The Indian food delivery industry has largely recovered with overall sector clocking around 75-80% of pre-COVID GMV, says Zomato
Guwahati: According to a statement by the Indian restaurant industry and released by Zomato, the food delivery industry has largely recovered with the overall sector clocking around 75-80% of pre-COVID Gross Merchandise Volume (GMV).
This is quite in contrast to the restaurant industry that has incurred a major loss owing to the lockdowns.
Zomato, an Indian restaurant aggregator and food delivery start-up, said that the findings were based on feedback from many restaurants and customers pan India. According to the report, some areas in some cities are clocking higher GMV than before.
In addition to that, residential areas are doing 50% better than the commercial areas. As for the restaurants in and around the commercial districts, they are expected to take the longest to recover.
According to the report, “Zomato has delivered 7 crore food orders since lockdown started on March 25th. We estimate that between other food aggregators and direct restaurant channels, Indians have ordered 20 crore times since the lockdown.”
The report also added that the number of restaurants offering food delivery is at 70% of pre-COVID levels. Additionally, out of this near about 5% of restaurants did not even offer food delivery services pre-COVID.
With various companies allowing employees to work from home due to the pandemic, there has been a mass exodus of people from metros to different cities pan India. And one in every five Zomato customers in metros (pre-COVID) has opened the app from a smaller town recently.
Zomato estimates that the industry is bound to hit the pre-COVID levels of business in the coming two to three months owing to the fact that the recovery trends are strong. In contrast, the dining out industry is yet to bounce back and is operating at 8-10 % of pre-COVID levels. The statement added, “Out of the 83% restaurants that are not open for business, 10% restaurants have already shut down permanently and we anticipate an additional 30% restaurants to not reopen at all.”