In an increasingly technology-driven society, consumers are seamlessly drawn to new online food-delivery platforms. Against this backdrop, leading foodservice delivery companies in Asia-Pacific (APAC) are looking at disruptive technologies as a way to improve their performance, according to GlobalData, a leading data and analytics company.
According to the company’s 2018 Q4 consumer survey, due to surge in Internet users, 42% of APAC consumers make online purchase of meals/takeaways to be delivered to their home while majority of purchases are being made in China and India.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, says: “The constantly evolving technology landscape and evolving consumer preferences have changed the way food-away-from-home companies are doing business. At the same time, the rising demand for takeaways and a growing ecosystem of connected devices have created a fertile environment for online food delivery apps to thrive.”
To stay ahead of competition and widen their customer base across multiple online outlets, foodservice operators are partnering with delivery apps while food delivery operators are embracing the latest technologies to better target emerging consumer trends, as they have realized that the business model needs to shift from discounts to cost-effective customer acquisition and servicing.
GlobalData forecasts the APAC foodservice delivery market to be the fastest-growing as compared to other regions. However, the operator selling price in the region has increased by 5.70% from US$42.37bn in 2017 to US$44.93bn in 2018. While foodservice operators continue to keep their focus on technology innovation, they are also paying attention to diversifying their offerings, creating new consumer incentives, expanding their marketing budgets and setting up efficient delivery logistics to drive down costs and reduce delivery times in order to remain at the top of the game. For instance, Foodpanda tested a drone delivery in Singapore to cut down delivery times and translate into higher transaction volumes.
Sachdeva concludes: “With foodservice delivery operators coming under pressure due to increasing costs, rapidly diverging consumer preferences, infrastructure & transportation issues and evolving regulations, their appetite for collaboration is growing. In an environment where competition among online food delivery players continues to intensify, foodservice delivery operators should focus on operational efficiency, ensure their unit economics are correct and partner with FinTech firms for constant technology upgradation to better align their offerings with the changing consumer preferences.”