JEDDAH — The Internet is revolutionizing many industries bringing customers ever closer to their most loved brands. Finance, Retail, Fashion, and Food are a few examples – the latter certainly being the most eye-catching.
Over a billion dollars have been invested in this industry this year only, compared to a few dozen million only in 2012. That type of growth is not something that comes around too often. So what makes this business model so lucrative and appealing to investors?
The answer is pretty simple. Massive rise in Internet penetration, availability and affordability of smartphones and mobile Apps, coupled with consumers’ increasing demands to have their favorite meals from their favorite restaurants at their fingertips – all signal towards the huge opportunity and growth that this industry presents.
Online-food-ordering platforms present an innovation to the food and restaurant industry by using the power of technology to provide convenience to consumers. This allows consumers to get their favorite food from their favorite restaurants without experiencing the irritating phone rings, lengthy on-holds, or busy signals, eliminating frustration, and leaving no room for miscommunication.
The regional scene is even more intriguing. The Kingdom of Saudi Arabia represents a unique opportunity for unmatched growth of this platform. Its young population, increasing Internet and smart phone penetration, high disposable income, rising purchasing power and high food consumption are the perfect ingredients for the Kingdom to lead the way in online food ordering. While awareness is still low, however, the market presents a ripe ground for conversion to the online space, a move that certainly looks not far-fetched.
hellofood, the world-leading online food ordering platform, was quick to realize this potential and seize the opportunity. The company set up its Middle East operations in 2013, starting with Saudi Arabia as its focus market. Within two years, hellofood quickly expanded its operations to cover 13 cities across the Kingdom. Building on its international network and successful business model, hellofood today owns the largest portfolio of brands and restaurants, hence making it the fastest growing company in this industry.
In 2015, foodpanda group, hellofood’s global mother company, increased its focus on mobile, and released the next generation of its award-winning food ordering app. During the same year, the foodpanda app, recorded five million downloads, and was ranked as the number 1 app in the food and beverage category in at least 7 countries including Saudi Arabia, by both Android and Apple stores. Saudi Arabia was again among the top mobile using countries globally alongside Russia and Brazil, all with mobile order shares above 60%. In Saudi Arabia alone, the food orders made online via mobile apps account for over 90%.
The online food ordering industry is not going to become any smaller, but will continue to grow, to possibly become the fastest growing in the e-commerce arena. Saudi Arabia will certainly be at the forefront of this revolution, as online food delivery turns into a ‘norm’ rather than a differentiation. hellofood is committed to the Saudi market and will continue its aggressive growth by expanding into new cities, introducing new complimentary services as well as partnering with more and more food outlets to ensure it meets all consumers’ tastes.
hellofood is a two-sided marketplace connecting customers with their favorite restaurants. It helps restaurants to increase delivery sales through online and mobile platforms, and provides them with constantly evolving technology and analytics. Customers can choose their favorite meal online, and hellofood sends the order directly to the restaurant, which delivers the meal to the customer. hellofood also offers delivery logistics to provide an alternative service by controlling and optimizing the delivery process using proprietary tech solutions. This means less time and more efficiency, hence enriching the overall customer’s food experience. — SG
