Incognia Releases New Insights on Promotion Abuse in Food Delivery

Palo Alto, CA – November 6, 2023 - Today, Incognia, the innovator in location identity solutions, is announcing new insights on the problem and prevalence of promotion abuse in the food delivery industry. The U.S. food delivery market​ generated an estimated $218 billion in revenue in 2022, with over 161 million Americans reporting they used online meal delivery last year. Globally, the food delivery market is projected to grow an additional 12.78% by 2027, and the increase in adoption is driving an increase in fraudulent behavior.

Based on findings revealed in Incognia’s Essential Guide to Promotion Abuse on Delivery Platforms, nearly 2% of all monthly transactions on food delivery platforms in Latin America (LATAM) are associated with coupon fraud. Based on order volumes, the largest U.S. delivery companies could each be losing as much as $1.5 million every month to fraud due to commonly abused promotion campaigns.  

“The food delivery market has experienced explosive growth. Today, the focus for these companies has turned to profitability, and it’s critical that anything negatively impacting the bottom line is identified and mitigated quickly,” said André Ferraz, founder and CEO of Incognia. “Incognia understands the complexities of the fraudulent activity impacting the food delivery space and is focused on educating the market about how our unique technology can stop their losses. Our goal is to provide the delivery industry with the custom tools needed to take control of promotion abuse and other forms of delivery platform fraud.”

Incognia’s cutting-edge technology combines tamper-resistant exact location and modern device fingerprinting to deliver an extremely persistent cross-device recognition solution. Incognia’s proprietary location signal offers apartment-level precision that detects evasion techniques like device resets, the use of multiple devices, and other tampering attempts. While some food delivery platforms do use tampering detection and device recognition tools, most basic solutions can be easily bypassed by sophisticated fraud techniques, leaving the platforms unable to identify multi-accounting and ban evasion, which can result in an influx of promotion abuse, payment, and courier fraud.

With its sophisticated location signal and device fingerprinting, Incognia is leading the charge against risky behavior on delivery platforms. According to the Global Head of Operations at a leading food delivery company, "Incognia is helping us identify systematic fraudulent behavior by providing a more reliable device identity solution.”

The Essential Guide to Promotion Abuse on Delivery Platforms is available for download now. To hear from the experts behind the report, join Incognia’s virtual event on November 16, where leaders from Incognia’s data science and customer success teams will detail findings and answer questions from the audience. Register for the event here to get the inside scoop. 

About Incognia
Incognia is the innovator in location identity solutions that deliver cutting-edge user verification and account security across the digital journey.  Leveraging over a decade of expertise in location technology, Incognia's novel approach enables frictionless experiences using device intelligence and the most precise location data available. Incognia enables customizable risk analysis and actionable insights from day one that empower consumer businesses to prevent fraud, protect users and build customer trust. For more information, visit https://www.incognia.com.