Affluent Customers Driving Recovery In Online Food Delivery, Says Zomato
A food delivery rider for Zomato Media Pvt. gets on a motorcycle as he waits for an order outside of a restaurant in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Affluent Customers Driving Recovery In Online Food Delivery, Says Zomato

Zomato said its food delivery sales have recovered to 85% of the pre-pandemic level as people continue to stay indoors to avoid contracting the virus.

The foodtech startup’s mainstay sector has recovered to and even grown beyond pre-covid levels in several large pockets of the country, led by some of the most affluent residential areas, it said in a blog on Wednesday.

  • Sales in Delhi and Mumbai are nearing full recovery, or at about 95% of pre-covid levels.
  • Metros such as Bengaluru, Hyderabad, and Chennai are at 80% of pre-covid sales.
  • Sales in cities, such as Kolkata, Patna, Jamshedpur, Ranchi, and Siliguri, have recovered completely and have exceeded pre-pandemic levels.

India’s restaurant industry, one of the worst affected sectors by the pandemic, is trying to get back on its feet ever since the coronavirus lockdown restrictions were relaxed. While the restaurants have opened up, they are struggling to make enough because of muted footfalls as people remain indoors.

That has prompted more premium restaurants to open up to online food delivery. Overall spends on such premium restaurants, according to Zomato, have grown more than 25% over pre-pandemic levels.

The customers, Zomato said, are now relying on food delivery more than usual when a city goes under a lockdown. “Some cities such as Kolkata see more customers ordering online when the city is (more or less) shut but restaurants are open,” it said in the blog. Order sizes, or items per order, too, have increased 20% over pre-pandemic levels, Zomato said.

Also Read: Zomato Planning An IPO In First Half Of 2021: CEO Deepinder Goyal

And with the ongoing IPL season and upcoming festivals, Zomato expects the food delivery to fully recover and even cross pre-covid sales.

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