Food Delivery in year 65 slowing down due to high oil prices-Covids ease up-Food orders decrease : InfoQuest

Facebook
Twitter
LinkedIn
Pinterest
Pocket
WhatsApp

Kasikorn Research Center Has a view on the food delivery business (Food Delivery) in the year 65 that in the midst of complicated business problems fierce competition and business costs in all aspects increased Food delivery business is expected to grow by 1.7-5.0%, or worth around 77-80 billion baht, decelerating from 46.4% growth in 64.

Food delivery businesses are now facing the challenge of a changing business environment after the COVID-19 pandemic subsided, with most people returning to their near-normal lives. Most companies let their employees go back to work. and students can return to school in two years. Meanwhile, consumers face economic problems and accelerated inflation.

such factors Affects the quantity of food orders to accommodation tends to slow down. Affects those in the food delivery chain. both restaurant operators Food delivery online platform providers and food delivery service providers (Riders), which have been affected by both the downward trend in food ordering to accommodations. and rising oil prices

Kasikorn Research Center states that Ryder Group is one of the key chains of food delivery businesses to accommodation. affect employment Making food delivery services to accommodation become the main occupation or supplementary occupation in the face of weak employment. with a large number of applicants as a rider delivering food to the accommodation

According to LINE MAN Wongnai’s food delivery business indicators, it was found that in May 65 the number of rider applicants in the system increased by 4.7 times compared to January 2020, which was Before the outbreak of coronavirus (The rider increase is partly due to online platform providers delivering food to accommodations. Expand the market and service area to cover the whole country Originally, there were only a few provinces) and from the assessment of Kasikorn Research Center found that income from food delivery to accommodation revolving in the system on average about 13 billion baht per year. during the years 63-65

Read Also  The former deputy secretary of the Thai SEC has commented on Luna/UST, urging the Regulator to be flexible in its rules.

However, since the beginning of 65, food delivery service groups have faced more challenges. from the decelerating trend of food orders to accommodation The amount of rider in the system is high. and rising oil prices which affects most of the rider’s income.

The Kasikorn Research Center explored the perspective and adaptation of the rider in the midst of all the challenges An interesting perspective is that the Ryder group considers that the most important factor affecting the rider’s career at present is high oil prices. and the number of riders increased by similar proportions, followed by return to work and back to school as usual. intense competition between platforms make consumers switch to other platforms and the use of assistance programs in getting a job

while the behavior of daily life returned to near normal Over 94% of food delivery service providers consider themselves affected. The average daily order volume has declined. According to the survey, the average daily order volume of most food delivery service providers is around 11-15 jobs per person (38%), followed by Coming to about 5-10 jobs per person (32%)

In addition, rising oil prices As a result, the average daily refueling costs for food deliveries have risen (gasoline prices have now risen by more than 54% compared to the 64-year average), which has impacted food delivery costs. in each trip and the net income of food delivery services to accommodation per day decreased accordingly.

At the same time, the cost of living has increased. This affects some groups of riders whose incomes are insufficient to meet their expenditures. According to the survey, 42% of the respondents of food delivery service providers to accommodation had an increase of 50-70 baht per day for fuel expenses (depending on the number of trips, distance and rate). fuel consumption of each car model)

Read Also  Chairman Chey Tae-won found out why he met with the head of a global company...

Therefore, from such a situation This makes food delivery service providers to accommodation need to figure out how to cope. Over 70% of the sample group spent more time working to receive orders. in order to bring back income close to the previous period including switching to other occupations instead or find a career while some choose to register on other platforms. to increase your chances of getting a job

Kasikorn Research Center stated that from the perspective of the problems facing food delivery service providers to accommodation at the moment, it is a challenging problem that arises in every business. The economic recovery is still fragile. while energy prices accelerate The price of the product increases according to the cost incurred. which affects the sales of the business that has decreased

It must be admitted that In the past, online platform providers have tried to take care of the impact. whether it is expanding the business to new markets such as parcel delivery Ordering at the supermarket to increase the chances of getting a job in the rider group Adjusting the distribution system to use the job firing system (Auto Assign), which is an international system that makes the distribution of jobs more equal to the rider. At the same time, the government is in the process of drafting a decree. On the regulation of digital platform service businesses that must notify B.E. … to help supervise those in the chain of such businesses.

for the compensation It is a sensitive issue and many factors are involved. both in terms of business competition At the same time, the cost of doing business is rising. However, platform providers may have flexibility in fee calculation. For example, overseas, online food delivery platform providers adopt the distance-based Fuel Surcharge model in During the high oil price and when the price of oil fell It might be canceled that way of thinking. Of course, this method will pass the burden on to the consumer. and may affect the competitiveness of online platform providers including those in the food delivery chain

Read Also  Summary of stock market, oil, gold and foreign money markets

In addition to solving systemic problems would have to consider problems that arise in the business process, such as increasing the chances of getting more jobs and reducing the number of canceled orders during peak hours, reducing waiting time for food at restaurants This would be a collaboration between people in the food delivery chain. For example, a restaurant operator might accept an order when the food is almost finished or ready for delivery.

in the next phase Kasikorn Research Center sees that transactions that rely more on online platforms will result in new careers In addition to the rider came up, so the platform provider. including government agencies and related sectors would have to help design and create a business ecosystem Under the rules and regulations that are beneficial to all parties In order for such professionals to have access to various welfare systems, such as opening a rider registration into the system. in order to have access to various rights from the government, etc.

By InfoQuest News Agency (22 Jun 65)

Tags: Food Delivery Business, Food Delivery, Kasikorn Research Center

Facebook
Twitter
LinkedIn
Pinterest
Pocket
WhatsApp

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent News

Editor's Pick