Digital service delivery platforms
Digital service platforms are becoming an integral part of the modern economy, fundamentally changing the way consumers interact with service providers. In Russia, Yandex platforms such as Delivery, Eda, Lavka, and others hold leading positions in this area. Russians are also actively using integrated platforms for other services in related industries: food delivery services, such as prepared food and grocery delivery, have become increasingly popular, offered through retail chain platforms.
According to one of Russia's largest banks, home food delivery alone grew more than 13-fold between the beginning of 2020 and the end of 2023. The market size for this digital service sector exceeds 650 billion rubles, and 25% of restaurant revenue, as of the end of 2023, came from delivery receipts. The number of orders exceeded 400 million (an average of 2.7 per Russian per year).
According to one of Russia's largest banks, home food delivery alone grew more than 13-fold between the beginning of 2020 and the end of 2023. The market size for this digital service sector exceeds 650 billion rubles, and 25% of restaurant revenue, as of the end of 2023, came from delivery receipts. The number of orders exceeded 400 million (an average of 2.7 per Russian per year).
Despite all the conveniences digital service platforms offer their customers, they also face their own challenges, the key one being data privacy: these platforms collect large volumes of personal information, storing order histories, addresses, payments, phone numbers, and messaging. In 2022, Yandex.Eda acknowledged that a hacker attack had exposed millions of people's order data. Users were never compensated for the breach. Regulatory challenges also exist: traditional laws and regulations often fail to keep pace with the rapid development of digital platforms, making them difficult to regulate and monitor.
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