86% new users stop using food delivery apps in 14 days of launch

Eighty six per cent new users stop using the 'Food Delivery' apps within two weeks of the first launch while only 22 per cent new users remain active after the first week of the launch, a report by US-based mobile analytics and mobile marketing company CleverTap said on Wednesday.

Mobile apps currently account for six out of every 10 digital restaurant orders; individual food delivery apps face significant challenges when it comes to engaging with and retaining new users.

"The food delivery app space has very low entry and exit barriers and hence churn and retention are constant challenges. The key is to improve both and to provide a differentiated experience at every stage of the users lifecycle," Almitra Karnik, Global Head of Marketing, CleverTap, said in a statement.

The report added that 54 per cent of new users completely uninstalled the food delivery app within the first month.

"Showing enough value to get a user to sign up is only the first challenge. You also need to incentivise users to use the app," Karnik added.