A recent analysis by Frost & Sullivan’s (F&S) reported that the on-demand delivery services industry is set to grow with increasing internet penetration, mobile applications, and burgeoning internet subscribers. The gross merchandise value (GMV) of the market in the region is likely to reach USD49.72 billion by 2030, up from USD15.15 billion in 2021.
“Backed by large customer bases and user dependence, operators’ super apps are enabling value chain integration. Additionally, major on-demand service operators will broaden their product portfolios in the next one to three years, including on-demand deliveries of food and beverage, fresh foods and kitchen supplies, groceries, pharmaceutical products, and so on,” Ming Lih Chan, industry analyst, Mobility at F&S says.
To tap into the growth prospects, on-demand food delivery operators should consider the following:
- Evaluate the potential integration of different industries, especially those related to mobility, including strategic partnerships, mergers, and acquisitions.
- Improve the instant food delivery market and strengthen their competitiveness by broadening their product portfolios and applying new technologies.
- Explore partnerships with merchants, especially food and beverage restaurants and catering services, to enrich product choices for users.
The developments of on-demand food delivery services will lead to the optimization of merchants, including supply chain management and time management, which vary according to the food delivery types such as instant, scheduled, and deferred. The rapid advancement of technology and the popularization of mobile internet, adoption of digital payment solutions as opposed to cash on delivery will also increase, Chan says.