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Why millenials are keeping food delivery apps afloat and how to acquire more

Millennial food delivery trends in 2020

 

With millennials averaging more work hours per day (4.2 hours) than non- millennials, they likely don’t have time to cook for themselves. This means they turn to the next best thing and order from fast and efficient food delivery apps. 

The millennial generation was born between the years 1981 and 1996 - often the children of baby boomers. They are largely credited with spearheading the familiarity with technology, electronics, and the internet, which is why they are called digital natives. In 2020, millennials are changing the way food delivery is done. 

Millennials are three times more likely to order in than their parents - making them the largest demographic for food delivery apps. But, what is it about food apps that attracts a millennial’s wallet and how can you acquire more of this high-spending demographic? Let’s take a look. 

The changing market of food delivery: Millennials and subscriptions

Whether it’s an offer from the food app or the restaurant itself, millennials are drawn to discounts and affordable prices. In fact, 8 in 10 millennials have used a discount code or coupon in the last 12 months and, today, millennials are saving more money than they ever have before.

One way food delivery apps can leverage millennials' desire to save is to minimize fees with a subscription model. Millennials are more likely to sign onto a subscription service than any other generation, and 77% of millennials participate in loyalty reward programs.

A subscription model can save millennials money in the long run by lowering delivery fees and offering exclusive deals. For example, you can create a subscription model where delivery is free when the order is $15 or over, which will ultimately encourage millennials to order more. You can also offer and advertise discount days where featured restaurants are discounted for all subscribers.

The power of subscription models is something top food delivery apps, such as DoorDash and Uber Eats, have already realized. On top of the free delivery that Uber Eats offers with its subscription service, they also give subscribers discounts on the orders themselves. Offering subscription services has already proven to be successful in attracting the millennial generation to your food delivery app. 

The food delivery app market

Alongside the desire to save, millennials also like to stay informed and be in communication in every part of their lives - which isn’t as true for other generations. 84% of millennials believe that an open communication policy is important in the workforce vs. 77% of boomers, This means that millennials respond well to app push notifications - 84% response rate - that provide updates, news, and offers. As a food delivery app, it’s important to feed the millennial’s need for communication and information. 

You can open up communication even more by focusing on a push notification strategy that takes time into account, is largely accessible, and relevant to the user. This means taking into account the times that millennials are active on their devices, for example, before or after the work day, and reaching them at those moments with eye-catching info. 

The future of food delivery

ironSource’s Aura is a great way to ensure that you are communicating with millennials at times that are convenient for them. Aura not only reaches users before your app is even downloaded on the device, but also uses a proprietary AI algorithm and a unique set of parameters to give your app the front seat in front of millions of users every day. Aura, also, has the ability to target by age which is valuable when targeting an entire generation. While most apps are restricted from messaging users until after the first app open, Aura is able to send notifications to users throughout the device lifecycle and can even encourage users to open the app for the first time. 

food delivery app market

It’s pretty clear how important millennials are to food apps and the growth of the industry. There are countless ways for food apps to optimize what is already known about millennials to better adhere to their likes, dislikes, preferences, and demographics. While 84% of millennials don’t trust traditional advertising, ironSource’s Aura is a new way of advertising that will appeal to users. In an industry that is accepted to reach a market volume of $134.49 billion by 2023, understanding your users is vital to beat the competition. 

To learn more, check out other great blogs at Aura, including ‘Our Guide To App Distribution and Marketing Your App In The Android App Market.

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