Food delivery landscape in Singapore
In 2022, the gross merchandise value of online transport and food delivery services stood at almost four billion U.S. dollars and is expected to reach six billion U.S. dollars by 2025. Singapore's meal delivery market is highly competitive, with several major players dominating the sector. As of May 2022, GrabFood, the meal delivery arm of Singaporean super-app Grab, held a 56 percent market share, followed by Foodpanda and Deliveroo. AirAsia Food, the Malaysian airline's meal delivery service, launched in March 2021, appears to have ceased operations in the country. GrabFood has established itself as a dominant player, capturing a significant share of the market. The platform offers a seamless, user-friendly experience, allowing users to explore a wide range of restaurants and cuisines via the mobile app. GrabFood's success can be attributed to its strategic partnerships and innovative approach. Collaborations with popular food establishments have enabled the app to offer a variety of dining options to its users. In addition to delivery services, it offers in-app menus, personalized recommendations, and exclusive promotions, building customer loyalty and consolidating its position as market leader.Impact of COVID-19 and food delivery trends in Singapore
The COVID-19 pandemic has had a significant impact on the foodservice industry in Singapore, with consumers turning to delivery services for safe and convenient meals. Most consumers reported ordering more through food delivery apps during this period. This increase in demand has fueled growth in the sector, boosting order volumes and revenues for delivery platforms. Looking ahead, Singapore's food delivery market is expected to continue to grow as online ordering and home dining habits persist. In the last quarter of 2022, the total number of user sessions on food and grocery apps reached 620 million in the country.To stay afloat, restaurants have had to adapt to a takeaway model. For the same reason, many foodservice operators have partnered with meal delivery companies. Consumers who have appreciated the convenience and variety offered by meal delivery services are likely to continue to seek these advantages. In response to changing consumer preferences, platforms will strive to improve the overall customer experience. This includes improving delivery efficiency, contactless delivery options, and leveraging technology to make personalized recommendations.
