Bittersweet taste of food delivery apps

Singapore

NEWS of the merger of Grab and Uber cast the spotlight on food delivery apps here, but like the ride hailing industry, the online food delivery business also suffers from fierce competition and likely lower value and margins.

Restaurants that use the service tell The Business Times that the fast-growing phenomenon can account for up to 10 per cent of total revenue, but the cost of the incremental business comes at a price - squeezed margins.

Many eateries believe food delivery apps are here to stay, adding that numbers aside, players like foodpanda and Deliveroo offer them brand visibility and useful data.

Since foodpanda first started in Singapore in 2012, a slew …