{"id":14579,"date":"2019-11-25T07:33:47","date_gmt":"2019-11-25T07:33:47","guid":{"rendered":"https:\/\/www.appdupe.com\/blog\/?p=14579"},"modified":"2019-11-25T08:55:37","modified_gmt":"2019-11-25T08:55:37","slug":"flipkart-plans-to-venture-into-the-food-delivery-sector","status":"publish","type":"post","link":"https:\/\/www.appdupe.com\/blog\/flipkart-plans-to-venture-into-the-food-delivery-sector\/","title":{"rendered":"Flipkart Plans To Venture Into The Food Delivery Sector"},"content":{"rendered":"

The food delivery business in India is quickly establishing itself as a lucrative sector. According to Statista, this industry raked in over $7.73 billion by the end of October 2019. Pundits forecast that this sector will experience a CAGR of 12.8% and revenues will expand to $12.53 billion by the end of 2023.<\/span><\/p>\n

Already, companies like Swiggy, UberEats, Zomato, and more are leading the trends in the scene. But, the overwhelming popularity and potential of this segment have attracted a few big players who are not endemic to the sector. Not very long ago, the e-commerce giant, Flipkart has revealed its plans to enter this space with an exclusive food delivery line.<\/span><\/p>\n

In October, Flipkart registered its initiative known as Flipkart Farmermart with its modus operandi being a \u201cfarm-to-table\u201d one. This means that we can expect a multitude of services that range from agricultural produce to piping hot dishes.<\/span><\/p>\n

Moreover, Flipkart displayed its seriousness towards the new venture by allocating a budget of INR 2500 crores ($347 million). This fund will be used for making strategic strides in the progressively competitive market.<\/span><\/p>\n

However, Flipkart\u2019s not the only one eyeing this segment. It\u2019s rival, Amazon has already pledged over $500 million towards setting up a food delivery service as well as a cloud kitchen line. There are also reports that Amazon is actively wooing restaurant businesses away from existing players such as Zomato and Swiggy. It is doing so by offering to take a lower cut from the restaurant\u2019s earnings.<\/span><\/p>\n

On average, the online food delivery sector in India clocks in over 12 million orders per month. Moreover, this business segment is set to grow two-fold over the next couple of years. Interestingly, when compared to other e-commerce platforms, food delivery aggregators see customers return at a much higher frequency.<\/span><\/p>\n

But, what is driving this growth in the Indian online food delivery sector? Why are more and more companies finding this line of business attractive? And, why are investors ready to bet big on this segment? Here are a few reasons,<\/span><\/p>\n