food delivery market continues to benefit from payment flexibility, which enhances accessibility and consumer convenience. Platforms offering multiple payment methods, including credit cards, digital wallets, and cash on delivery, cater to varied user preferences, driving transaction volume. Additionally, personalised ordering experiences, including dietary customisation and exclusive digital-only menus, attract health-conscious and experience-driven consumers.

Technological innovation is reshaping delivery logistics across Australia. In July 2024, Google Wing launched its largest international drone delivery service in Melbourne, enabling 250,000 residents in the city’s eastern suburbs to receive small-item orders from Eastland Shopping Centre via the DoorDash app, enhancing speed and convenience. These services extend restaurants’ geographic reach beyond physical locations, support local businesses, and improve fulfilment efficiency, all of which underpin the continued growth of the Australia online food delivery market.

Key Trends and Developments

The Australia online food delivery market growth is driven by hyperlocal and on-demand delivery models, AI-powered personalisation, increased consumer demand for value and rewards, and strong platform support for local and independent businesses, enhancing reach and customer engagement.

April 2025

Uber Eats launched “Eats for Teens” across Australia, allowing teens aged 13-17 to order from over 50,000 restaurants with parental controls and spending limits. In fact, 67% of Australians used online food delivery monthly, driven by convenience, time-saving, and stress-free meal planning, reflecting growing demand among busy families.

April 2025

Menulog launched an AI Assistant in Australia to personalise and simplify food ordering. The AI offered tailored meal recommendations, restaurant reviews, and cost-effective options via text chat. 

November 2024

Amazon Australia partnered with DoorDash to offer Prime members two years of free DashPass, providing unlimited free delivery fees on eligible orders. This collaboration allows members to save more and receive 5% credit on eligible pickup orders. Amazon’s goal was to enhance savings and convenience for its Prime members across Australia.

March 2022

Fantuan Delivery, an Asian food delivery app, entered the Australian market with launches in Sydney and Melbourne. Established in 2014, the company experienced 200% growth in 2021. Operating in over 40 cities globally, Fantuan partnered with 10,000 couriers and aimed to expand further within Australia, offering both delivery and pickup services.

Rise of Hyperlocal and On-Demand Delivery Models is Boosting the Australia Online Food Delivery Market Growth

Australia’s online food delivery market is witnessing a shift towards hyperlocal and on-demand fulfilment. Platforms are forming closer partnerships with local restaurants and deploying smaller delivery hubs to ensure faster service, particularly in suburban and regional areas. This model reduces last-mile logistics costs and enhances customer satisfaction by improving delivery speed and reliability, critical drivers of platform loyalty and market share expansion in a competitive delivery landscape.

Personalisation and AI-Powered Customer Experience is Impacting the Australia Online Food Delivery Market Revenue

Personalised recommendations are emerging as a key differentiator in Australia’s food delivery market. Platforms are increasingly leveraging artificial intelligence to analyse consumer data such as order history, time preferences, and dietary needs. These insights are used to provide customised meal suggestions and promotions, which enhance user engagement and increase average order value. Personalisation not only boosts conversion but also strengthens long-term customer retention strategies in a saturated marketplace.

Increased Demand for Value and Rewards is Influecing the Australia Online Food Delivery Market Dynamics and Trends

Australian consumers are displaying greater price sensitivity, prompting platforms to implement aggressive value-driven strategies. Promotions, discount codes, and loyalty programme integration are now core elements of customer acquisition and retention models. These incentives are particularly effective in encouraging repeat orders and maximising lifetime customer value. As inflationary pressures persist, affordability remains a key decision-making factor for users navigating multiple delivery platforms and comparing service benefits.

Platform Support for Local and Independent Businesses is Boosting Opportunities in the Australia Online Food Delivery Market

Online delivery services are increasingly promoting local and independent restaurants to meet consumer demand for community-based dining options. By offering marketing support and digital infrastructure, platforms help small businesses expand reach without physical expansion. This decentralised growth supports economic resilience and aligns with consumer interest in unique, locally sourced cuisine, creating a mutually beneficial ecosystem that strengthens platform credibility and drives diverse menu offerings across the market.

Australia Online Food Delivery Market Trends

Online food delivery platforms also integrate with restaurant loyalty schemes, allowing customers to earn rewards, further boosting the Australia online food delivery market opportunities. These platforms help restaurants extend their reach to broader audiences, including regions where they don’t have physical outlets. Faster delivery times and support for local businesses also enhance the service, ensuring customers experience quick and efficient delivery. In March 2021, KFC Australia introduced a white-label food delivery service via its app, offering free delivery for two weeks with the purchase of a Tower Burger. Collaborating with DoorDash Drive, the service enabled customers to order and track meals directly through the app, offering exclusive deals. This provided a more direct delivery option in addition to platforms such as Deliveroo and MenuLog.

Opportunities in the Australia Online Food Delivery Market

Payment flexibility is a significant advantage, with options such as credit cards, digital wallets, and cash on delivery driving demand for the Australia online food delivery market. Platforms also offer customised orders to suit dietary needs, while customer reviews enhance service quality. Some platforms feature exclusive menus that provide unique dining experiences not available at physical locations. In July 2024, Google Wing launched its quieter drone delivery service in Melbourne, marking its biggest international expansion. This service enables around 250,000 residents in the city’s eastern suburbs to order smaller items from Eastland Shopping Centre through the DoorDash app, improving delivery options for local consumers.

Market Restraints

The Australia online food delivery market encounters notable restraints that impede growth and profitability. High delivery costs, especially in remote regions, coupled with substantial commission fees, pressure restaurant margins. Operational challenges include inconsistent delivery times, intense competitive dynamics, and complex regulatory compliance. 

Additionally, privacy concerns and the environmental footprint of packaging raise consumer apprehension. Limited service availability in regional areas further constrains market expansion. The growing demand for sustainable practices and adherence to evolving regulations increases operational costs, collectively impacting consumer uptake and platform profitability.

Australia Online Food Delivery Market Share

Market Breakup by Platform Type

According to the Australia online food delivery market report, mobile applications offer convenience and simplicity, enabling customers to quickly place orders from their smartphones. With features such as real-time tracking, saved preferences, and push notifications, these apps enhance the user experience, facilitating seamless payments and a quicker ordering process.

Web-based platforms offer a comprehensive interface for exploring restaurant menus, catering to consumers who prefer larger screens and streamlined navigation. They enable efficient access to promotional offers, customer reviews, and detailed product descriptions, enhancing the decision-making process and overall user experience.

Market Breakup by Business Model

Order-focused platforms streamline the process by directly connecting customers with restaurants, primarily focusing on receiving and processing orders, which drives opportunities in the Australia online food delivery market. This model simplifies operations for restaurants and provides customers with a fast, direct ordering experience, offering flexibility by letting them choose from multiple menus in one place. In March 2022, Fantuan Delivery, a leading Asian food delivery app, launched in Sydney and Melbourne, initially serving CBD, Boxhill, and Eastwood with quick delivery and pickup options via its app, accompanied by promotions and plans for rapid expansion.

Restaurant-specific platforms focus on delivering a dedicated service for individual restaurants, offering tailored experiences for both businesses and customers, which boosts the Australian online food delivery market. This model fosters brand loyalty through exclusive deals, faster deliveries, and personalised services. Customers receive fresh, high-quality food directly from their preferred restaurant, while businesses maintain control over the process. In February 2023, McDonald's launched its McDelivery service in Australia via the MyMacca’s app, initially trialled in New South Wales and expected to expand nationwide.

Market Breakup by Payment Method

The Australia online food delivery market growth is significantly propelled by the widespread adoption of secure and efficient online payment methods. Payment options including credit cards, digital wallets, and bank transfers enable seamless, rapid transactions while minimising cash handling risks. This not only enhances customer convenience through faster checkouts but also improves transaction security, fostering greater consumer confidence and facilitating market expansion. Leading platforms leverage these secure digital payments to drive higher order volumes and customer retention.

Cash on delivery (COD) remains a vital market driver within the Australia online food delivery market, particularly for customers lacking access to digital payment systems or preferring payment upon receipt. Local providers such as Arrivederci Pizza offer COD options, broadening market inclusivity and catering to customer preferences for transaction flexibility. This payment method enhances trust and satisfaction by allowing customers to verify orders prior to payment, thereby strengthening loyalty and encouraging repeat business across diverse demographic segments.

Australia Online Food Delivery Market Regional Insights

New South Wales Online Food Delivery Market Overview

New South Wales is seeing an increase in demand for online food delivery, driven by busy urban lifestyles and a desire for convenience. With a diverse population, there is a strong preference for quality and local food options. The New South Wales Food Authority is updating its food regulations with the draft Food Regulations 2025 to improve food safety standards, ensuring better compliance for food sold through delivery services across the state.

Queensland Online Food Delivery Market Trends

Queensland's online food delivery market is growing due to wellness trends, with consumers favouring healthier, sustainable food choices. There is a rising demand for local and organic food, particularly in urban areas. The state's tourism sector, valued at USD 31 billion in 2023, boosts demand for convenient food delivery options, as tourists increasingly seek easy solutions.

Western Australia Online Food Delivery Market Dynamics

Western Australia's online food delivery market is expanding due to the growing demand for convenience and variety in dining. Consumers are becoming conscious of food quality, preferring fresh, locally sourced ingredients and faster delivery times.

Victoria Online Food Delivery Market Drivers

Victoria’s diverse population and dense metropolitan areas, particularly Melbourne, fuel significant online food delivery demand. The state’s vibrant food culture and extensive restaurant networks support varied cuisine offerings. Innovations like drone delivery pilots in Melbourne enhance last-mile efficiency, positioning Victoria as a key growth hub within the national market.

Australian Capital Territory Online Food Delivery Market Opportunities

The ACT benefits from a tech-savvy, urban demographic with high digital adoption rates, driving strong demand for online food delivery. Its compact geography enables efficient delivery logistics, reducing costs and improving service speed. Government initiatives supporting digital infrastructure further bolster market growth and platform penetration in the region.

Competitive Landscape

The Australia online food delivery market key players link customers with restaurants and couriers, providing fast and convenient delivery options. They enable users to order from a wide selection of local restaurants and takeaways, with services available across major Australian cities, emphasising convenience and diverse cuisine choices. These platforms offer efficient delivery services from both restaurants and grocery stores, meeting the increasing demand for convenience and variety in urban areas.

Key Industry Players

Uber Technologies Inc.: Uber Technologies Inc. is a global leader in ride-hailing and food delivery services. Founded in 2009 and headquartered in San Francisco, United States, Uber’s food delivery service, Uber Eats, operates in numerous countries, including Australia. It connects customers with restaurants and couriers, offering quick and convenient food delivery solutions.

Menulog Pty Ltd: Menulog Pty Ltd is a leading Australian online food delivery service, founded in 2006 and headquartered in Sydney, Australia. It allows users to order from a wide variety of local restaurants and takeaways, with delivery services available across major cities in Australia, focusing on convenience and diverse cuisine options.

DoorDash Technologies Australia Pty Ltd: DoorDash Technologies Australia Pty Ltd is a prominent online food delivery company, established in 2020 and headquartered in Melbourne, Australia. A subsidiary of DoorDash, it offers fast and efficient delivery services from restaurants and grocery stores, catering to the growing demand for convenience and variety in urban areas.

HungryPanda SG Pte. Ltd.: HungryPanda SG Pte. Ltd. is a global food delivery service catering primarily to the Asian community, founded in 2017 and headquartered in Singapore. Operating in Australia and other countries, it connects customers with Asian restaurants, offering delivery services for authentic dishes and expanding its presence across major cities globally.

Another key player in the Australia online food delivery market report is Grocery Delivery eServices Australia Pty Ltd among others.