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Rising Demand for E-delivery with Growing Urban Population and Changing Consumer Behavior
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Of late, Nepal has unlocked immense growth opportunities for market participants in the information technology (IT) space. One of these is the use of advanced technologies for the development and growth of the online food business and e-delivery in the country. This can actively support the national economy by boosting growth in the agricultural sector, with the use of technology platforms that directly connect farmers to end users. Moreover, the latest trends in the food industry, such as the cloud kitchen, require minimal investment and are suitable for catering to large customer groups in the country. Innovative business models, industry convergence, and higher Internet and smartphone penetration are the major drivers of growth in this sector. To tap into the growth opportunities in online food delivery, the government also needs to come up with various incentive plans and favorable policies. However, despite the growth drivers, factors such as weak transportation infrastructure, workforce retention challenges, low awareness among citizens in suburban restrain the growth of online food delivery platforms in Nepal.
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