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86% of users stop using food delivery apps within two weeks, global study finds

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Based on the analysis of more than three billion messages delivered across on-demand food delivery apps worldwide, a study has found that, while six out of every 10 digital restaurant orders take place on apps, 86% of them are dropped after two weeks.

So finds CleverTap’s Industry Benchmarks for Food Delivery Apps report, which also finds that only 25% of users complete the signup process after the first app launch and only 22% of new users remain active after the first week. 54% of new users will completely uninstall the app within the first month.

“The food delivery marketspace is booming thanks to the convenience it offers in today’s busy lifestyle. At the same time, however, the competition is getting more fierce. The food delivery app space has very low entry and exit barriers and hence churn and retention are constant challenges. The key to improve both, is to provide a differentiated experience at every stage of the user lifecycle.,” says Almitra Karnik, Global Head of Marketing at CleverTap.

“Showing enough value to get a user to sign up is only the first challenge. You also need to incentivize users to use the app and perform repeat transactions ‘in-the-moment.’ With this report, marketers will know more about how their apps are measuring up to the competition and understand how they can rise above the competition,” Karnik explains.

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