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The main challenges faced by online food delivery companies

In the recent surprising revenue disclosures from the largest segment of the markets, restaurant delivery to the consumer, which amounted to US$94,385 million with a market volume of US$58,008 million in 2019 worldwide, has provided a important business goal for many who compete to dive online. food delivery segment.

Little do they know that the food delivery business is not a bed of roses for aggregators and restaurateurs too! There are certain turbulences, challenges that usually remain in the shadows.

Here we take a look at the most dynamic set of challenges that has kept food delivery businesses on edge.

  • Logistics Whenary

The challenge lies in locating personal delivery near high-demand areas and low-demand areas. The challenge is when the status is not clear like: “What is the probability of getting the most orders from that specific area?” This creates a dilemma.

Initially, how many delivery drivers will be needed and how will they manage to get the food from the pick-up point to the delivery point, as the quality of the food can be compromised if the pick-up points are far from the delivery point. .

Pro tip:Restaurants must include only those foods on the menu that can withstand the required temperature with fewer compromises in change.

  • Longer customer waiting time

If the period between orders placed online to prepare the order and then deliver it takes longer than expected, it can break the patience of any hungry customer, thereby decreasing the chances of their return.

  • Inability to handle high demands

There are times when restaurants become extremely popular for their deals and suddenly start receiving orders in high volume, making it difficult for them to manage online customers along with walk-ins at the same time.

Pro tip: In such cases, restaurants need to be strategic with the menu and start with a small menu at first rather than showcasing a large variety. And when it comes to the influx of walk-ins, restaurants need to create spaces that can easily cater to the flow of orders.

  • Risky pricing model

In the food business, it is almost impossible to be precise in devising a profitable business model. There is no guarantee that price cuts will lead to higher sales, as this business is totally dependent on customer expectations.

We cannot deny the fact that these aforementioned challenges also represent growth opportunities for those who have made intelligent efforts to correct them. Building a robust on-demand food delivery application can help restaurateurs manage and automate reservations and speed up the process.

So implement the right technology and take off into a barrier-free business.

Want help building the best food delivery app platform? Contact us now.

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