In Vancouver, restaurant-to-consumer delivery is becoming an indispensable part of Canadian business. However, not all of the restaurants offer delivery service. As a result, more and more businessmen catch up this opportunity and develop food delivery apps, such as Uber, SkipThe Dishes, DoorDash, and Fantuan. “Delivery, in general, is really underpenetrated in Canada, relative to other countries globally”, said Ms. Pang. As we know that these services are attracting a lot of people in Canada but besides this, it is also creating some problem to the customers, delivery man and the restaurants as well.
Research and Analysis
Strength
Nowadays, everything is getting very advanced as improvements in technology and other many important things. This advancement leads the world to the online communication system and many other online resources like online food deliveries. For example, Uber Eats is one of the most popular companies in Canada for ordering food online and it also creates many other opportunities for the users. Uber Eats and there are many other companies which are expanding at a very fast pace as people want all the things in a comfortable way and as these companies are offering them many other great things by saving their time of commuting to the restaurants. Companies and restaurants are loving this app as these third-party services are increasing their sales and they also don’t need to waste their labor on these kinds of services. Moreover, these types of companies are working as intermediaries between the restaurant's consumers and it is benefiting a lot of people by its services. “Intermediaries once called ‘middlemen’ help to distribute goods, either by moving them or by providing information that stimulates their movement from sellers to customers”.
Weaknesses
Food delivery application has been introduced since late 2000 and has been successful to be in the business world. As the applications grow in the business world, it made a good and bad impact in the economy of Canada that affected the daily life of the Canadian citizens and the Canadian restaurant businesses. According to Mollie J. Jacques, she has stated that they had to use their own staff to deliver because the drivers fail to show up. And within the two and a half years she spent an hour on the phone to fix the problem on the customer service of Uber Eats. There are many other companies who don’t want to deliver their product by these online food delivery apps as they think that the restaurants shouldn’t trust these apps. Moreover, the biggest problem with these food deliveries is that sometimes customers don’t get satisfied with their services. Sometimes they get the wrong order from a delivery man, this is the reason they don’t want to get food through a third-party system and online food deliveries are responsible for the increase in traffic on the roads of Canada as food deliveries are totally depends on the transportation. Moreover, there are some food delivery services which are can only serve to one kind of user and as a result of this other people don’t get a chance to know about this kind of food. For example, Fantuan food delivery services only provide their services to the Chinese people, not all of them can use English well and this limited language among restaurants, customers and users. In addition to the bad effects of food delivery app, another disadvantage is that “food portals prevent you from getting in touch with your customers”. This means customers will not be able to experience the good services your restaurant is offering. thus, customers cannot experience the enjoyment and services of a restaurant meal. This makes a difficult to establish a connection between the restaurants and its customers.
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Opportunity
Modern technology also brings huge opportunity for Uber Eats and other food delivery companies “New technology helps Uber Eats to better meet their customer’s needs with new and improved products and services. Technology also builds competitive barriers against rivals”. Undoubtedly the working class is increasing world widely, more and more people caught in job creating such opportunity for companies like Uber Eats to grow fast. In the fact, Uber Eats have earned its market in the world stage, according to a research website “Uber Eats is now in 65 cities in North America, Europe, Asia, South America, Australia, and Africa. While that amount pales compared to acknowledged industry leader Grub Hub, with more than 1,100 locals in its fold, Uber Eats is coming on strong”. With the modern day's innovation of technology and the usage of cellphone more and more customers are joined into the tide of e-commerce and online shopping. An article shows that Uber Eats “allow customers to place orders a few days in advance; this would help in assessing the demand patterns for food from each restaurant”. Along with the expansion of the food delivery industry, Uber Eats is growing and trying to work on their delivery service. They are trying to improve the experience for customers, drivers, and restaurants which may get more restaurants to trust them with delivery and furthermore make them the dominant delivery service. There is lots of competition and only the companies with the best services will survive.
Threats
It is difficult to guarantee the customer's order during the delivery such as the food might getting cold and some orders might be missed. Also, many restaurants want to use the cheaper price to attract the customers, when they access this market. In order to compete with these restaurants, the others will offer some promotions. In this ‘price war’, it only benefits to consumers, and the businesses get burned or withdraw from the food delivery platform. It is not good for the long run. The customer ‘s reviewers as a guild help others to know about the restaurants and food. However, these reviews can be good or bad. A bad command can affect the restaurants on the food delivery apps, customers can see the good and bad reviews of the other customers who order in the same restaurant. Therefore, some business has a chance to write bad reviews in order to slander their competitors. “It's not profitable”, said page administrator Jacques, unless someone manages to make a product at an extremely low cost. Restaurants want their food delivered a specific way and some food delivery services don’t follow that way. It seems that many restaurants don’t trust these services and won’t partner with them. Some drivers don’t even show up and the restaurant has to deliver it themselves.
Conclusion
It is evitable that food services have a huge impact on Canadian restaurants. These food deliveries are getting very popular as a demand of the consumer and they are also very beneficial for the restaurants in many ways. People can enjoy a convenient lifestyle when they use food delivery apps. These can also increase the profit for both food delivery companies and restaurants. However, everything has two sides. While the companies earning money from these apps, they create a lot of problems to the restraints. First, they have to spend a long time on problem fixing. Second, they are losing chances to build up a connection with their customers. The last but not the least, the vicious completion among the restaurants cannot be ignored. To sum up, the food delivery is good for customers but not for the Canadian restaurant business.
Bibliography
- Cbc.ca. (2019). Battle of the Food Delivery Apps - Episodes - Marketplace. [online] Available at: https://www.cbc.ca/marketplace/episodes/2018-2019/battle-of-the-food-delivery-apps [Accessed 17 Mar. 2019].
- Tara Deschamps, “Uber Eats Team Opens Up About the Future of the Service in Canada”. The Canadian Press; Toronto, January 11, 2018, Canadian Business & Current Affairs Database. https://login.ezproxy.langara.bc.ca/login?url=https://search.proquest.com/docview/1685718655?accountid=37673
- Sagan, Aleksandra. “Why Restaurants Aren’t Happy with Food Delivery Apps”. The Canadian Press, November 4, 2018. https://www.ctvnews.ca/business/why-restaurants-aren-t-happy-with-food-delivery-apps-1.4162705
- Kate Krader, “Uber’s Secret Restaurant Empire”. Bloomberg Businessweek, no. 4590 (October): 71, https://login.ezproxy.langara.bc.ca/login?url=https://search-ebscohost-com.ezproxy.langara.bc.ca/login.aspx?direct=true&db=bth&AN=132649399&site=ehost-live&scope=site
- Juan C. Correa, Garzon Wilmer, Phillip Brooker, Gopal Sakarkar, Steven A. Carranza, Leidy Yunado, and Alejandro Rincón. (2019). “Evaluation of Collaborative Consumption of Food Delivery Services through Web Mining Techniques”. Journal of Retailing & Consumer Services 46 (January 2019): 45–50. https://login.ezproxy.langara.bc.ca/login?url=https://search-ebscohost-com.ezproxy.langara.bc.ca/login.aspx?direct=true&db=bth&AN=133320333&site=ehost-live&scope=site
- Statista. (2019). Online Food Delivery - Canada | Statista Market Forecast. https://www.statista.com/outlook/374/108/online-food-delivery/canada [Accessed 17 March 2019].
- CTV News (Nov 4, 2018). Aleksandra Sagan. The Canadian Press. https://www.ctvnews.ca/business/why-restaurants-aren-t-happy-with-food-delivery-apps-1.4162705 [Accessed 17 March 2019].
- Weiner, Allen. “Analysis: How UberEATS Continues to Compete in a Crowded Food Delivery Market”. The Spoon. February 17, 2017. Accessed March 18, 2019. https://thespoon.tech/analysis-how-ubereats-aims-to-compete-in-a-crowded-food-delivery-market/
- 'New Technology (UberEats)'. WikiWealth. Accessed March 18, 2019. http://www.wikiwealth.com/swot-opportunity:ubereats:new-technology
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