Energy News  
FARM NEWS
App delivery boom shakes up China food sector
By Albee ZHANG, Dan Martin
Shanghai (AFP) Feb 14, 2018

Guo Bonan has opened several new branches of his "8Peppers" spicy Sichuan-style restaurants across Shanghai since last year, and not one has a dining room.

He doesn't need them -- stationed outside each outlet are packs of food deliverymen on motorbikes waiting to whisk dishes from Guo's steaming kitchens to homes, office buildings and factories across the city of 24 million.

China's app-based meal-delivery boom of the past two years has introduced several now-familiar phenomena: families and office workers huddling around mobile phones to place orders, delivery scooters scattering pedestrians on crowded sidewalks, and mountains of empty plastic meal containers.

But it's also fuelling wider change by shrinking restaurants and reducing how often families cook at home while allowing millions to fry up meals in their own home kitchens and ship them to hungry buyers.

"In a rapidly developing city like Shanghai, time is money. So people don't want to spend it cooking for themselves anymore," said Guo, 29, adding that many younger people like him are no longer learning how to cook.

"8Peppers" focuses purely on delivery through leading platforms like Ele.me and Meituan, avoiding the expense of paying waiters and maintaining a dining space.

Business is good. "8Peppers" now has 10 branches and Guo is a partner in a separate kitchen-only project with eight outlets and hundreds more planned nationally.

Passionate about food, Chinese are also eager adopters of e-commerce, a potent combination for delivery start-ups.

More than 200 billion yuan ($32 billion) worth of meals were delivered in 2017, equalling Bolivia's gross domestic product, a figure expected to grow another 20 percent this year, consultancy iiMedia Research said.

Users of meal-ordering platforms tripled in two years to 343 million in 2017, the China Internet Network Information Center said, the vast majority using mobile apps.

- 'Convenience and efficiency' -

The delivery cost of a few yuan is no deterrent as Chinese incomes rise, said Zhang Xuhao, Ele.me's founder and CEO.

"Price is not so important anymore. Convenience and efficiency get the most attention, especially among Chinese born in the 90s or 2000s," Zhang told AFP.

Ele.me is now working on user-data systems that can help restaurateurs determine where to open for maximum sales, and testing delivery drones.

With its massive and growing cities, "China's potential is extremely large", Zhang said.

The industry is another proxy battle between e-commerce heavyweight Alibaba and gaming and social media rival Tencent in their struggle for tech dominance in everything from online games to content and mobile payments.

Alibaba is an Ele.me backer while Tencent is heavily invested in Meituan.

Delivery platforms have raised billions in venture capital and are said to be burning cash via discounts to grab market share, with growth rates expected to slow.

But the industry impact will deepen, say analysts.

"It will change restaurant design. Kitchen space only used to be one-fourth of a restaurant. But restaurants are now becoming something like processing centres for delivery," said Wang Yuke of real estate consultancy RET.

Su Xiaosu struggled after migrating several years ago from rural Jiangsu province to Shanghai, where she married.

But in 2016, she joined fast-growing platform Hui Jia Chi Fan ("Go home to eat"), which plugs home kitchens into delivery networks and is now in six cities.

Su, 34, now grosses up to 3,000 yuan ($475) per day, an eye-popping take for most Chinese, by frying up Jiangsu specialties in her tiny home kitchen and handing them to blue-clad Ele.me deliverymen in her apartment stairwell.

She can now afford a foreign tutor for her young daughter and has plans to buy an apartment, once only a dream.

"My biggest concern is upsetting my neighbours. There are crowds of deliverymen during peak hours and some elderly neighbours sleep early," Su said.

- Food fight -

Not everyone is happy.

Besides delivery waste that has taxed municipal authorities, tens of thousands of accidents were blamed on notoriously risk-taking deliverymen in 2017, including scores of deaths, prompting new government safety guidelines.

And supermarket sales are "depressed" as meal deliveries reduce grocery demand, said Bruno Lannes, a partner with consultancy Bain & Company.

"It's now so easy to get food delivered at home, in the office or anywhere within 30 minutes, and in a variety that you can't get at home," Lannes said.

"People just aren't cooking at home anymore."

Even perennially strong sales of instant noodles dropped three straight years from 2013 to 2016 as food delivery took off, according to state media.

Supermarkets have rushed to offer delivery, and Alibaba in 2015 launched a new grocery chain with online ordering and delivery.

Alibaba and others also have launched initiatives to connect suddenly vulnerable mom-and-pop stores to delivery networks.

"That's the future. Some of these new apps will help mom-and-pop stores survive," said Lannes.


Related Links
Farming Today - Suppliers and Technology


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


FARM NEWS
Bordeaux's 'magnificent' lost vintage pushes small growers to the edge
Barsac, France (AFP) Feb 10, 2018
Surveying a nearly empty cellar, Frederic Nivelle of Bordeaux's prestigious Chateau Climens, reflects on what might have been an outstanding year for the sweet white Sauternes wine. "We have nine batches which are satisfactory but not enough to produce a Climens," Nivelle says of the 2017 harvest. "It's a shame, it had a nice potential." It will be the first time since 1993 the estate has missed the annual vintage for its top drop, first awarded the Grand Cru classification in 1855. Wit ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

FARM NEWS
ESA Cluster mission unveils the magnetosphere

Micro to macro mapping - Observing past landscapes via remote-sensing

Landsat 8 marks five years in orbit

Chinese company hitches space ride on UK satellite

FARM NEWS
Europe claims 100 million users for Galileo satnav system

Airbus selected by ESA for EGNOS V3 program

Pentagon probes fitness-app use after map shows sensitive sites

China sends twin BeiDou-3 navigation satellites into space

FARM NEWS
Climate: Two Congos set joint approach for peatland help

FSU researchers: Savanna fires pump Central African forests full of nitrogen

Increased UV from ozone depletion sterilizes trees

Cambodian soldier detained after forest patrol deaths

FARM NEWS
Calculating the CO2 emissions of biofuels is not enough

Bio-renewable process could help 'green' plastic

To maximize sugarcane harvesting, use the right blade

The making of biorelevant nanomaterials

FARM NEWS
Smart new method to manufacture organic solar cells

China's Solar-Powered Drone Test-Fires Missiles in Near Space

Cost-reduction roadmap outlines two pathways to meet DOE residential solar cost target for 2030

Researchers discover new lead-free perovskite material for solar cells

FARM NEWS
Ireland pushing for greener economy

China wind turbine-maker guilty of stealing US trade secrets

Scotland sets up $83 million low-carbon fund

German offshore wind farm closer to powering mainland

FARM NEWS
Australia won't fund mega Adani mine rail link

New York unveils plans for fossil fuel divestment

French energy company EDF to replace coal in China

Poland opens Europe's largest coal-fired power unit

FARM NEWS
Mercedes apologises to China after quoting Dalai Lama

Publisher detained in China 'confesses', blames Sweden

'Gotta find a way': Chinese rap in crisis after crackdown

Hong Kong schools shut over deadly flu outbreak









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.