Why is the exclusively food delivery business booming so much in China, but firms like Grab and Uber only have a small fraction of their earnings coming from this division? - Seedly
 

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Asked by Anonymous

Asked on 18 Apr 2019

Why is the exclusively food delivery business booming so much in China, but firms like Grab and Uber only have a small fraction of their earnings coming from this division?

Do you think this might perhaps be due to cultural difference?

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 21 Apr 2019

The size of the country makes a difference. If people have to travel 20 mins to buy food in China then it makes more sense to order delivery

In Singapore you can mostly likely walk downstairs to the hawker center or coffee shop for food and be back home in 15 mins

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Winnie Ong
Winnie Ong, Co-founder at Craft & Culture Singapore
Level 2. Rookie
Answered on 07 May 2019

Not limited to China, but I’ve used Grab and GOJEK food in Indonesia and it’s a booming chunk of their business, mainly as the fees involved are low and the workforce affordable.

In Singapore, not only are the menu items inflated (about 1.2-2x), we have additional surcharges for takeaway packaging, low order fees etc for ala carte orders. It’s no wonder singaporeans would rather drive/walk to get their chow.

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