Retail in Asia

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No post-pandemic slowdown for food delivery, says Deliveroo

The use of food delivery platforms has become a lifestyle choice for many in Singapore and Hong Kong, revealed a recent Censuswide survey commissioned by Deliveroo. The survey involved 1,000 Singaporeans and 1,000 Hongkongers in November.

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Post-Covid, delivery platforms remain a go-to

Food delivery services have become an indispensable part of daily life for a significant number of consumers in Asia’s business hubs, with an increasing number of individuals relying on them.

According to the survey, 68 percent of respondents in Singapore integrate food delivery into their daily routines, and 80 percent anticipate using these services more frequently in the coming year. Additionally, a substantial 87 percent of participants agree that food delivery platforms enable them to make the most of their free time.

The survey highlights that the primary reasons for using food delivery services are time constraints (58 percent) and a desire to avoid cooking (58 percent).

Meanwhile in Hong Kong, demand for at-home and in-office food delivery has continued to soar despite the reopening of bars, eateries, and borders.

Two-thirds (66 percent) of respondents in Hong Kong agreed that they now use food delivery services more frequently in 2023 compared to the period of the pandemic from 2019 to 2022. They’re also spending more: Over half of the respondents (54 percent) reported an increase in their food delivery expenditures in the past 12 months compared to what they spent during the pandemic period.

Source: Deliveroo

Not just for food

With the expansion of product offerings on these platforms, users are now utilising them in unconventional ways, such as ordering groceries and non-food items, sending gifts, and making in-app donations for charitable causes.

Forty-nine percent of respondents in Singapore prefer getting groceries delivered through food delivery apps rather than going to the supermarket. When it comes to purchasing a large quantity of groceries, 51 percent of participants stated that they would consider using grocery delivery services offered by these apps instead of going to the supermarket. Saving time on grocery shopping was cited as a reason by almost half (47 percent) of the respondents for considering grocery delivery services.

Furthermore, gift shopping has become more convenient with the expansion of on-demand delivery options offered by food delivery services. Customers can now order gift items such as flowers, hampers, balloons, and more, even when they are pressed for time.

In Hong Kong Deliveroo is preparing to open its second Deliveroo Hop site in Tuen Mun, which has emerged as one of the fastest-growing districts for the platform, with a notable 100 percent increase in grocery sales in 2022. This growth is a testament to the rising demand for convenient grocery delivery services in the area.

Launched in 2022 in Hong Kong, Deliveroo Hop is a rapid grocery delivery service in partnership with supermarkets across the city.

Nick Price, general manager, Deliveroo Hong Kong. Source: Deliveroo

Now trending

The pick-up feature is also highly appreciated by users, with 55 percent of respondents in Hong Kong stating that it allows them to skip restaurant queues and 51 percent mentioning access to discounts.

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Over the past 12 months, a significant proportion of respondents in both Kowloon and Hong Kong Island (27 percent each) reported an uptick in their usage of pick-up services. They are now opting for these services three to four times more frequently per week compared to the period during the pandemic. This emphasises the growing reliance on pick-up services as a convenient and time-saving option for residents of Hong Kong.

Customers in Singapore are willing to pay extra for specific types of dishes, with 38 percent expressing a willingness to spend more on healthier food options, and 35 percent valuing customisable food orders.