The world is evolving fast, so it is the consumer’s preferences. We are heading towards digitalization. Today, the online food-delivery business is gaining massive popularity as it helps people order their favorite food from their favorite restaurants in a hassle-free manner.
With the technological advancement and changing preferences of the customers, it is not easy to start a food delivery business as you have to consider a lot of factors. But with the increasing craze for online food ordering, the food delivery business faces several challenges that affect their revenue.
Common Challenges Faced By Delivery Business
Undoubtedly, the online food delivery business has witnessed enormous growth in the past five years, but when it comes to launching a food delivery business, you need to overcome many challenges. Here we have addressed major challenges that are faced by the food delivery business in 2020. Here we go.
# Lack Of Smart Technology Solution
Technology fills the gap between customers and food delivery partners. Thus, it should be robust and efficient that allows them to order food online without any trouble. The food delivery market is hot, and it is very difficult to meet chair evolving demands.
If you have developed your restaurant app, but it fails to meet the customer’s expectations and is not offering modern features, customers will lose interest in your app.
Hence, many business owners prefer to opt for build app like ubereats as it provides modern features such as push notification, multiple payment options, social media sharing, and many more. If you don’t focus on the customer’s choices, it will ruin your business in the long run.
# Increasing Ratio Of Missing Deliveries
The food delivery business faces another major challenge is the increasing ratio of missing deliveries. When running a food delivery business, sometimes it isn’t easy to manage multiple orders if you don’t have a robust solution. This gives rise to human error and creates a negative impact on your food business.
An increasing ratio of missing food delivery means loss of money and time. You will lose potential customers due to poor customer service.
# Inconsistent Quality
No doubt, customers want everything quick but without compromising with the quality. It becomes difficult for the delivery partners to maintain the same quality. Maintaining superior goods quality all the time is a major concern for the delivery business.
Along with the quality, there is always the risk of poor packing. This creates an adverse impact on the customer’s mind, and they will not place orders in the future. Usually, people find a difference between the item shown in the store and delivered to their doorstep.
Well, above are the common challenges faced by the delivery business. As we said earlier, all you need to adopt a digital solution that streamlines the business process and allows you to grow without any boundaries.
How The Delivery Industry is Harnessing Smart Technology
As per the recent report published by McKinsey, implementing technology can potentially reduce delivery cost by 40%. In today’s Internet-era, we are surrounded by modern and smart devices that automate business processes and allow them to enhance customer services. Customers are becoming more tech-savvy and demanding; their demands contain real-time order tracking, free package delivery, easy communication with delivery providers, and so on. (Source)
We know that technology is evolving faster than we blink of eyes. Many online food delivery companies such as GrubHub, InstaCart, Zomato, Postmates, and many others have gained huge market share by delivering excellent customer services as they have embraced smart and advanced technology solutions in their system. So let’s see how advanced technology can overcome certain challenges faced by the delivery businesses.
Advanced Online Ordering System
As we have mentioned earlier, popular delivery apps have invested a huge amount of time and money into technological inventions. If you want to automate the order process and avoid confusion, an online ordering app will allow you to do so.
More and more restaurant business owners are adopting digital solutions developed with cutting-edge technology and allowing consumers to place and track their orders without any hassle. Moreover, multiple payment options are also integrated for easy checkouts.
Furthermore, with the help of social media platforms, you can expand your business and attract more and more customers. You no longer need to handle order details, payment details, consumer details manually; adopting digital solutions will save your time and make your job easier.
Enhanced Delivery Tracking
For years, delivery providers acknowledged their customers and sent manual updates regarding their package. Until recently, this has consisted of a time estimate which rarely reflects reality, but now we have an improved delivery tracking system that manages and maintains all vehicles and increases overall productivity.
No logistic and delivery business owners are implementing tracking technology devices that are more accurate so that consumers can easily track their package. This information also helps business owners assess delivery providers’ performance and fix niggling issues with solutions.
Moreover, with the help of the in-app chat feature, the delivery providers can communicate with consumers if they face any issue regarding address or anything else. Consumers can easily track their deliveries and enable delivery companies to track and communicate with customers.
Smart Route Optimization
These days, every urban area faces traffic-jams; route optimization is an advanced method that can help delivery providers find accurate and short routes. As a result, it decreases delivery time and cost because they no longer need to hire people to plan and suggest smart routes.
With the help of route optimization software, delivery companies can assess the local traffic conditions, optimize it, and keep the delivery executives updated about it. Delivery providers will automatically come to know if there is any traffic change in the local area.
Artificial Intelligence and Machine Learning
Usage of Artificial Intelligence and Machine Learning techniques is no longer new in the industry. These technologies are being embraced in each sector to predict consumer behavior. By integrating AI and ML techniques, delivery companies can automate certain tasks and eliminate errors that ultimately enhance user experience.
AI is highly advantageous not only to delivery companies but also to help them to deliver a seamless experience. Furthermore,
- Delivery companies can use AI to predict future demand based on the customer’s current history.
- They allow business owners to deliver a more personalized experience.
- AI also can enhance the decision-making process and allow delivery companies to make informed decisions to grow.
Upcoming Delivery Trends To Watch Out
As we mentioned earlier, technology keeps evolving with time, and delivery companies are implementing modern technology solutions to improve customer experience. They are speeding-up their delivery process and maintaining a lower cost of operations by adopting drones and robots.
Just a couple of years, Dominos introduced a drone delivery system and delivered pizzas to a customer in less than 10 minutes. That is why more and more companies are now thinking of adopting the drone delivery method because it avoids traffic and reduces overall delivery time. It also saves time, cost, and improves customer experience.
Delivery Through Robot
Integrated with AI and self-driving cars, delivery companies have created smart robots for delivering food or packages. This robot is well-trained and supported by an advanced GPS system for navigation. Customers can stay connected with robots through cameras and ethernet.
In this modern and digitized world, it is inevitable to adopt smart technology solutions by delivery companies. These technologies improve their order delivery efficiency, reduce idle costs, and deliver a seamless customer experience. With smart and sustainable solutions, delivery companies can achieve their desired outcomes from the consumer’s perspective.
In the end, it’s all about keeping customers happy and informed, being flexible, and reducing delivery time. Usage of a little bit of technology can make their lives so much easier and increase their productivity.