Food Delivery Market in India by Order Mode and Payment Mode - Forecast and Analysis 2022-2026

The food delivery market share in India is expected to increase by USD 716.53 million from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 28.13%.

The market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by order mode (online and offline) and payment mode (digital payment and cash on delivery). This market report also offers information on several market vendors, including Bundl Technologies Pvt. Ltd., Diverse Retails Pvt. Ltd., Dominos Pizza Inc., Dunzo Digital Pvt. Ltd., McDonald Corp., Ola Foods, Pizza Hut, Poncho Hospitality Pvt. Ltd., Rebel Foods Pvt. Ltd., and Zomato Media Pvt. Ltd. among others.

What will the Food Delivery Market Size in India be During the Forecast Period?

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Food Delivery Market in India: Key Drivers and Trends

The increasing partnerships between restaurants and food delivery service providers in India are notably driving the growth in India, although factors such as the growing threat from direct delivery services may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the food delivery industry in India. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Food Delivery Market Driver in India

One of the key factors driving growth in the market is the increasing partnerships between restaurants and food delivery service providers in India. These partnerships enable restaurants to tap into the vast customer base available and vice versa. In addition, food delivery service vendors are entering into partnerships and agreements with restaurants and are obtaining customer insights and data analytics to explore the customer experience. Some recent examples of strategic partnerships between established restaurants and food delivery services vendors are mentioned be In February 2020, Amazon announced plans to enter the Indian market. The launch of the service, which would be offered as a part of either Amazon's Prime Now or the Amazon Fresh platform, has been testing its food delivery service with selected restaurant partners in Bangalore, India. In February 2020, the food delivery platform, Swiggy, introduced BrandWorks, an initiative to aid restaurant partners with good culinary capabilities and unutilized kitchen capacities to co-create delivery brands.

Key Food Delivery Market Challenge in India

The growing threat from direct delivery services will be a major challenge for the market vendors in India during the forecast period. Several restaurants across the world are opting to handle delivery orders directly to ensure better branding, quality, and safety of their food products and services. Through direct delivery services, restaurants can take full ownership of the data and information related to customers who place orders for food delivery. Collecting and managing information allows restaurants to analyze customer requirements, customer data, and customer experience with regard to the order. Such measures will also allow them to customize the food based on customer requirements. In third-party delivery services, the vendor may change the pricing based on their convenience, which will affect the restaurant's brand image. Established third-party food delivery service providers may charge a commission, which can be 10%-30% per order. This may be detrimental to the profit margins earned by smaller restaurants. The rising threat from the direct delivery services offered by restaurants is expected to hamper the growth of the market in India.

This market in India analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Who are the Major Food Delivery Market Vendors in India?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Bundl Technologies Pvt. Ltd.
• Diverse Retails Pvt. Ltd.
• Dominos Pizza Inc.
• Dunzo Digital Pvt. Ltd.
• McDonald Corp.
• Ola Foods
• Pizza Hut
• Poncho Hospitality Pvt. Ltd.
• Rebel Foods Pvt. Ltd.
• Zomato Media Pvt. Ltd.

This statistical study of the market in India encompasses successful business strategies deployed by the key vendors. The market in India is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The market in India forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies. 

What are the Revenue-generating Order Mode Segments in the Food Delivery Market in India?

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The market share growth in India by the online segment will be significant during the forecast period. With a large number of young people living across various cities, food delivery apps in India have become instantly popular among these users. The change in shopping preferences propels the sales of food deliveries through the online channel, contributing to the market growth.

This report provides an accurate prediction of the contribution of all the segments to the growth of the market size in India and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Food Delivery Market Report in India?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive food delivery market growth in India during the next five years
• Precise estimation of the food delivery market size in India and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the food delivery industry in India
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of food delivery market vendors in India

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