SWOT Analysis of food delivery service business. Food delivery is a form of courier service where hotels, restaurants, and food companies deliver food and edible items to customers. Usually, they receive orders, collect payments, and connect with customers through mobile applications or websites.
Food delivery service providing service companies deliver food through the following mediums;
- Autonomous vehicle
- Motorized scooters
Key statistical facts and figures about the food delivery service business are as follows;
- The annual revenue of the food delivery service business in 2022 was 128.32 billion US dollars
- Its growth rate is 11.5%
- It would reach approximately 159.46 billion US dollars by the end of 2026
Some of the top companies in the food delivery service providing business are as follows;
- Just eat
- Uber Eats
Today, we’ll discuss the swot analysis of food delivery service business. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the food delivery service business. Here’s the swot analysis of food delivery service business as follows;
Strengths of Food Delivery Service
Some of the main strengths in the swot analysis of food delivery services are as follows;
When it comes to food delivery, various hotels and restaurants offer a well-diversified menu and various dishes on the menu. It allows them to attract the attention of customers because people want variety when it comes to eating meals. Limited variety in the menu would decrease your business capability to convert the sale.
The interesting thing about the food delivery business is that they target local audiences in proximity to their location. It allows them to approach customers quickly and easily in a very short time and offers fresh and hot food, ready to serve and eat. Therefore, the food delivery service business has attracted the attention of the customer market in a very short time.
Ordering food online would cost you the same amount of money that you would usually pay for visiting any hotel. Some food delivery businesses have got access to cheaper sources of the supply chain, and they would charge less to establish their name and customer base in the market.
Various recognized brands like Pizza Hut, Domino’s Pizza, and others could resist jumping into the food delivery service business. Soon other multinational brands would enter the delivery service business to earn their chunk of the market share.
Better Delivery System
The only reason a food delivery service business would succeed is if you have got an effective and advanced delivery service system. It won’t work otherwise, and the company won’t develop collaboration and coordination among team members and the order-receiving department. Often, they have got a tech background with advanced applications and payment methods to attract retail customers.
Weaknesses of Food Delivery Service
Some of the main weaknesses in the swot analysis of food delivery service are as follows;
When it comes to shopping online or buying food online, then people have got trust and confidence issues over the quality of the product. Many people still don’t trust online order and food delivery services, because of their bad experience with online shopping.
The employee turnover rate is very high in the food delivery service business because young students and part-timers only show interest in this business. As soon as they get a better opportunity after finishing their education, they don’t waste any time leaving the delivery job. However, people don’t see their future in the job as a delivery boy.
When you add up the delivery cost along with the food price, then the total price becomes quite expensive because of the high fuel prices. You should keep in mind the total price when you order online next time.
Opportunities for Food Delivery Service
Some of the main available opportunities in the swot analysis of food delivery service are as follows;
Better Customer Service
In order to attract and retain the attention of customers, it is significant that food delivery service businesses should work on their customer service. The improved customer service could exhibit in many ways like better food quality, unique taste, discounts, and offering something free.
Food delivery service businesses have established a worldwide network; various brands are targeting different markets. But there are still many rural areas unserved, and delivery service companies should expand their business in those areas and markets. It would help them to improve their growth and profitability.
Association with Bars
Along with food delivery services, they should develop associations with local bars and clubs and offer customers drink and beverage services along with food. It helps them to increase the product portfolio and attract drink and beverage lover customers.
Threats to Food Delivery Service
Some of the main potential threats in the swot analysis of food delivery service are as follows;
The food delivery service business market has become highly competitive. There are various local, national, and international brands are operating their business in this delivery service industry. It has become highly difficult for them to maintain their position in the market.
International political conflicts, increasing oil prices, and a high unemployment rate have pushed the global economy into recession. It has decreased the purchasing power of people to a great extent, and they have limited their spending.
The food truck business has been increasing significantly for the past few years. When people could easily buy food outside of their houses in the street, they won’t order food online. Resultantly, it is decreasing the growth of the food delivery service business.
Conclusion: Food Delivery Service SWOT Analysis
After an in-depth study of the swot analysis of food delivery service business; we have realized that the food delivery service business is growing exponentially. If you are learning about the business of food delivery service business, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.