Recently at an interview with ET Now, the MD at Scootsy, Rishi Khiani, talked about the meteoric rise of the food options and the affect it has on the deliver business.
As we all know, food tech startups seem to be the toast of the town. There a variety of options in every town that has opened up. On being asked, how this change has affected the food dynamics, Khiani answered versatility. According to him, Indians by nature have one of the most diverse and versatile pallets. But the rapid increase in number of restaurants and eateries that sprouted out of nowhere along with viable options such as home delivery, brought an opportunity of choice to the consumer. Although previously Indians lacked being clandestine about eating out and varied cuisines, the cometh of a new culture due to inclination towards western elements opened the doors for experimentation. Khiani stated that,
With the advent of shows such as Master Chef, we have become more adventurous in the kind of foods that we want to eat than we were a couple of years ago.
Apart from the presence of various options, he claimed home delivery as the next big contributor. According to him,
If, for the same price I am going to get food delivered from my favorite restaurant, I would rather prefer to order it home.
Going further into details he mentioned that various taxes applied while dining out and the higher charges on alcohol is motivating people to order the food home where they can have few friends over and get the their favorite food at even a lesser cost. This pattern is being noticed across the board. Dining out has become an occasional affair, particularly at the event of some celebration. Other than that, people are being observed to order their food home. He further added that the frequency of ordering food home is increasing tremendously with regards to dinging out.
Moving further he was asked, what could be the size of the delivery industry and what in his opinion are the opportunity of growth and competition in the same. In reply, he said that at present even if there are merely three or four major apps, however, the new entrees are sure to come and the level of competition will stand on the value offering and innovation of the individual players. He said,
Although the industry that is in question is at a nascent stage, it will depict a serious growth in the near future.
Even in delivery industry there are distinguished region of operations, segments, and target markets. On the basis of how you decide to maneuver your USP and allocate your unique offerings to the market you’re catering the level of competition may swivel.
In this day and age, one of the biggest contributors to the delivery industry is the difficulty to commute for consumers. On being asked whether the delivery business model is more of an urban phenomenon or not, Khiani said that one of the major contributors to the delivery business is the challenge to handle traffic. Due to this singular fact, he pointed out, that deliveries sound a lot more viable than any other option. As traffic is exhaustive only in metros and mini-metros at present, the general conception of delivery business does well only for urban cities and there is no doubt about that.
However, he feels that may be in the future, as various services come up within the delivery industry consumers would see through the true viability of home delivery and opt for it regardless of the conditions to commute.
[Image Source: IFIBCA]