It is amazing to observe how some emerging technologies assume a dominant role within a short span and impact the end users deeply. The internet is the most prominent example and now it is near impossible to live without it. However, in the last decade several internet based technologies and services have also become essential part of human life. Blockchain is deemed as a disruptive technology that is still underutilized. However, its potential is slowly being discovered by various sectors and the companies belonging to those niches are adopting it- in numerous ways. It is now being tried by sectors like aviation, logistics, healthcare, education and banking. However, the food delivery sector is a bit slow in embracing it.
Reasons to deploy blockchain tech in food delivery sector
Apparently, food delivery and blockchain may seem like north and south poles to the mass! However, the truth is blockchain’s application is not really limited to generating crypto currencies. The underlying technology offers privacy, enhanced data security, user anonymity. Besides, its decentralized operation makes it ideal for use in food delivery industry. When properly deployed- it can be of use to food delivery chains and restaurants. It can be used to address inherent shortcomings of this sector.
- Reliability- While the food delivery industry has adopted online technologies- some loopholes still exist that affect its performance. One of these is reliability. The customers like the convenience of ordering through apps in a few taps and clicks. However, the food delivery services are based on supply chain and relying on all parts may be tough. For example, a customer buying food from a new restaurant online may be skeptical about hygiene. Food quality can be an issue. This is where blockchain can be handy. It can be used to form and deploy smart contracts which in turn can be used to refund customers if food quality is poor.
- Data safety- The food delivery chains and restaurants need to deal with data of thousands of customers and new customers get added. This includes financial transactions and credit card details and wallet info. Safety of this information is important. While cloud services and dedicated Database solutions are used by the food sector- these are not hacking proof. On the contrary, Blockchain- owing to its decentralized storage and operation- is immune to such hassles. So, it makes sense to use it in food delivery safeguard customer data.
- Identity verification-In food delivery sector, identity verification is crucial- more so in the recruitment process. When recruiting chefs or hiring delivery partners, checking their background is necessary and using traditional verification methods take up enough time. Using blockchain based verification is faster and scope of errors is almost nonexistent.
- Alternate payment provision- If the food delivery services and restaurants add support for crypto currencies as payment method that will help them woo more potential customers. The recent instances of digital wallet frauds and debit card cloning have made people weary of using these digital payment systems. Crypto currency can be a welcome addition in list of payment methods. Crypto transactions are secure and processing time is also faster.
- Better rewards//loyalty management- Leading food delivery companies and some restaurants offer loyalty schemes for their regular customers. These can be in form of cashbacks and reward points which are redeemable. However, conflicts do arise when the customers have hardships in understanding terms of those schemes. By using blockchain based contracts, managing this can be simplified.
- Time saving- Time saving is important in this industry- whether it is food preparation time or delivery time! By using blockchain tech, a lot of time can be saved. From saving time in resolving disputes with customers to tracking loyalty points score, everything becomes simper and streamlined.
Summing it up
The adoption of blockchain technology in food delivery industry will bring multiple benefits. However, it may still take a few years before wider adoption takes place- owing to legal issues and lack of awareness.