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How to make sustainable food delivery profitable?

Home delivery and food delivery are here to stay: in Spain, since the pandemic began, the sector has grown by 172% and it is estimated that it will close 2022 with revenues of more than 1,120 million euros. 70% of HORECA establishments have a home delivery service, but in a few years’ time there will be many more, as the market is expected to continue to grow strongly, reaching revenues of 1.68 billion euros by 2027.
The main tool that makes food delivery possible is delivery vehicles. In this sense, sustainable electric mobility is a key trend in the transport sector. The main objective of this article is to learn how to boost its profitability in activities related to food deliveries. We will demonstrate that investing in a sustainable food delivery fleet is profitable.
Delivery means delivery and is one of the most important concepts in the world of logistics and supply chain management. The commercial transaction culminates when the good is delivered and the payment that the counterparty is obliged to make to finally acquire the requested product is made. Understanding the implications of delivery is crucial to the operational strategy of companies and, in particular, for the foodservice industry, delivery has become an important source of revenue.
Consumer behavior is changing, according to a report by Aecoc Shopperview:

In this context, there is no doubt that there is unstoppable growth in the sector. Data from the NPD Group indicate that, after the pandemic, food delivery alone accounts for 7% of total restaurant spending in Spain.

The same consumers who choose delivery for their purchases are the ones who are opting for the most sustainable options on the market. The data speak for themselves:

Therefore, knowing that food delivery is one of the preferred options for consumers and that they are increasingly opting for more sustainable products, having an environmentally friendly food delivery fleet is not an option: it is an advantage in the market.

Currently, most of the world’s energy, including that which powers delivery vehicles, is based on the use of fossil fuels. To understand the magnitude of the problem, the example of the Valley of Mexico is very illustrative: 86% of all greenhouse gas emissions in the metropolitan area come from transportation.

At this point, it is common to think that electric transport has a high cost and is difficult to implement, but this is not the case. Here’s how to make sustainable food delivery profitable.

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1. The numbers come out

Taking into account leasing, fuel and repair costs, the total monthly cost of a combustion motorcycle for food delivery is around €400. While the monthly cost of an electric motorcycle is less than 250€. The big difference is explained by the fact that the electric vehicle represents a 90% saving in fuel costs and a 60% saving in maintenance. In addition, in the case of electric scooters, the batteries can be charged at a conventional socket, further facilitating logistics for food delivery.

2. It is necessary to choose the right vehicles

Having the best and most efficient electric vehicles for food delivery is essential. Finding the most suitable transportation results from a combination of factors including:

3. The important thing is availability and not dedicating resources to it.

The major cost of operating a fleet of food delivery vehicles is related to the complexity of guaranteeing the correct operation of the service offered. The secret lies in guaranteeing the availability of the vehicles while having riders in shifts organized to use them.
Software solutions for operational fleet management, such as the one developed by PandaGo, make it possible to easily manage fleets of electric vehicles while guaranteeing their availability. This technological solution:

All this under the advice of experts in the field.

4. Real examples

These are the results obtained by an aggregator dedicated to food & grocery delivery in Spain that has understood that the numbers come out when the delivery is made with electric vehicles in leasing, that has chosen well with which vehicle to make the delivery and that has understood that the important thing is the availability of the fleet:

All of this is managed by a Fleet Manager provided by PandaGo for the client.

Companies in the foodservice sector that want to be efficient and competitive in food delivery should integrate the sustainable component as an advantage in the market that is also cost-effective and easy to implement thanks to solutions such as those offered by PandaGo.

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