India’s total online food delivery gross merchandise value (GMV) is expected to be US$ 13 billion by 2024 by clocking 12 million daily orders on an average, said a new report on Friday.
While online food delivery, which has scaled to more than 500 cities and towns in India and over 10x GMV over the past three years, will continue to be the core, a significant growth is expected in the other businesses such as ads and groceries, amongst others, according to Bengaluru-based consulting firm RedSeer.
These businesses have the potential to contribute up to a quarter of the total GMV.
“While food delivery in itself is likely to be US$ 13 billion by 2024, as the players diversify with a keen eye on profitability, we expect further US$ 4 billion+ growth in ads and loyalty programmes, cloud kitchens, hyperlocal delivery and procurement offerings,” Abhijit Routray, Senior Consultant at RedSeer, said in a statement.
In June, RedSeer in its findings said that while due to the COVID-19 impact, the number of orders dropped, foodtech players evolved themselves into hyperlocal super apps.
“While grocery delivery boosts fleet utilisation, it is challenging due to low shelf-life, thin margins, and the need for specialised infrastructure,” said Routray.
“Also, with large players entering the space with a focus on value, foodtech players will look to excel on delivery times, fill-rates, while differentiating on other aspects — for instance, driving customer delight through curation.”