Robust growth in food delivery revenue
Singapore’s food delivery industry is in for a delectable growth projection in the next five years. According to this graph from Statista, the industry’s revenue’s annual growth rate from 2017 to 2021 could reach 25.9%, resulting in a market volume of US$480M in 2021. Online takeaway is its largest segment, with a market volume of US$182M in 2017. The average revenue per use under this segment is US$344.7 this year and is expected to climb to US$376.5 in 2021.
Singapore Management University associate professor of marketing education Seshan Ramaswami says the growth of the food delivery market the food delivery business is a consequence of the confluence of two independent phenomena – Singaporeans’ continuing obsession with food and fascination with technology. More so, he stressed that demand for the service will always be there, and firms which are able to figure out logistics and ordering porcess will be sustainable.
“In terms of consequences for the F&B sector, every operator now needs to be able to think beyond the walk-in customer and realize that they now have easy access to a Singapore-wide platform. This could have an impact on their menu assortment, on their promotions, and on their operations – as they are also now competing not just locally but Singapore-wide,” he adds.
For a business to thrive in this booming industry, Ramswami says it has to clearly define its focus in terms of its chosen market, assortment of restaurants, pricing, and delivery times. “In forthcoming years, I suspect that an even larger proportion of F&B operators, from the small mom-andpop hawker centre or independent café operator to the large chains will be offering delivery services across the island.”
Revenue in the food delivery segment