A slice of the $15 billion pie *burp*

There is a lot cooking in India’s online delivery sector. Recent months have seen a steady influx of newer players like Faasos and TinyOwl flocking in to grab a bite of India’s $15 billion food delivery market. The cherry on the top is that just 1% of the industry is online.

With segment leader Zomato now delivering in Indian metros and varied opponents like Ola Café stepping in, the scuffle is far from over.
“India is already amongst the top 5 markets for us globally. There is huge untapped potential in the market. We have just scratched the surface”, Saurabh Kochhar, Co-Founder and CEO (Foodpanda India) and CBO (Global) says.

Foodpanda is currently available in 40 countries across 5 continents. In India the service is present in over 200 cities. With huge clientele up for grabs, Kochhar believes Foodpanda sets itself apart.

“It’s always stupid to close one’s eyes to competition. However, we’ve two things going for us – experience and DNA. We’ve painstakingly garnered these over the last few years. Our core business is food delivery. That’s what we do best”, he says.

Answering questions about what separates chief rival Zomato from food delivery services Kochhar observes, “One’s preferences are very different when they dine out versus order at home. There it’s a mix of ambience, service and food. Here it’s just about the food. Therefore, while we have rankings, reviews and suggestions, they have very different dimensions from dining out. The core of our business is the delivery experience while that of Zomato’s is the restaurant experience.”

Indian foodies have perpetually resorted to stacked up restaurant flyers and mobile phone directories to order food. When asked why they should change their old ways, only to be bogged down by minimum order amounts and delivery charges Kochhar maintains, “That’s the core advantage we bring to the table. While one may stack a few flyers, there are at least 50 complete with ratings on Foodpanda to choose from. We also offer so many deals, its more value for money than our customers can ask for.”

At present a mere 7-8% of India’s population on 3G. This means a further smaller number would be inclined to savvy enough to order food online. Kochhar however shrugs off the possible limiting factor. “This has been one of the biggest enablers for India’s e-commerce industry. We’ve the fastest growing internet population. The numbers are only increasing with the advent of 4G and improving data speeds. While some look at the remaining 80% as a problem, we see it as an opportunity. However, our biggest competition remains offline”, he says.

(Image credit: Indiatimes)