Financial News
Written by: Kuang Yueting
2020-04-08 19:54
Date of last update: 2020-04-08 19:54Under the new crown pneumonia epidemic, the takeaway platform business rose against the market. Luo Jiacong, general manager of Deliveroo Hong Kong, said that the turnover in the first quarter of this year was three times that of the fourth quarter of last year; the total number of orders in March has more than doubled from January. At present, about 1,500 to 2,000 restaurants on the platform are offering 20% to 10% discounts, but most of these are provided spontaneously by restaurants. After the outbreak, the takeaway accounted for the restaurant business from 20 to 25% to 50 to 80%. Not equal.
He also pointed out that the platform will not burn money to seize the market, but instead focuses on restaurant selection and service quality (including: delivery speed, on-time rate and customer experience).
Recently, Deliveroo announced its withdrawal from the Taiwan market, reflecting the fierce competition of the takeaway platform. Luo Jiacong admitted that Hong Kong's food delivery industry does not have much profit for the time being, but the market development potential is huge. Hutong has been attacking Hong Kong for 5 years and is the leading local food delivery platform. In the first quarter of this year, the market share was more than 50%; the company entered the Taiwan market for more than 1 year, and the gap with the market competitors is relatively large, so it was decided to withdraw Out of Taiwan, focus on developing other potential markets, and increase investment in the Hong Kong market.
Luo Jiacong, general manager of Deliveroo Hong Kong, said that the turnover in the first quarter of this year was three times that of the fourth quarter of last year; the total number of orders in March has more than doubled from January. (Photo by Kwong Yueting)
The order takes an average of about 31 minutes
He continued, the competitive advantage of household delivery is the fastest delivery, the average order takes about 31 minutes, food is taken from the kitchen to the customer is about 12 to 15 minutes, the company will strictly control the delivery distance, Maintain service standards. In addition, the company will use big data to analyze the preferences of customers, and then find restaurant partners. The restaurant choices are to cater to the needs of customers; the company has also launched a monthly fee plan, customers only need to pay 98 yuan per month, you can enjoy 100 Free shipping for orders over RMB.
In terms of publicity strategy, Luo Jiacong said that he found that his peers invested a lot of money in marketing, but this has a positive effect on the company, because it can "grow the cake of the Hong Kong market". Before the epidemic, the penetration rate of the Hong Kong takeaway market was only 5 to 8. %, Now rising to more than 10%, this is due to the efforts of the industry and the company to promote. He believes that the quality of the restaurant services delivered by the households is the best, so it helps attract new customers to return customers.
There is no need for capital injection
Although the epidemic affected Hong Kong's food and beverage market, household delivery has not changed its pace of development. In the second half of the year, it is planned to open several shared kitchen "household kitchens", tending to be Kowloon East, Kowloon West, New Territories East and other places. Luo Jiacong said that the company will open stores based on factors such as the need for take-out in the area, whether the area will lack restaurants with certain dishes, rent, and convenient transportation. "If you find a suitable place, you will open the store, and street shops will also consider it." Three household kitchens opened today in Quarry Bay. He laughed that usually household kitchens can drive a net increase of 25 to 30% of takeaway orders in the area. Taking Quarry Bay as an example, the store is close to residential and commercial areas. The business in the city and the evening market is good, but the density of restaurants is low, and there is a lack of restaurants with Shanghai cuisine, pancake dishes, soups, and vegetarian food. Therefore, the householder's chef has found these restaurant partners to settle in.
The food delivery industry bounced under the "epidemic market". As for whether the company will allow more investors to inject capital, Luo Jiacong said that there is temporarily sufficient funds and there is no need for capital injection. In the future, we will continue to increase the number of platform restaurants, hoping to increase to 12,000 to 15,000 restaurants by the end of the year, and increase the benefits of the monthly fee plan, such as: providing restaurant takeaways and discounts on dine-in meals.
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