Apr, 2017      |     By Anil Kumar , Ujjwal Chaudhry

Online Food Delivery maintains momentum in Q1’17

Overall partner satisfaction witnessed a jump of 900 bps driven by business growth prospect


Anil Kumar

Anil Kumar

CEO

Ujjwal Chaudhry

Ujjwal Chaudhry

Associate Director

  • A comprehensive performance review of the online food delivery market
  • Assessed through a regularly tracked set of performance indicators
  • Published quarterly

 What is in this report?

The Six Key Dimensions for Assessing the Performance of the Sector

Indian Online Food Delivery Market: Growth continues in Q1 2017

India's online food delivery market saw a rapid growth in the order volume coupled with higher seller satisfaction while reduction in delivery cost improved the overall unit economics of the sector
  • The Q1'2017 saw an increase in the total orders by 32% from 230,000 to 304,000 while AOV increased marginally
  • Customer adoption saw a growth with rise of new users on the platform leading to reduction in the repeat use and orders per customer
  • Reduction in delivery incentives played a key role in improving
    the unit economics of the sector
  • Higher share of Own/3PL delivery helped in marginal
    improvement of compliance and delivery time
  • Although the overall customer satisfaction has remained same
    at 20%, satisfaction with on time delivery has improved
  • Partner satisfaction has improved by 900 bps in Q1'2017
    buoyed by the growth in business but timely resolution of
    queries and complaints still remains a concern

Online Food Delivery Sector Assessment Scorecard- Q1'2017

Industry maintained the momentum and the order volume grew by 30-35% in Q1'17...

...driven by increased penetration in the existing cities...

...and inflow of new customers, highlighted by reduction in no. of orders per customer and repeat usage

Additionally, unit economics of the sector improved due to reduction in incentives and marginal increase in commission rates...

...with the volume growth and the reduced incentives not impacting the key operational metrics much

Customer satisfaction improved on the app experience and usage...

...while it dipped marginally due to reduction in offers and discounts in the quarter...

...leading to customer NPS improving marginally

Partner satisfaction improved on payment settlements and growth in business...

...while timely resolution of queries and complaints still remains a key concern area

Overall partner satisfaction witnessed a jump of 900 bps driven by business growth prospect

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

...and is expected to grow at 90% CAGR to reach a penetration of 11%, valuing it at USD 4 Bn market in 2020

List of Paid Reports on Online Food Delivery Market – Q1 CY17

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