“Amidst the Pandemic-Covid 19, online food delivery companies
resort to outreach programs in order to assure their customers the safety in
food delivery and have also diversified to grocery delivery due to increased
demand as a result of panic buying”.
COVID-19 in India has brought virtually every sector to a
standstill except for essential items. All operational activities ceased since
the Lockdown was announce on March 24th 2020, and many companies
regardless of their size has gone into losses.
Companies had to undertake certain drastic measures such as pay cuts,
layoffs, suspend certain operations and restructure the organization to reduce
their losses.
The rapid spread of corona virus has made the consumers
skeptical about ordering food online. The result of the same has been reflected
on the revenues of restaurant industry of India which witnessed 70% drop in the business since March 2020.
The restaurants PAN-India have been directed to remain closed for dining. More
than 95% of the restaurants in India
are offline, either due to lack of staff or lack of demand thereof. The online food delivery has registered
a drop of ~70% in the order volumes
in the past 2 months, reaching nearly about 5mn-6mn orders per month.
As the order volumes continue to decline drastically, the
online food delivery companies have started to shift their focus towards online grocery delivery in order to
sustain their revenues and optimize their operational fleet. Market players
such as Zomato, Swiggy and Box8 have jumped to online grocery delivery in order
to cater to the increasing demand as a result of panic purchase either by tying
up with grocery stores or by partnering up with existing grocery delivery
platforms to support them in delivering the groceries. Last mile delivery
companies such as ShadowFax and Delhivery are partnering up with FMCG, Retail
Players and Grocery Shops to support delivery of essential products. Restaurant
chains with big fleets are partnering up with FMCG brands to supply essential
commodities. Eg: Dominoes India has partnered up with ITC to delivery essential
goods and groceries.
In the wake of the global pandemic, hygiene has been the focus area for aggregators such as Swiggy and
Zomato. To overcome the sentiments of the consumers, the food delivery
companies are aggressively reaching out to consumers for ensuring the safety of
the food being delivered by marketing their initiatives in every possible way. On
one hand aggregators are offering contactless delivery and other the other hand
cloud kitchen company Rebel Foods has introduced live body temperature tracker
on its application. The companies are also sending out advisories to the
consumers to transfer food in another container post delivery and re-heating
the food before consumption. Companies have also promised temperature logs for
the food handlers such as the chef, the food packers and the delivery boys to make
the business more transparent. The post-pandemic preparedness is half way
through for a few companies. Zomato is preparing for contactless dining after
the lockdown restrictions are lifted by adding new features into their app
which allows consumers to use menu, place orders directly and make payments
without coming in contact with the restaurant staffs.
Although a slow recovery in the order demand for online food
delivery is expected by August end, the overall orders for the year 2020 is
expected to be 50%-60% lesser than
total orders of 2019. The future trend in the F&B industry will be centered
on health and hygiene. The restaurant industry will particularly adopt more
stringent practices to ensure that both its people and the food prep follow the
best hygiene practices. With the health scare around Covid-19, the hygiene
parameter will play a major role for consumers when deciding to order out or
dine out. Social Distancing norms
may reduce the number of walk ins into restaurants, with pubs and clubs being
the worst affected. Major clubs, pubs would be looking towards alcohol delivery
and food delivery through aggregators. Premium and high scale Hotels such as
Taj, ITC would recover faster than small scale budget restaurants. Premium
restaurants would also be looking at Food delivery in order to effectively
utilize their operational facilities. Live Videos, Temperature Logs,
Contactless Delivery, focus on health & hygiene will result in increased
transparency in turn boosting customer confidence.
Industry experts have revealed that the business volumes and
revenues will suffer due to the health scare. However, they believe that the
businesses will take time to revive and we can expect the industry to fall back
to normal only by the first half of 2021. Till then the only way to deal with
the anticipated decline in the business is to maintain hygiene at each level
and intimate the consumers for every small or big step take to ensure their
safety. Despite the anticipated set back, the online food delivery market of
India is expected to grow with a CAGR of 27.4% through the future period of
2019-2025F.
By Type
of Kitchen
Private
Cloud Kitchens
By Region
Bengaluru
Delhi NCR
Hyderabad
Mumbai
Chennai
Pune
Kolkata
By
Markets
Core Markets
Emerging Markets
Rest of India
By Mode
of Payment
COD
Credit/Debit Card
Payment Wallets
Net Banking
By Type
of Food
Fast Food
North Indian
South Indian
Street Food
Others
By Age
18-24 Years
25-34 Years
35-44 Years
45-54 Years
By Gender
Male
Female
By Share
of Meals
Dinner
Lunch
Breakfast
Others
By Mode
of Ordering
Mobile
Website
Companies Covered:-
Zomato
Swiggy
Rebel Foods
Biryani by Kilo
Box8
Eat.Fit
Fresh Menu
Key
Target Audience:-
Online Food Delivery Companies
E-commerce Companies
Cloud Kitchen Companies
Private Venture Capital Firms
3rd Party Logistic
Companies
Time
Period Captured in the Report:-
Historical Period:
FY’2015–FY’2020
Forecast Period:
FY’2021-FY’2025
Key
Topics Covered in the Report:-
Pain Points of the Companies
Present Day Pain Points of the Operators
Target Addressable Audience
Operating Models in the Industry
Addressable Gaps in the Market
Types of Users
Impact of Covid-19 on the Industry
Cloud Kitchen Investment Model
Revenue Models in the Market
Analyst Recommendations
For More Information
on the research report, refer to below link:-
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
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