Dec, 2016      |     By Anil Kumar, Ujjwal Chaudhry

Analyst Food Report

Online food delivery is expected to grow by 150% to reach USD 750 million in 2017


Anil Kumar

Anil Kumar

CEO

Ujjwal Chaudhry

Ujjwal Chaudhry

associate director

Delivery is outpacing the overall restaurant industry growth

Within delivery, online medium is gaining traction and this market (GMV) stood at USD ~300mn last year

Online Market Size

Herein, aggregators dominate the market with Internet Kitchens having limited presence

Online Market Size by model in GMV terms

India is still a nascent market as compared to mature markets like UK where online delivery commands much higher share of delivery orders

Global Penetration Level

Top 5 cities in India contribute >85% of the overall order volume currently with Bangalore leading the way

Top 5 cities contribution

Partner restaurants have a new business source in online platforms with contribution as high as ~35% to their overall business currently

Online business contribution for partner restaurants

Partner satisfaction has a high variance with significant gap between leading and anchor player

Partner Satisfaction Trends

Consumer satisfaction has a lower variance among leader and anchor players compared to partner satisfaction; is at par with other e-commerce verticals

Consumer Satisfaction Trends

While the cost for captive delivery fleet is high compared to 3PL and restaurant delivery, it also enjoys higher customer satisfaction

Delivery Models

High delivery cost raises concerns over the unit profitability of the industry

Unit economics by business model

Online food delivery is expected to grow by 150% to reach USD 750 million in 2017...

Market Size Forecast

...with the coming year presenting a slew of new opportunities as well as challenges

Opportunities, Challenges and Innovation

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