Food delivery business booms amid Covid-19 outbreak
With Covid-19 restrictions forcing people to stay at home, food delivery business has been booming over the past four months.
As many as 20,000 small and medium-sized restaurants joined food delivery platforms in the first half of this year, with the number of food deliveries growing by 150 per cent compared to the same period last year. Also, many new operators have entered the food-delivery market, which was dominated by four major players – Foodpanda, Lineman, Grab Food and GET Food.
The Kasikorn Research Centre predicts intense competition in the food-delivery business in the second half now that there are more local and foreign players. Besides, many Thai operators are following a brand new business model, such as keeping prices down by not collecting service fees from restaurants, adding extra features to their apps and even giving customers a chance to compare prices.
The research centre, however, believes that the boom in food delivery business may ease in the second half, unless there is a second wave of Covid-19 infections, which may again force people to stay at home.
Kasikorn estimated that the food-delivery industry will grow by 17 per cent in the second half compared to the same period last year, but this number may grow exponentially to 78 to 84 per cent if Covid-19 infections return.
