FOCUS: Tough quarantine measures ensure success of foodtech services

By Yekaterina Yezhova

MOSCOW, Apr 6 (PRIME) -- The fast-evolving business of online food ordering has received a strong momentum thanks to Moscow and other areas’ lockdown against the coronavirus spread with the average check jumping by 15%.

“The market of delivery of ready-to-eat meal from restaurants and food had been burgeoning before the coronavirus outbreak,” a spokesperson for Delivery Club, a Mail.ru Group-owned service of delivery of food from restaurants and cafes, told PRIME.

“In the first half of March, it was driven by the traditional factors: a change in the consumption model, connection of new restaurants, the seasonal factor, the gender holidays (February 23 and March 8), development of the service and so forth.”

In the second half of March, the epidemic was added to the stimulating factors. “As foreign countries’ experience shows, demand for delivery of food grows first and then for delivery from restaurants during the coronavirus pandemic. Russia follows in the footsteps,” the official said.

Moscow Mayor Sergei Sobyanin imposed a self-isolation regime on March 30. Some other areas, including the Moscow Region, did the same.

“We see redistribution of demand between offices and uptown. The number of companies switching staff to online work is multiplying. Active delivery clients keep on using the service for dining,” the Delivery Club spokesperson said.

“The average food delivery check increased by 15% on March 16–22 in comparison to the previous week.”

Delivery Club works regularly, and the company set up a special group to eliminate risks proactively, the official said.

Yandex’s food services - Yandex.Lavka, specializing in fast food delivery, and Yandex.Eda, delivering meal from restaurants – are also extremely popular.

“After the self-isolation regime was toughened, demand in Yandex.Lavka has grown by tens of percent and in some localities spiked by several times within a day. Demand is different from the situation two weeks ago when people purchased goods with an extended shelf life to stockpile. Now people buy vegetables, fruit, ready-to-eat food, bread, dairy products, which is evidently done not to shop outside. Single-use masks are also the bestseller,” Yelena Novikova, a representative of foodtech division of Yandex.Taxi, told PRIME.

The delivery time of Yandex.Lavka rose by 5–6 minutes compared to the customary 15. “Demand has spiked dramatically and it will take time to get adjusted to it, including a procurement plan, but we do not expect any deficit of goods or a notable extension of the delivery time. Our suppliers are working and partner services are ready to provide more couriers,” she said.

The number of orders placed with Yandex.Eda is now the same as during popular holidays. Most of restaurants work for delivery as dark kitchens, also known as virtual kitchens or delivery-only restaurants.

The number of connected restaurants is rising fast, and more than 200 new eateries join the Yandex.Eda platform daily, totaling 17,000, in comparison to 14,000 restaurants registered as of the end of 2019, Novikova said.

Maria Zaikina, deputy general director for industry relations at online store Ozon, said e-commerce has become popular in March like never before: the market provides households with the staples and allows them not to feel constrained in daily activities.

“Inhabitants of large cities more often pick up touch-free delivery, whose number doubles every week, and have moved the bulk of purchases to an online regime from offline,” she told PRIME.

Ozon expects further rise in online orders, and the company’s fulfilment factories and delivery services work in the regime of high alert.

Orders made on Ozon are currently delivered by about 3,000 agents across the country under the logistical platform model. “We’re actively engaging partners, businessmen, and self-employed to increase the delivery resource quickly and are ready to deliver the rising number of orders fast,” Zaikina said.

“Our agents are informed of the requirements and recommendations on virus prevention and are regularly examined before the trips. Sanitizing treatment at facilities is strengthened.”

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