LogiNext reports enrolment in grocery delivery subscriptions up 55% in 2021
New York, USA, Dubai, and Singapore – August 18, 2021
- The global online food delivery services market is expected to grow from $115.07 billion in 2020 to $126.91 billion in 2021
- Total enrollment in all types of subscription programs surged 30-55% since March 2020 depending on category and region
- More than 40% of customers are interested in food subscription services from their favorite restaurant
Subscription models have been in vogue across industries in the past few years. Be it software subscription or food & grocery delivery subscription, the pandemic has dramatically shifted consumer behavior. LogiNext, a global delivery management software firm that works with some of the largest F&B retailers and QSR chains has reported a surge in all types of end customer subscription programs by 45-55% since March 2020. A survey conducted among consumers of 100+ enterprises across 20 countries in the Americas, APAC, MENA and Europe also suggested that more than 40% of consumers are interested in subscription offers from their favorite brands.
|Rise in Subscription (April 20- April 21)||Grocery||F&B/Meal kits|
Working with major chains and outlets like Starbucks, Burger King, KFC, and McDonald’s, LogiNext has been helping brands undergo a digital transformation journey and improve the end customer experience. Ever since the pandemic struck, online deliveries have helped keep people home and safe. Buying behavior has shifted majorly towards buying online as eCommerce accelerated 5-7 years. One of the major trends within this rise has been the acceptance and growth of subscription services. “A lot of our clients in the Retail and F&B industries introduced subscription programs for groceries and meal kits with the LogiNext MILE platform and we’ve seen a great response from customers. These programs bring convenience and savings for the customer and help brands get assured business and customer loyalty,” says Dhruvil Sanghvi, Chief Executive Officer, LogiNext.
Overall, the global online food delivery services market is expected to grow from $115.07 billion in 2020 to $126.91 billion in 2021. The market is expected to reach $192.16 billion in 2025 at a CAGR of 11%. “From the millions of orders that LogiNext MILE platform handles every month, about 10% are subscription orders which are automated on the platform. This number has almost doubled since the pandemic and is expected to rise further owing to the convenience of the subscription model,” says Dinesh Dixit, VP of Client Excellence at LogiNext.
Subscriptions have been an age-old model across the world in different ways but they came back to the fore after the pandemic. A lot of people signed up for subscriptions from their favorite restaurants to keep them going and signing up for grocery items that one uses regularly is a no-brainer. Subscriptions help consumers save on money and time and helps a brand retain customers and assured cash flow. As we move ahead, LogiNext is working with brands to come up with innovative subscription models with the help of a modern user experience to help serve the end customer better.
About LogiNext: LogiNext is a global technology company that offers a SaaS Transportation Automation Platform for delivery management. The company helps brands across QSR, CEP, eCommerce & Retail and Transportation to digitize, optimize and automate deliveries. Growing at an average rate of 100% YoY, LogiNext is headquartered in New York and has 200+ enterprise clients in 50+ countries. The company is backed with $50 million across three rounds of private equity investments by Alibaba-funded companies, Tiger Global Management, and Steadview Capital and has regional offices in Dubai, Mumbai, Delhi, Kuala Lumpur, and Jakarta.