List 5 new trends expected in 2016 in food online ordering
Greetings and thank you for your question regarding the dynamic, booming, online food ordering/home delivery market in India and the world. My extensive research into this topic unearthed some interesting statistically backed trends and predictions that I am eager to share with you.
OVERVIEW OF INTERNATIONAL TRENDS
For truly in-depth global market data, I consulted ResearchMoz, a site providing market research reports for sale. They actually offer quite a few reports regarding upcoming trends in online ordering, but I felt the one I've shared with you, "Takeaway Food Delivery Market: Focus on Online Channel (2014-19)" published by Daedal Research, is most relevant for our purposes. Interestingly enough, of the 10 countries profiled in this report, India is not included. That is fine for our purposes as I have sourced some great examples below dealing specifically with the Indian market. Published in 2014, the report actually covers the global takeaway food delivery market from 2011 to 2019. If the 800 USD price tag is within your budget, this report would be worth the purchase; they do also offer a sample option. Besides providing hard statistical data, I like that it addresses the first trend I have highlighted for you as already making waves in 2016:
1.)Companies within the industry will merge to expand market penetration.
Also mentioned in the Daedal report, and further elaborated on in the second link I've shared with you, is the rate at which the global food online market is growing and more importantly, the potential room for further growth. Based on the figures identified in this TechCrunch article and the important comparison between existing investment and market saturation, the second important trend to highlight is:
2.) In 2016 investors continue to lay claim to the still unsaturated online food ordering market. The last line of the article beautifully explains this trend, "The direction we’re heading in is pretty clear, and industry experts tend to agree that online orders are expected to surpass offline orders sometime within the next decade. The key takeaway is that we’re in the very early stages of a broad, secular shift to online/mobile ordering. And it is this paradigm shift in the industry that is the driving force behind all the dollars being thrown into the space as investors place their bets on which horse ultimately turns into that proverbial sought-after unicorn."
Stemming from this need to exploit the online food ordering market potential, the third trend I have extrapolated for you is:
3.) The growing segmentation of online food ordering into niche markets. The 2015 Fortune article reveals just how specific these new niche food delivery services are in the U.S; the article highlights the amount of space available in this market for more specified food delivery and online ordering services quoting, “No one product will own the entire market, says Garg. A lot of these companies are complementary with one another.” However, it is the recent interview with Feastly co-founder, Noah Karesh, that plants this trend firmly in 2016: "...what we’ve built is a marketplace that allows any chef to serve meals wherever they want, whenever they want — whether it’s in their home, at a pop-up venue, or at another location. For diners, we’re trying to create the next global restaurant..."
Beginning to focus on the Indian market, the next article I've selected for you almost sounds like it contradicts trend #2. The in-depth article, written October last year, focuses on the closure of several food delivery startups throughout India. However, it goes on to confirm the positive outlook of our #2 trend stating, "estimates value that just the grocery delivery portion of food e-commerce in India will be worth $2.7 billion by 2019." As the article goes on to highlight examples of closures from other markets in developed countries, the fourth trend for online food ordering becomes clear:
4.) Slow and steady wins the race! Without proper financing and technical know how to properly scale up, many over ambitious online food ordering and food delivery companies will fail leaving the remaining few to strategically corner the market.
Based on events in the Indian market the article predicts the same trend will appear internationally in 2016. I've shared an E-commerce article published earlier this month, focusing on the European market, where predictions for who will come out on top are already being made.
My final emerging trend for 2016 in the online food ordering and home delivery global market is so fresh it is less a trend than an intuitive prediction based on case study evidence:
5.) In order to corner the market and maintain customer attention, more companies will be implementing a customer-responsive, evolving business model, be it through speed of delivery, flexibility and quality of product options, or both.
The article exploring this trend, published just last week, rightly points out an apparent lack of guaranteed or standardized quality assurance for many of these services, thus leaving the future of this market quite open-ended. It states, "in today’s technologically and food-obsessed world, the constantly evolving food-delivery game will be worth keeping an eye on. It will be interesting to see which qualities diners value most and how services — both existing and new — attempt to secure their business."
INDIA MARKET EXAMPLES
My investigation into the Indian market specifically found several examples that reflect the same trends I've described in the overview of the international market:
-Closure of food tech startups established in the last two years with the a possible mergers among the top 5.
-Zomato, TinyOwl, and Swiggy build scale through partnerships while Burgundybox, Cyberchef, Caloriesmart and others focus on providing specialized online food delivery.
-Swiggy acquires financing towards a more adaptive business model: "The newly received funds will be used to consolidate Swiggy’s position as a market leader and to capture a larger share of the burgeoning USD 15 bn
food delivery sector in India. Apart from investment in top quality leadership, the funds will be used for technology up-gradation focusing on deeper vendor integration, reducing overall delivery time and cost and,
enhancing customer experience."
I hope I've provided sufficient and sound evidence of some interesting trends in online food ordering in 2016 that will be useful to you. Below is the summarized list. Thank you for choosing Wonder and do contact us again for further research.
SUMMARY OF TRENDS
1.) Companies within the industry will merge for greater market penetration.
2.) Investment in online food ordering market continues based on significant market growth potential.
3.) Online food market is continuing to segment into niche services/products/business models.
4.) Companies intending to capture market growth potential will need to make more conservative and strategic decisions with proper economies of scale.
5.) Companies will adopt evolving, fluid business models in order to capture and retain customer loyalty.