- Growing Market of Online Food Delivery
- Challenges Associated with Online Food Delivery System
- Neglecting Customer Loyalty
- Not Keeping the Price Model Predictable
- Competition with the Biggies
- Dilemma over Logistics
- Inconsistent Food Quality
- Inefficiency to Cope with Volumes
- Unreliability in Delivery & Logistics Staff
- Simple Solutions to Major Issues
Nowadays, there have been a lot of discussions that are happening around the development of a food delivery platform. You must not be unbeknownst to the rising popularity of food delivery app development, which is tremendously popular among the people owing to the convenience it offers along. But every new development certainly comes with its very own challenges and challenges in online food delivery are nothing new.
Now here as we discuss the food delivery system, a food delivery app development is not that big a problem. The real challenges are associated with the maintenance of a food delivery system. While we focus on this trend, let’s explore it all about its origin.
- The current wave of food & grocery delivery ventures came into 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 matching riders with drivers and providing 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 a 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 a few mistakes.
Growing Market of Online Food Delivery
Before jumping towards the challenges faced by food delivery companies, let’s first have a sneak-peek into this system which has been widely embraced by the worldwide audience.
It has been learned from numerous researches and studies that online food delivery and the takeaway system will be growing at a CAGR of 15.25 percent by 2021.
The figures don’t surprise anyone at all, going by the increasing amount of people choosing to order-in their food. Numerous 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 has its dynamics, and presents several problems with online food ordering which have been discussed below, to give you a deeper understanding of the channel:
Neglecting Customer Loyalty
In the times of the digital world, fidelity means the most to customers. More the choices, the more they get spoilt, and the more they love it. Customer management is one of the major problems with food delivery startups. So, the mantra for them is “the more the merrier.” Those who don’t focus on maintaining their customer base are certain to face the consequences bitterly. However, when a delivery service or restaurant treats its 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
The prominence of a new system certainly attracts fierce competition towards it and adds to food delivery app challenges. 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.
Competition with the Biggies
Realizing the great potential lying in the online food delivery system, e-commerce giants are entering 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. The big names are quite aware of the problems with food delivery apps. Now they have financial & operation resources required meeting market demand. They can easily combat the competition coming their way, due to which, small setups and independent food delivery businesses are struggling to retain their place in the market.
Dilemma over Logistics
One of the most common online food delivery problems is logistics. Shall we keep the delivery restricted to a few areas or across the whole city? Is there any chance 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 restaurants & delivery services must 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 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 customer’s 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 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. Some of the major problems with food delivery services are faced due to the quality of the food delivered to the customers.
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 to deal with the volume without any interruption to services provided to walk-in customers? This is one of the major challenges faced by swiggy. 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 and this is quite a major problem faced by swiggy. But the attrition is pretty high too owing to various reasons like inadequate salary, poaching & absconding, lack of 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.
Industry experts share solutions to the challenges faced by online food delivery industry. A little precaution and awareness can make things a lot easier for us.
Simple Solutions to Major Issues
Put It All Under a Custom Built Website
When you hire someone for a food delivery app clone like Zomato, the ROI is surely not guaranteed. To succeed, you need significantly more. The mobile app developer should leave no stone unturned to building a one of a kind identity in the business market for a strong impact on the client’s brain.
The food business can get the upside of creativity and programming given by the application. It is vital to get going with a feature-rich and safe site so that individuals can undoubtedly confide in you.
Start Small and Expand Later
Starting small would be a great idea to start your business. Area related challenges faced by food aggregators are quite complicated and they would need to start slow. After making progress in smaller regions, business owners can extend their business for an enormous scope. They need to sort out issues and advantageously look for arrangements. For instance, considering GrubHub business model, it began its journey from Chicago. GrubHub gradually expanded its territory to other US urban communities.
According to Local Demands
When we talk about the growth of online food ordering applications like FoodPanda, Ubereats, and GrubHub it majorly relies on how well they fulfill the requirements of the neighborhood. It is vital that the food requesting and conveyance business should deal with the neighborhood climate. To avoid online food delivery challenges it is important to see what work is going out with disconnected and internet showcasing. It very well may be conceivable that the eateries in the client’s objective territory don’t have proficient web network, legitimate food arrangement, and conveyance norms, and so on
Adding Helpful and Innovative Features
With higher engagements, there is a need to build a strong application that seems to be the clear solution to food delivery challenges. Adding interesting features and innovative solutions would make your app take over the market. The high-level substance channels can be built up that permit a pursuit dependent on the circumstance of food conveyance from the earliest starting point.
Easy Order Process
One of the most common challenges faced by Zomato was the struggles of placing an order. The order process needs to be simple and actionable. Distinctive payment alternatives like cash on delivery, credit or debit card, or in any event, paying with the assistance of an e-wallet app makes the installment path simpler to the client.
Woah! These are quite complex challenges. Being able to keep up with these challenges and maintain great relations with the clients and restaurants seems a little tough? The right solutions can help you build a strong presence over the internet. All the more significantly, eateries ought to consistently have a decision concerning if they will convey through your administration.
You can hire the right food delivery app development firm that would help you survive the market competition in no time and stand shoulder to shoulder with other giants in the industry.