Digital Food Delivery: What’s Driving the Increase in Orders?

“Zomato is giving massive discounts, let’s order something online”. The frequency of these words have increased in the past few years like anything. We all are eye witnesses to the fact that the rapid rise in digital food delivery orders has been one of the most notable trends in India. With the convenience of ordering food at the tap of a button, companies like Swiggy and Zomato have changed how we experience meals.

But, have you ever wondered what could be the reason for this massive surge?

1. Convenience and Accessibility of Online Food Delivery Apps

The increase in digital food delivery is mainly because apps like Zomato and Swiggy make ordering super easy. You can check out restaurant menus, place an order, and even track your delivery- all in one app. That too by sitting in the comfort of your home. With these facilities, who would want to actually go out in the traffic just to eat food? This kind of convenience is a big deal, especially when people are short on time.

What are the key benefits for users?

• 24/7 Availability: You can order food anytime, even late at night, thanks to round-the-clock delivery options.
• Wide Choice of Restaurants: These platforms offer a huge variety of cuisines, from local favourites to fancy restaurants.
• Real-Time Tracking: You can track your food’s journey, so you know exactly when it will arrive, adding to the overall ease!

2. The Impact of COVID-19 on Consumer Habits

COVID-19 was crazy. There was no sector left where it didn’t leave an impact.The pandemic created a significant shift in how consumers engage with restaurants. Lockdowns forced people to stay at home, and online food delivery became a lifeline for many. Even after restrictions eased, the convenience of ordering food online continued to fascinate consumers. Data shows that 70% of Indian consumers now prefer ordering food online rather than going out.

What are the post-pandemic trends?

• Comfort and Safety: Even after restrictions, customers favour contactless deliveries over dining out.
• Increased Frequency: Regular food orders have become a habit for many Indian households, especially in metro areas.

3. The Rise of Cloud Kitchens: What are those?

You may have heard a lot about cloud kitchens/ ghost kitchens. But, what are those? Do ghosts make food for you there? Let me tell you that the rise of cloud kitchens has been one of the biggest game-changers in the online food delivery industry. A cloud kitchen utilises a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers.

What are the benefits of Cloud Kitchens?

• Lower Costs: Since cloud kitchens don’t need dine-in spaces, restaurants can save money on things like rent and utilities.
• Scalability: Cloud kitchens can easily grow and expand to new areas without spending a lot on physical locations.
• Faster Deliveries: These kitchens are set up in spots that help reduce delivery times, making it quicker and more reliable for customers.

As per a report, cloud kitchens in India are expected to grow to nearly US\$3 billion by 2032.

4. The Role of Leading Platforms like Swiggy and Zomato

In India, when it comes to online food delivery, Swiggy and Zomato are the main players. They dominate the market, handling most of the orders across the country. These platforms have grown rapidly, and they don’t just deliver food, they also offer membership programs like Swiggy SUPER and Zomato Pro, which give users benefits like free deliveries and discounts, encouraging them to order more often.

Know about their key growth strategies:

• Membership Programs: Swiggy SUPER and Zomato Pro offer benefits like free deliveries and discounts, which keep customers coming back.
• Expansion into Smaller Cities: By moving into tier 2 and 3 cities, they’ve reached a whole new group of customers.
• Cloud Kitchens: Swiggy’s “Access” program lets restaurants expand without needing physical spaces, boosting delivery orders.

5. Gen Z: The driving force behind the increase

Gen Z has taken over! The younger generation, particularly Gen Z, has been a key driver in the increase of digital food delivery orders. This generation loves convenience, instant results, and unique experiences- doesn’t this sound like the things that online food delivery apps are perfect at providing?

Why Gen Z Loves Food Delivery?

• Tech-Savvy: Growing up in a digital world, Gen Z loves apps that offer smooth, easy experiences. Ordering food through a digital food delivery app is second nature to them.
• Social Media Influence: Platforms like Instagram and TikTok shape their food choices. Trendy eats like bubble tea or colourful sushi bowls, often featured on these platforms, are just a tap away on food delivery apps.
• Customizable Menus: Gen Z cares about personalised choices. With options for vegan, gluten-free, or keto meals, these apps let them customise orders to fit their lifestyle and dietary preferences.

And trust me, this is a proven fact. Let’s talk numbers- according to a report, more than 75% of online food delivery orders are placed by 21-37 age groups.

6. Social Media Influence

Social Media influence is real and you cannot deny it. Its role in promoting digital food delivery definitely cannot be overlooked. Platforms like Instagram and TikTok have contributed to the growth of food delivery by making food trends viral. Food influencers often showcase their favourite meals, sparking curiosity and driving orders. And who doesn’t want to keep up with the trend and stay ahead of the world?

How Social Media Impacts Online Food Delivery?

• Food Trends: GPopular dishes can go viral, leading to an increase in orders for specific restaurants or cuisines. And trust you never know what can be the next social media sensation- so never forget to shoot you shot!
• Influencer Collaborations: Influencer Marketing is the new trend and no matter if you like it or not, it is the new way. Influencers partner with delivery platforms to promote exclusive meals, driving demand.

And trust me, this is a proven fact. Let’s talk numbers- according to a report, more than 75% of online food delivery orders are placed by 21-37 age groups.

7. Technology Advancements

Last but not the least, we have the infamous ‘technological revolution’. AI, machine learning, and real-time data analytics have made digital food delivery faster, more efficient, and personalised. From deciding better delivery routes to predicting customer preferences, technology is helping to enhance the overall experience for both customers and restaurants.

What are the key technological innovations in the online food delivery sector?

• AI-Powered Algorithms: Platforms use machine learning to predict demand and suggest personalised options.
• Improved Logistics: A normal delivery person might be well versed with only one way, but AI can help decide the better route, with less traffic. Advanced route optimization reduces delivery times and enhances customer satisfaction.

Hope this helped you realise the reasons behind the increase in online food delivery. As the digital food delivery market continues to grow in India, it’s clear that this trend isn’t slowing down. With continued advancements in technology, broader access in smaller cities, and evolving consumer preferences, the digital food delivery sector is all set to increase more, no doubt.

So, brace yourselves and be ready to see more growth in this sector!