Consolidations likely in tough food delivery industry, but without a single dominant player: Analysts

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Amid rising costs and slowing demand, consolidations – in the form of exits, mergers or acquisitions – could be a viable option for food delivery platforms, academics say.

In response to CNA's queries, a Deliveroo spokesperson said the platform differentiates itself with the only subscription plan in Singapore that"offers truly free delivery on all orders".

With more people working from home, orders now come in around the island at different times, making it harder to anticipate demand and to ensure there are enough riders to fulfil orders, he said. "We help merchants build their digital capabilities and when consumers use Oddle, they are really sent to the merchants’ own digital properties, where customer data can be easily assessed by the merchant."Mr Lim said Oddle's primary challenge was in

Established Singapore food delivery players have significant advantages in terms of scale and resources, it is difficult for new entrants to compete on their investments in the technological infrastructure, customer base, and rich past user data for optimal user experience Despite little room to manoeuvre in the market, new entrants could still carve out competitive advantages in niche areas, such as focusing on halal-certified or vegan diets, or on a specific geographical area, the academics said."Sometimes, the most obvious success factor is one that is easily overlooked. When we review online comments and research findings, it is apparent that food delivery can be a less-than-stellar experience.

 

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