Food delivered by phone, app, website or go to the store?
Truthfully spoken, I started this post because I was hungry and thinking about what to eat. As a student who sometimes forget to do grocerie shopping, the app “Thuisbezorgd” is my savior. For my fellow (future) hungry readers: Thuisbezorgd is an universal app that has an assortment of delivery restaurant. You can order sushi or pizza. Internationally the company is also known as “Takeaway”.
The company has an average of 20 euro spent per meal and every customer orders on average 4 times a year in the Netherlands alone. The FSIN estimates that the revenue of all variants of food order is easily above 1 miljard euro. They also noted that in 2013 640 mln euros was generated on online food orders, 2014 it was 665 and in 2015 it is expected to be 680 in the Netherlands( Smit 2015). There is real shift in the way consumer order food, and online is taking over.
Even though Thuisbezorgd is market leader in The Netherlands and Belgium and generates millions in revenue, the company still makes a few million euro loss. The founder, Jitse Groen, explained that this is a deliberate choice of the company. In the fifteen years of operating, the company could have make profit, but because of the fierce competition they decided to invest in grow. In three years he expects to make profit. The reason to still heavily invest in grow is that the customers are apparently loyal to the first online food order service they use.
An interesting note is the reaction of the offline competitors. Supermarkets like Albert Heijn and Jumbo already started online groceries shopping and delivery services. Even though it is a starting service and the profit margin is low, these household names are convinced that they need to experiment with online orders and take the marketshare. A few web supermarkets, like MaxFoodMarket, BoodschappenXL, have appeared, but couldn’t keep their operations going
What do you guys think. Will traditional supermarkets be able to dominate the websupermaket era to come. Or will it be an dedicated online supermarket that will transform the landscape? Can you imagine doing your groceries online?
Author: I.R. Anijs
Keuning, W., Smit, R. (2015) “Picnic kijkt kunst af van platsoendienst en postbode”, Het Financieel Dagblad, 20 augustus 2015
Smit, R. (2015) “Bestelsites voor eten verkiezen snelle groei boven winst”, Het Financieel Dagblad, 27 augustus 2015
Zuiderveld, U. (2015) http://fsin.nl/blog/wil-de-echte-fooduber-nu-opstaan