Which Futuristic Online Food Delivery Trends Businesses Should Keep Track of?

Highlights:

• Introduction
• The potential of Cloud Kitchen
• Future of the online delivery sector
• Key partnerships and service launches

Over the past few years, there has been a rapid proliferation of food delivery choices for consumers. Technology has significantly influenced the delivery of food items, ranging from bringing meals from restaurants to swiftly delivering bags of groceries to doorsteps within minutes. Online food delivery is facilitated by food aggregators who handle the entire process. Food aggregators enlist numerous restaurants on their platform, and after accumulating a substantial number, they proceed to launch their platform to the public.

The increase in adoption of mobile apps for online food orders has become a widespread practice among customers. To keep up with evolving consumer preferences, restaurants adjust their approach. The global online food delivery industry has experienced growth due to rapid delivery, the proliferation of mobile apps, and customer convenience. The sector is anticipated to cite a notable CAGR of 14.3% by 2032.

Surge in popularity of cloud kitchen: A prominent trend pioneering the future of online delivery  

Owing to the increase in number of customers ordering their food through online platforms, the food delivery sector has experienced an increase in the popularity of cloud kitchens. As a result, the busy lifestyles of consumers, convenience, and the intense internet penetration have led to more food orders through cloud kitchens. The choice to invest in cloud kitchens has become popular among entrepreneurs and new chefs who want to start a food business.

Restaurant chains are increasingly opting to open cloud kitchen outlets rather than traditional dine-in facilities, in response to the rise in demand for food delivery services. The convenience of receiving affordable and quickly delivered meals has led to a significant rise in online orders.

Online food delivery impacts the industry share of traditional dine-in facilities. The shift in customer preferences, coupled with a perceived inconvenience in dining out, has propelled the momentum of home delivery options.

Promising future of the online food sector:

• Virtual kitchens:

A virtual restaurant operates as a food service business that caters exclusively to customers through phone orders or online food ordering platforms. Customers place orders for home deliveries without making reservations for dining in. As the trend of home deliveries has increased, more restaurants have switched to the concept of virtual kitchens.

• Drone deliveries:

It is one of the future trends of online food delivery services. Several transport service providers have conducted tests for drone delivery. It is going to shorten the delivery period of restaurants. Customers receive their orders on time, without the challenges of traffic that delivery executives often face on the road.

• Delivery through robots:

An upcoming trend in delivery services predicts that restaurants and businesses are anticipated to employ robots for their deliveries. This shift is expected to result in reduced delivery expenses, including fuel and salaries. Implementation of AI-based technology enables precise delivery estimates and on-time order arrivals. The utilization of robots is expected to offer customers precise convenience in their delivery experience.

• Sustainable food delivery:

With the rise in demand for online food delivery, a surge in the number of vehicles on the roads is expected, leading to a notable rise in carbon emissions from the logistics industry. However, it is essential to prevent such a scenario. The current emphasis on sustainability and eco-friendliness has turned into a significant selling point for businesses capable of providing sustainable food delivery options. This strategy manifests in various ways, including the use of low or zero-emission vehicles such as electric cars or bicycles for food delivery. In addition, it involves the delivery of ethically sourced food with a minimal carbon footprint.

How do top players dominate the competitive industry?

The global online food delivery industry is dynamic, and key players have adopted novel strategies to maintain the top position in the sector. These strategies include collaborations, partnerships, acquisitions, and new product launches. For instance, on January 25, 2024, Swiggy, an online food ordering and delivery platform, revealed its expansion of services in Lakshadweep, the Indian island. The company specified that it would initiate food delivery services on Lakshadweep's Agatti island. Deliveries in the region are expected to be exclusively conducted using bicycles. In addition, the platform has introduced special launch discounts, offering a 50% discount up to Rs 100 on initial orders.

On the other hand, the Indian Railway Catering & Tourism Corporation (IRCTC) signed a Memorandum of Understanding with Swiggy, a prominent online food aggregator on March 5, 2024, to revolutionize the onboard dining experience for Indian Railways passengers. This partnership aims to provide travelers with enhanced convenience and a greater variety of options by facilitating the pre-ordering of meals through IRCTC e-Catering Services.

In reserved coaches, passengers now have the option to order food by entering their PNR on the application of IRCTC and selecting the desired station for delivery. Once the order is placed, Swiggy delivery agents are expected to ensure the punctual delivery of freshly packed meals, packaged in Swiggy bags to preserve their warmth and freshness.

To conclude, the global online food delivery industry has gained momentum due to rapid delivery, the proliferation of mobile apps, and customer convenience. The emergence of cloud kitchens drives the growth of the food industry. However, improved user experience through technology, global expansion, and industry penetration are projected to offer remunerative growth opportunities for the industry in future.

For a detailed discussion on investment opportunities in the global online food delivery industry, contact our experts today!

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