The Critical Challenges Faced By the Food Delivery Industry Today
Blog: Think Data Analytics Blog
The food delivery industry is now leading the online market and experiencing tremendous growth. Every day a large number of customers are added to the list of online food ordering customers. Most entrepreneurs and startups are entering this industry in recent times due to customer demand and future opportunities.
It creates challenges and difficulties in operating a food delivery app development company. The level of competition has been increasing day by day with the increasing number of startups.
Thus companies must develop more effective solutions to these issues to sustain and grow in the market. Before entering the online food delivery market, business people should be aware of the challenges that can arrive at any moment in their businesses.
1. Pricing: Many startups decide to work with no or less profit at the beginning to succeed in the online food market. They believe customers only give priority to low price food. This is true that customers always search for discounts and special deals when placing an order. But no guarantee lowering costs would result in increased traffic and sales as it depends on customers’ expectations, and it is hard to predict customer buying behaviour.
2. Food quality maintenance: Maintaining the same food quality is a challenge for every food delivery company—the taste of the food changes over time. And due to the change in taste, customers can shift to another restaurant as there are many options available in the market as customers do not compromise with the taste.
3. Retain customer loyalty: Retaining a customer for a long time is a challenging task. Engaging new customers and building a solid customer relationship is no longer an easy task due to the arrival of many SMBs and large companies in the food delivery business.
Companies should know their existing customers well. They must know their customers’ requirements, likes, and dislikes to provide special offers according to their needs.
4. Food delivery: Most companies cannot manage food delivery properly. They make a lot of mistakes while delivering the food to customers. For example, not maintaining proper sanitation and safety standards, late delivery, lack of delivery boy, inappropriate behavior of delivery boy while delivering the food, etc. It happens due to a lack of training in how to provide food properly. It may result in customer loss.
5. Customer demand management: This is the common problem faced by most companies. Meeting customers’ demands is a huge challenge. Customers prefer quality with quantity product and on-time delivery. Companies find difficulties in meeting these demands when they receive a large number of orders simultaneously. This may result in poor quality products and late delivery.
6. Payment option: A customer looks for several payment options in an online food ordering app. They will not think twice before canceling the order and move to another app if there aren’t enough payment options—also, they first look for a refund policy in every app before placing an order.
7. Time management: Most companies fail to manage their time in each sector; they die in dividing tasks with time. They think it is the most straightforward task and thus ignore this section entirely. But this is the most challenging part as a delay in one job can result in the cancellation of many orders.
8. Channel of communication: One mistake every company makes is providing only one channel of communication. An online app should have several channels of communication such as email, Skype, live chat, social media, phone calls, etc.
9. Product update: Updating customers about the new product continuously can be a challenging part. But due to the lack of product updates, customers may not be aware of the new product.
10. Market price fluctuation: Food price fluctuates continuously, and it is tough to track the market price every single second. This prevents building the proper pricing structure.
11. Delivery partners: It is essential to find and list the right delivery partners on a food ordering website to build a good brand image. Finding the right delivery partner is a time-consuming and challenging process. As many restaurants are available in the market, it is challenging to hire a reliable delivery partner.
12. Customer base: In the field of online food ordering business the customer loyalty is unstable. The main goal is to provide customers with good food at a low cost and with no hassle. Making a customer base is vital without a business being closed due to a considerable loss. It is challenging because every online restaurant is trying to make a customer base by offering excellent service. It creates massive competition in this field.
13. Finding the right advertising platform: Attracting new users can be problematic in the early stages of an entrepreneur who doesn’t use the right advertising platform. As the customers’ needs and their buying behavior are constantly changing, it may be challenging for startups to identify the best advertising approach to target the right audience with exemplary service at the right time.
14. a Huge number of delivery options: Offering various delivery options and updating the existing food delivery app could be costly and time-consuming. Additionally, food delivery companies must provide additional training to delivery boys on the food delivery techniques and safety rules.
Every Problem has a Solution
The main goal of every on-demand food ordering app is to:
- Provide well-managed services with proper safety and hassle-free delivery.
- Build customer loyalty.
- Provide excellent customer support.
- Deliver the product on time in an appropriate manner.
- Make delivery of freshly prepared food right from the kitchen.
- Use appropriate and excellent packaging.
- Apply different techniques to take care of the quality of the product.
1. Customer support team should be well prepared to answer all the clients’ queries and ready to deal with any difficult circumstances that may occur.
2. A website must contain a FAQ page containing answers to all common questions to understand the customer better.
3. Customer Relationship Management Software program will help to maintain strong and long-term relationships with customers. It involves knowing customers’ needs, helping them with the right solutions, and providing support in a timely and efficient manner.
4. Making the right marketing strategy can help a business to cope with every problem. It must include a way to reach out to a massive number of customers at the right time.
5. Perform market segmentation to keep on changing and upgrading features at every interval of time.
6. Resource management is the solution for several problems. Managing resources can help a business to provide their task effectively and efficiently. It results in building a customer base.
7. Entrepreneurs must build a marketing strategy that includes sales techniques, social media platforms to use, and their target audience. In addition to developing an advertising strategy, entrepreneurs can establish relationships with food bloggers and influencers to strengthen their brand’s profile.
8. Solve logistics problems:
a) Choosing specific areas within a region for food delivery.
b) Taking care of an inflow of order requests from a particular area.
c) Order requests must be prioritized and delivered on time.
d) Getting the correct number of vehicles.
e) Hygiene should be Maintained.
9. Keep an eye on what established businesses and your competitors are charging for meals. You can also create a price model based on current online food delivery market trends. Furthermore, understanding customer price sensitivity and monitoring consumer behavior can assist you in developing an effective price structure.
10. Running a referral program and providing new app users with introductory bonuses and discounts could enhance customer engagement. An entrepreneur can also establish an engaging user interface design that allows users to browse with ease. To create a better browsing experience, he must keep it short and defined with only valuable details such as an effective search option, a description of food products, delivery time, and more.
11. Customer awareness is required to maintain customers’ trust and loyalty. Companies should inform their customers about the preventive measures taken by their restaurants. They must educate customers with their safety rules via alerts.