Shopee Enter Food Delivery Market, How Should Food Delivery Players Improve Competiveness?

 2020, the Southeast Asia food delivery GMV is estimated to be US$11.9bil, vastly attracting numerous new food delivery players’ attention. Shopee, an e-commerce giant, is one of them that took strategy to layout the food delivery market of Southeast Asia.

 

  

 

Earlier in April this year, Shopee foray into the food delivery market with its vertical product, superfood. And recently, Shopee uploaded a post on its Facebook page to look for delivery partners, looking like it hopes to continue expanding more food delivery market share.

 

However, food delivery players cannot make succeed if they fail to know consumer consumption habits and local market features. Today, let’s roughly learn something about the food services in Southeast Asia.

 

How do consumers order food in Southeast Asia?

 

Grad is the leading food delivery giant with a GMV of US$5.9bil last year. Therefore, we can use his order options to roughly speculate the mainstream ordering food methods in Southeast Asia base on its food order options. That includes delivery on-demand, self-pick-up, scheduled delivery, group order, and mix-and-match. Among them, self-pickup is the most popular food ordering method in every country.

What is the feature of the Southeast Asia delivery market?

1. Comparatively speaking, Southeast Asia has a lower disposable income and offline consumption level. However, the economy and urbanization growth and smartphone household penetration make the spending on food delivery platforms healthily increase. The large population and higher city population density will also drive considerable food service transactions.   

 

2. Fragmented foodservice market creates more opportunities. There is about 90% of restaurants in Southeast Asia are independent. Although independent restaurants' acceptance towards food delivery platforms is slow, but they have stronger dependence and loyalty once accept. That will create potential chances for the integrated food delivery platforms.

 

3. Infrastructure and localization are important for food delivery success. Even though the competition among the major food delivery platforms was initially focused on urban areas, but as they expand, the rural areas will be the key to gain final success. That means food delivery companies should consider the transportation and payment infrastructure.  

 

How should food delivery players improve competitiveness?  

 

In the competitive foodservice market, how should food delivery players layout their strategy and improve competitiveness? Make a localized food homepage with AI algorithm, optimize order efficiency and create good cooperation among restaurants, consumers and deliverymen to satisfy customer expectations are some considerable strategies.

 

First, food delivery player can make a localized food homepage at their food service app/website. In virtue of the AI algorithm, food delivery platform can customize the homepage according to customers’ dietary habit, takeaway order records and consumption methods to cater to local consumer favor, gain their attention and further improve retention.

 

Second, improve merchants’ order efficiency by integrating their POS machine system. Take Telpo handy POS TPS320 as an example. Every time a new order is received, the order information will be directly recorded at the handy POS and delivery platform along with voice broadcast, helping merchants prevent missing orders and timely prepare dishes. Besides, merchants can update its menu and price at the delivery platform and synchronously transfer to the handy POS synchronously.

Third, maintaining good cooperation among restaurants, consumers and deliverymen through advance takeaway mobile POS. Efficient food service is the key to keep a good impression of the food delivery platform, thus the cooperation with merchants and riders is of vital importance. 

 

Namely, once the customer completes his order, the takeaway mobile POS will immediately send the order information to the kitchen and the rider. As the takeaway mobile POS integrates mobile order, reservation, digital payment, e-voucher verification, and receipt printing, thus merchants can better prepare the food, deliverymen can pick up the food without waiting and customers can obtain their food at the appointed time.

 

With the portable feature and wrist strap, it is convenient for the delivery man to carry the takeaway mobile POS and help customers confirm orders and make transactions (QR pay/ NFC pay).

All-in-one Mobile Payment TPS320

Telpo New generation Mobile POS M1

Furthermore, the takeaway mobile POS with food delivery platform data can help merchants accurately analyze customer flow, therefore roll out marketing strategies and improve customer traffic flow. It will reach membership registration, member recommendation, promotional activities, inventory management, and other effects, greatly reduce restaurant operation costs and improve management efficiency.