Food Delivery Industry Trends
Where do you think this Industry is heading now?It’s an interesting road map to read through to understand the current trends dominating the food delivery market. Trending Traffic Outside Restaurants Future of online food delivery industry is in the hands of the Millennials says National Restaurant Association, US – that by 2020, 70% customers who look for off premises meal solutions are Millennials, 21-36 years. Exceptional Growth Prediction of Online Food delivery There is an astronomical rise in the number of orders delivered. More people are catching on to the bandwagon. According to a study conducted by Morgan Stanley U.S. restaurant analysts, the food and delivery industry has the opportunity to grow 7 folds more than its current value of $30 billion, that’s a $210 billion, potential. Online food delivery giants in the different parts of the world are trying to position their services by acquiring new food players in the market such as chef made meals or Meal kit delivery startups. These mergers and acquisitions are indicative of how the food delivery industry market is empowering the global online space. The next evolution in this industry is not only attributed by rise in number of delivery companies which are enhanced by technology but also accompanied by new niches. Competition with New Niches and Technology The startups and highly funded companies are creating tremendous competition in the food delivery space. Everyday companies are finding new niches in the market like customized healthy and nutritious meal being prepared and delivered or the technology with the modern digital users which has fierce competition in the food delivery space. There is digital transformation in companies like Domino’s, robot named “DRU” (Domino’s Robotic Unit) is an autonomous delivery vehicle and is set to take the world of food delivery space by storm. Hence 2017 will be undoubtedly driven by more innovations through technologies. Inhouse or Third Party Delivery Lieutenants The traditional restaurants lean on either in-house or third party delivery lieutenants to face the online food delivery competitors. Take for example, UberEats which is allowing online delivery services for in-house restaurants. There is a trend that restaurants are starting their own delivery service models to reduce reliance on third party usage. If this trend grows, third party delivery services would need to re-think in future. Outsourcing Vs Online Food Delivery Industry In this growing phase, these start ups face a lot of pain areas in their day to day operations, for which they reach out and knock the doors of outsourcing companies. Virtual assistant companies like us have experience in servicing food industry clients across the globe. We help these companies to monitor their logistics and delivery management, uploading product details to website, customer support (email, chat and phone), market analysis and business expansion, and other website support. In this industry, where technology and logistics has major say, it is a wise decision to employ a virtual business team to save on infrastructure and various actuals. New players capturing Online Food delivery market Times have changed; we see constant improvements in the food delivery market. At first, it was only pizza which dominated the food delivery market. Today, it accounts for 60% of the US market, with rest of the 40% shared by new players like start-ups and food apps. These are the major trends which are likely to shape up the second half of 2017. If you are in the food delivery business or know someone in the food delivery business this article can be shared with them.