March 14, 2024
Global on-demand delivery trends and how battery swapping powers it
With the acceleration of urbanization, the faster pace of life and the continuous innovation of technology, the on-demand delivery industry has rapidly risen around the world. Relying on local life service platforms and integrating social logistics resources such as digital technology and human crowdsourcing, on-demand delivery has become an important part of modern urban life. From food delivery (explore the top 10 food delivery platforms in the world), daily necessities to fresh fruits and vegetables, and pharmaceutical documents, the industry is deeply changing consumers’ shopping habits and lifestyles.
At the same time, as the main means of transportation for on-demand delivery, the energy supply method of electric two-wheelers is also constantly evolving. In particular, the rise of battery swapping technology (understanding TYCORUN battery swapping solutions) has brought more efficient, safe and convenient solutions to the delivery industry. This article will start from a global perspective, systematically explore the development status of the on-demand delivery industry, analyze the current challenges, and deeply analyze how the electric two-wheeler battery swapping technology can enable industry upgrades.
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Global on-demand delivery industry development status
Market size and growth trends
Data shows that the global takeaway industry market size has exceeded US$400 billion in 2023, and is expected to grow by 14% in 2024. This growth momentum is mainly driven by new demand in Asia and the Middle East, while the North American and European markets maintain steady growth. As the core business scenario of instant delivery, the importance of the food delivery industry is self-evident.
- US market
The penetration rate of food delivery was 5.8% in 2017 and reached 18.2% in 2022, becoming the world’s second largest market. Although the penetration rate is already at a high level, retail instant delivery such as supermarkets, convenience stores, and pharmaceuticals is still expanding rapidly. Take DoorDash as an example. It has quickly acquired users and merchants by building a local delivery network and increasing subsidies, and has taken a leading position in the highly concentrated US market (CR3 accounts for nearly 99%).
- Southeast Asian market
Digital lifestyles are gradually becoming popular, and the number of new food delivery users increased by 26% during the epidemic. In 2023, the size of the Southeast Asian food delivery market will reach US$17.1 billion, with Indonesia and Thailand as the main markets. It is expected that by 2026, the market size in the region will exceed US$20 billion. Grab leads with a GMV of US$9.4 billion, and other platforms are competing for market share through urban sinking and system intelligent optimization.
Challenges faced by the instant delivery industry
Although the instant delivery industry has broad prospects, it still faces many problems in the development process, mainly including the following:
- High delivery costs: a large amount of investment is required in manpower, equipment, transportation capacity, and distribution network construction. In addition, the high frequency and dispersion of orders make it difficult to improve the overall operational efficiency.
- Delivery timeliness is difficult to guarantee: affected by factors such as traffic, weather, and order peaks, delivery delays are prone to occur, which in turn affects user experience and platform reputation.
- Insufficient protection of riders’ rights and interests: as the core labor force in the industry, riders generally face problems such as high-intensity work and lack of social security protection, which affects their work enthusiasm and long-term stability.
- Intensified competition: frequent price wars and subsidy wars have compressed the industry’s profit margins, and also brought about problems such as fluctuations in service quality and chaotic market order.
Battery swapping for e-two-wheelers: Powering the instant delivery revolution
Market penetration rate is increasing rapidly
Instant delivery riders are highly dependent on electric two-wheeled vehicles and have strict requirements for battery life, power, stability and charging efficiency. Traditional charging methods are time-consuming and unsafe, and are gradually unable to meet demand. Battery swap technology is becoming a better choice due to its high efficiency, speed and safety, and its market penetration rate is constantly increasing.
Technical characteristics and professional requirements
The battery swap system for electric two-wheeled vehicles integrates intelligent hardware, cloud collaboration, big data and AI technology, and is a typical interdisciplinary high-tech intensive industry. The safety of lithium batteries is affected by multiple factors such as material system, PACK process and usage conditions, which is difficult to control and has high requirements.
A mature battery swap operation system must have the following key capabilities:
- Intelligent hardware and BMS system: real-time monitoring of battery voltage, current, temperature and other data, and dynamic scheduling of battery operation status.
- Big data prediction analysis: predict life and failure risks based on battery usage data to achieve early maintenance and replacement.
- Safety management mechanism: through multiple protection designs and abnormal detection, to ensure personal and equipment safety during battery operation and use.
Core advantages of battery swapping technology
| Advantage | Description |
|---|---|
| High Efficiency | Battery swapping takes only a few minutes—much faster than traditional charging—greatly improving delivery efficiency, especially during peak hours. |
| High Safety | Swapping stations monitor batteries in real time and manage them centrally, reducing self-charging risks and enabling safe recycling of used batteries. |
| Lower Operating Costs | Centralized and large-scale operations help reduce per-swap costs, while riders save on battery purchase and maintenance expenses. |
| Eco-Friendly & Sustainable | Electric two-wheelers produce zero emissions, and centralized battery management further reduces carbon footprint and environmental impact. |
Future outlook
Technological innovation continues to advance
In the future, emerging technologies such as solid-state batteries, smart BMS, and wireless charging will continue to promote the performance upgrade and cost reduction of electric two-wheeled vehicles:
- Solid-state batteries: With higher energy density and thermal stability, solid-state batteries are expected to become the next generation of mainstream power batteries. Companies such as Farasis have begun to lay out.
- Smart BMS: Integrated AI algorithms can achieve real-time monitoring, intelligent scheduling, and accurate early warning, improving battery efficiency and safety.
- Customized solutions: Differentiated battery configurations are provided for different delivery scenarios (long-distance/high frequency/nighttime) to meet diverse needs.
- Energy recovery and wireless charging: further improve battery life and charging convenience, and reduce user intervention.
Policy support and international cooperation are enhanced
The policy side continues to pay more attention to green transportation:
- The EU’s “Green New Deal” and China’s “Carbon Neutrality” goals provide policy dividends and financial subsidies for the promotion of electric vehicles and infrastructure construction.
- International cooperation such as Italy’s Retrokit’s oil-to-electricity project and the China-Kenya green travel project have promoted the sharing of technical experience and global implementation.
Conclusion
As a representative of urban modernization services, the instant delivery industry is changing people’s lifestyles at an astonishing speed. As a key infrastructure supporting high-frequency transportation capacity, the battery replacement technology of electric two-wheeled vehicles has shown great application potential and market space. In the future, with the continuous evolution of technology and the coordinated promotion of policies, the instant delivery industry is expected to move towards a more efficient, safer and more sustainable development track. At the same time, global cooperation and technology co-construction will also bring broader growth opportunities to the industry.
Read more: battery swapping vs charging station
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Willow
Willow is a materials engineer with a Master’s degree in Materials Science and Engineering, specializing in lithium-ion battery materials and energy storage technologies.
Her work focuses on EV battery swapping solutions, battery innovation, and new energy industry trends, aiming to translate research insights into practical applications for sustainable transportation.
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