Swiggy, Zomato listed top 10 global food delivery platforms: report
According to Canada-headquartered ETC Group, foodtech startups Swiggy and Zomato ranked ninth and tenth spot, respectively, on the list.
Homegrown food giantsand have ranked ninth and tenth, respectively, on the top 10 global food delivery platforms, as per a report published by Canada-headquartered ETC Group.
According to the global research firm, food delivery platforms, including China’s, the UK’s , and the US’ Uber Eats, China’s Ele.me, and the US’ , acquired the top five positions, respectively.
"The food delivery sector refers to digital, on-demand platforms for ordering and paying for prepared food and, increasingly, groceries and other retail items. The restaurants or retailers fill the orders and couriers deliver them to customers within a prescribed timeframe," the ETC Group said.
"The sector was revving up before the COVID-19 pandemic, but 2020 saw turbo-charged growth as food delivery became a frontline service amidst lockdowns," it added.
According to the report, venture capital and technology investment have fueled the sector, but companies have yet to deliver profits – even in the sector-friendly circumstances of the global pandemic when delivery became more of a necessity than a convenience.
Delivery platforms help local businesses connect to customers who benefit from the "affordable convenience" of eating in (without meal prep), all while offering "meaningful work" to "underemployed" people drawn to the flexibility of the gig economy.
From the beginning, the model has been less about food service and more about logistics, ecommerce (including customer-data collection), and attracting technology-focused venture capital investors.
"Competition in the new sector quickly heated up: some players were gobbled up, and those that remained raised even more investment cash, while buying and swapping stakes in competitors. The kings of e-retail, Amazon and Alibaba, both invested," the report said.
"Tweaking the business model to move toward profitability—most prominently by adding grocery delivery—is underway. (User-data is its own reward, however, and gives companies unprecedented access to customers’ preferences and, literally, their tastes.)" it added.
Edited by Suman Singh