HK Food Delivery services are on the rise. What are the reasons behind their success? How do they operate? Will it be a Food Trend?
Food delivery services in Hong Kong have undergone rapid expansion, a hi-tech makeover have changed the whole industry. It’s hard to be a huge business that isn’t guaranteed in the past, to now becoming a part of the dining routine.
Food delivery services have evolved into a transformative space with greater variety and quality of services. A service that was only to contain pizza and fast food, now include every cuisine type. Also, customers can order takeaways with just a click of a button.
Since people in Hong Kong value fast and convenient service more than anything, this gives food delivery companies an opportunity to step in and take a bite out of the HK Food industry market.
Well, what are the reasons behind such huge success and its rise in HK’s food industry? How do food delivery services work? Let’s find out more below.
Reasons behind HK food delivery success
There are major reasons for food delivery companies’ rapid growth in HK. Why?
1. Long Working Hours
There’s a popular saying among Hong Kong people, “Time is money.” We all live a busy lifestyle, so speed and efficiency are expected and demanded.
White collars have a tight work schedule, lunch hours normally only last for about an hour. Working overtime is also a common thing in HK. Also, Find a table for lunch is time-consuming especially in office districts. Apart from that, who would want to waste time and queue for seats?
Hence, some people tend to stay in the office and order takeaways to save time.
2. Technological Advancement
The 21st century has made our lives easier with such technological advancement. Smartphones have become a common commodity such that anyone owns at least one.
Hong Kong has one of the world’s highest mobile phone penetration rates, with 18.2 million subscribers in 7.3 million people. From last year’s statistics, it is said that each person even owns more than 2 smartphones!
With such convenience brought by technology, HK has become a big market for online food delivery services. Hence, with only a click of a button, you can order takeaway from anywhere, anytime!
3. Extra revenue source for restaurants
We know that Hong Kong is a metropolitan where everything is expensive, especially rent. It’s even proven that Hong Kong has one of the most expensive retail rental spaces in the world. With such high rent, restaurants can only afford small spaces.
Hence, with only limited seats to dine in, restaurants tend to find extra channels to increase income. That’s where food delivery services step in. Charging only delivery fees, these third party food services provides restaurants an extra income source as they can help reach out to more customers.
How do Delivery Service Operate?
This business model helps link eaters and restaurants. Just like how Airbnb connects spare room owners with travelers, which gives them ways to earn extra money and more choices hotels to choose from.
Here’s how they complete an order:
1. Firstly, companies receive and communicate with customers and restaurant through their own application.
2. Then, consumers place orders on their website or application, which notifies both the restaurant and the delivery company. When an order comes in, it is sent to couriers closest to the pick-up location.
3. After that, a courier claims the job, which he/she will receive the pick-up and delivery route to the customer’s location.
4. Lastly, an estimated arrival time and tracking will be sent to consumers, which lets them track their order.
To simply say, these on-demand food delivery apps will get your favorite meal delivered at your doorstep within a time frame. These apps first receive an order from the customer, then it sends the request to the nearest restaurant that uses the app. Finally, the order is made.
Well, it’s well-known that Hong Kong is a small city with convenient transportation, so the average delivery time only takes less than 30 minutes. Apart from the usual riders that deliver your food, this special feature of Hong Kong gave way to a new type of couriers called walkers.
If you’re not from Hong Kong, I’m quite sure you haven’t heard of them. Well, you might ask, “What are walkers?”
Instead of only using usual delivery methods of riders, Hong Kong is the first market where different food delivery services offer point-to-point delivery service on foot for various orders.
What’s next for food delivery companies?
While more restaurants jump on the bandwagon to partner up with these food delivery companies, it can provide more choices of cuisines to customers.
Ultimately, food delivery has developed from being a service that isn’t guaranteed in the past, to now being a huge market opportunity to share the revenue with restaurants.
Interesting indeed. Food delivery a business which can earn money from food but doesn’t need to cook and prepare the food!