How millennials are changing the food delivery industry

3 minutes

Although the joy of take-out is not a new concept, the advent of food-delivery apps has certainly shaken up the sector, creating more options to choose from, flexibility in terms of delivery radius, and built-in app support and customer service.

DoorDash is now the most heavily used service in the US, with a valuation of $12.6 billion, but the competition between providers is fierce, as other big players such as UberEats, GrubHub and Postmate all battle for supremacy in the long-run.

The demand for these services is reflected in the incredible usage and investment figures globally, suggesting the success of third-party food delivery has tapped into wider lifestyle trends. With millennials representing the largest proportion of users, we look at how their habits have influenced this sector.

The Age of SaaS (Software-as-a-Service) Models

Digital technology has marked the end of the standard 9-5 job. The surge in freelancing, remote working and flexible hours has been coupled with the need for round-the-clock availability - meaning millennials are always connected. Whether on a sunny beach or in a co-working space, millennials rely on software services to help manage both work and personal life from any location.

With the desire to squeeze more from less, millennials are more than willing to pay for a service if it saves them precious time. Whether it be dry-cleaning, dinner or dating, this generation have completely normalised the gig economy and habit of ordering through SaaS with a simple tap.

Cost of living and desire for experiences

The sharp, rising cost of the housing market globally has removed homeownership from the goal-checklist for many millennials. taken Placing a greater value on experiences, the chance to live in one of the world’s most desirable cities in exchange for a reduction in data privacy is a small sacrifice for many.

Shared rentals, co-operative living and property guardianship offer creative ways to make rent in the trendy hotspots, completely changing the way this generation live. A lack of facilities or freedom to prepare meals from scratch every day is one potential tradeoff, but food delivery apps are more than willing ready and waiting to service this need and facilitate bringing dinner to your doorstep.

The Modern Foodie

Changes to the workplace and housing sectors may suggest millennials have less time and opportunities to cook, but that doesn’t mean food is low on the list of priorities. From high-end health foods to artisan bakeries and coffee shops, this generation places a greater importance on quickness, quality and lifestyle items/services, and are willing to shell out a little extra money rather than compromise on quality.

And, although the restaurant scene is thriving in most major cities, millennials don’t restrict themselves to formal fine-dining environments - food trucks, street markets, and pop-up restaurants offer gourmet quality food in social, fast-paced environments.

Food delivery apps are wise to this trend and offer an endless possibility of restaurant options and different cuisines to choose from, catering to various dietary requirements, occasions and customers.

Keeping the market-share through last-yard delivery

Real-time tracking of food preparation and delivery driver locations are not just fun gimmicks. Customers expect top-level SaaS experiences when they part with their money and use these services, with these features aiding in improving transparency and time-management through live information updates pertaining to your order.

With so many apps vying for attention in food delivery, high levels of customer satisfaction are essential to keep them coming back. And with more commercial and residential buildings housing hundreds of delivery dependent users, trying to notify customers through busy mailrooms and reception desks can cause major delays and affect the company’s ability to deliver hot and fresh food to their customers. Late deliveries and cold food are two of the biggest reasons customers will switch to a new provider, yet that last-yard of service is often where delivery services fall short.

At PackageX, we realized that food delivery to the doorstep of your workplace doesn't complete the journey, and developed a supplemental solution that offers the digitized level of real-time updates millennials have come to expect. Our AI-powered app enables transparent tracking and information from inside the building itself - whether that's a co-working space or a complex apartment building with thousands of residents - to ensure there is no loss of communication at the last hurdle.

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