While the U.S. online food-delivery market continues to burn hot, data from KeyBanc suggests growth in restaurants offering the service may be slowing. That could limit the whole sector’s long-term growth, as restaurant selection is key to consumer adoption of delivery apps.

Key findings

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KeyBanc shows the number of total unique restaurants with online delivery grew 10% from February to June 2019. That compares to growth of 36% across platforms over the same period last year.

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While delivery apps have demonstrated success in bringing many restaurants new business and repeat customers, some eateries pay dearly with commission rates reportedly as high as 30%.

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U.S. online food-delivery revenue is approaching $20 billion, according to various estimates, so the prize is certainly worth fighting for. To keep up growth however, the industry will have to offer its restaurant customers better value.

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