Eighty-six percent of new users who download a food delivery app will stop using it within two weeks of the first launch, according to a recent report from CleverTap, a mobile analytics and marketing company.
The report also found that in the first week of an app launch, only 25 percent of users complete the signup process. After the first week of a food delivery app launch, only 22 percent of users continue to stay active.
Although six out of 10 digital restaurant orders are currently placed on mobile app, food delivery apps are facing challenges with trying to retain new users, according to the report.
The report also shows that 54 percent of new users delete the food delivery app within the first month.
“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,” said Almitra Karnik, global head of marketing at CleverTap, in a press release.
The report comes after researchers at CleverTap analyzed anonymous data points across numerous food delivery apps in 2019. They looked at user behaviour within apps and analyzed responses to engagement campaigns.