The rise of food aggregators

The rise of food aggregators

Demand for food delivery spiked during the pandemic and the sector is slowing no signs of slowing down. Naim Maadad, CEO of Gates Hospitality, outlines the food delivery models defining the industry and how things are likely to play out in 2022.

With the work-from-home culture becoming more common, it is fair to say that a greater number of people are opting to order online and enjoy meals in the comfort of their own homes. I am of the opinion that food aggregators do not directly compete with the restaurant sector but rather complement it.

Restaurant delivery has grown 20 percent in the last five years, and estimates indicate that global online food delivery sales will grow as high as USD 220 billion by 2023. While the boom in business may have been accelerated by the global impact of the pandemic, technology and successful business models have contributed a great deal as well.

What are the top trending food delivery models?
In-house restaurant delivery fleets Some restaurant brands are taking a tactical approach to their businesses, merging their traditional culinary offerings and building their very own food delivery bike fleets. This approach provides total control, as the brand is able to regulate customer data, packaging and branding. To handle the complexity of logistics, many restaurants are reaping the benefits of using technology via delivery management software platforms.

Increased third-party food delivery options
The use of third-party delivery continues to be the most sought-after option for restaurants. It is considered an attractive way to reach unexplored territories and new customers.

Technology used to track food delivery data and patterns
Having deep insight into delivery operations helps to ensure flawless deliveries, client preference tracking, packaging, marketing and product branding.
Increased role of technology brands in this sector
We have seen the way in which technology can assist food delivery platforms. Google began to offer food ordering and delivery linked from its search and Google Maps functions. Restaurants that choose to use
this technology can have their offerings integrated. As the sector grows, technology giants are expected to invest further.

Rise in food delivery kits
Another popular trend among millennials, as well as other age groups, is the delivery of customized meal kits from renowned restaurant brands. Countless celebrity chefs are creating ready-to-cook meal kits with raw ingredients, with the result that the thrill of creating five-star dishes in the comfort of one’s own home has become trendy.

Predictions for 2022
Customers will expect the food delivery sector to come up with premium and high-quality delivery experiences. Therefore, food delivery brands will have to find new innovative ways to satisfy their clients’ needs, delivering creative and unique meal experiences. Besides food quality, there are other key factors that elevate the client experience, such as timely delivery and thoughtful packaging.

Increasing the customer base
According to a report, revenues in online food delivery reached USD 302,826 million
in 2021, while the number of users is expected to increase to almost 2.9 billion by 2025. Technology can greatly help delivery management systems, which also provide data tracking and analysis options.

Global boom
Studies into the food delivery sector found that revenue surged by over 103 percent during the global pandemic. This growth is anticipated to continue well into 2022, as consumers place more online orders for
food delivery than ever before.

Road safety
Road safety has become a focus area due to the fact that the majority of orders are delivered by motorbike. Often, committed delivery times put greater pressure on drivers, so it is imperative that they are properly trained to follow the tra²c rules and not compromise their own safety and that of other road users.

Naim Maadad,
chief executive
and founder of Gates Hospitality

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