Food delivery services have come a long way in Canada. What was once a simple phone call to your local pizzeria has transformed into an expansive network of apps, platforms, and services catering to an on-demand culture. From gourmet meals to everyday essentials, food delivery has become an integral part of modern life, especially for foodies, busy professionals, and travelers seeking culinary adventures. But how did this evolution take place, and what does it mean for Canadian consumers today?
This blog explores the growth of food delivery in Canada, how technology has revolutionized the industry, and its impact on both consumers and businesses.
From Phone Orders to Online Deliveries
The concept of food delivery in Canada dates back decades, beginning with the traditional method of placing orders over the phone for pizza or Chinese food. Local restaurants managed their deliveries in-house or worked with small-scale delivery services to cater to customers who preferred dining at home.
This model served its purpose but had limitations. Customers faced restricted choices, delivery areas were small, and accuracy often depended on the memory or notes of whoever picked up the phone.
Things began to change in the early 2000s. With more Canadians gaining access to the internet, businesses started to explore online menus and ordering systems. This was the beginning of a new era for food delivery.
The Rise of Food Delivery Apps
The major turning point, however, came with the introduction of food delivery apps in the 2010s. Companies like SkipTheDishes (founded in Canada), Uber Eats, and DoorDash revolutionized how people ordered food. These platforms connected customers with a wide range of restaurants, allowing them to browse menus, place orders, and track deliveries—all from the convenience of their smartphones.
Why were these apps so successful?
- Convenience: Apps allowed customers to view hundreds of restaurants in their area without leaving home.
- Transparency: Users could see real-time updates on their order status, track drivers, and even leave reviews for restaurants.
- Variety: Italian, Indian, sushi, and even plant-based meals—all available on the same platform.
- Promotions and Deals: Exclusive discounts and deals offered by apps further enticed customers to adopt these services.
SkipTheDishes, for instance, became a popular choice due to its affordable delivery fees and its commitment to supporting local restaurants. By 2020, Canada saw a surge in food delivery app usage, driven by consumer demand and the COVID-19 pandemic.
The Impact of COVID-19
The global pandemic acted as an accelerant for the food delivery industry in Canada. With restaurants forced to shut down dining rooms, food delivery became the lifeblood of the hospitality sector.
What changed during this period?
- Surge in Demand: With Canadians staying home, food delivery apps became essential.
- Adoption by New Businesses: Fine dining establishments, bakeries, and even farmers’ markets pivoted to online delivery to stay afloat.
- Introduction of Contactless Deliveries: Safety became the priority, and contactless delivery options set the standard for service.
- Expansion of Grocery Deliveries: Services like Instacart and Cornershop began delivering groceries, diversifying the scope of delivery apps beyond restaurants.
This period of growth was not without challenges. Restaurants grappled with high service fees from major apps, leading some to develop their own independent delivery systems.
Expansion Beyond Restaurants
Food delivery in Canada is no longer limited to takeout meals. Over the years, the industry has diversified its offerings, catering to a broader range of consumer needs.
Meal Kit Deliveries
Companies like HelloFresh and Goodfood provide meal kits with pre-portioned ingredients and easy-to-follow recipes. These services are ideal for foodies who love cooking but don’t have the time to shop for groceries.
Alcohol Deliveries
Apps like Drizly and LCBO Online have tapped into the demand for alcohol deliveries, making it possible for Canadians to pair their meals with wine or craft beer at the click of a button.
Specialty Foods
Niche players like truLOCAL deliver premium, locally-sourced products such as grass-fed beef, organic chicken, and curated charcuterie boards.
Grocery Deliveries
Beyond independent grocery stores, major supermarkets like Walmart and Loblaws have jumped on the delivery bandwagon, bringing fresh produce and everyday essentials directly to homes.
The Role of Technology in Shaping the Industry
Canada’s food delivery industry owes much of its success to technological advancements. Here’s how tech has shaped the industry:
Artificial Intelligence (AI) and Data Analytics
Companies use AI to provide personalized recommendations and improve order accuracy. AI also optimizes delivery routes, ensuring efficiency and faster service.
GPS and Real-Time Tracking
Real-time tracking has become a standard feature, offering full transparency to customers waiting for their orders.
Mobile Payment Integration
Secure mobile payment systems make transactions seamless while allowing customers to tip delivery drivers without the need for cash.
Cloud Kitchens
Also known as ghost kitchens, these cooking spaces operate without a physical dining area. They focus solely on online orders and have become a cost-effective solution for many Canadian restaurateurs.
Challenges Facing the Food Delivery Industry
While the growth of food delivery services in Canada is impressive, the industry faces several challenges:
- High Commission Fees: Restaurants often pay commission fees ranging from 15% to 30%, which can strain profit margins.
- Driver Compensation: Delivery drivers, who form the backbone of the industry, continue to advocate for better wages and fair working conditions.
- Environmental Concerns: The rise of single-use packaging has led to an increase in waste. Many companies are now experimenting with eco-friendly alternatives.
- Market Saturation: With so many players entering the market, competition has become fierce, and customer loyalty is hard to maintain.
A Glimpse Into the Future
The evolution of food delivery in Canada is far from over. Emerging trends indicate that the industry will continue to innovate and grow:
- Drone Deliveries: Companies like Uber Eats are testing drone technology to deliver food faster while reducing delivery costs.
- Subscription Models: Flat-rate delivery subscriptions, such as Uber Eats Pass and DashPass, are gaining popularity.
- Health and Sustainability: Services focusing on organic, plant-based, and sustainable foods are carving their niche.
- Hyperlocal Deliveries: More platforms are emphasizing hyperlocal deliveries, connecting customers with neighborhood eateries and small businesses.
Bringing It All Together
From humble beginnings to a technologically enabled powerhouse, food delivery services in Canada showcase how industries evolve to meet the changing needs of consumers. Whether you’re a foodie exploring new cuisines or a busy professional looking for convenience, the variety, accessibility, and tech-driven nature of Canada’s food delivery ecosystem offer something for everyone.
The next time you track your sushi order or enjoy farm-to-table groceries delivered to your door, take a moment to appreciate the intricate system making it all possible. With continued innovation and collaboration, the future of food delivery in Canada promises to be even more exciting.
