Explosive Growth in On-Demand Logistics Market: Over 450 Mn Deliveries in 2021 Driven by On-Demand Food, Grocery Delivery, and Last Mile Services: What Does the Future Hold? Ken Research

ByVijay Kumar

Higher Order Frequency, Multi-Vendor Business Model and Adoption of EV are few of the growth driver for the market, says a report by Ken Research.

1. The Growth of On-Demand Food Delivery in the Philippines: Empowered by a Young Working Population, Accessible Internet, and Seamless Transactions

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  • Internet penetration in rural and urban areas of the Philippines is projected to grow at a CAGR of +5.0% from 2021-2026.
  • Major food tech players are expanding aggressively in over 120 cities in the Philippines, capitalizing on an improved network of restaurants to drive growth in new areas.
  • The E-commerce market now encompasses a wide range of products and services. E-commerce players have made significant investments in supply chain and last-mile logistics to ensure faster and better fulfillment, including same-day delivery.
  • Ordering frequency is expected to increase by 40-45%, with more users transitioning from occasion-based ordering to habitual ordering on a regular basis.

2. Multi-Vendor Business Model: Empowering Sellers with Technical Infrastructure and Delivering Competitive Pricing and Discounts to Customers on E-commerce Platforms

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  • Multi-vendor stores provide the technical infrastructure for sellers to list and sell a wide range of products, enabling them to manage their virtual storefronts effectively.
  • The multi-seller business model, also known as the ‘zero inventory model,’ does not require platform owners to maintain their own product inventory.
  • Multivendor stores offer significant opportunities for manufacturers, wholesalers, brands, and retailers to increase sales and profits.

3. Leading the Charge: Lalamove, DingDong, and Mober Pave the Way for EV Adoption, Reducing Carbon Emissions in the Philippines

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EV adoption can only be done in partnership with technology enablers such as route optimizers, smart chargers and vehicle analytics. Fleets can also explore platforms to operate on blended models: deliveries and ride-hailing enabling further utilization of assets and managing the cost. Also, Mober has reaffirmed its commitment to reducing carbon emissions by securing a mixed fleet of 100 electric vans and trucks by 2030.