SECONDARY ANALYSIS ON FOOD DELIVERY INDUSTRY IN INDIA

Revathy G
6 min readApr 25, 2023

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India’s eating habits are changing dramatically. Restaurant-quality meal

delivery was still primarily limited to foods like pizza and Chinese less

than two decades ago. The Indian online food delivery space has

witnessed a massive boom in recent years. From a mere $4.82 billion

revenues in 2017, it reached $27.47 billion in 2022. Revenue in the

Online Food Delivery market is projected to reach US$34.68bn in 2023.

Notably, by 2027 it is expected to reach $71.62 billion. 1

The Grocery Delivery segment is expected to show a revenue

growth of 36.1% in 2024.

VARIOUS FOOD DELIVERY SERVICES IN INDIA 2

1. Zomato

The app was launched in 2008 by Deepinder Goyal and Pankaj Chaddah.

It started with providing reviews and information about restaurants and

gradually evolved into online table reservations and online food delivery.

It is already operational in 24 countries across the world. Zomato aspires

to be your online food delivery partner no matter which part of the

world you are in.

Key highlights:

 The menus are scanned and uploaded, and you can also get reviews

from people who have had previous experience with the place.

 Every restaurant is given ratings and reviews by people who have

ordered from those restaurants, this helps you choose the best

restaurant for yourself.

 Zomato lets you become an ambassador for your favourite

restaurant, so you can distribute discount coupons to your family

and friends. Their “deal of the day” feature unlocks jaw-dropping offers and

discounts at different restaurants every day.

2. Swiggy

Based in Bangalore and operated by Bundl Technologies Private Limited,

Swiggy was founded in 2014 by Nandan Reddy, Rahul Jaimini, and

Sriharsha Majety. They started their journey with food delivery in

Bangalore.

This hyperlocal food delivery app currently operates in 25 cities in India

and has about 40,000 restaurants globally. In a short span, Swiggy has

established a reputation for itself in the online food delivery space.

Key highlights:

 They also have a feature called Swiggy Pop, wherein single-serve

meals can be ordered with just a tap and prices as low as Rs. 50. This

feature enables one to order food for only one person without

worrying about wastage and eliminates the hassle of typing

unnecessarily to fulfil the minimum billing condition.

 Their best in town tab shows you all the best-selling dishes in your

locality.

 Because of such a wide assortment of restaurants, you can find all

sorts of foods and cuisines.

3. Domino’s

Domino’s is very well known in India’s food space as the ultimate pizza

restaurant and rightly so.

Key highlights:

 They promise delivery within 30 minutes of placing the order.

 Domino’s offers a variety of very affordable pizzas4. Dunzo

Dunzo is a food delivery app that offers fresh and delicious food to

people in a hurry.

Dunzo delivers a wide variety of other stuff as well. They are literally

your one-stop-shop for ordering things online, which is why they are one

of the best online food delivery apps in India.

Key highlights:

 For those who live in the Bangalore location, Dunzo, a popular

instant food app, delivers food in 19 minutes. Sounds crazy, right?

 With Dunzo, no delivery is too small, you can order any quantity you

want.

OTHER NOTABLE APPS:

 Uber Eats

 FoodPanda

 McDonald’s

 EatSure

 Faasos

 Pizza Hut

 Box8

 KFC

 FreshMenu

 Deliveroo

No of respondents for the below survey: 300

Table Source:MITTAL SCHOOL OF BUSINESS

LOVELY PROFESSIONAL UNIVERSITY, Advances in Mathematics: Scientifific Journal 10 (2021), no.1,

507–516FOOD DELIVERY MARKET STATS IN INDIA: 4

Rise Of Dark Stores, Focus On Private Labels

As hyperlocal delivery players aim to deliver faster, most of them are

setting up multiple dark stores/mini-warehouses across neighbourhoods

to meet the delivery rush in the shortest possible time. Both dark stores

and cloud/ghost kitchens are B2B delivery-only facilities, and consumers

cannot directly purchase from these units.More Statistics via. Graphs:INNOVATION IN FOOD DELIVERY INDUSTRY ACROSS GLOBE: 3

#1 Millenials as key drivers

Millennials are the priority audience for food delivery services as

they spend the highest share of their budgets on prepared food

compared to other generations. With fast-paced lives, Generation Y is

more apt to eat in quick-service restaurants and order food delivery.

Technomic’s Generational report cites that in 3 out of 5 cases Millennials

order food delivery or visit restaurants for takeout.#2 New delivery channels

2.1 Order by Tweet

Domino’s Pizza was first to conquer the Twitterverse and let people

order pizza by just tweeting a pizza emoji to the company’s Twitter

account. Of course, we might wonder how Domino’s can guess what

kind of pizza you want and where to deliver it.

The deal is that before taking advantage of this service you need to

make a “pizza profile” on Domino’s online delivery service. Then you can

save your default order, called an Easy Order, and link your Twitter

account to your pizza profile.

The initial idea of Fooji was to let customers order all sorts of meals via

corresponding emojis. Once you’d set up an account, you had access to

sixteen entree options and eight desserts, eight drinks, and eight sides.

But what emojis represented those options? Each week the Fooji team

chose delicacies from local restaurants to represent emojis. And a sweet

bonus was that Fooji’s favorite meal of the week could be ordered with

the fork-and-knife emoji.

2.2 Order via a virtual assistant

Domino’s hasn’t stopped with ordering by tweets. And the brand has

even created a Pizza bot for Facebook messenger named ‘Dom’. Now

customers can message ‘Dom’ and request food with a single word or

emoji. ‘Dom’ also replies to customer inquiries about vouchers and the

latest deals.

Grubhub has integrated with Alexa, Amazon’s virtual assistant

They have also incorporated other smarter delivery channels like order

via smartTV, smartwatch, car’s dashboard

#3 Modern delivery options

3.1 Delivery with robots

The evolution of AI technologies is giving rise to self-driving delivery cars

and robots. For instance, Just Eat and Starship Technologies have

developed moving pavement droids to deliver food in the UK3.2 Delivery with drones

Drone food delivery started with Tacocopter carrying tacos in the San

Francisco area. Then we saw Burrito Bomber in 2012 and the

Domicopter being tested by an independent Domino’s UK franchise in

2013.

#4 Embracing new niches

Many food delivery services have focused on a special niche. We’ve

already seen food delivery platforms that appeal to vegans and

companies that deliver strictly burger boxes or farm-grown food or

healthy smoothies.

4.1 Food waste apps

Each year, one-third of the food produced worldwide gets wasted. Food

waste apps tackle this problem and help to save the planet. They help

restaurants and grocery stores to get rid of leftovers and supply people

in need with low-priced food.

Food for All is one of these apps. This service offers unsold meals from

local restaurants, cafes, and delis with a 50 percent discount.

4.2 Apps with a virtual kitchen

UberEats has come up with the concept of a virtual kitchen: the platform

lists new eateries and meals only available in their app. UberEats

decided to help restaurants avoid the high operating costs of opening a

new physical space and provide convenience to partnering restaurants

by allowing them to use their kitchen space to prepare extra meals.

For example, Uber Eats could allow a salad cafe to also offer sandwiches

with minimal changes to the ingredients in-store. This cafe could

become a virtual sandwich cafe in the Uber Eats app while staying a

salad cafe at their physical location.

#5 Big data

Big data is helping to revolutionize food delivery services and make them

as efficient as possible. Food providers collect and analyze a huge scope

of data including road traffic;

 the impact of temperature on food;

 the impact of market trends on stock consumption;

 customer purchasing history;

 items currently in the shopping bag;

 reviews and comments on social media;

 posts customer share on social networks;

 … and so on.

This information helps food delivery companies accurately estimate the

delivery time, monitor customer emotions on social media, and

immediately react to complaints, personalize food offers, and more.

Grubhub, for instance, analyzes data about millions of orders to come up

with the most appropriate meal recommendations for each customer.

Doordash employs big data to manage inventory and to predict the

number of couriers required for a particular day, expected demand for a

specific cuisine, and food preparation time.

Just Eat examines hundreds of thousands of customer records to

understand what customers want from their service: what types of food

they’ll order, when, and how often. Big data has contributed to the

company’s 50 percent growth in the UK market.PROBLEMS FACED BY CUSTOMERS IN FOOD DELIVERY INDUSTRY: 3

 Key reasons for abandoning a order:

 they have a poor customer experience

 adults want an easier online ordering system.

 Inability to customize the order

 Questions about the menu not answered in website /app

App/website not functioning properly.

REFERENCES:

1. https://www.statista.com/outlook/dmo/online-food-

delivery/india#:~:text=Revenue%20in%20the%20Online%20Food,growt

h%20of%2036.1%25%20in%202024.

2. https://www.grabon.in/indulge/food/best-food-delivery-apps-in-

india/

3. https://rubygarage.org/blog/food-delivery-trends-2019

4. https://inc42.com/features/zomato-swiggy-dunzo-or-zepto-who-led-

the-indian-hyperlocal-delivery-war-in-2021/

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