Since the covid-19 pandemic, companies focusing on food delivery have been booming in the Czech Republic. There are several of them operating throughout the country, and the range of cities in which they operate is gradually expanding. At first they started in the biggest ones, but lately this trend has also moved to the small ones, where often less than 7 thousand people live there.
Especially during the times of the coronavirus pandemic, delivery services were one of the few options for customers to enjoy food from their favorite restaurant. Because of the anti-pandemic restrictions at the time, they often could not visit restaurants or other gastronomic facilities at all. Delivery companies thanks to this enjoyed a large influx of orders.
Several companies operate in the Czech Republic
On the domestic market, several companies are waging tough competitive battles for customers. Mainly ranks among them Bolt Folt, Wolt, foodora or perhaps Food under the nose. During the covid-19 pandemic, companies mainly focused on importing ready-made meals from restaurants, but now the scope is gradually expanding. Supermarkets, florists and drugstores are included in the offer.
The huge expansion throughout the Czech Republic was launched in recent months mainly by Wolt. In his strategy, he now focuses mainly on medium-sized district cities. This is, for example, Chrudim, Česká Lípa, Tábor, Příbram or perhaps Třebíč. With this, the number of couriers with whom Wolt cooperates across the country is also growing. There are already more than seven thousand of them.
“Expansion into other regions is of course a logical step to reach as many customers as possible. But at Wolt we always do it with the intention of supporting the regional economy and smaller local shops and restaurants. says the recently appointed new head of the Czech Wolt, Tomáš Beniak.
Rakovník, Žatec and Nové Strašecí
But a more interesting concept has been prepared by the company Jídó pod nos, which is currently focusing mainly on delivery in Karlovy Vary, Ústí and Central Bohemia regions. The growth of this company is now mainly focused on smaller towns with only a few thousand inhabitants. Rakovník, Žatec or Chodov in the Karlovy Vary region are among the newest territorial units in which Jídó pod nos offers its services. Probably the most interesting is Nové Strašecí, where only around 5 thousand people currently live.
Food delivery in small towns has its pluses and minuses. Although at first glance it may seem that this concept lacks greater business sense, the reality may be a little different. Although the circle of customers is relatively small in small towns, there is usually a lack of competition compared to large centers.
Small town, no competition
In practice, this means that a delivery company can essentially have a monopoly on a smaller market. In such a situation, companies have the opportunity to set the price of their service relatively arbitrarily and do not have to worry about that they would lose customers. The result of the competitive struggle is enormous pressure on the final price, which is often absent in the case of small towns.
The future development and eventual expansion of delivery companies in the Czech Republic is a big question. However, it is likely that established companies will continue to expand the number of cities in which they operate. At the same time, we can also expect an ever-increasing expansion into smaller cities, and that’s mainly the case due to lack of competition.
At the same time, delivery companies can benefit in the coming months from the fact that inflation is gradually being reduced to the target set by the Czech National Bank. Consumers would, thanks to the growth of nominal wages they could finally start spending more. It is therefore likely that after years of hardship, better times may finally dawn on delivery services.
Info source: jidlopodnos.cz.
Media source: Depositphotos.
