Food Delivery : New boom?
Updated: Apr 29
As we enter into another month of lock down with no end in sight, businesses around the world can only hope that this pandemic ends soon, as the impact on many businesses has been catastrophic. But it seems that not everyone is negatively affected, as one industry seems to have a lot to gain.
In the first quarter of 2020, Just Eat recorded a 50% increase in orders. It’s no wonder, as people are advised to stay home, terms such as order food online or takeaway near me have shown a steep increase in popularity. Are we headed for a new food delivery boom and will this trend persist as the world comes back to normal in hopefully the near future?
Well it’s difficult to tell. The dutch delivery company Takeaway which merged with Just Eat earlier this year reported periods of decline for select niches with lunch orders taking the biggest hit. Interestingly, the dutch company also suffered from a number of cyber attacks, with a peak of a few hundred thousand orders affected at the end of March.
The industry has been adapting to the crisis with chain restaurants driving recruitment. Notably Uber has been offering the shift from transport to food delivery in form of Uber eats, however experts point at this being an economic decision aimed at preserving their employee base rather than an attempt to capitalize on new trends.
Whenever this boom is to continue has been further doubted by analysts who estimate that food delivery companies could be impacted further down the line, as people might be increasingly put off by ordering food for hygiene reasons and economic reasons. According to Bloomberg Intelligence, even if restaurants attempt to continue trading. The demand might be affected as a result of economic uncertainty caused by the pandemic.
The one clear positive for food delivery companies and restaurants who transitioned into a more delivery focused model amidst the pandemic is the convenience factor of ordering online. With many customers ordering for the first time, the experience will most likely affect their behavior in the future.
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