A Perspective on Online food aggregators – OND16
This document covers the performance of the food-tech industry in Q4 calendar year 2016 covering the performance of the players and consumer NPS.
Foodtech Industry Performance
The entire industry grew by 150% during the past year CY 16 despite multiple start-ups shutting down and the decrease in the amount of money flowing into this sector.
- Swiggy has been burning money to incentivise the delivery boys, as well as the restaurant owners which coupled with its on-time delivery, has helped it achieve ~40% of the market share.
- However, the above model puts in front of us a big question of sustainability.
- With Google and Uber coming into the picture now the cash burning model will not be able to
survive for long.
- There is an urgent need hence for the existing food-tech companies to build a loyal customer
base by providing them timely delivery of high-quality food.