Zomato’s Founder Provides Some Insight Into India’s Food Delivery Market

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India based Zomato is, according to Crunchbase, “an online & mobile restaurant search & discovery service providing in-depth information for over 1.4mn restaurants in 23 countries”. Zomato is also a restaurant meal delivery service not unlike Delivery Hero et al and raised in total $224 million of venture capital.

Zomato founder and CEO Deepinder Goyal provided some insights into how Zomato, and the food delivery market in India in general, is doing at a recent earnings conference call. Via Mediamama, some quotes:

  • Headcount: around 1,900 people across the word, of which India has 1,250.
  • India Monthly Active Users are 8.5 million. 2.5% of them have started placing orders online.
  • 400,000 app downloads last month (…)
  • Average orders per day: monthly growth rate in order business is 30%. Daily average is 25,000-26,000 orders. (…)
  • Marketshare: “Anecdotally, when we check with restaurant owners about how much traffic we are driving for them vis-a-vis other players in the market, we are easily above 75% for restaurants. For some large chains, for whom we drive 60% of their delivery business. The marketshare, not just in terms of delivery but also footfalls, is very very high. It’s hard for me to put a number to it, but we’re not facing any marketshare problems. “

And this, regarding fulfillment, is very interesting:

Nature of the delivery business: “Of all the orders we do right now, 80% are delivered by restaurants, and 20% are delivered by us through our logistics partners. The reason why any new delivery aggregator would want to do delivery on their own is that they don’t get restaurants to play ball with them.

At one point in the future the respective market leaders of Europe, India, USA and China are going to compete against each other. Internationalization is a natural course for this market. Because the market and cost structure of aggregating online orders leads to winner-takes-all dynamics. (Which not necessarily means one company per market, just very few.)

One fascinating aspect with this is that very different approaches are going to compete against each other, because regional particularities lead to a different company structure and culture in every one of those parts of the world.

Rocket Internet’s Foodpanda saga is just a sign of things to come.

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