Rise in Income and Internet Facilities to Drive Online Food Delivery Market in India: Ken Research


Online food delivery is a service in which a store or restaurant delivers food to a customer through the restaurant’s website. Delivered items include drinks, food, and desserts etc. Payment mode may be online and cash on delivery. Some features for making successful online food delivery market are generating a code referral system, easy & user-friendly dashboard, social media integration, customer integration with push notification and cross-platform compatibility etc.

According to study, “Online Food Delivery Market in India 2017” some of the major companies that are currently working in the online food delivery market in India are Zomato Media Pvt. Ltd., Scootsy Pvt. Ltd., Food Panda Indian Pvt. Ltd., Foodvista India Pvt. Ltd., Bundl Technologies Pvt. Ltd., UberEats Pvt. Ltd., Faaso’s Food Services Pvt. Ltd.,Swiggy Pvt. Ltd., Pisces Eservices Pvt. Ltd.

On the basis of product type, the online food delivery market is segmented into fixed online food delivery and movable online food delivery. On the basis of cuisine-wise, the market is segmented into Indian food, fast food, Italian food, and others. On the basis of the business model, the market is segmented into logistics focused food delivery system, order focused food delivery system and full-service food delivery system. Full-service food service is useful for small-scale & independent restaurants. On the basis of food sources, the market is segmented into grocery stores, restaurants & food outlets and supermarkets etc. In addition, on the basis of the platform, the market is segmented into the application based and platform based.

The market for online food delivery is mainly driven by rising disposable income. Changing demographics, increasing penetration of internet & smart-phones, favorable lifestyle changes, young population, consumption levels, a greater share of women in the workforce, aggressive marketing strategies adopted by food startups and the convenience of ordering is increasing significantly which led to the growth of the market. Apart from the advantages some of the challenges include unpredictable demand patterns, inability to influence external circumstances (traffic, weather & changing demand on a daily basis), high delivery cost, highly concentrated peaks in ordering during meal-times, limited delivery times and kitchen operations etc.

Some online food delivery apps are TastyKhana, JustEat, Uber Eats, Swiggy, FoodMingo, Pizza Hut, FoodPanda, Zomato Order, Fasso’s and Dominoes. Moreover, some food delivery startups in the country are Masala Box, 48 East, Box8, Brekkie, Fresh Menu, Chefkraft, Ready Bowl, Entree, Holachef, Pizza Express, iChef, Burgundy Box, FoodCloud, Frsh, and Tpot.  Hyderabad, Delhi NCR, Bangalore, Pune, and Mumbai are top five cities in India for online food ordering.

The role of mobile apps and also the web-based system of ordering food playing an important role as more and more people use smartphones, followed by increasing literacy and access to the Internet facilities. Online food delivery is moving towards self-delivery, causing the fall of delivery time. Players also have higher control over the delivery process are able to provide much better value to customers. In upcoming years, product’s 3D images or 360-degree view will be on websites, which will define more detailed menu information such as ingredients and portion size etc. In near future, it is expected that products will be delivered via drones, which will be helpful for delivery within minutes.

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Ankur Gupta, Head Marketing & Communications