Are F&B businesses winning the delivery game with UberEATS and Deliveroo?

food delivery singapore
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Overview: To adapt to this growing demand for speed, versatility and quality triggered by consumers, more restaurants choose to level up their delivery game by being in control of the operations and having the ability to manage their deliveries hands-on.

It’s a fact that in Asia alone, the F&B industry is going through unprecedented change regarding same-day delivery as the level of service is becoming one of the fastest-moving trends .

With delivery volume increasing, established restaurant chains or smaller restaurants, as well as food delivery services, are all trying to find a common ground to grow their business.

A report in Statista highlights how restaurant deliveries will increase considerably in the next few years.

food delivery singapore

Why is the online food delivery boom prevalent in Asia?

We all know that we live in a fast-paced digital world, where a 2-hour food delivery is the norm for good reasons. Consumers are becoming more and more savvy and businesses are trying to offer customer satisfaction by offering timely and personalized delivery services.

According to a market report in EcommerceIQ, “food delivery services like FoodPanda and Deliveroo are also thriving in Singapore, the latter boasting 25% week on week growth, while Foodpanda claims Singapore to be one of its key markets in Southeast Asia.”

One of these on-demand food services heavily rely on tools that help them track driver performance and efficiency as well as determine the number of riders needed on the road at different times to eliminate delays.

This only highlights that timely delivery is at the core of these businesses and that the entire online food delivery industry has become prevalent in the last few years as big food ordering platforms have come to dominate the online food delivery market through rapid growth and cutting-edge innovations.

food delivery singapore

McKinsey & Company showcases the growth of the food delivery market.

Their level of delivery excellence has changed the rules of the game in terms of both operational efficiency and customer experience. And to stay relevant and scale, more food companies must evolve by becoming fully agile across their entire delivery ecosystem.

1. Use a hybrid delivery fleet to do your deliveries

If we think about the food delivery sector itself, we can easily pinpoint a few extra challenges it faces today. Among the most important ones are inefficient operations and speed of delivery. As the market is booming, the volume of orders is also on the rise, which implicitly creates a surge in last-minute deliveries and on-demand requests.

This means deciding whether to tap on third-party partners to maximize deliveries.

As F&B companies are under pressure to evolve, there is a need to assess what the best option is: use their own in-house resources or tap onto third-party partners. Over time, many of these companies or restaurants would choose to build and scale an in-house fleet in order to retain full control over their brand and by vertically integrating and aligning their business processes.

While this is a great starting point, a healthy option is to focus on building your own fleet before considering a hybrid version.

In a previous article, we discussed in detail how the idea of tapping on third party resources can help small companies during peak hours or when the facing increased on-demand requests.

According to data collected from our own delivery operations, companies find it difficult to deal with the surge in orders so the challenge that arises is whether or not to hire full-time drivers.

With CarPal, restaurants and food delivery companies can focus on a healthy delivery ecosystem by expanding their networks and tapping into our very own pool of 10,000 freelancer drivers to drive c operations cost down. At the same time, drivers can fully utilize their time to take delivery jobs in a more consistent manner.

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Tapping into outsourced drivers will allow you to bring the delivery cost down, gain control over your own delivery fleet, and have the ability to tap into third-party drivers without having to purchase any vehicles or hire additional staff. Jonathan Tan, Operations Manager 

To implement this concept, restaurants will need to try new models based on what works better for their own scenario. That means using their internal fleets, external fleets, partner companies, and even crowd-sourced resources that can be aligned to reach customers in the best and most efficient way.

2. Partnering with a delivery company

food delivery singapore

There was always a myth going on about the difficulty of building sustainable partnerships between restaurants and delivery companies, and it’s only normal to weigh down options before venturing into such a partnership. Before considering this, owners have to asses the advantages thoroughly.

Some of the key points to consider are:

  • The ability to offer complimentary apps and web dashboards to help you manage your deliveries in an efficient way
  • Open communication lines with operations staff of the delivery company 
  • Being able to make changes last-minute delivery changes and communicating them to the designated staff of the delivery company 
  • Tapping onto a pool of drivers to help you assign deliveries accordingly

3. Focus on a transparent and flexible customer-centric experience

food delivery

The world of online delivery is incredibly complex and for restaurants to succeed in this landscape, it’s important to acknowledge that the latest technological innovations play a key role to improve the overall food delivery experience.

But as much as technology evolves and innovation pushes the boundaries of the industry, it’s important to remember that every change is designed to improve the customer experience. 

By using the right delivery company which manages orders through efficient digital workflows, restaurants will create an opportunity for their staff to seamlessly manage their operations and for their customers to have a better experience when they order or receive a delivery.

Efficient deliveries are possible when communication is at the core of operations. Besides having the ability to track a delivery and to connect with the driver that is delivering the order, communication through tech is also about bringing a new layer of transparency and visibility which empowers any business owner.

4. Integrate an online ordering system

While delivering your food on time is crucial to your business growth and client retention, the F&B industry experiences many challenges they can properly address with the help of third party platforms.

One solution is looking into an online ordering solution to accept incoming orders and manage them all in one single place. This will help you focus on other areas of your business whilst centralizing and organizing your orders in an efficient way.

An online ordering solution will help you get convenient access to your online orders, be alerted of changes, as well as enable you to incorporate comfortable lead time for food preparation hence gain control over your kitchen’s operations.

Conclusion

Restaurants and food companies need to understand the important role of deliveries and how adopting innovative strategies will help them develop a tight relationship with their customers, as well as create a strong brand image. 

food delivery singapore

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