India is growing its online food industry even after its massive cleanup last year that helped it draw investors back in and garner massive amounts of capital.
A lot of this was took by driving food aggregators Zomato and Swiggy even as the nation’s biggest ride-hailing stage Ola crashed into the part with an obtaining help to Foodpanda.
With the rules for the online food-delivery business now cast in stone, the all-important metric for aggregators to achieve remains order volumes.
The expanding spotlight and significance on pushing up volumes come as Chinese speculators in the market, including Alibaba (through its installment partner Ant Financial), Meituan Dianping and Didi Chuxing have backed Zomato, Swiggy and Ola, respectively, looks to recreate China’s food-delivery success story in India.
Over the past year, there has been an exponential growth in the number of food startups. This area is accumulating investor’s advantage, to such an extent that the market size of food in India is relied upon to reach Rs. 42 lakh crore by 2020, reports BCG. Presently, the Indian food market is around Rs. 23 trillion.
Industry watchers, however, are optimistic about the growth of online Food delivery businesses on the back of a recovery by the food industry from its initial funding mistakes of past years.
A recipe that focuses on strong brand-building by these platforms along with synergy with aggregators will be key to faster scaling of the entire online food delivery market, especially at a time when the unorganized food market is exploding significantly, say experts.