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Media Releases
09 Apr 2020 Updated 09 Apr 2020

Enterprise Singapore Expands its Food Delivery Booster Package

MR No.: 020/20

Singapore, Thursday, 9 April 2020

 

Enterprise Singapore Expands its Food Delivery Booster Package

 

Support for food and beverage (F&B) businesses utilising third party logistics partners for deliveries and up to 90% support for the development of digital capabilities and strategies

 

  1. On 4 April 2020, Enterprise Singapore (ESG) announced the Food Delivery Booster Package to support F&B businesses to diversify operations through food delivery. Under the first phase of the roll out, ESG is funding five percentage points1 of the commission cost charged by three food delivery platforms – Deliveroo, foodpanda and GrabFood – for transactions made between 7 April and 4 May 2020. New entrants and existing F&B businesses on the platforms are eligible for the funding.

  2. In phase two, the package will be expanded to:

    1. Support those that are fulfilling food delivery orders outside of Deliveroo, foodpanda and GrabFood, via third party logistics partners;
    2. Equip F&B businesses with the capabilities and tools to maximise food delivery receipts on the three food delivery platforms; and
    3. Help businesses transform their delivery models in the long term through building virtual brands2 and developing an online to offline (O2O) strategy3.

    Support for F&B businesses leveraging third party logistics partners for deliveries

  3. For F&B businesses which may not be on-board Deliveroo, foodpanda and GrabFood but are fulfilling food delivery orders through third party logistics partners, ESG will fund 20% of the delivery costs4. This will be valid for orders made between 7 April and 4 May 2020. Funding will be disbursed through eligible third party logistics partners5, such as Lalamove and Zeek. Logistics players keen to come on-board can contact ESG at food_division@enterprisesg.gov.sg from now till 15 April 2020. Applications will be reviewed on a case-by-case basis.

  4. F&B businesses must have a food shop or food stall license issued by the Singapore Food Agency (SFA), and sell food that is prepared on premise for immediate consumption6to be eligible for the delivery funding.

  5. Equipping F&B businesses with capabilities to maximise food delivery receipts on Deliveroo, foodpanda and GrabFood

  6. To assist F&B businesses in optimising their online presence and improving sales, ESG, together with Deliveroo, foodpanda and GrabFood, have worked out a capability development pack to cover three components:

    1. Capability building to enhance the online performance of their menus, develop an appropriate pricing structure, understand and run promotions and bundle deals effectively.
    2. Marketing support to leverage the platforms’ assets such as carousel advertisements and online banners, as well as in-app marketing credits to promote products, run discounts and gain greater customer mindshare.
    3. Data/ insight sharing to improve delivery performance and business models. Data collected can include financial (e.g. revenue generated) and operational performance (e.g. delivery fulfilment and efficiency rate).
  7. These value-added services come on top of the current offering by the three food delivery platforms to F&B businesses, with the cost of each pack valued at more than S$1,500. F&B businesses can benefit from these additional services by paying a one-time fee of S$100; the rest of the cost will be borne by ESG and the three platform providers. Those interested can sign up with Deliveroo, foodpanda and GrabFood directly, between 13 April and 31 December 2020. The capability development pack will be applicable for a period of one year from the date of application, on a first-come-first-served limited basis. (Refer to Annex B for more details.)
  8.  

    Developing long term digital capabilities and strategies

  9. To further help F&B businesses respond to the growing trend of online delivery and build digital capabilities for the long term, ESG will support up to 90% of eligible costs, including digital marketing and manpower costs7, for the following two areas through the Enterprise Development Grant (EDG)8:

    1. Creating a virtual brand: The creation of a virtual brand can enable F&B businesses to pilot new concepts and gain additional revenue streams by attracting new customer segments, as well as optimise current capacities in manpower and operations (i.e. in the outlet, central kitchen and shared kitchens). Virtual brands can be created with lower capital expenditures and risks as compared to setting up a new brand through a brick-and-mortar format. (Refer to Annex C for more details.)
    2. Developing an O2O strategy: As the food delivery market continues to grow, F&B businesses can strengthen customer engagement across the various touchpoints through a sound O2O strategy. This can be done by collecting and analysing data on how customers interact with the brand online and offline, for instance through their own online delivery shopfront and existing systems such as Point-of-Sales. By doing so, businesses are able to make more informed decisions. (Refer to Annex D for more details.)
  10. Said Mr Ted Tan, Deputy Chief Executive Officer, Enterprise Singapore, “In the past year, the industry has seen a strong demand in food deliveries, as a result of changing consumer preferences. Thus, it is increasingly important for F&B businesses to optimise their business models for online sales as well as to build new capabilities to navigate the digital space. Despite the challenges brought about by COVID-19, businesses can take the opportunity to start building their online presence. We encourage more businesses to leverage the Food Delivery Booster Package to effectively tap the digital space for the long term.”

  11. Similar to the other initiatives under the SMEs Go Digital programme, the Food Delivery Booster Package helps F&B businesses strengthen their digital capabilities to thrive in the new digital era.
1 For instance, if the current commission structure is 25% of total food delivery transaction value, the commission cost payable to the participating food delivery platforms will be reduced to 20%.
2 Today, a company typically goes to market with a brand/concept in a brick-and-mortar outlet. This brand/concept is referred to as a Core Brand. A Virtual Brand is an online-only concept that is synergistic with the Core Brand. It offers an opportunity for the company to have incremental revenue streams by attracting new customer segments.
3An O2O strategy involves developing a holistic and data-driven understanding of their customers and using this effectively in their marketing and sales across all online or offline channels.
4There is no cap on the qualifying food delivery cost.
5F&B businesses will pay the third party logistics partners 80% of the delivery costs.
6This excludes businesses solely retailing pre-packaged products, e.g. snacks and ice-cream.
7The additional manpower support can help the company put in place new processes during the initial months to ensure smooth operations and sustain online efforts in the long term.
8Under the enhanced Enterprise Development Grant, the support level has been raised from up to 70% to up to 80% for applications made till 31 December 2020. For firms more severely impacted by COVID-19, the maximum support level can be raised to 90%. This was announced during the Supplementary Budget 2020.

 

Annex A: Overview of Food Delivery Booster Package

Annex B: Summary of capability development packs offered by Deliveroo, foodpanda and GrabFood

Annex C: Description and case studies of virtual brands

Annex D: Description and case studies of O2O Strategies

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For media enquiries, please contact:

Ms Foo Xiao Xuan
Business Partner
Corporate Communications
M: +65 9018 6916
E: foo_xiao_xuan@enterprisesg.gov.sg;

 


 

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