China leads Asia in online food ordering

A new report suggests China is leading Asia in the booming online food ordering sector.

According to a report by advertising research firm WARC, the total volume of online food ordering in Asia has reached around 53 billion US dollars, with China accounting for nearly 70 percent.

A netizen uses online food delivery apps to order a meal on his smartphone. [File photo: IC]

Statistics show nearly two thirds of Chinese people use takeout food websites and apps for food delivery. This is in contrast in Japan and South Korea, where the figure is 36 percent and 27 percent respectively.

The huge demand for food delivery in China has led to the fast development of online food ordering shops, including so-called ghost restaurants or dark kitchens, which only provide delivery business.

The dark kitchens are said to be becoming ever more appealing compared to the high investment cost of traditional brick-and-mortar restaurants.

However, there have been concerns in China over hygiene and food safety problems.

To deal with this, Chinese authorities issued a regulation in January 2018, saying that restaurants with proper business are allowed to offer online catering and ordering services.

Photo taken on September 17, 2018 shows a “shared kitchen” in southwest China’s Chongqing Municipality. [Photo: IC]

As a result, the concept of “shared kitchen” has developed, with numerous delivery services using one shop and its facilities to prepare meals.

This is gaining some attention from international players, including former Uber CEO Travis Kalanick, who was reportedly planning to bring his Los Angeles-based CloudKitchen venture to China.