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19 Jul 2023

Services

Food delivery platform service providers are accelerating plans to rebalance their businesses amid numerous challenges (Current Issue No.3423 Full Ed.)

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        The food delivery business has slowed down as the impacts of COVID-19 on our daily life have eased. Given this, food delivery platform service providers have had to adopt proactive marketing campaigns to continuously attract customers. A survey conducted by KResearch on consumer trends and behavior regarding the use of food delivery platforms shows interesting findings, as follows:
Most of the respondents will continue to use food delivery applications, but not as often as during the COVID-10 pandemic because they have dined out, purchased food to eat at home or prepared meals at home more frequently. Additionally, they do not want to incur extra expenses from food delivery and experience common problems, including the meals delivered are not exactly the same as shown in the menu, the meals are overpriced, and delayed deliveries. Moreover, increased competition among food delivery platform service providers has led service users to switch applications to compare prices under the promotions and privileges offered. As a result, more than half of the respondents use only two food delivery applications. Most of the respondents want food delivery platform service providers to offer services that meet all the needs of their daily life in one application, and feature restaurants that offer quality meals, with a variety of choices, plus a simple operating system. Restaurants/promotions featured in their applications must match the needs of users, as well.
        Based on the poll results, food delivery market environment, and the fact that economic conditions and the average income in Thailand have yet to return to normalcy, thus prompting consumers to be more cautious about their spending, we at KResearch are of the view that turnover in the food delivery business may reach approximately THB86 billion in 2023, a decline of 0.6 percent YoY, while the volume of food delivery may shrink 11.3 percent YoY.
        Looking ahead, it is expected that the food delivery business will continue to experience a number of challenges as a result of the prevailing consumer behavior, rising operating costs, and difficulties in finding funding sources, prompting related service providers to rebalance their businesses. Growth among food delivery platform service providers may vary depending on several factors, particularly their ability to adjust strategies to generate profits. Those first movers will likely have an advantage over late movers.

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Services

Food Delivery