Insights on The Food Delivery Business South Africa

The food delivery industry in South Africa has experienced significant growth in recent years. With the increasing availability and convenience of food delivery apps, more and more consumers are opting to have their meals and groceries delivered to their doorstep. This consumer insights article aims to provide valuable factors into the motivations, needs, and preferences of food delivery users in South Africa. By analysing data gathered from the YourView research survey, we will explore factors that influence the decision to use food delivery services.

Factors Influencing the Decision to Use Food Delivery Services

1.  Convenience – 20.5%

One of the primary factors that influence consumers’ decision to use food delivery services in South Africa is convenience. Time-saving benefits are highly valued by customers, with 20.5% of respondents indicating that convenience is a key factor. With busy lifestyles, long working hours, and various commitments, consumers often opt for food delivery as it eliminates the need to cook and saves them valuable time. The ability to order food with just a few taps on a smartphone is a significant convenience factor that attracts users to food delivery services.

2.  Busy Schedule – 15.4%

15.4% of respondents stated that they order food delivery when they don’t have time to cook. As South Africans juggle multiple responsibilities, such as work, family, and social commitments, finding time to cook a meal can be challenging. Food delivery services provide a convenient solution, offering a wide range of restaurant options without the need for extensive meal preparation. The ability to have food delivered directly to their doorstep saves consumers time and effort, making it an attractive option for those with a busy schedule.

3.  Price – 14.5%

Competitive pricing and deals play a significant role in attracting South African consumers to food delivery services. 14.5% of respondents indicated that price influences their decision to use food delivery. Consumers are increasingly seeking value for money, and food delivery services often offer discounts, promotions, and loyalty programs that make eating out more affordable. In a price-sensitive market, the availability of cost-effective options can be a deciding factor for many consumers.

4.  Variety – 12%

South Africans appreciate a wider range of restaurant options available for delivery, with 12% of respondents stating that variety influences their decision to use food delivery services. Food delivery apps offer a diverse selection of cuisines, allowing consumers to explore different culinary experiences without leaving their homes. This variety is particularly appealing for those who enjoy trying new foods and flavours, as well as those who have specific dietary preferences or restrictions.

5.  Speed – 8.9%

For some consumers, quick delivery times are a critical factor in their decision to use food delivery services. 8.9% of respondents stated that speed plays a role in their choice. In a fast-paced society, where instant gratification is highly valued, prompt delivery can significantly enhance customer satisfaction. Food delivery services that prioritise speed and accuracy in their operations are more likely to attract and retain customers.

Industry Insights

Checkers’ Xtra Savings Plus Subscription Service

To cater to the evolving needs of South African consumers, Checkers, a prominent player in the food delivery business, recently launched the Xtra Savings Plus subscription service. Combining the best of the Xtra Savings rewards program with the convenience of their Sixty60 delivery service, Xtra Savings Plus offers customers numerous benefits and incentives to enhance their food delivery experience.

Subscribers of Xtra Savings Plus receive unlimited free Sixty60 deliveries when they spend a minimum of R350. In addition to this, they also enjoy a 10% discount on in-store purchases, with savings of up to R200. The subscription comes with double personalised offers, both in-app and in-store, providing customers with targeted discounts and promotions tailored to their preferences. Notably, Xtra Savings Plus offers flexibility, allowing subscribers to pause or cancel their subscription at any time, making it a hassle-free option for users.

Neil Schreuder, Chief of Strategy at Checkers, emphasised the company’s commitment to saving customers money and making their daily lives effortless. By integrating the benefits of Xtra Savings Plus with Sixty60’s seamless convenience, Checkers aims to provide its loyal customers with excellent value, not only for their food deliveries but also for their in-store purchases.

Pick n Pay’s On-Demand Delivery App Relaunch

Another key player in the South African food delivery market, Pick n Pay, has relaunched its on-demand delivery app with an enticing offer of a month of free delivery, even without a subscription. This relaunch demonstrates Pick n Pay’s commitment to meeting the changing needs and preferences of their customers. The app allows users to conveniently order groceries and other essentials for delivery, ensuring a seamless shopping experience.

By offering a month of free delivery, Pick n Pay aims to attract new users and provide a taste of the convenience and efficiency of their delivery service. This initiative is aligned with the growing demand for on-demand solutions, offering customers the flexibility to receive their groceries and essentials at their doorstep, saving time and effort.

Conclusion

In conclusion, the food delivery business in South Africa continues to evolve as consumers seek convenience, time-saving solutions, competitive pricing, variety, and speedy delivery. 

Understanding these factors is crucial for businesses within the industry to effectively meet the needs and preferences of their customers. The launch of Checkers’ Xtra Savings Plus subscription service and Pick n Pay’s relaunch of their on-demand delivery app demonstrate the efforts made by key players in the market to enhance the customer experience and offer greater value. 

By leveraging insights from consumer research and industry developments, food delivery businesses can shape their strategies to meet the evolving demands of South African consumers, ultimately driving growth and success in the ever-expanding food delivery industry.