HEADLINE China's food delivery market worth more than 200 billion yuan: consultancy

HEADLINE

China's food delivery market worth more than 200 billion yuan: consultancy

By Dong Feng | People's Daily app

21:22, January 26, 2018

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source: iiMedia Research 

The value of China’s food delivery market surpassed 200 billion yuan ($32 billion) in 2017, and is forecast to reach 243 billion yuan in 2018, according to market consultancy iiMedia Research.

Online takeaway platform Eleme is ranked as the top player in a report titled “China online catering delivery market research 2017-2018.”

The company’s market share reached 55.3 percent after it acquired competitor waimai.baidu in August 2017, with the merged group set to pursue a dual-brand strategy to target different markets.

The market size of China’s online catering takeaway has been growing rapidly, up 19.1 percent year-on-year in the fourth quarter of 2017, with a user base of more than 300 million. That means at least one in five people orders take-out food, a habit that has become part of the Chinese lifestyle.

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source: iiMedia Research 

Eleme's biggest competitor is Meituan Waimai, with a 41.3 percent market share.

Since the fourth quarter in 2017, Eleme has integrated Baidu Map, a popular mapping app in China, into its own smart scheduling system. Eleme has launched a pilot program for its new scheduling system in 30 cities. Both the on-time rate and user satisfaction have reached 99 percent, the research data showed.

With online food delivery becoming part of people’s daily life, the market has developed into a stable phase. Further development will focus on cultivating customer demand, delivery efficiency, user experience and food security, the market analysis said.

In terms of delivery efficiency, both Eleme and Meituan have been leveraging technological innovation to optimize their service.

Additionally, both platforms have rolled out online live broadcasts from kitchens, and consumers can learn about the status of their orders from their mobile phones, the news report said. 

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