Affordability and convenience drive demand for deliveries says JumiaDecember 3, 2019
NAIROBI, Kenya Dec 3 – E-commerce platform Jumia says demand for the delivery of food and other on-demand products has grown significantly in Kenya bolstering growth in food and accommodation services by 10.6% which has outpaced the GDP growth at 5.6%.
Speaking during the launch of the Jumia Food Index Managing Director Sheernal Ruparelia said demand services have been driven by affordability, convenience and availability.
“Consumers have grown to value convenience and they are willing to spend a little bit extra to save time and effort,” she explained.
Ruparelia urged restaurants to take advantage of the growing demand, ” Virtual kitchen is increasingly a popular operating model for restaurants to take advantage of a growing demand for convenience and manage their costs.”
The report says that in 2019, Kenyans preferred Chicken as the most popular cuisine for delivery closely followed by Pizza and Burgers.
Jumia Food says it expects the growth in on-demand deliveries to accelerate by over 50% in 2020 projecting strong growth in on-demand deliveries of non-restaurant items like groceries, pharmacy products, alcohol and other on demand categories such as cosmetics, gifts and flowers
“This is of more affordable items on offer, availability of popular vendors, increased mobile penetration and a growing awareness of the convenience delivery offers,” said Ruparelia adding that “as a result we expect availability of lower priced items on the menu to increase.”
Ruparelia stated that for the company to achieve the 50 per cent they will need sell the convenience tab, decrease cost of delivery as well as availability of cheaper alternatives.
“Taste profiles are different between the main cities in Kenya that have been introduced to the online delivery service said Ruparelia, “In Nairobi Chicken, Pizza and Burger are the most popular items, Mombasa customers prefer Continental cuisine followed by chicken and pizza while Nakuru is special because we’ve seen a relative popularity of Chinese Food.”
The Junia report says restaurants are increasingly offering meals with lower price categories (below Sh300) with breakfast and lunch gaining popularity as delivery meals but dinner is still the most popular meal representing over 50% of all orders.
According to Jacques Theunissen Chief Operating Officer at Kuku Foods East Africa (KFC), “Local marketers are likely to have more innovation that will impact the Kenyan Food scene in the next 3-5 years.”
“I am sure that International brands will continue to enter the Kenyan market, but I truly believe the biggest innovations will come from local Kenyan brands” he said in a statement.
Theunissen pointed out that ordering platforms continue to evolve from the normal app/website/telephone ordering to multiple platform ordering through chatbots, Whatsapp with a big focus on not needing data to place orders or space on smartphones to install additional apps.