Bus Assessment 3

COVID-19 (Coronavirus) Impact Update

IBISWorld's analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result of the global COVID-19 pandemic:

• The Online Food Delivery Platforms industry is expected to post revenue growth of 12.1% in 2020-21, constrained by declines in discretionary income. For more detail, please see the Current Performance chapter.

• Industry profit margin growth is expected to slow in 2020-21, as operators reduce commissions charged to restaurants in response to rising pressure. For more detail, please see the Cost Structure Benchmarks chapter.

• The mandated closure of restaurants as the Australian economy went into shutdown has increased the number of high-end restaurants offering services on industry platforms. For more detail, please see the Major Markets chapter.

Note: The content in this report is currently being updated to reflect the trends outlined above.

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Industry Definition

Industry players facilitate meal deliveries by operating online food ordering and delivery platforms. These platforms connect users with food-service providers and delivery drivers, who operate as independent contractors. Industry firms take a percentage of the total transaction value booked through their platforms to generate revenue. The industry excludes grocery delivery platforms, farm-to-table services, and meal kit ordering and delivery services.

Major Players

1. Uber Australia

1. Menulog

1. Deliveroo Australia

Main Activities

The primary activities of this industry are:

1. Operating food ordering and delivery platforms

The major products and services in this industry are:

1. Italian cuisine

1. Indian cuisine

1. Thai cuisine

1. Chinese cuisine

1. Burgers

1. Desserts and drinks

1. Other cuisine

Supply Chain

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Executive Summary

Revenue growth in the Online Food Ordering and Delivery Platforms industry has been strong over the past five years.

Australians are increasingly leading busy lives due to their work and family commitments, which has boosted demand for convenient meal options. Industry operators have benefited from this trend by filling a gap in the food delivery market. Firms facilitate deliveries of meals and food items through bookings made on their platforms. These platforms connect users of their applications with food-service providers and delivery drivers. The operations of online grocery delivery platforms, farm-to-table services and meal kit ordering and delivery services are similar to those of industry operators. However, these firms are not included in the industry.

Industry revenue is expected to rise at an annualised 43.8% over the five years through 2020-21, to reach a total of $847.9 million. However, revenue growth is expected to slow to an estimated 12.1% in the current year. This constrained growth in the current year is largely attributable to rising unemployment and falling discretionary incomes as a result of the outbreak of COVID-19 in 2019-20. These trends are expected to limit the amount consumers can spend on discretionary purchases, such as takeout food.

Ongoing strong demand for quick and convenient food is anticipated to continue boosting demand for industry services over the next five years. However, players are likely to face some pushback from restaurants. A growing number of restaurant owners are projected to move away from industry food delivery platforms over the period. In response, food ordering and delivery platform operators are likely to establish partnerships with more premium and mid-range restaurants, to expand their range of quality food products. Rising competition is also likely to keep commission rates low, limiting revenue growth over the next five years. Revenue is forecast to grow at an annualised 7.1% over the five years through 2025-26, to $1.2 billion.

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Historical Performance Data

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Outlook

The Online Food Ordering and Delivery Platforms industry is forecast to continue growing over the next five years.

Rising technology proliferation and increasing demand for convenient food options is expected to contribute to strong demand for industry services. Additionally, an anticipated recovery of the Australian economy following the economic effects of the COVID-19 pandemic is likely to contribute to a decline in the national rate of unemployment and boost real household discretionary incomes. These trends are expected to improve the ability of consumers to make discretionary purchases, such as takeaway food, and contribute to growth in demand for industry services. However, as the market reaches saturation, the industry's growth is expected to be slower compared to the previous five-year period. Overall, industry revenue is expected to rise at an annualised 7.1% over the five years through 2025-26, to a total of $1.2 billion.

Restaurant pushback

Food ordering and delivery platforms are anticipated to become increasingly normalised over the next five years.

As a result, more food-service providers are likely to incorporate these platforms into their operations to supplement and boost revenue. However, a growing number of restaurants are expected to counter the online food ordering and delivery trend by providing a unique restaurant experience that home-delivered food cannot provide. Some restaurants, particularly mid-range and fine dining restaurants, will likely focus on distinguishing themselves from the food provided on these platforms. Others are expected to differentiate themselves from industry platforms by enhancing their ambiance through lighting, emphasising excellent customer service and increasing the interaction among customers and chefs. These trends could potentially represent a threat to industry operators over the next five years, and will likely limit revenue growth. In response, operators are anticipated to focus on establishing partnerships with more premium and mid-tier restaurants to ensure they can continue to provide an expanding range of quality food. Additionally, in order to retain support from restaurants, industry operators are expected to reduce their commissions, limiting growth in industry revenue over the period.

Widening profit margins

Industry profit margins are anticipated to grow over the next five years.

As food delivery platform operators continue to expand in popularity, and see increases in their revenue, industry profitability is expected to improve. However, operators are likely to continue reducing commissions charged to restaurants, in an effort to keep restaurants engaged on their platforms, and to remain competitive against other providers. Consequently, industry profitability growth is expected to be limited over the period, despite strong forecast growth in industry revenue.

Rising competition

The industry exhibits a high level of competition, which is likely to increase over the next five years.

Strong revenue growth is expected to attract further entrants to the industry, boosting industry participation. This rising competition is forecast to constrain growth in revenue and profitability, as operators keep commission rates low to remain competitive. Additionally, rising competition for delivery drivers is expected to increase commissions paid to drivers.

Untapped markets

Demand for food ordering and delivery platforms is expected to continue growing over the next five years.

As a result, industry operators will likely continue to expand further into more towns and suburbs. In particular, a lack of food delivery services in outer suburbs and regional towns represents a potential new market for food delivery platform operators to access.

Although Uber Eats has only been in the industry since April 2016, the company has quickly expanded to cater to rising demand and emerging markets. Uber Eats is currently available across 18 Australian towns and cities, and is projected to expand further into new towns and cities over the next five years, increasing the number of the company's drop-in centres across Australia. These drop-in centres (better known as greenlight hubs) are designed to provide in-house support for food delivery drivers and restaurant-partners, and assist Uber drivers involved in ridesharing. Growth in the number of Uber Eats greenlight hubs will likely result in industry establishment numbers increasing over the period. This growth in industry establishments is expected to drive strong growth in industry employment over the five years through 2025-26.

Industry Life Cycle

The life cycle stage of this industry is    Growth

LIFE CYCLE REASONS

1. Establishment numbers have risen over the past five years

1. Consumer preferences for convenient meal options have supported the industry

1. IVA growth is expected to outpace GDP growth

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Products & Services

Operators in the Online Food Ordering and Delivery Platforms industry provide services which allow customers to order food for pickup or delivery.

Products offered through industry operators are the various meals, snacks, entrees, side dishes, desserts and drinks sold by partner restaurants. Industry services are segmented based on the type of food ordered.

Italian cuisine

Products in this segment include pizza, pasta, cannelloni, arancini, lasagne, risotto and other dishes originating from Italy.

Pizza contributes a large amount of revenue to this segment, as it is a highly popular takeaway food among Australians. This segment also includes side dishes and starters, such as garlic bread. Many Italian cuisines are available in supermarkets as pre-packaged or ready-made meals, often at a lower price than those available through online delivery platforms. Additionally, many takeaway restaurants that offer Italian dishes have strong customer loyalty in their local community, reducing these restaurants need to use industry services to maintain sales. Nevertheless, this segment has risen slightly as a share of industry revenue over the past five years. As a result of restrictions implemented in response to the COVID-19 pandemic, many high-end Italian restaurants began offering their products for sale via industry operators, driving this segment higher as a share of industry revenue over the period.

Indian cuisine

Indian cuisines include kormas, naan bread, samosas, vindaloo, rice dishes, curries and many other dishes of Indian origin.

This product segment has increased in popularity over the past five years. The number of partner restaurants offering Indian dishes through industry operators has grown, partly to accommodate rising demand. However, faster growth in other segments has led to this segment declining slightly as a share of industry revenue.

Thai cuisine

Thai cuisines include pad thai, curries, rice and noodle dishes, soups, such as tom yum and tom kha, Thai salads and stir-fry dishes.

Wider acceptance of overseas cuisine has supported consumer demand for this segment over the past five years. However, this segment has fallen slightly as a share of industry revenue over the period, primarily due to faster growth in other segments.

Chinese cuisine

Chinese is a popular takeaway cuisine that is often difficult and time-consuming to prepare at home.

This segment includes dumplings, rice and noodle dishes, stir-fry dishes and soups. Many consumers perceive Chinese cuisines as containing higher amounts of fat, oil and salt content compared with other cuisines. Rising health consciousness among the population has constrained demand for this segment over the past five years, as consumers have sought out healthier options. As a result, this segment has fallen as a share of revenue over the period.

Burgers

Burgers are a popular takeaway food among consumers.

Consumers have increasingly perceived burgers as an affordable luxury, with many restaurants offering specialities or unique creations. This trend has driven demand for food in this segment. An increasing number of restaurants have begun offering premium and gourmet burgers through operators over the past five years. Overall, this segment has risen as a share of industry revenue over the period.

Drinks and desserts

Products in this segment are rarely ordered through operators without an accompanying main meal.

Desserts and drinks are often sold at lower prices than main meals, and are included as a part of a special or deal for large orders. Desserts can be warm or cold, such as apple pie or ice cream, and drinks are typically soft drinks or single-serve bottled beverages. Growing demand for premium desserts has slightly boosted this segment as a share of industry revenue over the past five years.

Other cuisine

Other meals and specialities offered by partner restaurants through operators include Mexican, Greek, British, Japanese and Lebanese cuisine; fish, vegetarian and vegan options; breakfast foods; salads and many more options.

Increasing health consciousness and consumer preferences for healthier fast foods have boosted demand for salads and other dishes over the past five years. Overall, other cuisines have declined as a share of industry revenue over the period.

Major Markets

Consumers represent the primary market for industry services.

Consumers use industry operators to obtain everyday meals, food for entertaining friends and family, or cuisines that they would otherwise be unable to prepare at home. Consumers can be segmented based on their age.

People aged 15 to 24

Consumers aged 15 to 24 are typically highly tech-savvy and readily adopt the latest technology trends.

Consumers in this age group tend to have just entered the workforce and often work in entry-level, part-time or casual positions. This market therefore typically has less income to allocate to take-away food. However, young consumers have demonstrated a willingness to pay for convenience and diverse cuisines that they cannot make at home. Additionally, this market exhibits strong health consciousness and many of the restaurants that partner with industry operators specialise in healthy and fresh options. However, faster growth among older demographics has reduced this market as a share of industry revenue over the past five years.

People aged 25 to 34

In the early stages of their careers, consumers aged 25 to 34 also generally have lower discretionary income to spend on meals ordered online compared with older markets.

This market has demonstrated a willingness to pay for convenience and affordable luxuries, which include expensive and indulgent meals. This market is typically both adept with technology and time-poor, as many are beginning to start families. The rising cost of living pressures has constrained demand from this market over the past five years. Growth in unemployment and declining incomes as a result of the COVID-19 outbreak are expected to predominately impact younger Australians, contributing to this market declining as a share of revenue over the past five years.

People aged 35 to 44

People in this market are typically working full-time and have a good understanding of technology.

Consumers aged 35 to 44 often use industry services for everyday meals, and when catering for friends and families at special events and gatherings. However, the rising cost of living pressures has restricted growth in household discretionary incomes and constrained this market's capacity to pay for takeaway food over the past five years. However, rising technology adoption has contributed to this market rising as a share of industry revenue over the past five years.

People aged 45 to 60

Consumers in this market generally have well-established careers and higher discretionary incomes, allowing them to spend more on takeaway food ordered through industry operators.

People aged 45 to 60 generally use industry operators while entertaining friend or for family gatherings. However, people in this age group are generally less adept with technology compared with younger markets. This market has increased as a share of industry revenue over the past five years, as these consumers have increasingly embraced technology.

People aged 61 and over

Consumers in this market are typically retired, and have greater time to dedicate to shopping and cooking.

People aged 61 and over tend to exhibit strong loyalty to particular restaurants, and are also more reluctant to adopt new technologies than other markets. People in this age group are more likely to prefer dining in at restaurants than having food delivered to them by industry operators. Growing cost of living pressures have also placed downward pressure on the ability of people in this market to spend on takeaway food. However, rising technology adoption among this demographic has resulted in this market rising slightly as a share of revenue over the period.

Exports in this industry are    Low and Steady

Imports in this industry are    Low and Steady

The industry does not conduct international trade. Online food delivery platforms host partner restaurants that are located in Australia and only deliver to Australian addresses. While some platforms used by industry operators were developed and tested in overseas markets prior to being launched in Australia, upgrades and maintenance are generally conducted domestically.

Business Locations

All industry players are headquartered in New South Wales and Victoria. This trend allows operators to benefit from proximity to partner restaurants. Industry players count large chains (such as McDonald's) as clients, many of which have headquarters located in these states. Players generally enter the industry with operations in either Melbourne or Sydney, before expanding into other geographical areas.

No enterprises are located in the Northern Territory, Tasmania or Australian Capital Territory. This factor is mainly due to the small populations in these areas, and the significant geographical distance between consumers and restaurants. However, many operators offer services in these areas.

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Market Share Concentration

Concentration in this industry is    High

The Online Food Ordering and Delivery Platforms industry has high market share concentration. The four largest operators are expected to account for more than 90% of industry revenue in the current year. Nevertheless, the industry's market share concentration has declined strongly over the past five years, due to the expansion in the number of operators. For example, Uber Eats entered the industry in 2016 and quickly became a market leader. Prior to 2015, the industry was essentially a monopoly controlled by Menulog. Market share concentration is anticipated to remain high over the next five years. Strong brand recognition and extensive partner restaurant networks held by incumbent major players represent high barriers to entry for new operators seeking to gain market share.

Key Success Factors

IBISWorld identifies 250 Key Success Factors for a business. The most important for this industry are:

Ability to manage external (outsourcing) contracts: Externally contracted couriers and drivers deliver orders from restaurants to customers. Industry firms must foster and manage these relationships to ensure prompt deliveries and maintain operations.

Ability to quickly adopt new technology: Industry firms that use the latest technologies benefit from increased delivery efficiencies, and more effective and targeted marketing.

Having a diverse range of clients: Industry operators that can offer consumers a varied selection of restaurants and cuisines are more likely to see repeat patronage.

Aggressive marketing/franchising - given the high level of competition: The industry is strongly competitive. Therefore, effective marketing is essential to winning customer orders and maintaining partnerships with restaurants.

Cost Structure Benchmarks

Basis of Competition

Competition in this industry is    High and the trend is Increasing

The Online Food Ordering and Delivery Platforms industry exhibits a high-level of competition, which has increased over the past five years.

The industry is young, and becoming more competitive as global companies enter the domestic market. The industry's major players have strong brand recognition and extensive networks of partner restaurants.

Internal competition

Industry operators compete for consumer orders and restaurant partnerships.

Consumers seek convenience, diverse choice and low prices, which operators must offer to build traffic and generate orders. Industry operators compete for restaurant partnerships on the basis of consumer traffic, online security and platform efficiency. Restaurants are generally reluctant to join online food takeaway platforms that involve high commissions for orders or experience limited customer demand. Industry firms also compete on the basis of delivery times, as consumers want orders delivered fresh and at the correct temperatures, while restaurants want to accommodate the maximum number of orders in a given timeframe.

External competition

Players face external competition from supermarkets, which stock ingredients and convenient, ready-made meals at relatively low prices.

Convenience stores also offer meals that are ready to eat or require little preparation, with many stocking healthier options to meet consumer demand. Industry operators also face competition from firms that deliver frozen meals, or ingredients and recipes, such as Hello Fresh.

Barriers to Entry

Barriers to Entry in this industry are    Medium and the trend is Increasing

Industry Globalization

Globalization in this industry is    Medium and the trend is Steady

The Online Food Ordering and Delivery Platforms industry exhibits a moderate level of globalisation. An industry's level of globalisation is determined by its exposure to international trade and its degree of foreign ownership. The industry provides services domestically and therefore does not engage in international trade. However, none of the industry's major operators are Australian owned. Just Eat is owned by UK-based Just Eat Plc., Uber Australia is a subsidiary of Uber Technologies Inc., which is based in the United States, and Deliveroo is a wholly owned subsidiary of Roofoods Limited, which is based in the United Kingdom.

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Major Players

Uber Australia Pty Ltd

Market Share: 67.5%

Brand Names Uber Eats

Uber Australia Pty Ltd operates in the industry through the Uber Eats brand, which launched in Australia in April 2016. Uber Australia is a wholly-owned subsidiary of US-based Uber Technologies Inc., which currently operates in 65 countries. The company contracts delivery personnel to deliver filled orders from the partner restaurant to the consumer. Partner restaurants have increasingly voiced concerns about the commissions charged by Uber Eats on transactions. As a result, following the outbreak of COVID-19, the company reduced its commissions from 35% to 30%. Uber Australia employs approximately 570 staff and is headquartered in Sydney.

Financial performance

Industry-specific revenue for Uber Australia is expected to increase strongly over the five years through December 2020, to reach a total of $504.7 million. The company has benefited from strong brand awareness from its ride-sharing operations, which have been in operation since November 2012. The company's profitability has also climbed strongly over the period, due to its increasing dominance of the market.

Uber Australia Pty Ltd - industry segment performance*

Just Eat (Acquisitions) Pty Ltd

Market Share: 14.1%

Brand Names Menulog, Just Eat, Eat Now

Just Eat (Acquisitions) Pty Ltd operates in the industry through its Menulog and EatNow brands. Menulog Group entered the industry in 2006 and Eat Now in 2010. In February 2015, Menulog and Eat Now merged, with the combined entity known as Menulog Group. Prior to the merger, Menulog partnered with approximately 5,000 restaurants and Eat Now with 4,400 restaurants. In June 2015, Just Eat Plc., a UK-based online food ordering firm, purchased Menulog Group for $855.0 million. Just Eat (Acquisitions) is a wholly owned subsidiary of United Kingdom-based Just Eat Plc., an online and mobile food ordering platform with operations across the United Kingdom, Canada, Spain, Mexico and Norway.

Prior to 2018, Menulog did not offer its own delivery service. Customers could place food orders online for pick up or for delivery by the restaurant. In 2018, the company rolled out the technology from its parent company's SkipTheDishes platform, allowing Menulog to launch its own delivery services. Just Eat currently operates across Australia and New Zealand. The company is headquartered in Sydney and employs approximately 100 people.

Financial performance

Just Eat's revenue is expected to increase at an annualised 31.9% over the five years through December 2020, to a total of $105.7 million. This trend represents an underperformance of the overall industry over the period. This underperformance has largely been a result of rising competition in the industry, particularly following the entry of Uber Eats in 2016. Just Eat has enjoyed strong growth in restaurant partners over the period. However, the launch of the company's delivery services has involved difficulties, with customers complaining about late and missing deliveries. Furthermore, Just Eat's number of users has fallen over the latter half of the past five years period, which has driven a decline in profitability.

Just Eat (Acquisitions) Pty Ltd - financial performance

Deliveroo Australia Pty Ltd

Market Share: 12.4%

Deliveroo Australia Pty Ltd is the Australian subsidiary of Roofoods Ltd, a United Kingdom-based on-demand delivery services company. Based in London, the global company currently operates in 12 countries and regions, including Belgium, Hong Kong and the United Arab Emirates. Deliveroo launched in Australia in November 2015 following a $140.0 million capital raising and has since experienced strong growth. The company's Australian operations are based in St Kilda, Melbourne.

Deliveroo provides a mobile app and website that consumers use to conduct transactions with participating restaurants. Deliveroo then arranges the order pickup and delivery from the restaurant to the consumer. The company uses an algorithm that was developed in-house to determine the most efficient method of delivery. Deliveroo differentiates itself from other players in the industry by specialising in delivering cuisine from high-end and fine-dining restaurants that otherwise would not offer a delivery service. In November 2017, Deliveroo began offering services through Deliveroo Editions, which involves partner restaurants setting up kitchen operations in an establishment owned by Deliveroo. The company then produces cuisine exclusively for delivery, with no eat-in options. This service is anticipated to support the company's growth over the next five years, particularly in Melbourne and Sydney.

Financial performance

The company's revenue is expected to rise at an annualised 125.2% over the five years through December 2020, to a total of $93.0 million. This represents an outperformance of the overall industry over the period. Deliveroo has benefitted from fine-dining restaurants increasingly accepting third-party delivery services, and order volumes rising over the past five years. However, Deliveroo has reported operating losses over the period, mainly due to high and rising marketing and delivery expenses.

Deliveroo Australia Pty Ltd - financial performance

Other Companies

The Online Food Ordering and Delivery Platforms industry is highly concentrated. Only 5 companies operate in the industry. Smaller companies include OrderUp Up Group and Easi Australia.

Delivery Hero Pty Ltd

Delivery Hero operated in the industry through its wholly owned subsidiary Foodora Australia Pty Ltd. Delivery Hero SE, an online food delivery firm headquartered in Berlin, Germany, launched in Australia in 2011 under its Delivery Hero brand. Delivery Hero acquired Foodora in October 2015 and later consolidated its Australian operations under the Foodora brand in November 2016. Foodora was the parent company of Suppertime Australia Pty Ltd, one of the first online food delivery platform companies in Australia. This brand launched in 1985 and operated primarily in Sydney and Melbourne. Suppertime also took on the Foodora brand name in March 2016.

The company entered voluntary administration in August 2018. Delivery Hero had previously stated that its decision to exit the Australian market was based on challenging trading conditions and a desire to focus on other markets with higher potential for growth. After entering administration, Foodora owed $28 million in associated loans to Delivery Hero SE, $558,000 in payroll tax to Revenue NSW, and was being pursued by the ATO for unpaid superannuation, penalties and interest. Foodora was also facing court action from the Fair Work Ombudsman for alleged sham contracting and underpayment claims, and the Transport Workers Union over an unfair dismissal claim.

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Capital Intensity

The level of capital intensity is    High

Technology & Systems

Potential Disruptive Innovation: Factors Driving Threat of Change

The industry has been exposed to a low level of technology disruption over the past five years.

Most technological developments in the industry have been aimed at improving operational efficiencies and productivity. For example, in February 2018, Uber Eats began delivering food products with drones in the ACT. As this technology improves, it is likely to further disrupt the industry in the future.

The level of technology change is    High

Technology change is high in the industry.

Operators develop and maintain mobile and online platforms as part of their core operations. Industry firms are often fast to adopt the latest systems and technology, as these enable operators to expand platform capabilities, improve download and order processing speeds, plan delivery routes more efficiently, and improve the customer and partner restaurant experience.

As new consumer technology and electronics are released, industry operators must update their platforms in order to ensure compatibility and maintain customer engagement. The increasing sophistication of cyber threats also requires industry operators to continuously adopt new digital security requirements to prevent data breaches and mitigate malware attacks.

Revenue Volatility

The level of volatility is    Very High

Revenue volatility in the Online Food Ordering and Delivery Platforms industry is very high, due to strong growth from a low base over the past five years.

Demand for industry services has gained strong traction over the period, due to growing consumer trends favouring convenience. As consumers are leading busier lifestyles and becoming more time-poor, people are increasingly demanding convenient, quick, high-quality meal options. Food ordering and delivery platforms have stepped in to fill this gap in the food service market. Rising discretionary incomes have also supported industry revenue over the past five years. Growth in discretionary incomes has provided consumers with greater purchasing power to spend on industry services.

Regulation & Policy

The level of regulation is    Light and the trend is Steady

The industry exhibits a low level of regulation.

Industry operators must abide by the Competition and Consumer Act 2010, which aims to promote competition and fair trading in Australia, including setting regulations regarding misleading a deceptive conduct, compensation claims and payment surcharges. Industry players also typically hold intellectual property rights for the code for their platforms, and must abide by privacy laws regarding the use and collection of consumer data.

The industry has come under increasing scrutiny in relation to operators classifying delivery personnel as self-employed contractors rather than employees. Self-employed contractors are not entitled to paid annual leave, paid sick leave, minimum wage entitlements, superannuation and other employment benefits, thus keeping employment expenses low. It is estimated that self-employed contractors earn on average $12-16 dollars per hour, significantly below the legal minimum wage. This scrutiny reflects growing concerns over the wider gig economy, and the lack of regulation surrounding worker rights and entitlements. Delivery Hero (trading as Foodora) was alleged to have engaged in sham contracting prior to its exit from the industry.

Industry operators have also faced criticism over alleged unfair contracts, unreasonably high commission rates and unconscionable conduct with partner restaurants. In April 2018, the ACCC announced that it will be investigating Uber Australia's contracts with partner restaurants. Following this investigation UberEATS amended its contracts with partner restaurants in July 2019. These changes allow partner restaurants to dispute responsibility for refunds which were out of their control.

Modern Slavery Act

In November 2018, the Federal Government passed the Modern Slavery Act 2018.

The act, which came into force on 1 January 2019, is a new reporting requirement for larger Australian businesses. Companies that generate an annual consolidated revenue of at least $100.0 million will have to report on how they act to mitigate the risks of modern slavery in their operations and supply chains. The first reports will relate to 2018-19, with most reports being released in 2020. The New South Wales Government is also considering its own state-based version of the report, which would make businesses with consolidated annual revenue of at least $50.0 million have to report. The NSW Modern Slavery Act 2018 was due to come into force on 1 July 2019, but was delayed for further consultation on the day it was set to be implemented.

The Modern Slavery Act is expected to have a minimal impact on the Online Food Ordering and Delivery Platforms industry. The majority of operators do not generate sufficient revenue to file a compulsory report. Additionally, operators provide delivery services domestically, meaning they are unlikely to be exposed to modern slavery. However, operators must take significant action to ensure modern slavey is not found in their supply chains.

Industry Assistance

The level of industry assistance is    None and the trend is Steady

The Online Food Ordering and Delivery Platforms industry does not receive assistance.

Tariffs are not applicable to the industry as it does not conduct international trade. The industry does not receive any grants or government funding. Representation through associations is typically provided to partner restaurants and couriers, rather than industry operators.

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Year

Revenue ($m)

IVA ($m)

Establishments (Units)

Enterprises (Units)

Employment (Units)

Exports ($m)

Imports ($m)

Wages ($m)

Domestic Demand ($m)

2011-12

4.40

1.60

7.00

5.00

19.0

N/A

N/A

1.10

N/A

2012-13

9.20

2.00

7.00

5.00

25.0

N/A

N/A

1.50

N/A

2013-14

19.9

2.30

7.00

5.00

29.0

N/A

N/A

1.70

N/A

2014-15

38.8

-17.4

7.00

6.00

79.0

N/A

N/A

4.70

N/A

2015-16

138

-91.0

8.00

7.00

125

N/A

N/A

7.80

N/A

2016-17

324

-590

16.0

7.00

471

N/A

N/A

29.4

N/A

2017-18

467

56.2

16.0

5.00

514

N/A

N/A

33.3

N/A

2018-19

643

75.1

16.0

6.00

522

N/A

N/A

33.1

N/A

2019-20

756

91.9

19.0

6.00

675

N/A

N/A

42.8

N/A

2020-21

848

101

19.0

6.00

724

N/A

N/A

45.3

N/A

2021-22

931

112

21.0

6.00

772

N/A

N/A

49.8

N/A

2022-23

1,022

136

26.0

7.00

958

N/A

N/A

64.1

N/A

2023-24

1,100

150

28.0

7.00

1,014

N/A

N/A

72.3

N/A

2024-25

1,155

160

30.0

7.00

1,071

N/A

N/A

78.7

N/A

2025-26

1,197

161

32.0

7.00

1,072

N/A

N/A

74.3

N/A

Year

Revenue (%)

IVA (%)

Establishments (%)

Enterprises (%)

Employment (%)

Exports (%)

Imports (%)

Wages (%)

Domestic Demand (%)

2011-12

91.3

77.8

0.00

0.00

46.2

N/A

N/A

37.5

N/A

2012-13

109

25.0

0.00

0.00

31.6

N/A

N/A

36.4

N/A

2013-14

116

15.0

0.00

0.00

16.0

N/A

N/A

13.3

N/A

2014-15

95.0

N/A

0.00

20.0

172

N/A

N/A

176

N/A

2015-16

256

423

14.3

16.7

58.2

N/A

N/A

66.0

N/A

2016-17

135

549

100.0

0.00

277

N/A

N/A

277

N/A

2017-18

44.0

N/A

0.00

-28.6

9.12

N/A

N/A

13.3

N/A

2018-19

37.7

33.6

0.00

20.0

1.55

N/A

N/A

-0.61

N/A

2019-20

17.6

22.4

18.8

0.00

29.3

N/A

N/A

29.3

N/A

2020-21

12.1

10.3

0.00

0.00

7.25

N/A

N/A

5.84

N/A

2021-22

9.74

10.6

10.5

0.00

6.62

N/A

N/A

9.93

N/A

2022-23

9.82

21.4

23.8

16.7

24.1

N/A

N/A

28.7

N/A

2023-24

7.60

9.91

7.69

0.00

5.84

N/A

N/A

12.8

N/A

2024-25

5.03

6.68

7.14

0.00

5.62

N/A

N/A

8.85

N/A

2025-26

3.66

0.56

6.66

0.00

0.09

N/A

N/A

-5.60

N/A

Year

IVA/Revenue (%)

Imports/ Demand (%)

Exports/ Revenue (%)

Revenue per Employee ($'000)

Wages/ Revenue (%)

Employees per estab. (Units)

Average Wage  ($)

2011-12

36.4

N/A

N/A

232

25.0

2.71

57,895

2012-13

21.7

N/A

N/A

368

16.3

3.57

60,000

2013-14

11.6

N/A

N/A

686

8.54

4.14

58,621

2014-15

-44.8

N/A

N/A

491

12.1

11.3

59,494

2015-16

-65.9

N/A

N/A

1,104

5.65

15.6

62,400

2016-17

-182

N/A

N/A

689

9.07

29.4

62,420

2017-18

12.0

N/A

N/A

909

7.13

32.1

64,786

2018-19

11.7

N/A

N/A

1,232

5.15

32.6

63,410

2019-20

12.2

N/A

N/A

1,120

5.66

35.5

63,407

2020-21

12.0

N/A

N/A

1,171

5.34

38.1

62,569

2021-22

12.0

N/A

N/A

1,205

5.35

36.8

64,508

2022-23

13.3

N/A

N/A

1,067

6.27

36.8

66,910

2023-24

13.6

N/A

N/A

1,084

6.58

36.2

71,302

2024-25

13.8

N/A

N/A

1,078

6.81

35.7

73,483

2025-26

13.4

N/A

N/A

1,117

6.21

33.5

69,310

Online Food Ordering and Delivery Platforms in Australia

September 2020

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Online Food Ordering and Delivery Platforms in Australia

September 2020

33

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