Food delivery software and apps and their growing inevitability in the world of online food ordering and instant deliveries

The most convincing thing about our modern times is that people will always go after what’s convenient. This applies to just about everything in life from the movies we watch, the music that we listen to, the games that we play, the luxuries we buy, and yes, the food that we eat. Rightly so, convenience is perhaps the most significant factor behind the boom of food delivery software and apps. The reason why ordering directly from restaurants is becoming increasingly popular is simple – it’s extremely convenient, cheaper and has less additional fees.

Ordering food online has been one of the most common activities in households of today. Among other online activities, it is in fact the most cherished activity as well. The size of the global online food delivery market is a manifestation of how big it has become over the last few couple of years. The sudden outbreak of the Covid-19 pandemic in the beginning of the year 2020 made it grow even bigger.

To put a case in point, consumer use of online delivery services grew substantially after the outbreak of the pandemic in 2020. Online delivery services are expected to increase not only in the United States but in other countries as well. By 2024, China’s online food delivery revenue was forecast to reach over 67 billion U.S. dollars. Meanwhile, online food delivery revenue worldwide has been increasing since 2017. Revenue reached over 53 billion U.S. dollars in 2019 and by 2024, the figure is forecast to exceed 85 billion U.S. dollars.

Why food delivery is regarded with great favor?

Online food deliveries through the use of efficient food delivery software or apps are seen as a popular trend. To understand the growing popularity of online food ordering and delivery we must consider the modern behaviors of customers and the rise in food delivery apps.

Smartphone adoption rate- The increasing rate of adoption and use of smartphones has put a lot of power in the hands of the customers. As and by the use of mobile phone grows, it is highly likely that there would a surge in the number of online orders placed worldwide. According to Business Insider, an American financial and business news website, the mobile food delivery business was one of the fastest-growing industries in 2020 and it was projected to be worth over $38 billion by the end of the year. The mobile friendly food delivery apps have simplified lives to the core. They allow customers to order food from any place of their choice.

Easy access to the internet- Secondly, with easy access to the internet, consumers are spoilt for choice. Even if they are not wanting to order food online, access to the internet and mobile applications, compels them to go for it. After all, who doesn’t like convenient food deliveries while sitting and relaxing in the confines of home?

Busy lives and changing lifestyles- Food delivery software and apps, which a major percentage of customers around the world have in their smartphones are also forcing a transformation in consumer behavior and enabling increased food deliveries. Leading busy lives and working for longer hours than ever, consumers of today want instant means to satiate their hunger. Think of a moment when you are extremely caught up with a business meeting or another lined-up schedule for the day. Taking out time for going out and having lunch can be a troubling and cumbersome exercise. In such situations, food delivery apps have proved to be extremely handy.

Online sales offers and promotions- Food delivery ordering is relatively economical. With restaurants and food businesses, running sales offers on food items on festivals, occasions and other such days, a large number of consumers have started to prefer food delivery apps over traditional buying. For instance, La Pino’z pizza runs a buy one get one (BOGO) offer on medium and large pizzas on Wednesdays; an offer that can only be availed through the app. Moreover, on several third-party apps, the offers are much more lucrative than a customer would find in a brick-and-mortar restaurant. This has also led to a significant rise in online food delivery.

Proliferation of virtual kitchens- Growth of virtual kitchens cannot be left far behind when discussing the rising popularity of food delivery. They are an emerging segment of the food delivery market. Also known as ghost kitchens, it would not be wrong to assert that virtual kitchens have found a big solace in food delivery apps. Were there no food delivery software and apps, the idea of virtual kitchens may not have acquired a final shape and food deliveries would not have progressed the way they have. To put a statistic in perspective, a United Kingdom start up and a ghost kitchen company by the name of Karma Kitchen managed to raise over 300 million euros in just one round of funding in July 2020. Ever since their coming into being, they have expanded to incorporate Karma Kitchen, delivering co-working and commercial kitchen spaces to other companies in the food and drink industry.

The covid-19 pandemic- Food delivery apps saw us through the pandemic times smoothly. Being quarantined and contained in homes, life became difficult and challenging with strict government norms in place. With a surge in demand and widespread lockdowns and closure of shops, procuring the ingredients for preparing a meal at home became a nightmare for many. This was the time when food delivery apps came to the rescue. If statistics are anything to go by, a large number of people worldwide ordered food online during such a challenging situation. In fact, the covid-19 pandemic caused a massive change in dining behaviors among the restaurant-goers in the United States. This behavioral change resulted in an increasing demand for takeout and online food delivery. The food delivery app industry heavily benefitted from this, having gained over a total of 111 million online users, a 16% increase from the previous year (Food Delivery App Market, 2020). Market revenue has also increased by 204% in the past five years thanks to more restaurants partnering up with these third-party delivery apps and thus widening the selection of food for their consumers.

The road ahead for online food ordering and delivery

Online food ordering and delivery has been steadily gaining pace. With the rapid rate at which its popularity is growing, it will just become impossible for brick-and-mortar businesses to remain detached from the world of online ordering and delivery. Following are the reasons that give us insights into how the online food ordering and delivery can shape up in the times to arrive.

1) Facility of ordering and paying from anywhere- While online ordering has already transformed consumer behavior wherein, they ordered from computer-based systems to more mobile-friendly options now, such as websites responsive to smartphones and custom-built food ordering apps, it is expected that this trend towards allowing customers to order and pay from anywhere will further evolve. The introduction of food ordering services to social media platforms is an example in case. Allowing customers to order from your website, mobile app, aggregator apps, and social media pages leaves customers with a lot of options to choose from. Gauging from the trends, this is truly a game changer for many. Having the convenience to order and pay from anywhere, view customized menus and read feedbacks and reviews literally from anywhere and from any device puts customers in the driving seat and this trend is going to get even bigger in the days to arrive.

2) Data driven marketing- The customer data that is usually collected when a customer visits and places the order from the website or delivery app, leads to marketers predicting their behavior. For instance, on what particular days does the customer order products, which food items are searched often and preferred the most, etc. Through the availability of such data, there are high chances that online ordering will be increasingly used by businesses to target repeat sales. Restaurants and stand-alone food outlets may find an easy route in the available data in the future and may use algorithms in their online ordering systems to predict a customer’s next order based on previous orders and customer data.

3) The bandwagon effect- The craze for online ordering is getting bigger by the day. Food businesses, entrepreneurs and start-ups, no matter how small, are quickly catching up with the pace of growth of online food ordering and deliveries. This trend is expected to spread like wildfire once the right food delivery platforms are discovered. As and by such food delivery apps continue to come into being and dominate the food delivery industry, online ordering is bound to follow the bandwagon effect. The most interesting part of this effect is that, due to online ordering becoming outrageously big, both customers and businesses are compelled to jump on the bandwagon.

4) More automation makes way for online ordering and reduce taking orders over phone- Rightly so, one of the key benefits of online ordering, besides others, is that there are less chances of human error. Since great food delivery apps promise end-to-end automation, the chances of human error are extremely low or negligible. While booking orders through physical counters or over the phone calls, the customers can sometimes experience language barriers, poor line connections or background noise, which can result in the restaurant getting a customer’s order wrong or incomplete. Thus, online ordering minimizes this problem and can help to improve waiting times for the customers. As growing number of businesses implement online ordering systems, ordering through phones is highly likely to be completely replaced.

5) Improved mechanics, AI and drone delivery- Behind the whopping growth of food delivery is increased automation, improved mechanics and possibilities of application of artificial intelligence. The food industry has so far been quick to adapt to new technologies. As even more technologies are created and refined, we may see capitalization from the food industry again and may witness deliveries of food through drones. Though certain businesses have started to test drone deliveries, it is still in the nascent phase and the technology is up for grabs for the food delivery companies. Amazon, for instance, is planning to use drones to deliver packages to customers in as quick as 30 minutes. Can that be replicated by a restaurant or a food business? With AI and impending technology looking highly promising, the question is why cannot they? If this idea takes off, we may eventually see food being delivered via drones too.

Winding up

The pace and trajectory of food delivery apps looks promising. As technology continues to penetrate different domains of businesses and consumer households worldwide, the possibility that food delivery businesses are going to get massive should not be taken for granted. Restaurants and culinary entrepreneurs and start-ups must gear up to find for themselves the favorable circumstances and a perfect platform to get high and flying.

As our lives become increasingly digitalized and automation makes way into our hands, pockets and every habitable place through mobile phones, restaurants, culinary entrepreneurs and food start-ups situated within the food industry need to make the most of these opportunities by looking for ways to introduce mobile and other online technologies into their operations.

After all, the contemporary customers are getting drawn to businesses that make their lives easier and give them exactly what they want. Thus, it becomes important for those within the food industry to stay on top of new trends and look towards the future, because when the food delivery practices become inevitable, there is no business wisdom in staying aloof.

What’s more? There is no dearth of efficient food delivery apps that are making businesses go gaga, everywhere around.