Canada’s home to a ton of meal delivery apps – but not all see the light of another day.
Take Foodora for one.
The app-based food delivery company ceased its operation in Canada in early 2020. For one, they couldn’t compete in a highly competitive and saturated Canadian environment. As they feel— it is better to quit than pay the laborers a fair wage.
There are significant challenges in a competitive market. Ontario’s Supporting Local Restaurants Act, 2020 for instance, mandates that food delivery companies cannot charge more than 15% on their food delivery comission. B.C. capped the fees charged by food delivery companies to 15% as well.
Companies like DoorDash, Uber Eats, or SkipTheDishes face ongoing challenges with the new limitations. Their revenues tell the same story. Uber lost around $1.8 billion in 2018. DoorDash lost nearly $570 million in 2019.
But that doesn’t mean that new meal delivery services aren’t coming up. HelloFresh has been advertising in major Canadian cities for well over five years now.
The Food Delivery Industry in Canada
The food industry in Canada had started to grow before the pandemic. Te issue though was
nd conveniently has forced the food companies and restaurants to take high risks and new methods. But the excessive charges for the delivery services have raised worries in restaurant owners and operators.
According to Statistics Canada, during the first month of the pandemic’s lockdown, the food service sales in Canada dropped to CA$2.4 billion($1.81 billion).
The “Foodservice Facts 2020” report by Restaurants Canada says that the food service industry will not return to its normal state in 2022, yet. And while we presume that things will pick up by next year, there is certainly going to be a shift in consumer dynamics.
What’s Next for Canada’s Food Delivery Economy?
Third-party aggregators like SkipTheDishes, Uber Eats, and DoorDash, which are part of the new ‘convenience economy, have brought a massive change in the food service industry.
Uber Eats, for instance, continue to woo in users with regular 25% – 50% discounts on orders even for existing customers – but the question is, for how long?
Uber Eat’s urgency to capture more market share is well understood. More restaurants are joining third-party delivery services to boost their sales and expand their businesses. And so are their competitors – who today aren’t just other food ordering and delivery platforms.
Yes, Canada is also seeing the emergence of another kind of meal delivery services. While consumers continue to avoid dining-out and look forward to using food delivery services, the how and why of it is changing.
You don’t open up Uber Eats only when you want to dine out today. More people are looking at affordable monthly meal payment options. This includes pre-made meals, and meal kits that they can easily and conveniently make at home. For many, that’s the more affordable, quicker and healthier option.
The Rise of Meal Delivery Kits and Home Meal Delivery Services
Pre-pandemic, the delivery food service was around 4%, which grew to 8% of the entire food service industry. Undoubtedly a huge spike. And it was also true for the take-outs and drive-thru.
Depending on the order value, it could reach 30%. It’s why more provinces started restricting the fees food delivery companies could charge.
But the higher fees aren’t a problem for meal delivery kits and home meal delivery services. While Instacart, for instance, still charges fees, they are considerably lower.
More companies are also opening cloud kitchens, and starting their own home meal delivery service. Think Tiffin Box By Silk in Vancouver or Yumba in Toronto. Both offer premade meals and you can subscribe to a monthly meal option. So, instead of having to go to Uber Eats each time, and browse through what you want to order, you could just get a meal plan that’s more suited for you.
Plus, most of the times, they are cheaper too.
Top Food Delivery Service Trends in Canada for the Next Ten Years
- Restaurants and food delivery companies will aim to develop more customer-centric marketing strategies.
- Rise of more affordable meal delivery kits and meal delivery services that lead to more customer options.
- Optimizing proper resource management methods that can reduce operating costs and enhance customer satisfaction by boosting efficiency.
- More partnerships, and maybe closure and bankruptcy of well-known names.
- Develop customer friendliness, support, and a high level of responsiveness – as these can lead to higher customer loyalty.
Finding the Best Meal Kit delivery services in Canada
In a world where people look at food delivery services as a way of life, you need meal kit delivery services that resonate with a healthier lifestyle.
When subscribing for a meal kit delivery service, you need to look at the nutrition on offer, and the price point. Check out detailed meal kit reviews before finalizing on what you want. Some meal kit delivery options, for instance, are priced way higher than what you are getting in return. And some just don’t have the healthy options you’re looking for.Why Try Out Rocket.net - IcyCanada's recommended hosting provider