Why covid-19 has been a shot in the arm for online food delivery firms2 min read . Updated: 25 Jan 2021, 12:49 PM IST
- Cumulatively, improving demand for food delivery companies, which in turn would boost the GMVs along with a drop in the delivery costs, should lead to a gradual improvement in profitability
The initial stages of the covid-19 pandemic and the ensuing strict lockdown had an adverse impact on Indian online food delivery companies, broadly dominated by Zomato and Swiggy. Consumers had shied away from online food ordering due to apprehensions on safety and a general preference for home-cooked food. But things picked up later on and the recovery has been faster. Analysts reckon the pandemic has helped companies improve unit economics and add more consumers, as the frequency to dine out has dropped.
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