Understanding the rise of food delivery services in South Africa – KLA consumer insights

The food delivery industry in South Africa is experiencing unprecedented growth, driven by the increasing prevalence and convenience of food delivery apps. Consumers are embracing the ease of having meals and groceries delivered to their doorstep, leading to a surge in the popularity of food delivery services. In an effort to shed light on the motivations, needs, and preferences of South African food delivery users, this consumer insights article presents key findings from the YourView research survey.

Factors influencing the decision to use food delivery services

1. Convenience takes the lead (20,5%)

A total of 20.5% of respondents highlight convenience as the primary factor influencing their decision to use food delivery services. In a fast-paced society, time-saving benefits are highly valued, and the ability to order food with just a few taps on a smartphone is a significant draw for users.

2. Managing a busy schedule (15,4%)

For 15.4% of respondents, the decision to use food delivery is driven by the challenge of managing a busy schedule. With multiple responsibilities, including work, family, and social commitments, finding time to cook becomes a hurdle that food delivery services conveniently overcome.

3. Attractive pricing (14.5%)

Competitive pricing and deals influence the decision for 14.5% of respondents. In a price-sensitive market, discounts, promotions, and loyalty programmes offered by food delivery services make eating out more affordable and appealing to consumers seeking value for money.

4. Craving variety (12%)

Variety is a significant factor for 12% of respondents, who appreciate the diverse range of restaurant options available for delivery. Food delivery apps cater to different culinary preferences, allowing consumers to explore new tastes without leaving their homes.

5. Need for speed (8.9%)

Quick delivery times matter for 8.9% of respondents, highlighting the importance of prompt service in a fast-paced society. Food delivery services that prioritise speed and accuracy stand out in attracting and retaining customers.

Industry insights

Checkers’ Xtra Savings Plus subscription Service

In response to evolving consumer needs, Checkers has launched the Xtra Savings Plus subscription service, combining the best of the Xtra Savings rewards programme with the convenience of their Sixty60 delivery service. Subscribers enjoy unlimited free Sixty60 deliveries, a 10% in-store discount, and double personalised offers. Neil Schreuder, chief of strategy at Checkers, emphasised the company's commitment to providing excellent value for both food deliveries and in-store purchases.

Pick n Pay’s On-Demand delivery app relaunch

Pick n Pay has relaunched its on-demand delivery app, offering a month of free delivery without a subscription. This move aligns with the growing demand for on-demand solutions, providing customers with a taste of the convenience and efficiency of their delivery service.

Conclusion

The South African food delivery industry continues to evolve as consumers prioritise convenience, time-saving solutions, competitive pricing, variety, and speedy delivery. Key players such as Checkers and Pick n Pay are actively responding to these trends, demonstrating a commitment to enhancing the customer experience and offering greater value. By leveraging insights from consumer research, businesses can tailor their strategies to meet the evolving demands of South African consumers, ensuring sustained growth and success in this dynamic industry. For more information, visit www.kla.co.za.