Contributing editor, Peter Backman, is a long-term foodservice sector guru and founder of theDelivery.World, a platform that connects the delivery sector and makes sense of the myriad changes and challenges that affect the sector across the globe.
The global delivery landscape is witnessing a strategic transformation, marked by two distinct business models: super-apps and pure players. This evolution reflects different approaches to growth, profitability, and market penetration in the competitive delivery sector.
Super-apps like Meituan (China), Grab (Singapore), and Gojek (Indonesia) have positioned themselves as comprehensive digital ecosystems, integrating food delivery with services like ride-hailing, grocery delivery, and financial services. This model leverages economies of scale and cross-service synergies. By embedding food delivery within a broader ecosystem, these platforms reduce dependence on standalone delivery profitability while driving engagement across multiple services.
Meituan exemplifies this approach in China, where it has become an essential everyday tool by optimizing for local preferences and regulations. Similarly, Grab’s super-app model connects food delivery with ride-hailing and digital payments, creating a seamless customer experience that enhances loyalty.
In contrast, pure players like Deliveroo (UK) and DoorDash (US) concentrate primarily on food and grocery delivery. This focused approach allows for greater operational agility and faster adaptation to market changes. DoorDash demonstrates this strategy’s potential through its dominance in the US market, achieving high customer retention despite intense competition. Deliveroo employs a similar focus in the UK, emphasizing premium restaurant partnerships and strategic expansion into grocery delivery.
Both models face distinct challenges. Super-apps must manage increased operational complexity and regulatory scrutiny across multiple service lines. Pure players, meanwhile, face vulnerability to market shifts and competitive pressures due to their reliance on food delivery revenue. Geographic expansion proves challenging for both, with high costs and established local competitors presenting significant barriers.
Interestingly, these models are showing signs of convergence. DoorDash is expanding into retail delivery and marketplace services, edging toward a super-app framework. Meanwhile, companies like Delivery Hero (Germany) are divesting underperforming segments to focus on profitable markets, resembling a more focused approach.
The choice between these models often depends on market conditions. Super-apps thrive in regions with fragmented digital services, where bundling meets multiple consumer needs. This is particularly evident in Southeast Asia and China, where super-apps have become integral to daily life. Pure players excel in mature markets like the US and UK, where specialization and operational efficiency are key differentiators.
As the industry continues its quest for profitability, success will likely depend on how well these platforms adapt their chosen model to local market conditions and evolving consumer preferences, rather than strictly adhering to either approach. The future may see further blending of these models as companies seek the optimal balance between focus and diversification in their respective markets.
