Food delivery GMV close to pre-covid level2 min read . Updated: 24 Sep 2020, 08:25 AM IST
Metros such as New Delhi and Mumbai are nearing full recovery, registering 95% of pre-covid order value, said Zomato
The food delivery industry, which has been severely impacted by the pandemic, is witnessing green shoots of recovery with the overall sector clocking 85% of the pre-covid gross merchandise value (GMV) in September, as the average value per order increases, foodtech unicorn Zomato said in a blog on Wednesday.
The food delivery sector has recovered to pre-covid levels in a number of large pockets of India, led by some of the most affluent residential areas in the country, according to the blog.
Metros such as New Delhi and Mumbai are nearing full recovery, registering 95% of pre-covid order value, while those such as Bengaluru, Hyderabad, and Chennai are still behind the curve, averaging around 80% of pre-covid levels.
Other cities such as Kolkata, Patna, Jamshedpur, Ranchi, and Siliguri have recovered completely and have exceeded pre-covid levels, Zomato said.
Zomato’s rival Swiggy is seeing GMV come back to almost 80% of pre-covid levels, with demand still varying across different regions in the country, it said in a recent interaction with Mint.
The increase in average order value can be attributed to premium restaurants listing on foodtech platforms, festivities moving to home, and consumers shifting to bulk ordering behaviour for families, rather than individual orders, according to Zomato.
“With more premium restaurants, where a meal for two may cost ₹1,500 or more, now opening up to online delivery, a larger number of affluent consumers are embracing online ordering. Overall spends on such premium restaurants have grown by more than 25% over pre-covid levels," Zomato founder and chief executive officer Deepinder Goyal said in the blog post.
With lockdown restrictions forcing celebrations to move back home, dormant customers are most likely to order from food aggregator apps during festivals, with occasions such as Raksha Bandhan, Janmashtami, and Independence Day resulting in order spikes. “Customers, who had not ordered since the first day of the lockdown are 20% more likely to order for the first time during such festivals and occasions," said Zomato.
Zomato also claims that single person orders are also seeing recovery. “Recovery on single-person meals, which constituted nearly approximately 60% of all orders pre-covid, lingers at 50-70% level for most regions. On the other hand, orders with meals for three or more persons have recovered well and are higher than even pre-covid levels currently," said Zomato.
Foodtech players are also building their hopes around the IPL and the festive season, which may increase the number of individuals ordering from restaurants, as matches are slotted in the evening.