Food Gone Good - Food (Delivery) will Work
The 'hot' business till a year ago is seemingly ' hot to handle' now. There is a pervading sense of fear exacerbated by the closure some famous start ups in food delivery business. However, the naysayers will not question the potential in food delivery- The organised food business in India is worth $48 billion, or Rs 3 lakh crore, of which food delivery is valued at $15 billion (Rs 94,755 crore). In developed nations, takeaway and home delivery contributes to about 35% of the food business. In India only about 10% of the orders are for takeaway and home delivery. Furthermore, 80% of the orders are made through phone calls. Eateries like Dominos, Pizza Hut etc. alone get 50-60% of their sales through eCommerce. At last count there were around 120 start ups in this space, all jostling for the same customer in the same areas. Given the low entry barriers and healthy wallets of investors start ups have mushroomed. That is reason enough to ...