Home delivery services is been a pivotal part of the year 2020, and 2021 looks more like a challenge faced By Food Delivery Businesses. The pandemic has made customers move towards home delivery food services from their usual restaurants or food places dine out. Consequently, leading to an accelerated technological eruption in businesses.
As stands now, the market share of online food delivery companies will reach 182, 327 USD million by 2024.
This not only concludes online food delivery services tremendous growth but also being frontrunners of the eCommerce businesses. This change has lead to the creation of many foods related start-ups and companies venturing into the market. With each passing day, online food delivery businesses are acquiring more customers.
More importantly, the marketplace is packed with verticals that are ready to go the distance. And more and more are emerging day by day resulting in ever so competitive and challenging food market.
This blog will cover 7 crucial challenges, the current marketplace is providing to online food delivery businesses.
In recent years, customers have raised more and more questions due to the difference in the quality of food between restaurants and home delivery. Massive demands for online foods and the fare distance from the restaurant to customer address while maintaining the right quality are is getting a toll on delivery partners.
Indeed, it is an area of challenge for online food delivery businesses. More so, food delivery businesses need to answer this question: “Why is the customer equating the quality of delivered food with a restaurant one?
Another challenge faced by food delivery businesses is delivery. Customers nowadays are severely criticizing the food handling the delivery boy provides. Indeed, there are only a few online delivery businesses that have considerable measures in place for this.
Lack of training for online food businesses is making this issue bigger. In the first place, restaurants are successful because of their extreme hygiene and cleaning standards. That’s why online food businesses have to ensure proper training for delivery personnel to optimize the experience of food delivery.
Indeed, the current ecosystem of online food delivery businesses has volatile customer needs. Ultimately, any online food delivery service aims to gather a large share of the market. To achieve this, online food verticals is offering customers the best possible value at lesser prices. Thus, spoiling customer choices and, in the process, giving the business an unstable user base and impacting brand loyalty
Fluctuating customer preferences is not the only challenge faced by online delivery food services. Changing market prices are seriously giving headaches to online food businesses. As many variables determine prices in the food industry. Food delivery companies inability to keep you with consumer rates is leading to incorrect pricing strategy.
To overcome this, food businesses should be focusing on aggressive and protective pricing models to compete with their rivals.
The food industry is a mammoth horizontal, and consequently, online food delivery services constitute a bigger market share. If the customer is not delighted, then it is not only the delivery partner’s fault but corporate too. Restaurant employees, too, have to be in the line of duty.
For long-term solutions, that gap between the restaurant’s owners and delivery partners needs to be filled. Then only they can cope with customer expectations. And solve these challenges faced by the online food delivery service.
Seeing this industry’s tremendous success and soaring popularity, they are losing ground in the logistics battle. Because of ever-increasing demand, existing equipment, transportation, and accommodation for food items are becoming scarce.
Food startups in the distribution channel are confronting logistics scarcity on a huge scale. Here are some of the critical logistics issues they are currently facing
Big players like Amazon and Uber have already cemented their places in the business industry. Now, they have started up their food delivery channels, Amazon Restaurants and Uber Eats. thus leaving very little space for others to compete. Also, they were already enjoying a greater piece of the market.
There were other food giants present in the market, such as Starbucks, Subway, and McDonald. And all of them are financially strong and quite popular among the masses, which makes it even tougher.
However, small businesses still have ways to overcome it. They can ride on customer emotions, be more creative with technology, and always rely on changing customer needs.
The fad for online food and home delivery is only going to thrive considering the technological disruption. Businesses need to worry only about customer delight.
As we go on, problems will only rise for online food delivery services. These businesses need to innovate and focus on developing delivery apps that can lead this marketplace to further growth.
Stackgeeks has proven time and again when it comes to providing the best-in-market food delivery app for the extremely competitive food market. Contact us now!
November 28, 2021