Online food delivery has been around as an option in Taiwan for some time. Ordering from our favorite restaurants for delivery or takeaway is easy with service from a number of mobile apps. It is so easy and convenient that it has fundamentally changed consumer behavior and the regular habits of people.
The global food delivery market has experienced strong growth with experts projecting it to continue. The global food delivery industry is forecasted to grow to US$200 billion by 2025. The Taiwan food delivery market, which is a top market for international food delivery players foodpanda and Uber Eats, is expected to generate US$1 billion annually and already does close to 600,000 orders per day.
Taiwan’s economy has been growing steadily in the past three decades, providing key macroeconomic stability and growth for increased consumption. Urbanization and the shift from an agrarian to industrial society means that people are moving to and living in cities, creating both supply of labor and demand for food services. With hectic schedules, most people who live in cities don’t have enough time to cook food and opt to order their favorite foods from food delivery platforms.
Wide use of the internet and fast adoption of smartphones are key contributors to this growing food delivery trend. Internet penetration in Taiwan stood at 86% in January 2020, with 20.51 million internet users. There were 28.43 million mobile connections in Taiwan, and the number of mobile connections in Taiwan in January 2020 was equivalent to 119% of the total population. Taiwan also has the highest proportion of e-commerce shoppers in Asia at 67%, as well as the region’s highest average revenue per e-commerce user. This connectivity and growing consumer preference for e-commerce transactions have led to growing opportunities for food delivery platforms to be connected with consumers and restaurants.
It is important to note that COVID-19 has also made a sizable impact on food delivery in the past two years. The pandemic shuttered countless restaurants and significantly reduced dine-in business for those that were able to survive. Inversely, consumers are relying more on food delivery then ever, with food delivery app downloads registering 3x growth in Q2 2020 alone. The majority of this growth is forecasted to be lasting, as the pandemic has further shifted fundamental consumer behavior with regards to online food delivery on a more permanent basis.
About 3 SQUARE
3 SQUARE provides tech-enabled, turnkey solutions that are both sustainable and profitable by maximizing utilization and revenue per square foot of kitchen spaces to create great tasting food.
3 SQUARE is creating an ecosystem of support for people’s passion in food, technology and business. We provide an infrastructure and build a network of solutions where we are able to share and pool resources, learn from one another and grow together. From our digital food hall network to our virtual restaurant brands, 3 SQUARE is dedicated to offering services for success and profitability so our partners not only survive, but thrive in the ultra-competitive F&B industry.