15% quarter-on-quarter growth for food delivery in India


Tuesday, 27 February, 2018


15% quarter-on-quarter growth for food delivery in India

The online food delivery market in India is growing at a steady 15% quarter on quarter in terms of daily food orders.

According to RedSeer Management, the daily order volume increased from 200,000 in 2016 to 450,000 in 2017. This order volume is expected to reach 2,000,000 orders per day in 2020. Currently worth $700 million, it is anticipated that the sector will be worth around $2.5 billion by 2021.

The food delivery market is currently concentrated in seven cities — Bengaluru, Delhi, Mumbai, Pune, Kolkata, Hyderabad and Chennai — which account for 87% of the industry.

The largest players in the sphere are the Bengaluru-based Swiggy, which claims 35–38% market share, followed by Zomato with 25–30%.

The industry is moving towards self-delivery as this provides better control over the delivery process and higher profitability, as consumers appear to be quite willing to pay an extra fee for delivery. The percentage of daily orders fulfilled by self-owned fleets increased from 46% in Q4 2016 to 56% in Q3 2017.

Image credit: ©stock.adobe.com/au/Tijana

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