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Satyendra Pathak
Food and beverage suppliers across the GCC region have seen significant growth in their online businesses and delivery portals because of COVID-19 related social distancing and stay-at-home restrictions, ValuStrat has said in a report released on Wednesday.
According to the report entitled ‘Positive Impact of COVID-19’, the recent pandemic led boom in online food deliveries in Qatar has increased competition amongst market players.
The report said that the food-delivery market in Qatar was valued at $185 million in 2020.
As a result, the report said, the market was positively reinforced with shorter turnaround times, better customer care and complete substitution of dine-in with online deliveries. As consumers gained confidence in shopping over the internet, online food ordering has followed as an organic next step.
“Online ordering offers convenience and time-saving benefits which are especially favoured by Generation-Z because of their hectic and on the go lifestyle, leading to the growing popularity of the online food ordering and delivery market in the GCC,” the report said.
“On the supply side of the online food ordering industry, cloud kitchen is a fast-evolving segment. However, there are concerns about oversupply in developed markets because of the entrance of several players in recent times,” it said.
Given the entry of many new firms into the market, the report said, “Going forward we see some consolidation through mergers and acquisitions.”
“We also predict further disruption in the business model of online delivery as the current framework banks on sky-high commissions that is not sustainable. Blockchain technologies have the potential to re-disrupt the market offering with reduced ‘cost to serve’ for F&B outlets,” the report said.
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