5 Key Takeaways for Food Delivery Industry During Pandemic

  • All you need to do is get in touch with app development companies that specialize in UberEats clone.
  • They will take care not only to create but also to customize the app according to your requirements.
  • So you can start delivering your restaurant food, and the app will start delivering its profit!

Some industries into means will seem like they have reached a point of saturation, and they might not change. However, there will be one minor innovation or a paradigm shift that might completely alter the landscape of the product and the industry.

We have seen this happen with the internet. There was a time when we were visualizing an internet presence of any brand as a person sitting in front of a desktop computer, or at the max, a laptop computer, and looking at a website. Today, we know that it is far from the truth.

Food delivery apps, as the name implies, hep a user order food.

In the same way, there was a time when the food industry, and especially the restaurant industry, was largely confined to dine-ins. The very mention of the word restaurant would only conjure up memories of a family or a couple heading out to a posh place, ordering food after some waiting, finishing their meal and paying it up with cash.

Today, as it might have been expected, it is nowhere close to reality. It has been inferred that by the end of the last quarter of 2019, people have started to ‘dine out of restaurants’ more than ‘dining in restaurants.’ The massive change can only be attributed to the rapid growth of food-delivery applications on-demand.

What are Food Delivery Apps?

It is quite likely that your phone has one of those apps! Food delivery apps, as the name implies, hep a user order food. The key difference is that the app, instead of just letting the user order food, ensures that the food gets delivered to the exact location of the person who ordered it.

This final leg of customer satisfaction is effected by the combination of GPS and mapping solutions along with navigation services. The technology that was once confined to the military and aviation is now available on all smartphones, and it presents a plethora of advantages.

For any business, ‘where is the customer?’ is generally a billion-dollar question, and it has been addressed without compromise in the most fitting fashion by these GPS-based on-demand applications. The credit for cracking the code has to be given to Uber. What they did with transportation has trickled down into almost every industry, including but not limited to transportation, food, grocery, handymen services, babysitting, and even dating.

Reasons for the Success of Food Delivery Apps:

Businesswire has predicted that the food delivery market will be quite close to the $40 billion mark by 2024 averaging a CAGR of 12.3% between 2019 and 2024.

There is no question that food delivery businesses are here to stay and grow, as well. Now would be the right time for aspiring entrepreneurs to invest in a food delivery app. However, it might be quite a hassle to create an app from scratch. One of the most practical solutions that they can look forward to at this juncture is the usage of clone apps. Ubereats clone are quite easily available and even easy to customize.

More often than not, the growth of the food delivery industry is attributed to the requirements of comfort and convenience. However, deeper research shows that that is only the tip of the iceberg. Auxiliary to this, there are quite a lot of factors that actively and passively contribute to the humongous growth of the food delivery industry.

It is more than Just Convenience!

The world of science mandates that any theory should be mathematically verifiable. If food delivery was supposed to be an effective replacement for convenience, it should match up with the numbers in terms of takeout eaters. However, the difference is at least 10%, with the scales tilting towards people who order food through apps.

This difference can be attributed to the fact that some people order food online just because they want to treat themselves even when they are in a position to either go out and have their food or prepare their own food at home.

With more than 43% of the US workers working overtime and with the same number standing at 35% in the United Kingdom, it cannot be completely discounted that convenience places a major role in fuelling the growth of the food delivery app market. However, that alone does not complete the entire picture. 53% of Gen Z says that they are most likely to order online because they feel like having a treat.

This point alone is a drastic alteration to the classic perspective that we have been holding – food delivery through applications on-demand is not just a utility but a habit!

If food is the main course, then TV is the side dish.

In the last section, we were talking about how people want to ‘treat themselves’ even when they had the time to either make their own food or go out and dine. One of the biggest factors that fuel their entitlement to stay at home and enjoy a treat by themselves is the fact that they can sit back, unwind, and watch an entertainment show of their choice. More often than not, Netflix and food delivery are likely to go hand-in-hand.

The ‘on-demand’ bug has bitten even the entertainment industry, and Netflix and Amazon Prime have experienced exponential growth in recent years. The onslaught of the Covid-19 crisis has only catalyzed the rate of consumption.

There has been a strong correlation between online food ordering habits and the on-demand video content consumption habits of people. It has been observed that people who order takeout online each month spend 15 minutes more than average TV watchers on a daily basis. Maybe the GenZ Factor contributes to this unusual growth, but the future market belongs to that generation, and it cannot be denied that the future looks bright, both for food delivery and on-demand videos.

After all, food during entertainment cannot be changed! It can only move from pop cons in movie theatres to delivered food at home when watching a movie.

The Loyalty Factor:

Here is where there is a clear line of demarcation between Gen X and the next generation. While the former has been known to display a sense of commitment towards brands, loyalty points, and programs, Gen Z looks at a plethora of other factors like free delivery, rewards and discounts, and eco-friendly packaging.

Businesswire has predicted that the food delivery market will be quite close to the $40 billion mark by 2024 averaging a CAGR of 12.3% between 2019 and 2024.

The younger generation wants more than just food being delivered, and since they might not have the financial space to spend according to their wishes, they are quite likely to be a little conservative with respect to their spending. At the same time, their environmental consciousness also comes into play, where 53% of the generation says that an eco-friendly packaging would be a driving factor in them ordering food from a particular restaurant or a brand.

Gen Z is also quite likely to be swayed by customer reviews. It has been observed that 46% of Gen Z would be discouraged from ordering because of bad customer reviews. However, Gen X, in spite of bad customer reviews, are quite likely to carry on with a brand because of the first impression that they have created.

Anything said it all comes down to financials for most people! Factors like free delivery, absence of cancellation charges, better discounts, and a wider selection of restaurant partners contribute to the growth and success of a food delivery app.

Certain Uncertainties:

When it comes to food delivery, it might not take a long time for a new player to become the Numero Uno in the market. On the flip side, it might not take a lot of time for a top brand to plummet to the abyss as well.

The crux of the entire business remains a constant – delivering food from a restaurant to a consumer’s home. However,  there are a lot of auxiliary factors that contribute to the business success of a food delivery brand. New technologies like artificial intelligence, machine learning, voice recognition, and chatbots coming have started to make their inroads in the food delivery landscape. Therefore, it is essential for an app to incorporate these features – after all, an application is a piece of technology.

There have also been experiments with delivery drones and AI-based order suggestions as well. Your food delivery brand cannot keep up with the rapidly changing landscape of technology. If not, iit is bound to spiral down into the massive chasm of brands that once ruled but are nowhere to be seen now!

The coronavirus – a Blessing in Disguise?

Some habits might have been a consequence of a certain crisis, but they might not have changed even after the crisis is over! In India, digital payments were a consequence of demonetization but today, even when there is cash in the wallet, people prefer to use PayTM and Google Pay. In the same way, today might be the time for on-demand delivery-not just for food but also for grocery and a lot of other essentials. Even after the crisis is over, it is quite likely that people might not prefer to visit restaurants or even grocery shops for that matter.

Many experts say that the lifestyle of people can be clearly distinguished as ‘before the coronavirus’ and ‘after the coronavirus.’ One of the most likely areas to be impacted is food delivery on-demand.

Conclusion:

There is no question that with the projected CAGR and the coronavirus crisis positively altering the growth rate in favor of food delivery applications, it could very well be the business of both the present and the future.

As discussed earlier, if you would like to jumpstart your food delivery app business, it is highly recommended that you go for UberEats clone. They are bound to save you a lot of time and money, and the fact that you do not have to worry about bugs that interfere with the basic functionalities of the app is a big advantage.

All you need to do is get in touch with app development companies that specialize in UberEats clone. They will take care not only to create but also to customize the app according to your requirements, so you can start delivering your restaurant food, and the app will start delivering its profit!

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dorothy

Dorothy J. is an ardent believer in life morals, a writer by profession, an aspiring author and a creator, who believes in his existence for literature. He, being an extrovert, has no qualms talking to all sorts of people. When he is not writing, you can find his indulged in reading, dancing and daydreaming to change the World!

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