With the coronavirus outbreak, most countries have introduced lockdowns and have implemented social distancing measures. All businesses have had to bear the consequences that the pandemic brought along with it, however, food delivery businesses have had the leverage being an essential service. Restaurants, cafes, and other food businesses are still suffering losses as they aren’t receiving any customers to dine in and are solely dependent on online food delivery.
Therefore, food delivery businesses are at an advantage even during coronavirus. However, the question that remains is, did food delivery scope increase after COVID-19? People also facing problems for cbd fiori To answer this question, let’s first have a look at the two segments of online food delivery.
Online food delivery
There are two segments to online food delivery which include restaurants and food delivery aggregators.
- Restaurant food ordering and delivery app – One type of online food delivery is the restaurant food ordering and delivery app, which connects the customers directly with a particular restaurant. Using the app, a customer orders a meal directly from the restaurant, the restaurant is notified of the order, the restaurant assigns the order to one of its delivery agents to deliver it to the customer after the food is prepared.
- For instance, the Dominos app enables customers to order any menu item from Dominos, the order is sent to the nearest outlet and is delivered to customers by Domino’s delivery agents.
- Aggregator food delivery app – The second is the case of food delivery aggregators that provide customers with listings of various restaurants. Customers can order food from a particular restaurant by searching for a restaurant or cuisine.
- The aggregator sends the order information to the relevant restaurant, the restaurant confirms the order and starts preparing it, once the order is prepared, a delivery agent of the aggregator picks up the order and delivers it to the customer. So, the restaurant’s role here is only to prepare orders received from the food delivery aggregator while the aggregator performs the primary functions of taking orders and making deliveries.
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Scope of Online Food Delivery Before & After COVID-19
The online food delivery market was growing at a rapid pace before COVID-19. In 2018, the gross revenue bookings of the industry were estimated at $82 billion and were set to more than double by 2025, at a CAGR of 14%.
However, the outbreak of Coronavirus didn’t have a huge impact on the online food delivery industry. As per reports, the online food delivery services market is expected to grow by $104.45 billion during 2019-2023 at a CAGR of 15%.
COIVD-19 has forced people to rely on food delivery services as they quarantine at home. As people cannot dine-in at restaurants, there has been a surge in the demand for food and grocery deliveries. Restaurants have to maintain limited staff to practice social distancing while the delivery agents also have to wait to avoid overcrowding in a store or a restaurant.
The increased demand and social distancing practiced by food businesses are straining restaurants as well as food delivery apps. Customers too have become more patient and understanding about the situation. They are aware that the deliveries will take longer than usual and in many cases are ready to pay a higher delivery fee.
However, as a few delivery agents have been tested positive, it is making people reluctant to order food from restaurants. Overall, the food delivery industry is thriving and the scope has increased during COVID-19. Large brands such as Amazon and Grubhub are hiring more delivery executives to cope up with the increased demand and are even paying higher wages to attract delivery agents.
What can be expected after COVID-19?
COVID-19 has been a big lesson for all businesses and the population worldwide. Businesses are learning new ways to co-exist and sustain in the long-run. The same goes for online food delivery businesses. The food delivery market will continue to grow as people are becoming more dependent on food delivery apps to avoid going outside as much as possible. At the same time, food businesses are establishing unique alliances with online aggregators to overcome the hurdles created by COVID-19.
This practice is expected to continue in the future as a new way of doing business. Food delivery aggregators such as Swiggy and Zomato in India, have started delivering groceries and other essentials to help local stores survive.
While the life after COVID-19 is not going to be the same, dining in restaurants and social gatherings may reduce, the food delivery market will continue to adopt new strategies to serve customers with their favorite meals.
How can food businesses survive during COVID-19?
Food delivery aggregators have been thriving even during COVID-19, however, restaurants have been hit hard. The hardest-hit restaurants and food joints are those that do not offer online ordering and delivery services. During these difficult times, there are several things food businesses can do to keep their heads above water.
- Leverage deliveries and takeaways – Restaurants shouldconnect with food delivery aggregators and offer takeaways for customers.
- Food delivery app development – Food businesses should hire food delivery app developmentcompanies to get a food ordering and delivery app developed. Customers tend to order directly from restaurants using the restaurant’s food ordering app.
- Sell surplus stock – Restaurants can sell their perishable goods or surplus stock on their website. This will help prevent wastage of food as well as help restaurants earn some money.
- Leverage social media – Food delivery businesses should engage with their customers on social media platforms. This will help them achieve brand awareness and increase customer base.
- Maintain hygiene standards – Hygiene should be of utmost importance for food delivery businesses especially during the time of COVID-19. Customers trust businesses that follow strict hygiene measures.
The scope of food delivery has definitely increased after COVID-19 due to the over-reliance of customers on online food delivery apps. Even in the future, the growth of the food delivery market is expected to surge. Food businesses will benefit if they adopt a new norm of building strategic partnerships to sustain the impacts of COVID-19.