Is the food delivery industry getting too crowded?

• Statista estimates the worldwide food delivery market holds nearly a billion frequent users — forecasting a $134.5 billion industry by 2023
• However, it seems that every week yet another local restaurant in your city is making a stand against the goliath business shaking up the industry through Uber Eats, Deliveroo, Menulog and more
• While Uber as a whole is already traded in the stock market over in America, ASX listed logistics company Dragontail is dipping its toes further into the delivery service pond by partnering with Yello
• This partnership from Dragontail is on the backend of another partnership with DoorDash, which is already making moves in America and is expected to hit Aussie shores very soon

You’d be living under a rock or simply lying if you said you’ve never used Uber Eats or Deliveroo to summon a shameful dinner when deciding not to cook at home.

In fact, according to Roy Morgan, you’re more likely to be guilty of this if you’re in the millenial age bracket.

Millennials are taking the cake at the most frequent food delivery users, making up for 16.1 per cent of customers for the likes of Uber Eats in 2018.

As well, Statista estimates the food delivery market worldwide holds nearly a billion frequent users — forecasting a $134.5 billion industry by 2023.

It’s not all sunshine and daisies though. It seems that every week yet another local restaurant in your city is making a stand against the goliath business shaking up the industry.

This is because Uber Eats not only charges hundreds of dollars in initial fees, the corporation also charges roughly 35 per cent commission from the restaurant per delivery.

The culture of dining in is changing too, and hungry Australians are finding it easier and easier to have dinner delivered to their front door.

You’ve also probably noticed it first hand at your local favourite eatery, seeing less and less dine-in couples and more delivery drivers waiting at the counter.

While Uber as a whole is already traded in the stock market over in America, ASX listed logistics company Dragontail is dipping its toes further into the delivery service pond by partnering with Yello.

You’ve most likely never even heard of Yello. Though if you’re a business owner, particularly in Melbourne or Sydney, you’re probably a little familiar with the company.

Yello provides delivery fleet options across all kinds of industries, not just food, servicing the likes of Woolworths, breweries and florists.

This isn’t out of the blue either. Late last month Dragontail forged an alliance with DoorDash — yet another food delivery aggregator that already operates in America.

DoorDash is just like Uber Eats and Deliveroo and reports of the company hitting Aussie shores started to buzz in late August, alongside the company forging a LinkedIn page for its forthcoming Australian venture.

Already though, the company has faced criticism in America, after being accused of stiff-arming its drivers out of earned tips.

Local eateries in the states have also bombarded DoorDash with complaints after finding their business in the middle of the food delivery service’s operations with no heads up.

On its partnership with Yello today, Dragontail Managing Director Ido Levanon said the Aussie expansion is possible for a future global move.

“We see great value in collaborating with the world’s fast food delivery aggregators, as part of the era’s changes,” he said.

“Our Australian partnerships will surely deepen our position across this territory as part of expanding our cooperation with existing and potential customers globally.”

Specifically, Dragontail’s services use artificially intelligent powered logistics to improve deliveries coming out of restaurants and reaching hungry customers.

However, looking at both recent alliances by the company, it seems it’s looking to contract its assistance to the food delivery services already eating up Australia.