Singaporeans fear food delivery costs as market contracts

SINGAPORE – A new consumer study by Blackbox Research highlights growing concerns among Singaporean households about rising costs in the food delivery market. As food delivery services have become a staple in daily life for nearly two-thirds (64%) of Singaporeans, expectations for choice, value, and experience remain high. However, the market has consolidated into a duopoly between GrabFood and foodpanda, raising worries among consumers.

According to the study of 1,001 active delivery consumers, 85% fear higher delivery charges, 84% anticipate steeper menu prices, and 57% believe their genuine choices have dwindled. Over two-thirds (69%) have abandoned orders at checkout due to unexpected late fees, and 83% think restaurants should be listed across multiple platforms, not locked into single-app arrangements.

David Black, Founder & CEO of Blackbox Research, stated that competitive pressure is crucial for maintaining choice, value, and service. Without vigorous competition, consumers expect fewer options, higher costs, and poorer service, while local food businesses face an even tighter squeeze. The full report, "Hungry for Choice: Are Singapore's consumers and food businesses paying the price of reduced competition in food delivery?" is available for download.