Review of foodtech business models on foreign and Russian markets12.06.2017
A lot of foodtech companies have succeeded in attracting quite good investments for business launch but are now working at a loss. Furthermore, it happens on both foreign and Russian markets where this industry appeared only a few years ago. Nevertheless, the world foodtech market is developing rapidly and new business models which attract lots of clients are mastered. In Russia, the amount of foodtech services is actively increasing with new niches appearing all the time.
Foreign foodtech business models
According to CB Insights, foodtech companies attracted over $1 billion of investments in 2014. Venture funds invested the same amount of money in the first quarter of 2016. These numbers prove that the market is growing at a dramatic pace.
The most developed foodtech business models include:
- food delivery from restaurants – a key industry format. The main segment players are Postmates, Caviar, DoorDash and Uber Eats;
- food delivery from shops – exists in two variants: a constructor (ordering food for dinner or a whole week) and a usual delivery of products. Segment giants are large companies such as Amazon Prime Now and Google Express Shipt and startups such as Instacart and FreshDirect;
- customized dish delivery – quite a popular service allowing to order one dish or a certain amount of dishes of a particular cuisine as well as diet food;
- healthy food delivery – a popular food ordering service which meets standards of healthy nutrition prepared by chefs. Major segment representatives are Freshly, Fuelfood and Munchery.
Russian foodtech business models
Russians aren’t used to ordering products from shops. However, these niches are invested in.
The most promising Russian foodtech business models are:
- food delivery from restaurants – the niche is represented by Delivery Club and Food Fox;
- product constructors – the main segment players “Chefmarket” and “DomaVkusnee” offer a set of ingredients for preparing particular dishes;
- food by subscription – a Russian model offering delivery of ready-made diets or sets of healthy products. The company’s representative plans a diet, buys fresh products and brings them to a client. Such services as “Partiya edi” or Performance Food turned out to be in demand;
- delivery of ready-made dishes made by chefs – Mealty is the niche’s leader;
- farm and organic products delivery – is a trend among Russians.
In general, the most in-demand Russian services correspond to the following criteria:
- they recommend what to eat, what to prepare and how to find a necessary diet;
- they comply with healthy standards;
- they save your time and energy.
Experts believe that Russian foodtech industry is about to grow exponentially since lots of niches are free and not only clients but also investors take an interest in the market.back to list
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