Many industries have witnessed a change in consumer behavior and buying patterns during and after the coronavirus pandemic. But the industry that has seen the most significant shift in the food industry. Many individuals have turned to online food delivery services to avoid stepping outdoors because of lockdowns.
Since many restaurants have been compelled to close their traditional dining rooms to the public, the number of food delivery app downloads has risen dramatically. This rapid expansion has created possibilities for entrepreneurs in the food delivery app development to establish a firm footing in this business.
While there is a lot of commercial promise in the online food delivery industry, there are also a lot of difficulties.
This article will not only discuss those challenges but will also give solutions to overcome those challenges.
Challenges in Online Food Delivery Services and Their Solutions
Changing Customer Preferences
Engaging new customers and creating a steady client base is no longer a simple process, because of the emergence of SMBs and conglomerates in the food delivery market.
According to research by CleverTap, a mobile marketing firm located in the United States, just 22% of new app users stay active after the first week, while 86% discontinue using a food delivery service after 14 days of its initiation.
Running a referral program and giving new app users initial incentives and discounts might boost customer engagement. Before initiating the food delivery app development process, you should focus on designing an engaging user interface that allows people to browse with ease.
To give a better browsing experience, keep it basic and structured with just necessary information such as an advanced search option, a description of food items, delivery time, etc.
Food delivery logistics is critical in providing high-quality food to clients in the comfort of their own homes or any other place of their choosing. Using third-party aggregators, food delivery logistics have enabled small food enterprises to cater to clients. However, food delivery companies encounter a number of logistics issues during the delivery cycle.
- Choosing specific areas within a region for food delivery.
- Taking care of the inflow of order requests from a given location.
- Assigning the correct amount of vehicles to the right delivery locations.
- Maintaining a high level of cleanliness throughout the delivery process.
- Identifying the delivery routes and ensuring that the delivery personnel is properly trained.
Adding features like a location tracker, order scheduler, delivery router, and geofencing your food delivery mobile application can help mitigate this challenge. Geolocation, for example, can assist businesses in creating virtual borders and delivering food to their desired delivery zone.
Another step that can help with the logistics issue is conducting training sessions for all delivery personnel and monitoring their work performance on a daily basis.
Setting up a pricing strategy that generates income and is not vulnerable to change is difficult. The increasing competition in the food delivery app development business, as well as the unpredictability of food costs, has made determining the best pricing approach a challenge for entrepreneurs.
To thrive in the online food sector, many companies opt to work on smaller margins. However, there is no assurance that lowering costs would result in increased traffic and sales, as buyers frequently seek discounts and special deals when placing an order.
The best way to approach this challenge is with competitive pricing. You have to keep an eye on what established companies in the same market rivals are charging for food. You can also create a price model based on current online food delivery industry trends. Furthermore, researching consumer behavior may assist you in developing an effective pricing plan.
Another challenge for food delivery companies is to maintain the quality of the food delivered to the customer to the level of quality that is served at the restaurant’s location. The delivery boys face a difficult challenge in delivering meals to customers’ doorsteps to far-off locations from the restaurant while keeping it fresh during the journey.
Before adding restaurants to their food delivery site, app owners can examine their packaging and safety requirements. Restaurants that utilize the best packing materials to keep the food fresh throughout transportation should be favored. Insulated food bags, for example, may be used to maintain food quality and keep it fresh in both hot and cold temperatures.
Suitable Marketing Platform
Even if your online food delivery app has amazing features, acquiring new customers might be difficult. Especially in the early stages if you aren’t promoting it through the right mediums. It may be challenging for startups to discover the proper advertising strategy to target the right audience. As customer needs and buying habits are continuously changing.
The food delivery application development process must culminate with the formulation of a marketing strategy that includes marketing tactics, social media, and target audience. Thus, the app itself becomes a powerful platform for marketing. Apart from that, businesses can also establish relationships with food bloggers and influencers to strengthen their brand’s exposure.
Inconsistent User Experience
Food delivery companies might sometimes fail, owing to poor customer experience. Apps for food delivery offer a wide range of restaurants and cafés. It might be difficult to integrate information on all of them into a logical and accessible style. A mobile application’s displays should all have the same look and feel, with a consistent UI/UX.
Hire a reputable food ordering app development company to create an app that will appeal to consumers and provide a consistent look and experience across all kinds of devices with varying screens sizes.
The Showdown for Food Delivery app development
To thrive in this highly competitive industry, business owners must overcome the online food delivery obstacles outlined in this article. Startups and established companies in the market should build an online food delivery platform. It is an ideal time to grow their businesses.
Narola Infotech offers food delivery app development services with features that are bound to attract and retain users. Contact us anytime for a consultation with our expert food delivery app developer team.