According to a report by Google and Boston Consulting Group (BCG), an online food delivery market will climb a new height – a whopping $8 billion market by the end of 2022.
Roma Datta Chobey, Director-Travel, BFSI, Classifieds, Gaming, Telco & Payments, at Google, said, “Food tech has now made its presence in greater than 500 cities in India and with consumer confidence growing, there are new opportunities for the players to ‘win with the consumer’ in an evolving market.”
The report by Google and Boston Consulting Group published that a variety of cuisines, about 35 percent%, was one of the main reasons for the consistent use of online food ordering apps. Great discounts and convenience followed the cuisines. Currently, Zomato and Swiggy dominate the online food delivery market. Recently, Zomato acquired Uber Eats.
Rachit Mathur, Managing Director and Partner, India Lead of BCG’s Consumer & Retail Practice, said “Overall online spending in India is rising rapidly and expected to grow at 25 percent over the next five years to reach over $130 billion. Riding on the wave of rapid digitisation and steadily growing consumption, the reach of Food Tech companies has grown six times over the last couple of years and will continue to increase further.”
Other reasons include peer advocacy (52%). Friends ordered food from the app and seeing this convenient option, others jumped in on the boat. Advertisements also played a crucial role, a total of 19% in metro cities.
BCG Senior Partner and Managing Director Abheek Singhi said, “Food tech start-ups have revolutionized the way Indians eat. There is now a greater demand for healthy, home-cooked meals leading to the emergence of new business models like cloud kitchen and meal subscriptions. Ordering food online is now a habit.”