Online food delivery: regulatory trends

Regulatory trends in online food delivery: analyst insights

Localizing the online food delivery sector can improve environmental impact through zero-emission strategies, such as using bicycles to transport deliveries, making online food delivery more attractive. Furthermore, raising awareness of safety and security measures both during food preparation and delivery for online services will reassure consumers and thus may increase the attractiveness of online food delivery.

Regulatory trends

Listed below are the top regulatory trends impacting online food delivery identified by GlobalData.

Carbon emissions and environmental regulations

A large percentage of carbon emissions come from transporting goods, and delivery companies play a significant role in this. The issue is becoming more relevant during the Covid-19 pandemic as more restaurants and customers turn to online delivery, further increasing CO2 emissions. Global warming remains an important issue even during the Covid-19 pandemic.

Experts say many companies have forgotten their commitment to fighting climate change these days, but that shouldn’t be the case because efforts must be consistent to deliver results and satisfy society, while complying with environmental regulations. In fact, sustainability remains an important topic among consumers during the global pandemic.

According to GlobalData’s Covid-19 Recovery Survey – Week 9, 72% of global respondents said reducing their environmental footprint was important to them due to the Covid-19 pandemic, and 12% of global consumers said it was this is their top priority. Moreover, 76% of global consumers are influenced to some extent, often or always by how ethical/environmentally friendly/socially responsible a product is when making a purchase. Therefore, delivery companies, in cooperation with catering outlets and retailers, must make every effort to reduce their carbon footprint. One way to achieve this is to invest in electric vehicles or increase walking or cycling deliveries.

Companies can also offer consumers the option of having their food delivered only from nearby restaurants, thereby reducing emissions associated with long distances. Moreover, companies can invest in technology that determines the most efficient routes drivers can take to reduce their carbon footprint.

Moreover, offering low-carbon dietary options, such as vegan options, via online delivery could resonate with health- and environmentally-conscious consumers. Although not currently common, providing drones powered primarily by lithium-polymer batteries could be another strategy to reduce carbon emissions, provided the batteries are charged using electricity from renewable sources. Using more drones also means fewer cars on the road.

The story continues

Data breaches and privacy concerns

The increased willingness to use technology-based services such as online food delivery poses several challenges. Excessive surveillance poses a privacy risk that necessitates greater data protection. Moreover, data breaches have serious negative consequences for a company, ranging from loss of consumer trust to lawsuits. Convenience is a key factor influencing decision-making and is a growing trend. Therefore, companies must find ways to protect consumers’ privacy and data rights, while also seeking improvements that meet consumers’ growing demand for convenience.

Cybersecurity concerns have increased in restaurants during Covid-19 as more people have switched to shopping and ordering food online. One way restaurants and online delivery companies can protect their consumers is through a robust cybersecurity program.

Food regulation

When offering online food delivery services, restaurants, retailers and delivery companies must comply with local and national food laws and regulations to protect the health of their employees and customers. In the US, the Food and Drug Administration (FDA) has provided information on its website about best practices for retail grocery stores, restaurants, and food pickup/delivery services during the Covid-19 pandemic.

The statement contains key considerations regarding the management of food collection and delivery. Additionally, the Centers for Disease Control and Prevention has issued guidance on meal kits and food supply security. Tips for consumers include checking the box and packaging and notifying the company if the temperature of delivered food exceeds 40 degrees Fahrenheit.

This is a revised extract from Online food delivery – technology trends report prepared by GlobalData Thematic Research.

“Online Food Delivery: Regulatory Trends” was originally created and published by Verdict Food Service, a brand owned by GlobalData.

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