The food-delivery industry in India is bursting with investments. As more and more entrepreneurs venture into the food delivery business, if you want to make a mark you will have to go the extra mile to sustain in the long run.
There has been a slump period, but the food delivery startups in India have revived with new vigor, and there have been quite a few mergers significant mergers and acquisitions in this space.
The flavor of the season in the food delivery startups in India market is the “food technology,” but it has nothing to do with IT. On the contrary, it has a lot to do with satiating your taste buds and enhancing your food experience. It is not just related to convenience apps, but it also about introducing new food products and ensuring a kind experiences for the consumer.
In 2018 we saw more and more online food ordering websites in India, and this has given a new shape to the entire market. This trend is likely to continue in 2019 as well.
However, it is not easy to sustain in this market. While there might be a new company coming up every day but not all can sustain in this market. A common reason for this is that most of them are clones of the other and therefore there is a shortage of differentiation.
- Best food delivery startups in India
- Key Factors to Success
- Focus more on quality food
- Use the food ordering platforms carefully
- Focus on retaining old customers than gaining new customers
- The value proposition of “Home-cooked.”
- What do customers dislike the most when it comes to ordering food?
- Bad quality food
- Waiting time
- Extra Fees
Best food delivery startups in India
Some of the best food delivery startups in India who have been on the to pin the food delievery market for quite some time are:
Partnered with some of the top restaurants, Foodpanda has experience in the smallest of the smallest town of India. Their service is quick, and they also have great discounts to offer.
It has approximately 42k restaurants listed across most of the major cities, and it also has a presence in over 23 countries. Zomato’s approach has always been content driven with minimum expenses on capturing market or acquiring a customer, and the majority of its revenue comes from their smart promotional techniques.
Swiggy’s customers get on time food, and its customers can track their delivery using the real-time tracking app with no extra cost on delivery. Excellent service of Swiggy is that it does not have any minimum order policy and it accepts online payments.
Key Factors to Success
Some key factors that food delivery startups in India must keep in mind to be a winner in this food delivery market are:
Focus more on quality food
There are many food delivery startups in India, and the competition is too severe. In most of the cases since there is nothing much different to offer, as a start-up, you will have to keep in mind that you cannot compromise on quality. The quality of your food is the crux to your success.
Since the food delivery market has been changing over time, you will have to stay updated.
Customers do not have time, and they want to get the best of the flavors delivered to them at home. So, investing in websites, applications or joining hands with food techies are becoming the need of the hour.
But, one thing for sure is if your food tastes good, you can afford to invest less on the technology part, but it can never be the other way round.
Use the food ordering platforms carefully
Most of the food ordering platforms charge a commission on the food that they deliver, and it is also an integral sector of the food industry of India. These platforms play a critical role in increasing your sale, but you should evaluate and see if you can afford to lose the margin on profit.
You will have to analyze the increase in the volume of order as compared to their commission.
Initially, you can take the help of these platforms, reach out to more customers, and create a base of loyal customers. Once you enter the market with your quality food and have created a pool of loyal customers, you can move out of the platforms.
Focus on retaining old customers than gaining new customers
If the quality of your food is up to the mark, prices are reasonable, and service is prompt, you can expect a good repeat rate with customers, and confirm your sustainability in the food delivery business. Food is a daily necessity, so if you can gain the trust of a customer, you will not have to invest much in marketing. Your existing customers will do this task for you and help you to gain new customers.
So, your focus should be more on retaining old customers than chasing new customers.
The value proposition of “Home-cooked.”
Due to studies, work, and various other need people mostly have to move out the comfort of their home. And, what most of them miss desperately is “home cooked food.” So, if you can keep it as your value proposition, you will undoubtedly succeed.
There is a list of food startups, but not all offer this value preposition. So, serve hygienic, simple and tasty food to your customers and let them reminiscent through your food platter.
What do customers dislike the most when it comes to ordering food?
Customer reviews had revealed that when ordering food, customers mostly dislike the following:
Bad quality food
Topping the list is the quality of food, and no customer likes to order from a restaurant which does not cater to this perspective. Unhygienic and poor quality food cannot be substituted with anything. Even if you offer a massive discount and have umpteen option of dishes, you will lose on customers if you cannot serve them top quality (and healthy) food.
Customers are busy, and they cannot afford to waste time waiting for their food, and there is a growing tendency to order food online. This is why big sharks like “Dominos” have 30-minutes delivery free. If you can ensure that you can mitigate the hunger prangs of your customers on priority, you will surely be on their preference list.
No one likes to pay extra for food. While they understand that good food comes at a price, and they willing to pay extra money for it but no one is eager to spend extra on delivery and other such factors.
There are many food delivery startups in India, and with little effort, you can surely earn good profit in this market.