The world is changing fast and so is the customers’ demands.
Back in the old days, for example, people longed for home delivery services for clothes, taxi, and food especially.
Today, it has turned into reality and food delivery is leading the on-demand economy.
The fame of food delivery apps is at its peak right now, and why not? – After all, it helps people to order their favorite food from their favorite restaurant within seconds.
According to Statista, the global food delivery market has already surpassed $107,400 Million US dollars in 2019 and it is forecasted to reach $156,819 Million US dollars by 2023.
In fact, 53% of traditional food ordering is conducted online today, while 47% is offline, proving that the future of food delivery app startups is bright.
But, with the increasing demand for food delivery apps, the food delivery startups and businesses are also facing serious challenges.
In this blog, we’ve addressed 3 such food delivery challenges that startups and businesses in the food industry will face in 2020.
3 Food Delivery Challenges You Need to be Aware of in 2020
Online food delivery has experienced tremendous growth in the past 3 years.
But when it comes to establishing a new food delivery app-based startup, there are many serious challenges that one needs to overcome.
Let’s look at these food delivery challenges and their possible solutions so that you can thrive in the food delivery industry in 2020.
1- Disruption by Giant Companies
Though the online food delivery market has great potential, but with the arrival of giant companies such as UberEats & Amazon Restaurant, capturing the market share will be a serious challenge for new startups in 2020.
You see, these giant companies have all the resources required to capture the majority of market share and therefore the independent food delivery startups are struggling to just survive in the market.
So, what’s the solution?
Here’s an Idea: adopt the Walmart model.
Walmart is a global retail giant. But when they started, they strategically entered into unexplored and relatively untouched markets like small towns and villages in the beginning.
This strategy allowed them to grow into a big company before they entered big cities.
Similar to Walmart, you could expand your online food delivery services in unexplored markets in your country, grow your customer base, and then take things forward from there.
2 – Neglecting Customer Loyalty
As new food delivery startups entering the market more often than before, retaining customers has become a serious challenge.
In today’s digital era, the number of choices matters the most to customers. That means, if your competitor is offering better or just more options than what you’re offering, it would be really difficult to keep the same customers for a long time.
The more the merrier is the key for food delivery startups.
You see, customers love more options, whether it’s the number of restaurants, types of food, incentives, discount offers, the more option a business offers simply gain customers’ loyalty.
So, What’s the solution?
It’s simple! – Offer more options!
Treat your customers with exclusive deals on a regular basis, offer freebies, partner with more restaurants, and deliver in remote areas. This will help you making your customers feel special, which will ultimately help you in earning their loyalty.
3 – Delivery Fulfillment Timeline
Technology has ruined us. Today, customers expected everything to be delivered in a minimum amount of time, which makes adhering to the fulfillment timeline a must.
This is especially true for food delivery startups. For instance, if a delivery timeline is missed, not only the brand reputation gets ruined, but the business also has to wave off the delivery charges.
In other words, new food delivery startups must make their delivery process as efficient as possible to avoid such serious impacts on their reputation.
So, what’s the solution?
Answer: Adopt a reliable last-mile delivery solution.
Last-mile delivery software offers a lot of benefits to online food delivery businesses.
For starters, it helps to enhance transparency, optimize the delivery route, gives real-time status updates, and also reduces delivery costs.
Overall, getting a last-mile delivery solution can surely boost the efficiency of deliveries and increase profits for an online food delivery startup.
The future of the online food delivery industry is undoubtedly full of opportunities. However, new startups must combat these 3 main food delivery challenges to survive high competition.
So, make sure that your mobile app development partner develops your food delivery app that helps in overcoming these challenges.
And if you have any questions, feel free to ask them in the comments below.
General FAQs for Food Delivery Challenges
Q:1 – How can I improve my food delivery business?
Ans: There are many ways you can improve your food delivery business. For example, you can market your website on social media, you can build an app to accept online ordering, or you can allow customers to place a scheduled delivery.
Q:2 – What are food delivery apps?
Ans: Food delivery apps basically allow customers to order their favorite food from any restaurant via their smartphones and get it delivered at their doorsteps.
Q:3 – What are the benefits of online ordering?
Ans: Online ordering helps to make the ordering process easier for both customers and restaurants, get better insights into customers’ behaviors, and helps to stay ahead in the market.
Q:4 – What are top food delivery apps in the market?
Ans: There are dozens of top food delivery apps in the market. They are listed as below: