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Disruption by Food Delivery Platforms

21 January 2020 by Food&HotelAsia


By: Michelle Evans, Euromonitor International

This article is based on a report, Digital Disruptors: The Global Competitive Landscape of Online Food Delivery Platforms.

Consumers are living increasingly hectic lives. They demand streamlined processes and greater levels of convenience in every daily activity. This applies to food as well, where connected consumers are willing to pay for the convenience of having food delivered to their doorstep.

Online delivery is the fastest-growing opportunity in the foodservice industry. In fact, the emergence of online foodservice delivery players around the world increased the share of online orders in total foodservice sales globally, more than doubling from 2.6% in 2014 to 6.9% in 2019.

For consumers, the array of choices at their disposal is expanding. The possibility to browse a multitude of restaurants on online delivery platforms is appreciated by consumers who want choice. Millennials, especially, are keen to have a wide array of choices. In addition, online delivery platforms allow customers to order from restaurants and cuisine types they never knew existed.

Delivery methods are becoming quicker and more sophisticated, improving the convenience of food delivery. The possibility to order on the go, from the office or even in hotels expands the opportunity for customers to use food delivery. The GPS capabilities embedded in smartphones enable consumers to track the progress of their delivery in real time, improving the online ordering experience.

There are two main types of online foodservice delivery platforms: aggregators, such as Just Eat and Grubhub, and delivery services, such as Uber Eats and Deliveroo. The key point of differentiation stems from the ownership and control over the delivery experience.

While the lines among third party delivery platforms and aggregators’ models are blurring, innovation will not be limited to these two. Virtual restaurants are expected to emerge in the future, creating yet another in the market.

Read the rest of the report here.