The Ultimate Guide to Online Food Ordering Systems in Malaysia
Key considerations when choosing a food delivery service
Online food ordering systems are commonplace these days, particularly after the pandemic. And despite the lifting of numerous restrictions and the gradual return to status quo, the food delivery business in Malaysia has continued booming—a trend that The Star reports will continue to rise in 2023.
Research and consulting firm Frost & Sullivan’s analysis on the Southeast Asian food delivery business also shows “promising growth opportunities”, with “[i]ncreasing internet penetration and mobile applications” contributing to a compound annual growth rate of 14.1%. By 2030, the gross merchandise value (GMV) of the market is predicted to reach $49.72 billion.
Taken together, these findings present a compelling argument for F&B brands to digitalise in order to capture a share of the pie. Furthermore, building a food delivery business on top of existing dine-in operations creates an additional revenue stream and opportunities for increasing new customer acquisition.
But with so many options available, making a choice becomes a challenge. To help, we’ve assembled a table below that compares the commission fees, delivery radius, and data accessibility across the 5 best restaurant online ordering systems in Malaysia.
The Marketplace vs Your Own e-Shop
As can be seen from the table, the top online food ordering systems in Malaysia are mostly Marketplace apps.
These apps are often top of mind when merchants think of growing their delivery & takeaway business, and it’s a credit to their accessibility and widespread usage. Listing on such apps is quick and efficient, and logistics are fully-managed, leaving restaurants to focus solely on their core business of making food.
Merchants can also leverage on the already-existing customer base of such apps to build brand awareness and gain new customers in the process. These benefits, however, are limited by the restrictive delivery radius of marketplace apps. Your brand is often only visible to those in your local vicinity.
Furthermore, listing on a Marketplace dilutes your share of voice as you’ll be jostling with other F&B businesses for diners’ attention.
1. Differences in Commission & Delivery Fees
Pricing is one of the biggest factors when deciding which online food ordering system to use. Major delivery players charge around 30% in commission fees, a sum considered “exorbitant” by many eatery operators as reported in the The Sun Daily, especially as “there are [also] other costs, such as marketing and insurance that they have to bear”. According to The Smart Local Malaysia, many platforms tend to charge hidden fees “which result in a zero return of sales”.
Besides the aforementioned marketing and insurance, other examples of hidden fees include set-up fees and maintenance fees to keep your digital store up and running.
When it comes to delivery costs, most platforms remain inflexible, forcing merchants to accept the charges they float.
Based on price, Oddle and Beep are the most cost-effective options. Guided by an ‘Always Restaurants First’ philosophy, Oddle’s promise of zero set-up fees and a 10% commission rate aims to address industry pain points that prevent merchants from growing their revenue.
2. Build Brand Identity with an Easily Customisable e-Shop
All online food ordering systems allow customisation to a certain degree, particularly where photos and menu names are concerned.
If you want to stand out from the crowd, however, it’s best to find a digital e-Shop that allows you more control. Creating a unique and consistent brand identity that aligns with your overall marketing strategy is important in helping customers easily recognise and remember your restaurant.
On Oddle’s white-label platform, merchants are able to create their own branded digital shop with a custom domain name. Our drag-and-drop builder module is easy to use, with no coding experience required. Select your own banners and buttons, and switch between an extensive range of fonts to achieve your desired look and feel.
With a content structure optimised for search engine indexability and mobile viewing, merchants can enjoy peace of mind knowing that their new sales channel is easily discoverable by customers with a single search.
3. Own Your Data, Understand Your Audience
On Marketplace platforms, F&B businesses have limited access to data. Most can only analyse their shop data, which gives them information on best-selling items and top-performing promotions.
On Oddle, however, merchants are able to fully own their customer data, thus better understanding their target audience. Track consumer spending and patterns to help tailor your menu items and promotions. For example, if you notice that most customers enjoy buying a drink with their meal, offering it as a bundle could help create perceived value and drive more sales.
With full access to your customer database, you’ll also have the ability to run your own marketing campaigns through emails or social ads. Encourage repeat spending and keep your brand top-of-mind by regularly sending e-newsletters.
Oddle regularly publishes how-to guides and insights into the food delivery industry in Malaysia. Read more about, or have a look at our in-depth guide on !