Online food delivery market to see robust growth over next 4 years

SHAH ALAM – The country’s online food delivery service market is expected to grow 17.9% annually to reach revenue of US$370 million in four years, said Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, as reported on Bernama.

He said the growth projection was made in the wake of the COVID-19 pandemic that had transformed the people’s lifestyle to a new normal, with many activities now being conducted online, including food ordering.

Citing data from Statista Market Forecast (2020), he said Malaysia’s online food delivery market was valued at US$192 million at present, comprising 6.2 million consumers.

“The biggest segment contributing to the growth of the industry is targeted to be restaurant-to-customer delivery, which accounts for US$137 million compared to US$55 million for platform-to-customer delivery segment.

“The food delivery industry, which is part of the gig economy, should be based on the digitalisation concept. It is at the top of the government’s agenda in the medium to long-term economic recovery plan currently being drawn up by the Economic Planning Unit and the Economic Action Council,” he said in his speech for the AEON rider motorcycle handover ceremony here on August 6.

The text of his speech was read by Deputy Minister in the Prime Minister’s Department (Economy) Arthur Joseph Kurup.

Mustapa said the medium to long-term economic recovery plan, to be announced by October, would look at the renewal of the job market, issue of quality investments and digital economy.

At yesterday’s function, AEON Malaysia, through the Malaysian AEON Foundation (MAF), donated 300 motorcycles for the AEON Rider Project to create employment for those who lost their jobs due to the COVID-19 pandemic.

AEON Retail Malaysia chief executive officer Shafie Shamsuddin said the company launched the initiative to help individuals affected by the pandemic, and even provided the motorcycles for the riders.

Anyone interested to become part of the AEON Rider family could apply from now, he said.

The AEON Rider Project offers a gross salary of RM1,200 plus delivery charges for a contract duration of one year, and riders who perform their jobs well will get to keep the motorcycles for free and become permanent AEON Malaysia employees.