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Zomato: Food Delivery Industry is Returning to the Pre-COVID Levels

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September 24, 2020
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Zomato Food Delivery Industry is Returning to the Pre-COVID Levels - Business Connect

Zomato Food Delivery Industry is Returning to the Pre-COVID Levels - Business Connect

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Zomato: Food Delivery Industry is Returning to the Pre-COVID Levels

BY: ASHWATHY NAIR

  • Recovery of the Food Delivery Industry at a fast pace around 85% of the Pre-COVID GMV level.
  • Zomato claimed that more premium restaurants are now opening up to online delivery.
  • With the subsequent festive season, the food delivery industry is expected to make a full recovery very soon.

The food delivery industry was highly hit by the arrival of COVID-19, as customers started to avoid ordering online food during the pandemic to assure the safety and avoid any chances of contact. Also, the delivery-boys from companies including Swiggy and Zomato, even pizza Delivery Company were reported COVID positive which led to an overall effect on the online food delivery segment.

Now, according to the latest report by Zomato, it has claimed that the market has recovered to pre-COVID levels or even it can be said that, a recovery beyond the level is driven by many large pockets in India.

“The food delivery industry continues to show strong signs of recovery. It is steadily growing to pre-COVID levels, with the overall sector clocking over 85% gross merchandise value (GMVs), up from close to 75% last month,”Zomato chief executive Deepinder Goyal wrote in a blogpost.
(SOURCE: economictimes.indiatimes.com)

“With the ongoing IPL season and the subsequent festival season, we expect food delivery in both metros and smaller cities to make a full recovery soon – and resume growing over pre-COVID levels,”Goyal wrote in the blogpost.
(SOURCE: economictimes.indiatimes.com)

As per Zomato, the increase in ordering food can be attributed to the festivals, consumers that are choosing to order food in a bulk for families, etc. Because of the lockdown restrictions, it forced all kinds of celebrations, moved to happen indoors, that made customers order food in bulk from food aggregator apps, which led to a massive spike in orders. “Recovery on single-person meals, which constituted nearly approximately 60% of all orders pre-COVID, lingers at 50-70% level for most regions. On the other hand, orders with meals for three or more persons have recovered well and are higher than even pre-COVID levels currently,” said Zomato.
(SOURCE: livemint.com)

As customers have started to spend more time with families, ordering food in a bulk has become more relevant. The order size has increased by 20% over pre-COVID levels.

 

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