return icon Vietnamnet.vn

Food delivery service market heats up

VietNamNet Bridge - The online food ordering market is estimated to have value of $38 million by 2020. However, though the market is vast, it is not easy to squeeze into it.
VietNamNet Bridge - The online food ordering market is estimated to have value of $38 million by 2020. However, though the market is vast, it is not easy to squeeze into it.


{keywords}


Reports by different organizations all affirmed that the online food ordering market in Vietnam has great potential. 

According to the Vietnam Retailers’ Association, only 30 percent of urbanites ordered food online in 2017 in Hanoi and HCMC, but the figure soared to 70 percent in the first six months of 2018. This means that the number of service users increased by 40 percent just within one year.

Meanwhile, a report of Euromonitor showed that the Vietnamese online food ordering market is worth $33 million this year and will rise to $38 million by 2020.

In Vietnam, after Foodpanda sold itself to its rival in 2015, the market still has two best names – Delivery Now (Foody) and Vietnammm. 

According to the Vietnam Retailers’ Association, only 30 percent of urbanites ordered food online in 2017 in Hanoi and HCMC, but the figure soared to 70 percent in the first six months of 2018. This means that the number of service users increased by 40 percent just within one year.

Some others, such as Eat.vn and Chonmon.vn, only hold modest market share. A survey by Havas Riverorchid confirmed that Delivery Now is the first name consumers would think of when asked about food ordering service in HCMC.

However, the face of the market would change quickly as more investors plan to jump on the bandwagon. Grab, an e-hailing app, has tried GrabFood app with the service provided in five inner districts of HCMC. The company now has 500 partners which are restaurants and food shops in the areas.

The latest report showed that GrabFood service expanded rapidly from two countries to six countries within the second quarter of 2018, while its revenue increased by nine times in the last 12 months.

Sources said that Go-Jek, an app from Indonesia, when arriving in Vietnam as planned, may also bring Go-Food app.

Analysts warned that not everyone can make money. Delivering fresh food has a low profit margin because of requirements for food preservation and delivery. 

The director of a startup said his company needs a lot of workers to be able to reach every corner in Hanoi and HCMC. He stressed that it is necessary to set up a specific team in charge of delivering fresh food, while deliverymen of other products cannot be used for fresh food delivery.

Dang Hoang Minh, the founder of foody.vn, said the biggest problem in the online food ordering market is in delivery.

“Foody.vn is still trying with some restaurants to explore the market. Once the number of orders on DeliveryNow.vn is higher, we will contact delivery companies,” he said.


RELATED NEWS

Food delivery services make huge profits during World Cup

Delivery service: who is the fastest?


Chi Mai

MORE NEWS

Fashion shows to spread quintessence of Vietnamese culture and heritage

The series is the brainchild of former supermodel Ha Vy and director Hoang Cong Cuong, who is the mastermind of several big events in Vietnam including the opening ceremony of the Southeast Asian Games (SEA Games) 31 in Hanoi in May.

Low-carbon rice production helps Vietnam meet emission target

Rice, which is Vietnam’s most important crop and grown on more than half of its agricultural land area, accounts for 48 per cent of the agriculture sector’s GHG emissions and over 75 per cent of methane emissions.

VIETNAM BUSINESS NEWS SEPTEMBER 26

Number of air passengers down 14% in September

Vietnam needs highly skilled labour force to compete

The vocational training system of Vietnam needs reforming to create highly-skilled human resources that meet the requirements of the labour market in increasingly integrated international market, experts said.

Lengthy visa process a setback for FDI firms

The visa process does not always go smoothly. Sometimes, it moves so slowly that some specialists cannot enter Vietnam on schedule, leading to production disruptions.

Petrol and oil price stabilisation fund requires thorough appraisal

The Government needs to carefully evaluate the effectiveness of the petrol and oil price stabilisation fund in keeping the commodity’s retail prices stable before deciding to maintain or eliminate the tool, experts said.

Embedded finance the next big thing: summit

Embedded finance is the next big thing in the financial services industry as it has integrated seamlessly into the local fintech landscape in recent years, experts said at a meeting last Friday in HCM City.

Entertainment and cultural events of the week (September 26-October 2)

Upcoming entertainment and cultural events in Vietnam's major cities on September 26-October 2.

VIETNAM NEWS HEADLINES SEPTEMBER 26

PM orders urgent measures against Storm Noru

Beauties wow in traditional costume contest at Miss Grand Vietnam

Vietnamese beauties boasted of their charm in a traditional costume segment of the ongoing Miss Grand Vietnam 2022 taking place on September 23.

State Bank’ rate hike necessary to defend VND, control inflation: ADB Country Director

ADB Country Director Andrew Jeffries has talked on the recent interest rate hike by the State Bank of Vietnam in the context of the Fed, ECB and a number of countries raising their rates to curb inflation.

Prop-tech has potential but faces challenges

Many prop-tech startups are facing challenges, though it is a new market with potential in Vietnam.

Prime Minister asked to stabilise rice price

India's restriction on rice exports is said to have an impact on the volume and price of Vietnamese rice exports.

Vietnamese artworks to go under the hammer in France

The auction’s highlight is Les Rapides de Cho Bo, a six-panel lacquer screen with gold highlights, painted in 1942 by Le Quoc Loc. The artwork is estimated to fetch €400,000 ($396,000), the highest price of the lot.

A pearl in mountainous province

Referred to as the “Halong Bay of the northwest region”, Nong Dung Lake has recently been attracting tourists as an ecotourism destination due to its emerald water and poetic scenery.
back_to_top