Google and Temasek's 2019 E-Commerce Report estimated that, with the explosion of food delivery services, the gross merchandise value of the ride-hailing market in Southeast Asia would be USD 13 billion. In 2015, GMV of the Southeast Asian ride-hailing market was at USD 3 billion. By 2025, this market is expected to reach more than USD 40 billion, and accounting for half of which is food delivery services.
Four or five years ago, major players in this market only focused on providing passenger transportation services via applications. In 2019, however, ride-hailing applications have stepped into new fields such as food delivery and financial services.
Food delivery is considered to be under potential when consumer habits have just started to change since 2018. From a niche service used by only a small number of consumers, food delivery service has become a professional business segment when it can benefit many parties involved, from consumers to food providers and restaurants.
With severe weather conditions and congestion in public transport, the food delivery industry in Southeast Asia is growing rapidly. Specifically, this industry in Indonesia has increased 13 times, that in Philippines and Thailand has increased 9 times and 8 times respectively in the past 4 years according to Google Trends data.
In Vietnam, according to a report of market research firm Euromonitor, Vietnam's food delivery market will continue to have fierce competition in the coming time despite many opportunities ahead. In 2020, this market will have a value of about USD 38 million, with an average growth rate of about 11% per year.
The three biggest food delivery service providers in terms of both growth potential and number of users in Vietnam are Grabfood, GoFood and Now. Currently these apps connect customers with hundreds of restaurants with millions of dishes.
According to GoViet, every day GoFood receives hundreds of thousands of orders with an increase of 25-35% per month. Sharing about development opportunities in Vietnam market, GoViet representative said there are many factors that help fast food delivery service have the potential to grow strongly in the future.
The first factor is the modern and busy lifestyle. It is not difficult to understand when young consumers easily support the food delivery service. With the application on the phone, the decision on what to eat and where to eat becomes easy to make.
These services are available 24/7 and consumers can order food at any time even during holidays. Secondly, this service is enjoyed and supported by many people because of the convenience and variety of choices when there are many restaurants and different types of food listed on the app.
In addition, the app also divides restaurants and menus according to food needs, favorite dishes or suggests the nearest places helping users to make consumption decisions more quickly. The third factor is incentive campaigns from food delivery apps. Everyone likes to receive attractive offers from their favorite restaurants. This not only attracts users but also promotes restaurant development.
From the perspective of restaurants, food delivery apps offer even more values and benefits. According to GoViet, these applications firstly support the improvement of customer loyalty by recording the history of orders and the restaurants that users often use.
As a result, customers can quickly order their favorite dishes at the familiar restaurant easily and conveniently. For service providers, the benefits come from improving the operational efficiency of the restaurant. With the ordering system supported by the app, they can accept large orders at once.
This resolves the bottleneck of resources when guests are crowded and staff spend more time cleaning and arranging seats. GoViet also emphasized that restaurants, when becoming their official partners on the application, will have access to professional online marketing communications programs, helping to connect them to millions of customers, thereby maximize revenue, resources, optimize advertising costs and spread brand image quickly and effectively.
>> Industry Forecast: Future Of Vietnam Food & Beverage Industry
Source: Google, Tamasek, Euromonitor