Why Consolidation is Way Forward for Online Delivery Biz
Why Consolidation is Way Forward for Online Delivery Biz

With food innovation, efficiency and focus on consumer experience, there is no denying that online food sector is organizing the unorganized sector. These players are not only tying up with big chains and home grown brands but are also partnering with local mom and pop restaurants that are running a small kiosk or takeaway joints.

“Delivery not in India but worldwide is the fastest growing opportunity and it will continue to grow in that direction. I feel that the cloud kitchen model and the entire system will also grow with time,” shared Prashant Gaur, CBO, Pizza Hut India who believes that to run that system we need to have a hybrid model where you have loads and loads of kitchen which is not visible to consumer but also some equity building signage because cloud ecosystem is over aligned on aggregators and the math is to adopt.

And, as more and more brands are capturing this market, experts believed that the way forward for such platform and the ecosystem is consolidation wherein all partners including restaurant partners, aggregators and consumers need to join hand on how does they want to run the model. “The case for food delivery business is really doing well. In India, we have to go through consolidating factors now and there has to be a right ecosystem phase in case of consumers, aggregators and restaurant partners,” said Vishal Jindal, Co-Founder, Biryani by Kilo.

Not only this, as consumers have got an habit of deep discounting and leveraging freebies, brands today need to decide whether they want to position themselves as a deep-discounting brand or a brand that believes in genuine customer.

“Once a consumer starts paying a lower price for a certain product and when you start to stop giving the discount how many would be willing to pay the full price is a question that probably is not answered because deep discounting is on for quite sometimes now,” added Raymond Andrews, Co-Founder, Biryani Blues that has got a huge fan base in Delhi-Ncr with its amazing range of biryanis and other non-vegetarian delicacies. “Restaurants have to decide on what is their cost of goods and in which they have to build in certain discounts because Indian customers like deals and if you have to play to it. Some brands don’t do any discounts but they are still safe,” he added further.

Commenting on the same Jindal added, “We don’t believe in discounts. We believe in genuine customers who believe in good products and food and not discounting.”

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