Euromonitor estimated that single-person households were the fastest-growing household type globally, expanding by 31 per cent from 2010 to 2019, with half of this growth attributable to Asia Pacific. The company also projected that by 2040, one in 10 households globally would be both Asian and single-person.

This increasing prevalence of single-person households presents significant opportunities for retailers to adapt their product offerings and services strategically to meet evolving consumer needs.

Seizing this opportunity, Foodpanda introduced the ‘meal for one’ feature last month, allowing customers to order solo meals on its app at lower delivery fees without a minimum order value.

“The pandemic led to a rise in customers (including me) who prefer ordering in to dining out, reflecting a broader lifestyle shift towards valuing convenience and comfort,” Alvee Khan, director of monetization and growth at Foodpanda, told Inside Retail. 

“We’re also noticing that even when eating in groups, there’s a growing preference for individual meals due to dietary restrictions and personal choice.”

Challenges to stay competitive

According to Khan, the region is experiencing significant urban expansion and a notable rise in disposable incomes. What was once considered an occasional indulgence has now become a regular fixture in the routines of many urban dwellers. These factors collectively present many opportunities and challenges for the burgeoning food delivery industry.

“[Our restaurant partners] are now viewing food delivery as a core part of their sales strategy and regularly improving their offerings to stand out from competitors,” Khan said. 

“Food delivery promotions have become just as compelling as in-store deals, showing how important food delivery is to their topline.

“In today’s uncertain economy, the key challenge is offering an affordable service that meets the needs of customers.”

He further emphasized that to enhance customer acquisition and retention, food delivery companies must innovate in their service offerings. This can be accomplished through strategic collaborations with merchants to introduce exclusive culinary creations, implement seasonal promotions aligned with specific events, offer competitive pricing and discounts to maximize value and provide platform-specific limited-edition merchandise. These initiatives aim to create a distinctive and engaging experience for customers.

Khan said that the ‘meal for one’ option provides solo diners with a cost-effective alternative, offering a minimum of 10 per cent savings compared to standard meal pricing.

According to Foodpanda, while there is a significant preference for restaurants offering local cuisines in Malaysia, restaurant chains are more popular in other Asia Pacific markets. 

“Different markets have unique purchasing behaviors, so we have to adapt our strategies accordingly,” Khan said. 

He added technology will play a significant role in the next phase of the food delivery industry’s digital transformation. Food delivery platforms, including Foodpanda, have been using advanced artificial intelligence (AI) technologies to enhance and personalize the user experience, including the prediction of customer preferences based on an intricate analysis of browsing behavior, order history, and cart contents.

“With these insights, they can offer personalized menus and recommendations, making the order experience more customized and helping customers make decisions easier.”

The use of AI extends beyond mere preference prediction. It can also help optimize delivery routes, manage inventory, and assist in menu creation for partner restaurants. 

“We’re always looking for new ways to make the Foodpanda app more enjoyable and exciting for customers,” he said. “To do this, we’re thinking about the journey from their point of view, understanding pain points, and improving processes. We aim to constantly meet their expectations and set new industry standards.”

The ‘meal for one’ feature is available in seven markets – Singapore, Malaysia, Hong Kong, Bangladesh, the Philippines, Cambodia, and Myanmar – with close to 20,000 restaurants offering these solo meal options.