Is food delivery software the next big thing in hyperlocal e-commerce?

"If you ask me about a thing that lately has had a vigorous proliferation across the world, I would say, it is hyperlocal ecommerce. If you ask me about an industry that has seen humongous growth in the last few years, I would assert it is ‘food delivery’."

Introduction

As fast as traditional commerce and physical buying have become a thing of the past, food delivery software and deliveries through it are becoming a thing of not just the present but future. Ways and methods of buying traditionally are getting quickly replaced by modern ways of marketing, one of which is the hyperlocal e-commerce model. It is this hyperlocal e-commerce model that has revolutionized a lot of functional and operational aspects of businesses, and is rendering them crazy over its utility and widespread acceptance.

What is a hyperlocal ecommerce model?

A hyperlocal e-commerce model is an online business model in which the entire supply chain is located pretty close to the seller as well as the buyer. It is due to this geographical proximity between them that last mile deliveries at the speed of light are ensured.

Similarly, hyperlocal e-commerce is essentially an e-commerce platform dedicated to a specific geographical area and the one that specializes in catering to the needs and demands of local customers. As the nomenclature would have it, hyperlocal ecommerce business is the one which is a bit ‘less than local.’ In fact, it is an online marketplace that serves smaller pockets of a local market too closely, or in an area that is considered to be small or too localized so much so that it successfully meets the needs of specific customers.

However, with all the definitions and understanding of hyperlocal ecommerce considered, the fact remains that it is picking up immense pace as much as the food delivery services have, in the last few years.

Food deliveries, software and all the growth ahead

Food deliveries have witnessed an exponential rise in the previous few years. They just got better during the covid-19 pandemic. In fact, it would not be wrong to say that had it not been for hyperlocal e-commerce, food deliveries would not have ascended the way they have. The food delivery statistics have really multiplied ever since the pandemic hit the global consumers and every bit of it is noteworthy. In fact, across the world the pandemic shifted how we eat and consume. One study published by the Columbia Business School found that the pandemic alone was responsible for 70% of the industry’s growth from 2019 to 2020. Though for restaurants, there was still a healthy demand for ordering food to eat at home, yet meal delivery services saw massive growth as restaurants turned to platforms like UberEats, Postmates and DoorDash to keep serving customers.

There is little surprise to this knowing, because the age of internet and information technology has paved way for coming into being of a lot of food delivery software. It is the delivery software that lies firmly placed at the back of every food delivery business that is flourishing today. Food delivery software have seriously arrived as a boon for plenty of restaurants and culinary entrepreneurs across the world. Courtesy to such a software, reaching out to a massive number of customers in quick time and be able to serve them instantly and conveniently, has become a possibility for businesses. Not just businesses, but an efficient food delivery software has eased many a consumer’ lives too.

A food delivery software has a bunch of features that businesses can leverage and exploit in their favor. Below mentioned features of a food delivery software can help you decide upon the one that best meets your business’s objectives.

Reduced costs- Food delivery software have been so devised that they reduce the overall cost of food deliveries for businesses to a considerable extent. Money that was spent in traditional business establishment can now be easily overcome with the coming into being of food delivery apps. So, which business would want to spend more given the availability of food delivery software at their disposal? Perhaps, no one.

Blazing fast deliveries- An efficient food delivery software/app has the potential to leverage immense power in the hands of restaurant and food business owners in terms of making lightning quick and instant food deliveries. Automated delivery processes, that come as a part of the software package have made unbelievably quick deliveries possible. After all, in such a fast-paced world of food deliveries, no business would take the risk of delaying the delivery for food orders and face the threat of being kicked out. Right?

Easy promotions, loyalty programs and discounts- Many food delivery businesses offer discounts and their loyalty point system is often tied to a customer’s order frequency. As a result, a restaurant can draw in more consumers since people are constantly looking for methods to get more discounts. For instance, a restaurant owner would be providing a free drink with every pizza order. Here, you can make good use of your app to drive loyalty. So, which business would not want to be benefitted out of it?

Inbuilt push notifications- They urge the customers to order more of what they want or are looking for. Such notifications compel a lot of customers to go for the products that are available on a business’s website. Moreover, in order to create visibility and let you stay ahead of your competitors, sending push notifications is the best way. It helps businesses to stay connected with customers. These messages help to convey all kinds of information, such as discounts, offers, location-based order dropped messages, etc. In short, push notifications add value for the users to the extent that they can help your business app grow considerably.

Real time GPS tracking- It is one of the essential features of food delivery apps that enable customers to track the location of their food in real-time. The purpose of GPS is to offer two-way tracking as well as functioning. It helps to recognize the user’s location to deliver the food. And once the area is confirmed, users can easily track the progress and movement of the delivery personnel. The leading food delivery apps use real-time GPS tracking to offer the best experience to customers and they have been significantly benefitting put of it. One such example is of Uber that uses Google Maps on all its platforms.

Social media integration- There’s absolutely no doubt about the fact that in the past few years, social media has contributed heavily to online marketing. It is one of those modest and transparent viewpoints which improve customers’ decision-making process. With social media integration, customers can easily share photos or videos of their favourite dishes and cuisines with friends and family. Not just this, but remaining integrated over social media also makes an online food delivery app more noticeable and visible and can easily attract customers regularly. To say so, customers can leverage the most out of social media. Businesses can connect social media with various promotional programs to attract existing customers to earn points and rewards by inviting new customers. This feature actually draws in potential customers while attracting a one-time customer to become a recurrent one.

Geofencing- One of the most common problems that customers face or may complain about with online food delivery apps is that their order isn’t delivered on time, and the food gets cold as ice, by the time it reaches their doorstep. To this problem, geofencing is the answer. This feature helps solve the consumers’ problem by predicting the estimated delivery time and by ensuring that delicacies and cuisines reach fresh to the customers’ doorstep. With geofencing, you can inform customers if there’s high traffic at the restaurant and you can’t serve their order at the moment. This way, you’ll effectively manage their expectations and ensure you don’t rub them off the wrong way. Geofencing enables a business to avoid deliveries of those areas that may be hassling for them. This can be so done by drawing a fence that limits deliveries to a particular area only. This feature helps businesses stay alert and efficient.

Auto scalability- This feature comes in pretty handy for businesses that are passionate about their growth. An end-to-end automated food delivery software makes auto scalability easy for food businesses and restaurants that have hunger for growth. With auto scalability option available at your disposal, you don’t have to move or switch from one food delivery app to another while making progress and expecting growth.

These are some of the features of an efficient food delivery software which ought to be wisely considered by businesses making a choice about them. What is more intriguing and interesting about food deliveries are the reasons that have led to its outrageous growth in the last decade or so. Though the reasons can be ample, but given below are the few probable ones that have led to the whopping growth of food delivery across the globe.

 Growing urbanization- Urbanization has certainly forced many restaurants to take up food delivery as the most fought after business pursuit. And consumers too, finding a good deal of solutions in food delivery have continued to opt for it, by and large. The growing need to become urbanized has been fulfilled by food delivery apps, to a certain extent.

 Convenience- There is no doubt about the fact that a food delivery software provides convenience of the next level. Consumers have become so used to seeking convenience it provides, it appears almost impossible for them to live without such food delivery apps. It is often said that it is convenience that customers buy primarily when they order food online.

 Quick satisfaction of hunger- Consumers have found an easy way in food delivery apps to satisfy their hunger pangs. In the world of food delivery apps, there is less of cooking at home and more online orders, the delivery of which is convenient and quick. So, people naturally show an inclination towards buying food online.

 Increasing sedentary lifestyle- One of the major reasons why food delivery has witnessed an exponential rise in sales is the increasing sedentary lifestyle of consumers. Of course, when one has a food delivery app to satisfy his hunger needs, that too at your whim, then who would bother to take the pain of cooking it at home? Therefore, a lot of growth of food delivery can be attributed to the growing sedentary habits of consumers.

 The pandemic- With the covid-19 pandemic leaving us all dumbfounded and contained in our homes and hostels, we were left with little choice to go outside and pick a food of our liking. Strict quarantine rules ensured that we remained at home and used online food delivery apps for satisfying our hunger. This helped online food delivery gallop at an unprecedented pace.

 Increased digitalization- Digitalization has forced many things upon us, one of which is ordering food online. With our daily busy schedules and technology backed smartphones in our hands, ordering food online has just got better. Had it not been for digitalization, providing food delivery solutions to customers would have been a distant dream for several businesses. The pace and intensity at which digitalization has penetrated every commerce related activity and sphere, food delivery industry cannot be considered an exception to it.

Having discussed a number of features associated with a food delivery software/app, it becomes binding upon us to shed light on the benefits accrued to food delivery services. Once through with it, it will make easy for us to figure out as to why food deliveries are gradually becoming a part of our daily lives. And dealing with such benefits makes the future course of food delivery businesses and restaurants even more interesting.

Food delivery services and the bandwagon effect- Are its benefits so droolworthy?

Let us know a few of the several benefits of food delivery services and know why they are becoming a furor among businesses and consumers and hence following a bandwagon effect.

Hassle free and convenient process- Businesses using an efficient food delivery software can score really big in terms of rendering ease of use to their customers. Such a software makes convenient and simple food delivery services possible for customers as they can easily decide what they want to order, when do they want to get their order delivered, and what payment method they are going to choose, etc.

Less time consuming- Food delivery apps are so designed that the customers can order and get their products at lightning-fast speeds. This has pushed food delivery services to the limits. Food delivery services are beneficial for customers who do not have enough time to shop, prepare, and cook food every week or let’s say a couple of days in a month. It allows customers to be assured and enjoy high quality food and sumptuous delicacies from their favourite restaurants from the comfort of their homes.

Easy way to make up for reduced foot traffic- Offering food delivery services can help restaurant and food businesses recover the reduced foot traffic caused due to restrictions in pandemic like situations where lockdowns and social distancing norms were enforced. Not just this, but having a food delivery app for your business can also allow you to reach out to new customers who are more inclined to ordering from the comfort of their homes.

Low operating costs- The costs involved in operating an online food delivery business are way lower than the ones involved in operating an offline set up. Food delivery services are easy to manage and with experienced and trained drivers, businesses can be run smoothly, efficiently and economically. Such services allow drivers to deliver food and other items using their own bike, scooters, and other vehicles which further reduces operating costs of restaurants, etc.

Availability of 24*7 services- A large number of restaurants and food joints are usually open round the clock and this enables customers to order food any time they want. This has contributed to the ever-growing demand for food delivery services across the globe. While customers can order food at almost any hour of the day, businesses too can reach out to a large number of customers at even the oddest hours of the day.

Final words-

By now, there mustn’t be any element of doubt about the prospects of food delivery businesses in this fast-paced world of ours aka the hyperlocal e-commerce world. Consumers, by and large are wanting exceptionally fast deliveries of things they order online and delectable meals and sumptuous delicacies should unequivocally top the list of things that ought to reach the customers’ doorstep, quick and hot.

If you agree with this and are wanting to have a food delivery software/app for your floundering and stagnating business, it is suggested you go for it all guns blazing. For this, you ought to keep the following statistics in mind.

• As of 2022, the online food delivery segment has achieved $63.2 billion in revenue, resulting in 10.7% growth compared to the last year.

• The revenue is expected to grow at an annual growth rate (CAGR 2022-2027) of 8.90%, resulting in a projected market volume of $96.50 billion by 2027.

• Over 217.1 million users will be using online food-ordering apps by 2027.