As a result of the coronavirus pandemic, food delivery services such as Blue Apron are seeing an increase in demand for their services and an increase in customer demand. Even restaurants that survived the COVID-19 shutdown could have survived the dominance of delivery companies over local restaurants if their fees had not been regulated now.
Companies that already have an online delivery presence could step up their game by turning to established ordering apps and showcasing their offerings on social media, experts say. This transition is particularly necessary in fast-growing food delivery areas, where tensions between restaurants and delivery companies have increased since the Covid-19 closure and where high supply and ancillary charges have come under scrutiny. The outbreak, combined with the government’s decision to waive fees and expand delivery services, could be the tipping point that leads consumers to try e-commerce for the first time and ultimately accelerate the industry’s growth, experts say. The more in-demand services that food-delivery companies have, the greater the need to maintain a healthy workforce that they will have.
The growing demand for food delivery services will also contribute to the growth of the courier and courier market over the forecast period. Growing demand for food and beverage supplies and the expansion of e-commerce should support companies’ business model going forward, contributing to the growth of the courier markets over the forecast period.
Since the outbreak of the COVID-19 epidemic, online ordering has been touted as the fastest growing segment of the restaurant industry, estimated to reach $200 billion by 2025. Restaurants that had no delivery or no delivery in their original business model are now doing so as part of their business model.
Food delivery app Instacart has seen a 15% increase in demand, with over 1.5 million new grocery orders placed through the app in the past three weeks. The San Francisco-based grocery delivery service plans to hire 300,000 shoppers to meet the 150 percent increase in demand, the company said. Amazon plans to hire 1,500 extra delivery staff and more store staff to keep pace with the surge in online shopping.
The figures also reflect the company’s growth: Amazon has hired 80,000 new employees in the past few weeks alone. The new roles are designed to help him meet the demand for mobile orders placed through his delivery app. Delivery drivers will be on the road for five hours a day, seven days a week, more than double the four-hour average of last year, “the company said.
This includes the “delivery at the door” feature, which it says was originally designed to offer more flexible options to customers who may not be home at the time of delivery. Food delivery service Postmates has introduced a feature called Dropoff Options, which allows customers to meet their delivery driver at a door or curb without having contact with him or leaving the delivery at the door. Contact – free delivery, introduced in the US last year, allowing customers to retrieve their orders from a specific location.
Hungryroot, an online food service, has also recently seen an increase in demand for its delivery service and expects it to continue. That uptick has helped boost sales as Amazon waives its 30-day delivery fee in 2019.
Food delivery firms have been criticized for hiring workers as contractors instead of employees. When restaurants are not allowed to have food customers, they compete with the delivery company for where their customers can consume their food, even though the restaurant provides the food for them. Some of the largest delivery services, such as UberEats Inc. and Lyft Inc., have been criticized for charging high fees from independent restaurants, often making thin profit margins.
B2C customers are difficult to reach and require a high number of deliveries per day, while courier services offer them tailor-made services. Some local deliveries have also seen a huge spike in new customers. Mary Daze is a licensed cannabis delivery company that started during the outbreak of the coronavirus and has seen month over month gains in new customers.