![]() There are only seven leading service providers with the top three-GrabFood (Grab), Foodpanda (Delivery Hero), and GoFood (Gojek)-dominating over their smaller rivals like Line Man, Deliveroo, ShopeeFood, and Baemin. What are the key trends shaping the market at present, and how are they likely to evolve in the future?Įxhibit 1: Food Delivery Market: Key Findings of Total Market, Southeast Asia, 2021Ĭurrently, we find a highly concentrated market structure. This, in turn, will have implications for cost ratios and marketing outlays. Manual involvement at different stages of the process could mean discrepancies in the docking of on-demand food delivery and restaurant systems. It will intensify competition and mean lower customer loyalty as there will be little to distinguish one on-demand food delivery platform from another.Īnother area of concern is data bias and inaccuracies resulting from merchants being on multiple platforms. The lack of significant differences in business models and consumer groups will have a two-fold impact. One fundamental threat to prospects is market homogenization. This has spurred greater customer demand and boosted user stickiness.īased on current and anticipated trends, Frost & Sullivan estimates a solid CAGR of 14.1% over 2021-2030. Major shared mobility players like Grab and Gojek have leveraged their super apps, massive existing customer base, well-known brand, and user dependence to rapidly achieve value chain integration of restaurant/catering merchants and consumers while creating a seamless ecosystem. ![]() The provision of virtually uninterrupted 24/7 services, a constant stream of attractive discounts and promotions backed by easy digital payment solutions, and seamless last-mile delivery services will only serve to strengthen its appeal.Īcross the region, there has been an apparent connection between the growth of shared mobility solutions and the accelerated development of on-demand food delivery services. The sheer convenience of on-demand food services has been and will continue to be another big market driver. At the same time, a young target demographic that is less inclined to cook will create exciting growth potential. Many crucial factors will underpin this strong performance.įirst, the rising penetration of mobile apps and the explosion in internet subscribers (currently estimated at over half of the region’s total population) will provide the technological backbone for market take-off. Frost & Sullivan believes that the market will remain buoyant and expand steadily from an estimated gross merchandise value (GMV) of $15.15 billion in 2021 to $49.72 billion in 2030. The pandemic might have spelled bust for dine-in but has translated into boom times for on-demand, doorstep food delivery services. ![]() Meanwhile, start-ups and new mobility solution providers-consider the case of Grab and Gojek, which straddle both shared mobility and on-demand food delivery domains-are pushing cross-industry convergence.ĭemographic and Technological Trends Highlight Growth Prospects ![]() GrabFood, Foodpanda, and GoFood are looking to take a bigger bite of a market that already accounts for almost 85% of revenue share, according to Frost & Sullivan’s analysis. The competition is getting hotter, with everyone keen to “grab” (pun intended!) a chunk of the mouthwatering Southeast Asian on-demand food delivery market. ![]()
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