Deliveroo HK stays aggressive with Editions expansion plan

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Hong Kong food delivery industry has been turbulent in 2021 but Deliveroo Hong Kong has open yet another Editions site at Tseung Kwan O, home to more than 400,000 residents as the company hopes to tap into the growing population in the area.

Located inside Capri Place, the site covers an area of over 5,266 square feet, offering an assortment of local and international menu options to the entirety of Tseung Kwan O’s ten districts, such as Tseung Kwan O, The Hong Kong University of Science and Technology, Lohas Park and Tiu Keng Leng, to name a few. The new site can serve about 414,000 residents, workers and students across the region and it is expected that the Tseung Kwan O district will be home to more than 470,000 residents by 2024.

"This year, we have seen the sector rebound due to the hard work and ingenuity of restaurants. Consumers are showing no signs of slowing down when it comes to delivery and pickup, and our restaurant partners remain keen to explore the ever-growing trend of delivery-only kitchens as they pursue new, convenient, and cost-friendly means of expanding their brands," said Andrew Hui, general manager of Deliveroo Hong Kong.

He added, "As we enter into 2022, Deliveroo will continue to invest in Editions, as it has proven itself to be a business model that works for both restaurants and consumers.”

The new Editions site hosts five kitchens, including the debut of Watami casual Japanese dining and Korean fast food brand Lee’s Chicken. Deliveroo Hong Kong said bsed on data gathered from customer orders, preferences for the top five cuisines in Tseung Kwan O’s neighborhoods include Vietnamese, Korean, Taiwanese, Japanese and American.

“While we already have a rather large footprint across Hong Kong, we have not devoted much of our resources to delivery, and currently we do not have a physical presence in Tseung Kwan O, a district with a large number of young families. By collaborating with Deliveroo Hong Kong, we can now rejoin the area, learn the ropes of delivery without any huge costs or investment, and tap into the area’s growth potential and high spending power," said Matthew Chung, managing director of Watami.

Deliveroo Hong Kong currently has several Editions sites in Kowloon Bay, Sai Ying Pun, Quarry Bay and Wanchai. In 2021, the company opened four new sites at Cheung Sha Wan, Kwai Tsing and Tuen Mun, in addition to the latest location at Tseung Kwan O.

The food delivery industry has been turbulent this year. Uber Eats Hong Kong has been one of the operations badly hit and has recently said that it will cease operation by the end of this year, switching its focus to its mobility platform in the city. It said, "After five years of partnering with restaurants and delivery people in Hong Kong, we have made the difficult decision to discontinue Uber Eats in Hong Kong on 31 December 2021. Our priority now is to support our employees, restaurant partners, delivery people and consumers in the transition. We couldn’t have built what we did without their trust and hard work, and we thank them for their support for the platform."

Meanwhile, in November, over 300 foodpanda couriers went on strike as foodpanda Hong Kong decreased the delivery fee of each order by HK$10 throughout the year. It later reached a deal with its couriers on pay packages. In a statement, foodpanda Hong Kong said the company reached an agreement over the requests raised by couriers. According to a report from the South China Morning Post, after seven hours of meeting on Thursday at its headquarters in Sheung Wan, foodpanda Hong Kong announced that it had reached a consensus with the couriers, promising to improve the riders' pay package and handle issues with its app. However, both sides did not disclose the details of the terms agreed.