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Online Takeaway Food Industry Grows Rapidly as People Choose Convenience

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Laxmi Ilme
Online Takeaway Food Industry Grows Rapidly as People Choose Convenience

Changing Consumer Preferences Drive Demand for Online Ordering

Consumer preferences and lifestyles have undergone rapid changes in recent years. People now lead busier lives with less time to cook at home. According to a survey, nearly 60% of respondents said they order takeaway food at least once a week due to a hectic schedule. The option to order meals online from the comfort of their homes within a few clicks has greatly appealed to them. This saving of time during the ordering process has boosted the online takeaway food market.

Rise of Mobile Apps and On-Demand Delivery Services

Mobile apps and on-demand delivery services have made Online Takeaway Food an incredibly convenient experience. Major takeaway chains have strengthened their direct-to-consumer channels through effective mobile apps that allow users to browse menus, add items to carts and check out with just a few taps. Meanwhile, third-party delivery apps like Swiggy and Zomato give customers access to a wide range of restaurants on a single platform. The ease of placing complex orders for multiple people from these interfaces has boosted their popularity tremendously.

Changing Needs of Digital Native Consumers

Younger consumers born in the digital age expect quick, seamless experiences from the brands and services they engage with. They are heavy users of smartphones and tend to adopt new technologies at a much faster pace than previous generations. Food chains have recognized the changing needs of these "digital native" consumers and made significant investments in optimizing their digital platforms. Features like customized recommendations, order tracking and loyalty programs have enhanced convenience for young patrons and kept them engaged with brands.

Growing Fleet of Delivery Partners

To support the surge in online orders, online takeaway food services rely on a growing fleet of delivery partners. While some major players like Domino's manage delivery logistics themselves, others outsource the last-mile operation to specialist delivery startups. These startups recruit local youth as partners and ensure timely deliveries through technological interventions like dynamic routing. The availability of reliable delivery partners has strengthened the entire online food ordering ecosystem and delivery experience for end consumers.

Rise of Cloud Kitchens

One of the biggest changes in the online takeaway food industry has been the emergence of cloud or shared kitchens. These facilities allow restaurants or independent food businesses to prepare and pack orders in a centralized kitchen without owning the physical space. Cloud kitchen operators like Rebel Foods and Kitchens Centre rent out turnkey commercial spaces along with machinery and logistics support to food brands. With relatively lower startup costs compared to dine-in restaurants, many new delivery-only concepts are being launched out of these facilities. This has boosted the diversity and selection for online consumers.

Popularity in Lower-tier Cities

While metros were early adopters, smaller cities and towns are increasingly embracing online food ordering as internet and smartphone penetration rises. Brands have launched localized language interfaces, tailored menus and introduced billing in regional languages to win customers beyond metros. The promise of hassle-free home delivery in locations with limited dining-out options has resonated well with local populations. Many chains are expanding aggressively to B and C class cities through partnerships with third-party delivery players. This substantial untapped market holds immense potential for further growth.

Funding Boosts Innovation

Over the past year, major investments have poured into the online takeaway food as investors recognize the scale of opportunity. This infusion of funds has enabled platforms and restaurants to strengthen technology, expand into new areas, develop supply chain infrastructure and undertake marketing initiatives. Companies are launching novel features like live order tracking, customized promotions triggered by location and past orders, interactive loyalty programs and a slew of hyperlocal delivery models. Backed by funding, the overall user experience is improving manifolds - keeping customers engaged while attracting new users at a rapid rate.

While the sector has undergone a major transformation, the onset of the pandemic acted as a massive catalyst. Social distancing norms drove people indoors and accelerated online adoption. Though dine-in operations resume, the outlook for digital ordering remains exceptionally bright. Food chains will continue investing aggressively in technology, supply chain, brand visibility and customer loyalty to capture future growth potential in India's booming online takeaway industry.

 

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