food delivery app challenges

The world has changed and has been continuously changing rapidly. Technology is changing and transforming nearly every industry that exists and has been delivering unpredictable aspects of growth to them. By adding ease, cost-effectiveness, and quality to the services and products, technology has made a place for itself in the market at each and every segment. Getting services like food, medicines, clothing as well as daily necessities is just a matter of few touches upon the screens and everything is available at your doorsteps. One of the most affected and benefited seems to be the industry of food. With the market shifting from the dining out towards the home delivery services, technological growth has even more paced up in the sector. Food delivery brands and organizations have grown huge and are leading the online marketplace. The total revenue of the online food ordering marketplace grew up to an incredible of $107,438M in 2019 and is expected to grow at 8.8% in the meantime till 2024. But like every sector and industry, even this one is facing and will continue to face challenges in the highly transforming market. The ongoing change has brought in a number of issues to cope up with and with them, the opportunities to soar high. Let’s look upon the challenges being faced by the food delivery industry and take a sneak peek into the market. Challenges For The Food Delivery App Business Food delivery app business has continuously been induced with a number of new customers each day. With the growing market base and cultivating opportunities, a large number of competitors have entered into the market with greater thrust and push. This has made the market place competitive and challenging for the businesses to capture. Unstable Customer Base is The Major Setback Customers in the food delivery businesses are observed to be highly unstable at loyalty. For a major part of the population, the term loyalty in while getting the food delivered doesn’t even exist. The major aim of the food delivery is to get great food at greater prices and with the least hassle. The competitors and market players have brought in the game of marketing and delivering services to such a merrier level that customers are already enjoying utmost services from almost all of them and thus aren’t in a situation to have a lot of differences in the choices. This has made the customer base unstable and diverts them away from the aspect of the business called loyalty. The food delivery businesses are trying very hard to control the loyalty factor and have realized the importance of it. A number of marketing strategies and tactics are continuously being offered by the food delivery organizations to have a happy and loyal customer base. As per the reports by Clevertap, a staggering amount of about 86% of users stop using an application after two weeks of its launch. Prices of The Market Are As Unstable Not just the customer base but also the prices of the food industry are highly volatile. With a number of factors affecting the prices of the food industry, organizations dealing in the food delivery business are lacking the track of keeping up with the effective prices and continuously have to strive for the right amount. While fighting inflation and rising prices of the food in association with their partners, they have to even focus upon the offensive or defensive pricing models being put forward by their competitors in the market continuously. The two-way pricing attack makes it even more difficult for the delivery brands to keep up with a constant rate of growth and revenue. However, with their asset-light model, aggregators post earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of 40% to 50%. Inconsistent Food Quality It becomes highly challenging for the delivery partners to deliver the food with the utmost quality at the doorsteps far away from the place it is being prepared. The difference in the food being served upon the tables of the outlet as well as the one being delivered at the doorsteps is creating a major loophole the organizations have to strive hard to overcome. With technology, the delivery of the food has been possible but has yet to be implemented for the betterment of the means of the delivery in an affordable manner. Getting Ready For The Demand Every business aspires to grow and increase the market base continuously. It’s an ongoing process and has no end. But in the race to capture the bigger portion of the market, there’s another end to it that talks about the maintenance of the supply and availability to suffice the demand of the market thus captured. Howsoever big is the market captured, it’s a failed attempt if the businesses are unable to satisfy the needs of the customer base. The factor of satisfaction herein does not lie with just the delivery partners but the ones working at the backend, the restaurant owners. The market lies upon the delivery partner brands and thus is important to fill the gap between the delivery partners and restaurant owners to work together and get themselves ready to suffice the demand of the captured market. Bigger Fish Eats Up All The Other Ones The market consists of a number of players striving hard to reach the same goal – the biggest market share. The same race, when is joined by a bigger player who is already established and popular among the market, takes up a bigger pie with fewer efforts and leaves a very small portion for the other players to compete for. This brings on a challenge for smaller and upcoming players of the market to gain a larger customer base and a one of higher value. Competing with the already established and traditional delivery models has been a difficult time for the new technological application-oriented platforms. The traditional delivery systems still own a major of about 90% of the total market. Solutions For The Food Delivery App