Online food delivery service, Mr D Food, reached one million app downloads last week.
With an increasing number of consumers ordering their food online for delivery, Mr D Food reports to having processed over R500 million in orders through its mobile app in the last 12 months.
Mr D Food in numbers:
- The Mr D Food app has now been downloaded over 1 million times;
- Over 335,000 orders are delivered monthly;
- Order growth of 210% per year;
- 270,000 active users per month on the app;
- 2.6 deliveries per customer per month.
Rapid growth in online delivery expected
The online food delivery space is highly competitive all over the world and South Africa is no different.
Market share information indicates that Naspers-backed Mr D Food and Uber Eats account for nearly 90% of the South African market.
Mobile App Market Share Graph (Android App Daily Active Users) click to enlarge
Observations from other countries show that customer retention and loyalty metrics for market leaders operating at scale are excellent, and that customer frequency of the leaders increases over time.
“Food delivery in South Africa is still underpenetrated and growing rapidly, as is the case in many markets across the globe," Naspers Ventures CEO, Larry Illg said.
"We believe the potential for online food delivery businesses could be even greater in high-growth markets like South Africa, versus what has been observed in the West,” he added.
Naspers has invested more than $1.5 billion (R20 bn) over the past 18 months into online food delivery, by investing in companies with leading businesses in 40 countries around the world. This includes Delivery Hero, an online food ordering and delivery platform in 36 countries; iFood, a food delivery business in Brazil and Mexico; and Swiggy, a food delivery business in India.
“We’re proud to have grown Mr D Food from the legacy phone ordering business to the leading online food ordering and delivery service in South Africa. We were able to successfully build the business by always putting our customers first, with the continued backing of a globally-reputed food delivery investor, Naspers,” said Devin Sinclair, Mr D Food CEO.
Mr D Food services the majority of South Africa’s major cities and secondary towns, delivering to over 1,900 suburbs.