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Industry veterans expect the competition to intensify between foodpanda and Keeta, the two remaining major food delivery platforms in Hong Kong, following rival company Deliveroo’s exit from the city, but there will not be significant changes in prices.
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Speaking on a radio program on Tuesday, Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, blamed the shrinking market for food delivery service after Covid-19 partly for Deliveroo’s pullout.
“Businesses from food delivery platforms dropped from over 30 percent during the pandemic to possibly at 12 percent. This share represents only HK$12 billion to HK$15 billion out of the total HK$100 billion annual catering business revenue in Hong Kong last year.”
Another factor was Meituan’s Keeta entering the market in 2023, Wong said. He said the company uses a low-cost strategy to compete with rivals, such as providing numerous discounts, which has also affected Deliveroo’s business.
However, he believed foodpanda and Keeta would not increase their fees in the short term.
Echoing Wong’s prediction, marketing scholar Kenneth Kwong Ka-kei said the two remaining competitors would likely maintain their delivery fees or commission rates, because they still have to fight over Deliveroo's customers.
Kwong, assistant professor of marketing at the Hang Seng University, suggested delivery platforms in Hong Kong, in the face of a saturated market, to explore other types of businesses, such as delivery for household items.
Lawmaker Lam Chun-sing of the Federation of Hong Kong and Kowloon Labour Unions said the labour group reached out to around 200 Deliveroo riders, whose main concerns are the workload and terms after transitioning to foodpanda.
Meanwhile, the Consumer Council said it has received 6 complaints regarding Deliveroo's exit from the city as of 5pm yesterday, involving HK$1,800 in total, with the highest case involving HK$534.
(Jamie Liu and Michael Shum)
(Updated 9.40pm)
