Today, the global food ordering and delivery market is growing rapidly and is expected to reach a hefty USD 200 billion by 2025 as reported by Forbes.
Furthermore, online food ordering and delivery is expected to play a huge role with a forecasted growth of 15 to 20 percent during the next five years. Interestingly, the largest segment of the food delivery market is restaurant-to-consumer delivery with a market volume of just over USD 58m.
With this growing industry comes competition and changing consumer demands, and service providers such as Careem NOW must continually adopt unique innovations to cater to market requirements.
Here, we asked Racha Lamdjadani, general manager of Careem NOW in the Gulf, to offer her insights on the top drivers to watch out for that are changing the food delivery industry.
Millennials must be heard
Millennials are the priority audience for food delivery services as they notably spend the highest share of their disposable income on prepared food compared to other generations. Generation Y, known for their fast-paced way of life, are more apt to eat in quick-service restaurants and order food delivery.
As cited by Technomic’s Generational report, in three out of five cases Millennials ordered food delivery or visited restaurants for takeout. And, of course, with a continued increase in spending power, Millennials also have higher requirements when it comes to their food delivery or takeout options including the effortlessness of ordering, instant delivery, one-step checkout mechanisms, and gamification to name a few.
It’s, therefore, safe to say that Millennials are the voice at the forefront of food delivery and it would be a mistake to not utilize the opinions of this generation when it comes to what they want from the food delivery industry.
Big data is helping revolutionise food delivery services
Big data is helping revolutionise food delivery services and make them as efficient as possible. Food providers collect and analyse a huge scope of data including road traffic, the impact of temperature on food and current market trends that can affect stock consumption.
This information helps food delivery companies accurately estimate the delivery time as well as monitor customer emotions, with social media and online portals playing a major role in this, with the opportunity to immediately react to complaints as well as customise food offerings based on area, region and even country.
New technologies and automation are defining what the future of delivery will look like
As customers continue to push for shorter delivery times, the food delivery industry is forced to get creative. For example, the global drone industry is now worth USD 127bn and reaches into virtually every field of human endeavour: from war to healthcare and entertainment.
With autonomous vehicles currently being the major focus in the future of automotive, these “trends” need to be taken seriously in order to stay up to date and innovate in respective industries such as food delivery.
The virtual kitchen
The concept of a virtual kitchen is essentially restaurants helping other outlets avoid the high operating costs of opening a new physical space and provide convenience to partners by allowing the use of kitchen space to prepare meals. This concept is beneficial for food delivery platforms as they can save costs and focus more on product development and data analysis to identify and offer the most popular cuisines in specific areas.
Customers trust reviews!
In the age of Instagram posts and avocado toast, customers have access to a multitude of information at the tip of their fingers. Not only do restaurants need to ensure they adhere to consistent delivery in terms of the food itself, but delivery apps also play a major part in the overall consumer experience.
Through its app, Careem NOW will ultimately look to do its piece by adding a new level to this offering by featuring trending ingredients and where customers can find relevant dishes through the application. Want to learn more about the new eatery that opened up? Hearing good things about the Paleo diet? Find it all and more with Careem NOW!
Customer needs are more complex
No one likes complicated and we are all looking for the path of least resistance as, let’s face it, life has enough challenges when we are hangry without further complexities coming into it.
Already laying the groundwork for launching last-mile deliveries, Careem will also be working to create a SuperApp by Q2 2020. The app will not only have a catalogue of delivery experiences, from restaurants, groceries, pharmacies and more, but it will also look to offer customers a “one-stop-shop” that will allow users to hail a cab, pick up or drop off a parcel and order food all with just one app! So simple, so genius.