LogiNext, a global delivery management technology firm that works with some of the largest F&B retailers and QSR chains has reported a surge in all types of end customer subscription programs by 45-55% since March 2020.
A survey conducted among consumers of 100+ enterprises across 20 countries in the Americas, APAC, MENA and Europe also suggested that more than 40% of consumers are interested in subscription offers from their favorite brands.
Working with major chains and outlets like Starbucks, Burger King, KFC, and McDonald’s, LogiNext has been helping brands undergo a digital transformation journey and improve the end customer experience. Ever since the pandemic struck, online deliveries have helped keep people home and safe. Buying behavior has shifted majorly towards buying online as eCommerce accelerated 5-7 years. One of the major trends within this rise has been the acceptance and growth of subscription services.
“A lot of our clients in the Retail and F&B industries introduced subscription programs for groceries and meal kits with the LogiNext MILE platform and we’ve seen a great response from customers. These programs bring convenience and savings for the customer and help brands get assured business and customer loyalty,” says Dhruvil Sanghvi, Chief Executive Officer, LogiNext.
Overall, the global online food delivery services market is expected to grow from US$115.07 billion in 2020 to US$126.91 billion in 2021. The market is expected to reach US$192.16 billion in 2025 at a CAGR of 11%.
“From the millions of orders that LogiNext MILE platform handles every month, about 10% are subscription orders which are automated on the platform. This number has almost doubled since the pandemic and is expected to rise further owing to the convenience of the subscription model,” says Dinesh Dixit, VP of Client Excellence at LogiNext.
Subscription models have been in vogue across industries in the past few years. Be it software subscription or food & grocery delivery subscription, the pandemic has dramatically shifted consumer behaviour.
Subscriptions have been an age-old model across the world in different ways but they came back to the fore after the pandemic.
A lot of people signed up for subscriptions from their favorite restaurants to keep them going and signing up for grocery items that one uses regularly is a no-brainer.
Subscriptions help consumers save on money and time and helps a brand retain customers and assured cash flow. As we move ahead, LogiNext is working with brands to come up with innovative subscription models with the help of a modern user experience to help serve the end customer better.
