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SINGAPORE: The entry of a heavyweight player like Grab has turned up the heat in the local food delivery scene and some observers expect a tussle for market share to whip up a potential price war here. It replaces UberEats, which the ride-hailing giant had acquired when it and will go head-to-head with a slew of food delivery apps. Among them include foodpanda and Deliveroo, which entered Singapore in 2012 and 2016, respectively. Food and beverage vendors will be eager to come on board given the established set-up … Additionally, in terms of technological advantages, Grab has its own expertise on top of that from the merger with UberEats. Channel NewsAsia - Sentifi topic widget Price will likely be the first battleground for the eager new player aiming for a slice of the market pie and incumbents defending their turfs, experts told Channel NewsAsia. This boils down to how price-sensitive customers are and the low switching costs involved. File photo of a GrabFood delivery. Photo: Grab Other food delivery players also seem to be gearing up to compete on price. MORE THAN JUST PRICE But market observers were quick to add that while a competition on price could take place in the near term, it would unlikely be sustained as it is a costly undertaking that will ultimately be detrimental to all. Besides, players in the local market still have work to do when it comes to improving efficiency and profitability through the scale of their operations. Food delivery players that Channel NewsAsia spoke to clearly understood that. The oldest player in the food delivery market here said it has signed up more delivery riders and merchants in recent months, as well as replaced UberEats in a rewards programme of e-commerce platform Lazada. Its growth plans also include opening a. Food delivery companies foodpanda left and Deliveroo. Photos: foodpanda, Tang See Kit For Deliveroo, while current priorities in Singapore remain on growth, profitability is equally important. To do so, Deliveroo has invested in technology with the launch of a new business intelligence unit and set up delivery-only central kitchens here. While Grab declined to reveal the exact number of restaurants it is partnering, it said a majority were from UberEats. As the battle for food-delivery supremacy plays out, experts said smaller players may lose out and face consolidation. Founded last year, the start-up focuses on delivering hawker food and targets workers at various industrial and business parks in the West. For restaurants, the myriad of food delivery apps has been a boost to sales and brand visibility, with most preferring to team up with several platforms. Bismillah Biryani Restaurant, for instance, is available on at least five, including GrabFood. Despite that, the restauranteur said she will be watching the competition in the online food delivery scene closely. That would be the worst-case scenario for all of us.
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