The on-demand generation are fuelling Australia’s multi-billion-dollar home delivery boom from the comfort of their couch, according to new research from Open Location Platform company, HERE, ahead of the first Home Delivery Asia Pacific conference in Melbourne on 16 November 2016.
The analysis of more than 1,000 Australians found nine in 10 Millennials (aged 18-34) were using home delivery services, compared to less than half of over 55 year olds, with food deliveries from the likes of Domino’s, Menulog, Deliveroo, Foodora and UberEats the most popular service for 75% of people.
More than half of Millennials surveyed (54%) said they would “drop a pin” for doorstep delivery when they were feeling ‘too lazy to leave the house’, compared to 32 per cent of over 35 year olds. For 12 percent of Millennials, being too engrossed in a Netflix show was enough motivation to order in. Surprisingly, ‘terrible weather’ was driving more people in NSW to request delivery (27%) compared to Victoria (26%) and the nationwide average (23%).
It’s not smooth sailing though
But the research found cost remains a sticking point, with 27% of Australians thinking home delivery services are ‘overpriced’. Hunger pains remain for 7% of Australians who have never received their delivery or had a driver that couldn’t locate them on a map.
“Australia’s appetite for home delivery isn’t without its hiccups. There are signs of delivery drivers and cyclists facing navigation and congestion challenges with half of Australians (49%) complaining about late delivery, while a third (33%) have received ‘compromised goods’ like cold food,” HERE APAC Director, Brent Stafford said.
“Solving the most common bugbear of late deliveries will be a key agenda item at the home delivery summit, because trust and reliability are really vital to the growth of the industry and future adoption of the almost infinite on-demand possibilities on offer to Australians.”
“It’s a fiercely contested market spanning not only food but online shopping, transport and even on-demand labour and professional services. With a flood of new start-up players and many strategic alliances being formed right now, it’s important the industry works together to overcome some of the shared logistics and regulatory challenges they face, while also exploring innovative new payment methods and the future of autonomous delivery.”
“Bring on the drones!”
Young Australians are the keenest for airborne deliveries with 24 per cent of 18-24 year olds hoping drones can deliver their goods faster, compared to the national average of just 16 per cent.
“The more we as consumers shift our purchasing behaviour to online, the more we will rely on same day and express delivery services. In fact, the two go hand in hand.” Co-Founder and CEO of last mile logistics company Sherpa, Ben Nowlan said.
“One of the key inhibitors in this process right now is people, so in my opinion I see the future by necessity, containing drones and other automated fulfilment services. Until then, Sherpa are focused as a business on how we maximise the liquidity of driver/vehicle capacity in the existing market.”
The research found on-demand labour services could be the next step for the industry with 22 per cent wanting a pickup/drop off auto repair service for their cars, while one in ten want cleaning, maintenance and DIY jobs at the tap of a smartphone app.
Almost a quarter of Australians (24%) would like to avoid the chemist prescription queue with home-delivered pharmaceuticals, while one in six want to support their local shopping strip and independent stores without having to leave home. Victoria retains its coffee capital title with 15% wishing there was an app for espresso delivery – more than any other state.
Deliveroo Country Manager Australia, Levi Aron said: “As we continue to expand across Australia, our focus is to create the best food delivery experience in the world. We have a strong focus on innovation — from our backend technologies to optimise deliveries, to RooBox, a new concept we are introducing in Australia that allows restaurants to deliver outside of their typical areas. We are passionate about great food and ensuring that we deliver the Millennial market – and beyond – the quality experience that they expect.”