The rise of digital technology has changed the market and revolutionized the food delivery procedure. Customers are now placing orders through restaurant apps and websites and third-party food delivery services rather than visiting the restaurant. These restaurants and third-party services, on their part, ensure that their offerings are transparent and convenient. The restaurant fulfils the order by guaranteeing that the meal is delivered to the customer’s home once it has been ordered online.
More than half of all client orders are now delivered directly from restaurants’ apps or websites, thanks to improvements in the food delivery industry. Restaurants and other food businesses are increasingly using a variety of methods to handle digital ordering and delivery of food. While some people do it on their own through independent channels, third-party systems such as Swiggy, Zomato, Uber Eats and many others have grown in popularity. Hybrid delivery platforms are also taking a bite out of the business, changing the way food is served.
Food delivery has evolved into its own industry, with different online platforms vying for market dominance. Despite the fact that these online platforms attract a lot of money and have a high valuation, they are revolutionizing the food delivery field. The level of competition in the online food-delivery market has increased in the last two years, as deep-pocketed competitors such as Swiggy and Zomato were able to attract worldwide investors to fund their firms.
Increasing numbers and predicted growth in food delivery services
In recent years, the food business has seen a considerable transformation. Customers may now buy food online and have it delivered to their homes in less than an hour. In fact, during the previous five years, online meal ordering and restaurant delivery have grown at a rate of over 20%. Although projections vary by location, by 2025, online food delivery is predicted to be worth more than $220 billion which equates to around 40% of total restaurant sales. Now that is huge!
With all of the developments in the food ordering and delivery industries, restaurants must remain on top of what’s going on in the industry. This is the ideal time to look for new market prospects and invest in the suitable industrial area. The facts don’t lie: online ordering and delivery of meals has increased dramatically. In terms of proportion, online food ordering now accounts for around 42% of the total market. The food business as a whole grows at a rate of around 3.7 percent per year, with online ordering and food delivery rising at a rate of about 15-20 percent each year.
Why do people use food delivery apps?
● They offer convenience
Without a doubt, food delivery platforms are becoming an easy approach to provide customers with a positive experience, thanks to a simple meal ordering process and timely delivery of high-quality, tasty meals to customers’ doorsteps. As a result, we can conclude that the most important consideration for clients choosing meal delivery services is convenience.
● These apps are easy to use
Many choose to use online food delivery apps to place orders for their favourite foods while watching Netflix series or binge-watching.
It may seem attractive during this pandemic because it eliminates the risk of going out and eating and increasing the chances to catch infection. It is the convenience and comfort level that attracts new clients, not only millennials. Parents with children who do not have time to prepare can use online food delivery services to feed their entire family with ease.
● People can discover new restaurants and restaurants can find new customers
Because of the COVID-19, every business is connecting with online food delivery services, which offers customers a broad range of meals to choose from when placing an order. Rather than being a customer of restaurants close to their homes, online food delivery services allow customers to browse for and make orders from restaurants that aren’t in their neighbourhood but provide food through a variety of delivery services.
These meal delivery services connect various restaurants with new customers, delivering the best benefits to the industry.
● Availability of all types of food for delivery that too round the clock
Nowadays you order really anything online starting from a cup of coffee to ice cream to any type of cuisines. Be it a breakfast platter or a dinner combo, you can get anything delivered at your doorstep anytime. There are options available from where you can even order at midnight or early mornings as well. When you place an order online, you have a few extra options too. Customers can order exquisite meals from their favourite local eating restaurant via the internet. What if you want to have chicken wings with steamed vegetables instead of mutton curry? Then you’ll be able to manage it. Instead of a burger and fries, how about a dish of mixed greens? It can also be done with only a few taps on your smartphone screen. Customers who use online food delivery services are also able to stick to a healthy eating plan even if they don’t want to cook or eat out.
What has led to the growth of food delivery apps?
The following factors have led to the growth of online food delivery apps:
● Change in the business models being adopted by restaurants has led to growth of online food delivery.
● Convenience and wide range of choices from cuisines and food items provided to the customers. Food is safely delivered to the customers at their home and that has built their trust in online food delivery services.
● Changing customer preferences – people like to order mostly everything online, including food. It allows them to order and have food with the comfort of not having to step out of their homes.
● Customer retention is very important, hence restaurants and businesses are adapting to online food delivery methods to suit the needs of their customers who like to order food online. Restaurants are adapting to online food delivery to meet the growing demands of their customers.
● The growth of online food delivery can also be associated with the growing digital culture. Everyone these days is using some or the other devices and likes to have everything done online without any physical work to be done. Same is the case with food delivery, people order food from their smartphones.
Rise of food delivery apps in the pandemic
Online food delivery is one of the businesses that has actually benefited from the crisis created by the Covid-19 pandemic. With the pandemic and its increasing crisis and restaurants struggling to attract customers due to social distancing anxieties and restrictions and lockdowns, deep-pocketed companies like Zomato and Swiggy have found out how to prosper in this situation.
Food delivery apps have become indispensable in India since the Covid-19 outbreak struck in March 2020. As the number of cases of Coronavirus increased across the country, consumers began to prefer ordering food online instead of going out because of the extreme risks, boosting revenue for companies like Swiggy and Zomato. As food delivery apps began to see an increase in demand from clients who had been working from home since the epidemic began, worldwide investors became more confident in investing in these delivery services.
Take rates and revenue per order have both improved since Covid. Delivery costs were driven down by increasing order densities and lower delivery crew charges. With weaker players such as Food Panda folding, Uber Eats being purchased by Zomato, and Scootsy being bought by Swiggy, the competitive intensity is far lower than it was previously.
How are online food delivery apps helpful for restaurant owners during the pandemic?
Due to curbs and restrictions, all restaurants are currently recommended to operate with half the staff and fewer dine-in tables. The online food delivery services allow restaurant owners to reach thousands of customers at once. As a result, they may serve a large number of consumers using online delivery services without having to invest in groundwork or hired labour.
What does the growth of food delivery apps mean?
The ongoing increase of online ordering and meal delivery indicates that customers are receiving better service. Customers can purchase whatever cuisine they want online and have it delivered to them at their preferred location. This growth also means more competition for firms. Restaurants and other food enterprises need to be more inventive in terms of the services they provide and the products they sell. While technology has enhanced the ordering and delivery of meals, it has also levelled the playing field for businesses. By running virtual kitchens, underdogs in this market can effectively compete with established enterprises. The food business will be an exciting field to monitor in the future, with more innovations and growth projected.