The online food delivery system allows customers to order and receive desired food products at their doorstep. Change in lifestyle and eating habits, stringent work schedule, and increase in the number of working women, and rise in disposable income drive the online food delivery market. Some of the key players are Zomato, Swiggy, Domino’s Pizza, Fasoos, and Box8.
The market is expected to reach INR 1,515.17 Bn by 2026 expanding at a CAGR of 30.11% during the 2021 – 2026 period. Rapid digitalization and acceptance of online food delivery services among consumers across tier I and tier II cities propel market growth. However, low-cost food and retail products offered by local unorganized players in tier II and tier II cities, and villages is expected to restrict the development of the organized players. There has been a consistent rise in investments received by established industry players such as Zomato and Swiggy in the online food aggregators market in India.
COVID-19 impact analysis:
The nationwide lockdown induced by the COVID-19 pandemic initially caused some disruptions in the growth of the online food delivery market. However, it bounced back, owing to people’s inclination toward takeaways over dine-outs in order to comply with social distancing norms. Although the number of online orders went up this year, sales declined in the second quarter due to the second wave. In April, overall online food delivery sales dropped by almost 40% to (provide April figure) from (provide figure) in March. This was because of apprehension toward food from outside. However, the pandemic has also resulted in the onboarding of new customers. Due to social distancing norms, there has been an aggressive shift toward delivery-oriented infrastructure as customers preferred ordering food at home over dining out.