In an increasingly tech-enabled society, consumers are becoming more drawn to new online food-delivery platforms.
Against this backdrop, leading foodservice delivery companies are looking at disruptive technologies for their next horizon of performance improvement, according to GlobalData, a data and analytics company.
Asia-Pacific foodservice delivery
According to its fourth-quarter 2018 consumer survey, due to a surge in internet users, 42% of Asia-Pacific consumers made an online purchase of takeaway meals to be delivered to their home, with a majority of purchases being made in China and India.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, says: “Foodservice is one vibrant industry to witness rapid and unprecedented growth, marked by key trends ranging from the emergence of new formats, improvement of service levels, efficiency in supply chain practices and increasing investments significantly changing the face of the industry.
Looking at the rising demand for takeaway food and a growing ecosystem of connected devices, foster a fertile environment for online food delivery apps. Blame it on cost or time constraints or falling costs of smartphones and data contracts giving rise to a plethora of mobile apps shaping every possible service industry.
According to GlobalData, the foodservice delivery platform in the Asia-Pacific will be the fastest-growing delivery market and the operator selling price (OSP) has increased by 5.7% from $42.37 billion in 2017 to $44.93 billion in 2018.
To gain a competitive edge in a high-growth industry, foodservice operators are partnering with delivery apps to widen their customer base across multiple online outlets, instead of just relying on high footfall or their own marketing.
From a technological standpoint, foodservice aggregators are embracing the latest technologies to better target emerging consumer trends such as customisation, on-the-go experience and health and wellness across emerging countries in the Asia-Pacific region as they have realised that the business model needs to shift from discounts to cost-effective customer acquisition and servicing.
“Operators are pouring in investments not only in technological innovation but also by focusing on diversifying their offerings, creating new consumer incentives, expanding their marketing budgets and setting up innovative delivery logistics to drive down costs and reduce delivery times. For instance, Foodpanda tested drone delivery in Singapore to cut down delivery times and translate into higher transaction volumes,” GlobalData reported.
Key consumer trends driving technology innovation in online food-delivery platforms in APAC
Source: GlobalData, Foodservice Insights & Trends – Delivery
GlobalData’s Sachdeva concludes: “With foodservice delivery operators coming under pressure due to increasing costs, rapidly diverging consumer preferences, infrastructure and transportation issues and evolving regulations, their appetite for collaboration is growing.
“While competition among online food delivery players in the APAC market continues to intensify, creating a do-or-die situation at some point in future, the best foodservice delivery operators could do is strengthen their market position as a trusted and transparent delivery channel to their existing customer base, focus on operational efficiency and getting their unit economics right and partner with fintech firms for constant technology innovation to better align their offering with the consumer preferences.”