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Food delivery companies are pouring more and more money into technology to stay ahead of the curve, with location technology being a key investment area.
Fremont, CA: Food delivery services have come a long way, and as customers' literal demand for instant gratification has increased, so has the sophistication and variety of food delivery services— 86 percent of consumers now order in, monthly, and the takeaway delivery market in the UK has doubled from £2.4 billion (US$3.14 billion) to £4.2 billion (US$5.5 billion) in 2018, reflecting a 73 percent rise.
This abundance of choice is great for consumers, but it means fierce competition for those in the industry. As a result, food delivery companies are pouring more and more money into technology to stay ahead of the curve, with location technology being a key investment area.
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Technology advancements
A bulk of ride-hailing and food-delivery companies depend on GPS technology to find routes and points of interest, and this well-established technology is still improving.
The Australian government, for example, has begun a US$12 million project to improve Precise Point Positioning (PPP) using a Satellite-Based Augmentation System (SBAS) and extend GNSS positioning.
Cost-effectiveness
For positioning and location recognition, location technology relies on data transmission from different sources. Food distribution companies are relying on location technology to improve efficiency and profits. To plot distribution routes efficiently, location technologies can combine real-time road data and granular map information.
Food delivery staff may use this data to refine their routes, delivering in the shortest time possible and increasing precision at drop-off and pick-up points. Reduced time for each successful execution is a favorable outcome in an industry that calculates profitability per unit of time.
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