Companies that have been active in the online food delivery market in the past year have literally “made a fortune”, aided by changes in consumer habits due to the spread of the coronavirus and the increase in online shopping.
With nearly 6 out of 10 consumers already ordering ready-to-eat meals by ‘using’ delivery services, online delivery turnover appears to be well above € 500 million, the level that was recorded in 2019 and an estimated € 900 million according to some estimates, according to a recent study by IELKA. Four out of ten Internet users order food online.
Efood dominates the Greek market
The players in this sector of the market say that it was a rather successful year. “The little players saw a doubling of work,” says efood. The absolute dominant is food, which takes a huge share of this market, and the rest are looking for ways to compete with them and “decapitate” them. In fact, according to the information, the number of orders placed through the efood platform has been estimated recently (not all of 2020) in the region of 250,000-300,000 per day. At the same time, the average cost of a basket is from 7 to 10 euros, depending on the season, but also when placing an order during the day.
The significant rise in e-ordering is also due to the fact that by mid-2020, several foodservice companies, even targeting higher revenues, decided to enter the delivery industry to offset the losses they suffered after the stores closed. “The launch is connected not so much with the turnover of this market, but with the restaurants and companies that have started delivering,” notes one of the industry players. A typical example is the Grigoris network, which, although it has developed its own online ordering application since 2017, has expanded to third online delivery platforms in recent months. It is noteworthy that at the end of 2020, she entered efood, and in 2019, she entered the Cosmote Box.
Efood, on the platform of which other businesses operate in addition to coffee-making establishments (convenience stores, grocery stores, fishmongers, butchers, wineries, bakeries, etc.), has a total of about 14,000 companies. in 90 cities, while the group currently exceeds 1,500 distributors. In fact, around 8,000 stores have been added to its platform since the start of the pandemic crisis. Finnish Wolt
Another competitor to efood, Finnish startup Wolt, which has about 2,000 companies, most of which are in the food service industry, has increased 11 times in 2020 compared to 2019.
The doubling of orders from the second lockdown period onwards was recorded by the online food ordering service Cosmote Box, which began operating in December 2019. An increase in their size (+ 25%) was also observed in coffee chains that have their own online food and coffee ordering services. “Those who avoid accessing third-party platforms are companies that are either waiting to discuss the best deals in terms of the fees demanded by these services, or want to invest in their own network. But the latter is not enough, ”says a catering expert. Commissions exceed 10%, and in some cases, when providing additional services, they can exceed 20%.
Waiting to slow down
As for 2021, then, according to many estimates, due to the fact that the population will come out of confinement after the opening of stores, the market may slow down in the near future. However, some expect 25-30% growth this year. Of course, the bet is on what will happen in the future when the pandemic is overcome. Then it will become clear whether, and to what extent, the consumption habits that prevailed under the extraordinary quarantine conditions will be fixed.