US customer lifecycle and management platform CleverTap has found that 86% of food delivery app users worldwide stop using them in the first two weeks.
Figures from the Industry Benchmarks for Food Delivery Apps report found revenue from online food delivery is estimated to reach $94.4bn in 2019, with $58bn of this from restaurant-to-consumer delivery.
However individual food delivery apps face challenges when engaging with and keeping new users. Mobile apps count for six out of ten digital restaurant orders, with only 25% of users completing the signup process after using it for the first time.
Analysis of three billion messages sent to on-demand food delivery apps revealed that only 22% of new food delivery app users stay active after the first week, with 54% uninstalling the app within the first month of use.
CleverTap global head of marketing Almitra Karnik said: “The food delivery marketspace is booming thanks to the convenience it offers in today’s busy lifestyle. At the same time, however, the competition is getting fiercer. The food delivery app space has very low entry and exit barriers and hence churn and retention are constant challenges. The key to improve both is to provide a differentiated experience at every stage of the user lifecycle.
“Showing enough value to get a user to sign up is only the first challenge. You also need to incentivise users to use the app and perform repeat transactions ‘in-the-moment.’ With this report, marketers will know more about how their apps are measuring up to the competition and understand how they can rise above the competition.”