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KoreanDec, 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
CEO
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
