The food-tech industry witnessed more than 15% increase in daily orders quarter-on-quarter. With such a steady growth we saw the food-tech players take control of the delivery process but fulfilling more and more orders through self-fleet. This resulted in an improvement in the average delivery time of the industry positively impacting the consumer experience.
- The food-tech industry witnessed more than 15% growth Q-o-Q
- Chennai joined the list of top cities (having more than 10,000 orders per day)
- The percentage of daily orders fulfilled by self-fleet increased from 46% in Q4CY’16 to 56% in Q3CY’17
- The average delivery time of the industry improved from 47 mins in Q4CY’16 to 42 mins in Q3CY’17
With such a steady growth we saw the industry move towards having a higher control on the overall delivery process. The food-tech industry with the increase in per day orders has become more of a logistics play and hence we saw the industry shift towards the self-fleet model to have a better control in the overall delivery process.
The industry witnessed an increase in self-delivery from 46% in Q4CY’16 to 56% in Q3CY’17. With Swiggy having almost 100% self-fleet, Zomato acquiring Runner and Foodpanda having more than 50% of their deliveries through self-fleet.
This move resulted in a fall in the overall delivery time of the industry from 47 mins in Q4CY’16 to nearly 42 mins in Q3CY’17. This has altogether increased the reliability on timely delivery. The shift was well received by the stakeholders of the industry as it brought an increase in the overall stakeholder experience relying majorly on the delivery time satisfaction.
Commenting on the findings of the research, Anil Kumar, Founder and CEO, RedSeer Consulting said, “It is becoming increasingly clear that food tech is more and more of a logistics play, restaurant discovery is not a deep competitive advantage. There are clear trends on customer and seller satisfaction supported by the better delivery speed and compliance that vouch for superiority of the captive delivery model in Indian market.”
This article is posted by Faizan who is the Founder and Chief Editor of TechCarving. He is a Professional Blogger and Entrepreneur.