Foodora closes, Uber Eats expands: The state of online food delivery startups in the Netherlands right now

Foodora closes, Uber Eats expands: The state of online food delivery startups in the Netherlands right now

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In the past few years, food delivery and takeaways services have gained traction in a larger part of the globe, due to the internet and smartphone penetration. The earnest desire to quickly order food from a wide array of restaurants with a single tap easily fits the hectic lifestyle of current millennials as well.

Foodora halts operation in the Netherlands

In a recent development, meal delivery service Foodora is reportedly ceasing its operation in the Netherlands since its parent company Delivery Hero couldn’t find a buyer. Earlier this month, the company also announced that it wanted to sell off its operations in places like Italy, France, Australia and the Netherlands, in order to focus mainly on their leading markets.

Uber Eats confirms expansion!

However, on the other hand, digital ordering heavyweight Uber Eats has confirmed its expansion to Groningen and Haarlem later this year. According to the company’s data analysis, there seems to be a plenty of interest in the on-demand meal service around the area, which in turn made them start their operations within the regions and to step outside the Randstad for the first time.

On top of that, the company is working with iDEAL for the payment option and will be available to all users in the Netherlands by the end of next week. It’s worth mentioning that, the company service is already available in Amsterdam, Amstelveen, Utrecht, The Hague, and Rotterdam.

Thuisbezorgd.nl, a monopoly?

In the world of food delivery business, the companies seem to do anything and everything to gain market share from each other. At present, Thuisbezorgd.nl, a part of Takeaway.com holds the throne certainly, with well-connected restaurants and the most significant number of orders. While the company got criticized for charging higher commission from 12 to 13 percent, almost everything restaurants received a digital platform in exchange, though.

Some more startups trying to gain market share

Last year, in a strategic move, Takeaway.com acquired JUST EAT’s Benelux businesses for €22.5 million in an attempt to further solidify its position. A recent research report published by McKinsey revealed that around 75 to 80 percent of the consumers never switch from delivery service.

Underdogs!

In an almost monopolistic market, the third-party online ordering services such as Hungry.nl and Deliveroo have also established a growing presence in the premium food niche market. Both Hungry and Deliveroo together contributed just around 43 million euros on restaurant orders in 2017. However, the companies have to figure out something innovative to fight it out and capture the market share.

iShipit – a unique parcel delivery service

Apart from the usual meal delivery services, there exists a unique parcel delivery service named ishipit. Programmed and developed in Kaunas, iShipit is currently being tested in Bussum, a Dutch city with a population of around 30 thousand people. Available in both Android and iOS, this platform is being used for food delivery as well. The app is integrated to the third party services, such as Post.nl, which allows checking the address, with Google Maps, with Dutch online payment system OBP and others.

Food wastage prevention!

The Thuisafgehaald.nl is another notable online platform service founded by Marieke Hart from Utrecht. Unlike usual meal delivery services, the thuisafgehaald.nl works bit differently, where the supplier can fill in the details of their homemade meal on the website along with the description of the ingredients, the cost and time period in which hungry people can come to collect the meal. At this point the primary focus is not on the profit or market share but the whole series of social trends such as the prevention of food waste and the more conscious handling of food.

Tough road ahead!

The market for online ordering is huge and expected to record consistent growth rates over the period due to several factors, thanks to smartphone and Internet penetration. Across the globe, the market for food delivery stands at €83 billion, where 4 percent of the foods sold through restaurants and fast-food chains. While the experts believes massive growth lies ahead for the food delivery players, it’s upon them now to rise against the challenge and live up to the expectation.

Stay tuned to Silicon Canals for more updates in the tech startup world.

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