The online food delivery market has recently seen a significant rise. This vast growth has been fueled by customers’ shifting preferences from eating out to ordering online from restaurant owners, especially after the Covid-19 pandemic.
Statista estimates that the global online delivery sector was worth 107.44 billion dollars in 2019. Furthermore, it is expected to grow at an annual CAGR of 11.51% to reach 154.34 trillion USD in 2023.
Because of this huge growth, many entrepreneurs, business owners, and startups are now looking to enter the online delivery market. They are trying to create a food delivery app to generate steady income. The food industry has a lot of potential and is ripe for growth with advanced business models. However, food delivery comes with its own set of challenges.
Today we’ll look at the top challenges startups face in the online food delivery industry. You will learn how to cope with those challenges and build an online food delivery app with advanced features.
Today’s Biggest Challenges for Food Delivery Businesses
Let’s look at some of today’s critical challenges the food delivery industry is facing.
- Shifting Customer Preferences
Any food delivery platform should strive to increase its market share and offer the best value to customers for the lowest possible price. Unfortunately, the marketing game has become so complex for food delivery businesses that customers have no choice but to choose from a wide range of options. This makes customer loyalty less likely and causes instability in the customer base. Therefore, food delivery companies use marketing strategies and tactics to increase customer engagement.
- Unstable Market Prices
Food costs are highly volatile, not only because of the potential customer base. Many factors affect food prices. As a result, food delivery companies often struggle to keep up with the market and find the best pricing strategy for their revenue models.
Food delivery companies must also be aware of rising inflation and revenue gaps from their partners. They need to adopt offensive or defensive pricing models in order to compete with their competition. This increases restaurant sales and margin pressure and impacts profitability.
- Food quality maintenance
It is difficult for any food business to maintain the same quality. The taste of food changes over time. Customers can also choose to move to another restaurant with lip-smacking menu items if they are unsatisfied with their food.
- Retain Customer Loyalty
Keeping a customer loyal for a long time can be challenging. In addition, it can be challenging to engage new customers and build strong customer relationships with the influx of large food delivery companies and SMBs.Companies must get to know their customers. To offer customers special offers, they must be able to identify their preferences in food items and needs related to services.
- Fulfillment of Orders & Logistics
Here are some of the common logistic problems food delivery businesses face during the delivery process:
- For food delivery, you can choose specific areas in a particular region.
- Manage the influx of orders from a particular place.
- Prioritizing order requests and ensuring on-time delivery time.
- Allocating a suitable number of vehicles to delivery points.
- Ensure hygiene during delivery.
- Identification of delivery routes and proper training for delivery agents.
Solutions for the Food Delivery App Industry
Every challenge presented by the market requires that the market’s competitors come up with a better solution to allow the market to grow and develop. So, you can also proceed ahead if you try these solutions to cope with the challenges.
Are you feeling excited?
If yes, read ahead!
- To maintain a healthy, ongoing relationship between brands and their customers, the implementation of Customer Relationship Management Software Programs is a necessity. Customers will be assisted with their problems and provided support quickly and efficiently. This will give rise to loyal customers.
- The key to solving many problems is the management of resources. Management can make a significant difference in the efficiency and effectiveness of delivery businesses and profoundly impact user engagement.
- Marketing is the key to solving every business problem. A great way to reach your customers with the exact market requirement at the right time can equip a food business.
- At regular intervals, it is essential to keep up with market trends. Also, upgrading yourself is an effective solution. Market segmentation is a game that you can capture. It’s the one that changes the rules and opens up new possibilities for the growth of your digital product.
- The competition’s final winner is the one that provides the best customer service, responsiveness, and customer friendliness. Your customers will return to your online platform again and again to access the services and products they desire.
Top-Notch Features to Add to Your Food Delivery App
To tackle the COVID-19 Food Delivery Challenges, Here are Some Essential Features You Need to Add to Your Food Delivery App.
Items with Delivery-Safe Menu
To avoid any illness, eating healthy and fresh food is essential. Consider adding a delivery menu to your app that only offers dishes that can be refrigerated or reheated without compromising on the food quality.
Multiple delivery options
You can offer multiple delivery options, including curbside pick-up and contactless deliveries. Your customers will appreciate the variety of timely delivery options you offer. This will promote social distancing during critical times.
Notifications for Awareness
To gain trust and loyalty, it is important to inform customers about the safety precautions taken by your restaurant business. Therefore, notify your customers by pushing notifications about safety standards being followed at your restaurant.
Cashless Payment Methods
To support cashless transactions, including online payment options in your app, you must include payment gateways by taking support from the best food delivery app development company. Your customers should be able to transact easily with multiple payment options, including credit or debit cards and e-wallets.
The online food delivery market is a bright future with lots of potentials. However, food delivery startups must overcome these obstacles to succeed in a competitive market. These tips will help you develop imaginative food delivery solutions and better serve your customers.
For expert guidance on building an app for food delivery, get in touch with our experts today. We will help you from developing an effective user interface to make your app live on Google Playstore and Appstore. Your app users will definitely love the outcome that we will provide you in the name of a food delivery app.