Nowadays there has been a lot of discussion happening in regard of the development of a food delivery platform. You must not be unbeknownst to the newly acclaimed fame of Online food ordering, which is tremendously popular among the people owing to the convenience it offers along with.
But every new development certainly comes with its very own challenges. Now here as we discuss food delivery system, building a food delivery app is not that big a problem. The real challenges are actually associated with the maintenance of a food delivery system.
While we focus on this trend, let’s explore it all about its origin. Well, the current wave of food & grocery delivery ventures came in existence in the “Uber-for-X” rush, however you need to keep in mind that the logistics for this arena are way more complex as compared to match riders with drivers and to provide GPS tracking facility in a mobile app. For the success of any food delivery platform, it must carefully build and maintain menus as well as inventory lists for millions of individual merchants, track huge number of daily received orders, and also run a well-organized dispatching system. This serious task needs a very thoughtful approach.
Hence after careful research of some of the present food ordering & delivery solutions, we found few facts about the kind of challenges they are dealing with. Thus, after taking a closer look at the issues, here we discuss how the business can deal with the problem and keep their audience happy by avoiding few mistakes.
Growing market of Online Food delivery
Before jumping towards the challenges, here let’s first have a sneak peek into this system which has been widely embraced by the worldwide audience.
It has been learnt from a numerous of researches and studies that the online food delivery and takeaway system will be growing at a CAGR of 15.25 percent till 2021. The figures doesn’t surprise anyone at all, going by the increasing amount of people choosing to order-in their food. Clearly, numerous of restaurants and delivery services have joined this bandwagon and there is no going down for a long time.
Challenges associated with Online Food Delivery system
Online food delivery system though extremely popular, still it has its own dynamics and it also present a number of challenges which have been discussed below, to give you a deeper understanding of the channel:
Neglecting customer loyalty
In the times of digital world, fidelity means the most to customers. More the choices, more they get spoilt, and more they love it. So, basically the mantra for them is ‘the more the merrier’. Those you don’t focus on maintaining their customer base are certain to face the consequences in a bitter manner. However, when a delivery service or restaurant treats their customers with exclusive deals, incentives/freebies, they instantly gain their loyalty that very moment. The sooner the restaurants realize this fact, the better it is for them.
Not keeping the price model predictable
Prominence of a new system certainly attracts fierce competition towards it and online food delivery system is no different. Owing to the huge competition in this arena, adopting a price model which doesn’t continuously fluctuates and push sales is thoroughly challenging. So now the small businesses run on lower margins & capital, and when they further reduce price it puts them out of business. And then in 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.
Arrival of biggies
Realizing the great potential lying in online food delivery system, e-commerce giants are entering into the market. For instance, Amazon & Uber are already up with UberEATS and Amazon Restaurants respectively. There are also old players like Starbucks and McDonald’s planning to join in the bandwagon. Now they already have financial & operation resources required to meet market demand as well as combat the competition coming their way, due to the same, small setups and independent food delivery businesses are struggling to retain their place in market.
Dilemma over Logistics
The confusion is immense. Shall we keep the delivery restricted to few areas or across the whole city? Is there any chances of grabbing higher amount of orders from a specific area? How many vehicle 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 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 last-mile logistics model. Timely delivery should be ensured as its opposite may tick-off customers and the chances for same are high in case of ineffective logistics. Once the trust in your service is lost, it is going to be real tough to gain it back.
Inconsistent food quality
It is 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 metres away in restaurants. Even when adequate measure are taken to maintain food quality & packaging measures for the 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.
Inefficiency to cope with volumes
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
With there being myriad retail e-commerce services for possibly every arena, the demand for delivery & logistics staff has certainly fuelled. 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.
Hence, it is evident that the online food delivery system has a bright future but the delivery players must combat the hindrances coming their way to survive the immense competition. Keeping these facts in mind, it’s time to make the most with a brilliant food delivery mobile app and offer a great online food ordering experience for your customers.