The Food Tech industry has seen an overall GMV growth of ~140% in the last year, with number of orders increasing at a whooping 176%
Published on: Sep 2018
Food Tech has seen a lot of momentum in the past year with players picking up funding from investors and parent companies, primarily taxi players. This has led to players now being present across ~20 cities with further expansion plans in other tier 1 and 2 cities. Also with increasing competition, players have discounting strategies based on events, meal types or cuisines leading to decrease in industry AOV by almost 18% and thus strongly driving growth.
Online food delivery players contribute more than 80% of the overall delivery orders to partner restaurants
Published on: Jun 2018
The food-tech delivery players have been able to provide value to the partner restaurants. Currently, almost 28% of the overall business of the partner restaurants comes from the food-tech players. Going forward we expect these partners to contribute more to the partner restaurants thus increasing their dependency on the food-tech players.
Restaurant deliver 24% of the overall orders (both online and offline) received themselves
Published on: May 2018
Restaurants on an average deliver 24% of the overall (online + offline) orders received themselves. The rest of the orders are typically fulfilled by online food delivery players who either have their own fleet or have partnered with a third party logistics player for getting the deliveries done. This shows the huge impact and the value the online food delivery players have been able to provide the partner restaurants.
The Indian Online Food Delivery is a ~$0.74 bn market with high concentration in the top 6 metros
Published on: Apr 2018
The Indian Online Food Delivery industry is highly concentrated in the top six metros. The top six metros have a total market size of $ 700 mn roughly 94% of the overall market. The key reasons for this has been urbanization and changing lifestyle coupled with increasing affordability and growing online penetration. We feel going forward the online food delivery players will focus on increasing their presence outside the top six metros to fuel their growth plans.
Individual consumers on an average spend INR 2100 monthly on restaurants
Published on: Apr 2018
Consumers on an average spend INR 2100 per month on restaurants. The spend is higher in metros with Mumbai and Kolkata leading the table. Dine-in is the most preferred medium followed by delivery with the spend on take away being the least. With the growing online penetration consumers are getting comfortable with the online services. And hence we expect the online food delivery apps to take up more and more share of the delivery spend of consumers.
The industry sees increase in the number of orders beyond lunch and dinner hours
Published on: Mar 2018
The food-tech industry is witnessing an increase in consumer adoption with the growth in the number of orders outside the lunch and dinner hours. Consumers are ordering food during breakfast, evening snacks and late night. This reiterates the strong value prop food-tech players are providing the consumers.
Top 3 cities see an increase of more than 80% in order volume from last year
Published on: Feb 2018
The top three cities of food-tech industry see an increase of more than 80% from OND-16 to OND-17. This is due to the rapid increase in the adoption of the service which both consumer and partners are able to see value in.
Will food-tech industry continue to make margins in 2018?
Published on: Feb 2018
The Indian food-tech industry has seen a tremendous growth from 2016 to 2017, with the daily order volume increasing from 200K to 450K. The unit economics for the industry had just begun to make sense with the operating margins currently around 7%. Now with both Ola and Uber entering the play, we feel the unit economics will be influenced as both these firms would resort to heavy discounting for increasing adoption.
The Industry sees daily order volume rise to 460K in OND-17
Published on: Feb 2018
The food-tech industry continued the 15% Q-o-Q growth in OND-17; with the players expanding to T1 cities like Ahmedabad and Chandigarh and ramping up their marketing initiatives. Now with OLA and Uber entering the space we expect some kind of price war to kick-in and further increase the daily order volume.
Daily Order Volume (‘000)
Food-tech will be ruled by the players with high-quality captive delivery players
Published on: Jan 2018
It is becoming increasingly clear that food tech is more and more of a logistics play, restaurant discovery is not a deep competitive advantage. There are clear trends in customer and seller satisfaction supported by the better delivery speed and compliance that vouch for the superiority of the captive delivery model in Indian market.
Self Fleet vs Partner fleet used by Online Food Aggregators
Restaurant powered delivery is giving way to 3PL and platform owned logistics
Published on: Jan 2018
On-time delivery of the order is one of the major expectations of the customers from the online food delivery players. Deliveries fulfilled by restaurants have lower delivery compliance as compared to those fulfilled by the own fleet/3PL partner.
Share of Order Deliveries: Restaurant vs. Own/3PL
The leading online food-delivery player provides a significantly superior experience to partner restaurants – especially on the aspects that matter most.
Published on: Jan 2018
When restaurant partners work with online food platforms, they have especially high expectations for business growth and payment settlement experience. RedSeer research shows that the best performing food delivery platforms in the sector are able to perform very highly on precisely these critical partner experience parameters, amongst others.
