ONLINE FOOD DELIVERY MARKET COMPETITION TOUGHENS IN INDIA
Market Expertz | January 16, 2019
The cloud kitchen business in India is blooming with companies like Swiggy, Uber Eats, Ola-backed Foodpanda, Zomato being at the forefront. The need for such platforms stems from busy lifestyles and lack of time for the traditional way of eating out. It’s especially true for the youth which is more in favour of ‘ordering in’ to save time and money. This need has led to a decline in the restaurants’ dine-in businesses and has in turn pushed them to register on such delivery apps. An additional advantage for the cloud kitchen business is the availability of the same food at a lower rate. The online food delivery market is expected to quintuple the existing growth rate by the year 2022 and is attracting the attention of large-scale overseas investors.
Swiggy became the fastest entrant in the ‘unicorn’ club as the start-up’s valuation crossed a million dollars in 2017. It has now raised $1 billion with the help of Naspers Ltd and China’s Tencent Holdings Ltd; becoming the 5th most valuable start-up in the country, preceded by PayTM, Ola, Oyo and Byju’s. Sriharsha Majety, CEO of the start-up valued at $3.3 billion, plans to expand the company’s reach beyond food delivery. Dunzo, another virtual delivery platform, was founded in 2014 and is a first-of-its-kind on-demand delivery service which helps deliver anything inside a specific city.
Future Group might step in the food delivery services world. Future Group plans to invest 1,000 crore rupees in cloud kitchens. Future Group is associated with many names like Big Bazaar, Hypercity, Central, etc. and has extended to other arenas such as food, fashion, home and personal care. Future Group is banking on its products’ affordability. No definite plans have been set out by Future group about the launch, although start-ups usually begin food delivery services primarily in metro cities. There might also be a possibility of the payment app by Future group, ‘Future Pay’ to be linked with its food app to extend its spread.
The fledgling Uber Eats has started its first brand campaign called “Everyday Moments.” The move is aimed at help the audience relate to the concept. Since, ordering-in has become a popular choice every company has its unique way to stay in the league.