Indian Online Food Delivery Industry Boosted By 150% In 2016

Posted on: Feb-2017 | Food & Beverages

According to a report, the Indian online food delivery market grew by 150% with an estimated gross merchandise value of $ 300 Million. This was indeed shocking. Well, seeing the exits of bunch of startups and firms from the industry last year, the results are a bit shocking.

The online food delivery market in India witnessed many roadblocks in the development last year. Various players shut downed their shop and scaled low their operations. Demonetization also played an important role in this situation. The industry witnessed a drought in the funding. It received only $ 80 Million in 2016. The same amount was $ 500 Million a year before. Despite all this factors, the industry showed a growth of 150% with estimated gross merchandise value of $ 300 Million in 2016.

The main reason behind this growth in the numbers is due to the growing population. People working in the IT sector do not have much energy left after working for 8–9 hours straight. Hence, they prefer to order online to satisfy their hunger. This is the main reason for the growth of the online food delivery market in India. In addition to this, the perfect service given by the online food delivery companies also plays a significant role. These firms take the order with great care and deliver fresh and hot food within no time. This ends up in customer satisfaction and indirectly results in the elevation of online food delivery market in India. Moreover, the number of coupons and discounts that are applicable on online order has been increased. Companies sometimes offer more that 90% of discount on an order. This system of discounts and coupons to attract more users is also one of the main reasons that are boosting the online food delivery market in India.