Online food ordering space is one of the paragons in the internet led business space. Funding in the food tech space has grown by 35x in the last five years, shares a BCG- Google report. Macro trends such as rising internet penetration, increasing ordering frequency, favorable consumer disposition, expanding reach in smaller tiers and expanding network of restaurants on Food Tech platforms pan India, continue to drive momentum in the industry.
The report also mentioned that the reach of food tech aggregators has grown six times from 2017 to 2019. At the same time, we see consumers spend more than double the time to explore and order online, from 32 minutes per month in 2017 to 72 minutes per month in 2019. Riding on the wave of higher consumption in a growing market and maturing dynamics on the supply side, we expect the industry to grow from $4 Bn to $8 Bn in next three years, a massive 25% growth rate.
Not only this we have also seen that with food-tech shaping up the online food ordering space, consumers are deeply engaged and have high expectations from these players. Here are five key drivers for the growth of food-tech sector in the country:
Deep personalization: Every customer enjoys some special attention and customization. Lately, food-tech players have worked a lot on personalizing the experience for its customers while placing an order online.
Focused marketing: Food-tech players have got the nerves of the customers and hence they know how to focus on right marketing.
Increased quality assurance: Quality is something that everyone looks at. Quality food is always customer’s first choice when placing an order online. And, these players have partnered with best restaurant partners to deliver quality food.
Constant value for money: Value for money and quality food goes hand in hand. And, food-tech players have everything on board for everyone.
Advanced convenience features: One can easily order, track and see detail about their placed order with advanced convenience features.
Also, diversification is a common theme across global players, making inroads into non perishable delivery (Grocery, Medicine), Cloud Kitchen, Ride sharing, Payment Gateway, OTT Streaming and Hospitality. “We see players leverage their current network of categories, services and consumer to enter adjacent spaces. Established global operators have invested in advanced deep personalization, data analytics, and targeted marketing initiatives, “added the report. Despite all these growth and convenience that online players provide there are some barriers to online ordering.
Barriers in Online Ordering
Thus, we can say that in years to come online ordering and food-tech players are going to mark great successes in the industry.