The world is changing rapidly. To cope with that, industries are also changing according to customer demands. Everyone wants everything to be cost-effective, faster and easily accessible. Getting services like the food at your doorstep within hours was considered daydreaming a few years back. Today, the scenario has changed and food delivery is leading in the race of the on-demand world.
The Growing Food Delivery Market
The total revenue in the online food industry amounts to US$22,073 million in 2019. It is expected that the revenue will grow at with an annual growth rate of (CAGR 2019-24) 6.5%, resulting in the market volume of US$28,398 million by 2023.
The figures don’t surprise anyone at all, going by the increasing amount of people choosing to order-in their food. Clearly, numerous restaurants and delivery services have joined this bandwagon and there is no going down for a long time.
Currently, out of the total traditional food ordering market, 47% is offline while 53% is conducted online.
With increasing demand over the years, the restaurant owners are facing big challenges in providing quality and satisfying services.
Challenges Faced by Online Food Delivery Apps:
Ignoring Users Loyalty
With more Delivery service providers coming up in the market, the loyal customers lose their interest to other service provider providing better services than them. Keeping the same customer for a long time poses a big challenge.
In this digital era, fidelity means the most to customers. The more choices you give to your customers, the more they would use your platform. For customers, “The more the merrier” is the success mantra. Businesses that don’t focus on maintaining their customer base are bound to face bitter consequences. Customers love it when they are treated with exclusive deals, freebies, and incentives. Making customers feel special will earn you their loyalty.
Fluctuating Pricing Model
The prominence of a new system certainly attracts fierce competition towards it and the online food delivery system is no different. Owing to the huge competition in this arena, adopting a price model that doesn’t continuously fluctuate and push sales is thoroughly challenging. So now the small businesses run on lower margins & capital, and when they further reduce the price it puts them out of business. And then in the case of well-set restaurants and delivery firms, there is still no guarantee of higher sales after the price cuts too, noting the customers are always expecting “more benefits” as they place orders.
The arrival of Giants
Looking at the great potential in the food delivery market, flourished companies are already stepping into the industry. Big names like Amazon and Uber are all set to compete for the market with Amazon Restaurant and UberEats respectively. They have existing financial & operational resources required to meet market demand as well as combat the competition coming their way. It is difficult for smaller and independent food delivery setups to retain their position in the market.
Dilemma over Logistics
There are some serious issues related to the logistics of this food application industry. The confusion is immense.
- Shall we keep the delivery restricted to a few areas or across the whole city?
- Are there any chances of grabbing a higher amount of orders from a specific area?
- How many vehicles would be needed for delivery and how should they be allocated across delivery points?
- How to ensure that food remains fresh while retaining its quality even when the delivery is for a far-off location?
Hence, there are endless concerns and it is vital that restaurants & delivery services keep all of these parameters in mind as they decide upon the last-mile logistics model. Timely delivery should be ensured as its opposite may tick-off customers and the chances for the same are high in case of ineffective logistics. Once the trust in your service is lost, it is going to be really tough to gain it back.
Inconsistent food quality
It is a real job to maintain the quality of food being delivered to the customers. After all, the food delivered in packages stands just no comparison to food which has been served straight to the customers’ table from the kitchen, which is just a meter away in restaurants. Even when the adequate measure is taken to maintain food quality & packaging measures for online orders, they still remain prone to quality lapse. Like, the pizzas may turn cold, curries are certain to spill, noodles turn sticky while sandwiches get moist. And the customers always equate food quality to delivery quality.
Inability to Cope with Volumes
In this digital era and tech biz world, where everything is available with a single tap, food delivery is becoming more and more popular with every passing day. So, let’s assume that a particular food delivery service has gained prominence. So, the demand is soaring and orders keep coming in. But, do the restaurants have the operations & logistics in place in order to deal with the volume without any interruption to services provided to walk-in customers. Often it happens that restaurants fail in developing a second or alternative line of operations to deal with online delivery orders.
Unreliability in Delivery & Logistics Staff
The demand for delivery & logistics staff has certainly fueled by various retail e-commerce services. But the attrition is pretty high too owing to various reasons like inadequate salary, poaching & absconding, lack in training, no employee benefits and nor the opportunities of progression, life and health risks (due to weather, constant changes in work schedule and they also carry such heavy, bulky bags). So, the delivery is certain to suffer when there is not enough delivery staff.
Not Getting Constant Online Orders
Most of the food delivery businesses highly depend on the number of total orders on a daily basis. Setting up an online ordering gateway is one of the most challenging and costly elements that require a substantial amount of investment which could be a really difficult thing to manage for start-up or small online food delivery companies. Most of the popular food tech companies have their own mobile apps and websites through which they manage the entire operation of their businesses. So, when it comes to making your online food delivery really a real success, you must have a scalable and highly functional order gateway system through mobile application and website.
Simplifying Ordering and Delivery Operations with Food Delivery Tracking Software
By using the modern Food Delivery Tracking Software, food business owners may streamline their entire food ordering and delivery system.
The following features offered by the Food Delivery Tracking Software make the order and delivery process a whole lot easier and eliminate Food Delivery Start-up Problems:
- Efficient order/customer management
- Online business promotion
- Analysis of data that brings increased business
- Increased productivity and overall efficiency
- Timely delivery that attracts a number of customers
- Integration with existing websites or other systems
Related article: Guide for Develop Successful Food Delivery Mobile App
How Does the Food Delivery Tracking Software Help Minimizing Problems in Food Delivery Business?
With regard to food delivery business, the major points to be borne in mind by entrepreneurs to be able to face problems efficiently and win the market through the online platform are as follows:
Real-time location tracking
Individuals today wish to stay updated with their orders throughout the order and delivery cycle. Food delivery startup problems are half-solved when you ensure that your customers are empowered to have this facility. The knowledge about when their order reached the kitchen when their food items were prepared, dispatched and the rough time of delivery proves crucial to today’s customers.
Prompt, timely delivery
The success of the on-demand economy depends on timely delivery. It is only natural that delayed delivery will lead to a business getting ditched, even if all other factors are in your favor. You need to make use of reliable food delivery tracking software that enables you to assure prompt delivery in a timely manner to win customers.
Social media friendly
The web / mobile app that you use for conducting your online ordering and delivery business must provide a social media-friendly solution to facilitate consumers have access to the data about what others are ordering and what the current trend is.
Tailor-made solution to Consumers
Offering something unique, something that fulfills user needs is the way to attract buyers. A custom-built mobility solution goes a long way in winning the hearts of modern users.
Updated knowledge of local demand and supply
It is essential to keep in line with what your peers and competitors are doing. Moreover, understanding the prevailing demand and preferences is vital in being able to supply what is expected of you.
Hence, the future of the food delivery industry is evidently very bright and full of opportunities to grow. Delivery giants must combat the hindrances coming their way to survive the immense competition. Keeping these facts in mind it is necessary to have a smart and fully equipped food delivery app to manage deliveries hassle-free.
At ARKA Softwares, our experienced developers provide industry leading on demand food delivery app development services for powerful and efficient mobile apps that drive business while minimizing common and complex market challenges. You can reach them at the following email.