Food delivery platforms a catalyst for F&B sector to digitalise further, says report

SINGAPORE: A recent report commissioned by Deliveroo and conducted by Capital Economics reveals that food delivery platforms are playing a pivotal role in driving digitalisation within the food and beverage (F&B) sector.

The report highlights significant increases in digitalisation among restaurants, expansion of customer reach, and substantial contributions to Singapore’s economy.

According to the report, over half of the surveyed restaurants (57%) reported an increase in digitalisation within their businesses as a direct result of partnering with Deliveroo.

This trend aligns with Singapore’s strategic focus on expanding its digital economy, which saw a remarkable doubling in size by 2023, as reported by the Infocomm Media Development Authority (IMDA).

Also, a survey in November 2023 found that many Singaporeans now consider food delivery platforms a crucial part of their everyday routine.

Leveraging data for F&B success

One of the prime examples of digitalisation within the F&B sector is the adoption of data analytics. Restaurants are leveraging delivery platforms’ digital tools to gather insights and optimize their operations.

Teyst Group, for instance, achieved a significant growth of 420% in order volumes by strategically introducing self-pickup options based on insights from Deliveroo’s data analytics tools.

Jonathan Yang, CEO of Teyst Group, emphasized, “Leveraging Deliveroo’s data-driven insights to strategically introduce self pick-up as an additional avenue for customers’ orders has been one of the best pivots we’ve made in our business approach for The Daily Cut.”

Expanding reach and customer base

Additionally, food delivery platforms are enabling restaurants to reach new and more customers.

Based on the report, a quarter (25%) of surveyed restaurants stated that they expanded their establishments to accommodate a larger customer base.

Through tools like Deliveroo Marketer and Partner Hub, businesses can access targeted marketing campaigns and promotional offers, effectively expanding their reach and driving sales growth.

Poke Theory’s Joey Lee shared, “Partnering with Deliveroo has taught us that digitalization is critical in the F&B industry. We’ve grown so much as a business since joining the platform, all thanks to Deliveroo’s wide range of functions that support us in better capturing a wider pool of audiences beyond our dine-in customers.”

Economic contribution of Deliveroo

The report also highlights the substantial economic contribution of Deliveroo to Singapore’s economy.

In 2022, Deliveroo’s activities contributed S$139 million in Gross Value Added (GVA), a measure of the value of goods and services produced in a specific area, industry, or sector of an economy.

Additionally, these activities supported 5,250 jobs. Within the restaurant sector, the economic activity attributed to Deliveroo is estimated to have added around S$54 million in GVA and supported an additional 4,700 jobs.

Notably, over 9,000 restaurants partnered with Deliveroo, indicating the platform’s significant impact on the local F&B landscape.

Jason Parke, General Manager of Deliveroo Singapore, expressed pride in the platform’s contribution to the local economy and emphasized their commitment to supporting merchants with best-in-class tools and support to facilitate further business expansion.

“Through our digital analytics and promotional marketing tools, we have observed how merchants have leveraged new data and insights when making instrumental commercial decisions,” he said.

“We remain committed to providing our merchants with the best-in-class support to help them continue to expand their businesses.”