A recent study by Blackbox Research reveals that 85% of Singaporeans are concerned about rising costs in the food delivery sector following Deliveroo’s exit, which has left Grab and foodpanda as the dominant players. The study highlights consumer fears of increased delivery charges, menu prices, and platform fees due to reduced competition.
The report, titled “Hungry for Choice,” surveyed 1,001 active delivery consumers and found that 69% have abandoned orders at checkout due to unexpected fees. With 92% of users now defaulting to either GrabFood or foodpanda, 57% of consumers feel their choices have diminished. Additionally, 83% believe restaurants should be available on multiple platforms, whilst 72% think fewer platforms lead to higher commission costs for local restaurants, ultimately affecting consumer prices.
David Black, CEO of Blackbox Research, stated, “Food delivery has become an essential weekly routine for most households, and Singaporeans have very clear expectations around what makes that worthwhile: meaningful choice, fair value, and reliable service. But there is genuine anxiety across the market.”
The study underscores the importance of competition in maintaining choice, value, and service quality. As the market consolidates, consumers and local food businesses face potential challenges, including fewer options and higher costs. The full report is available for download, providing further insights into the implications of this market shift.
