The year ahead for food ordering apps

Dear Editor,

There is an increased demand for on-demand food in India, which will result in more investment into online food delivery companies. Swiggy and Zomato – the two biggest players in the online food delivery ecosystem – will continue to attract considerable investments at high valuations. However, this year may also witness investments into other mid-tier online food delivery companies and businesses that are engaged in the ready-to-cook/eat categories.

Competition in this sector is likely to increase as more technology companies foray into the online food delivery space. Ola, Uber and Google are the recent entrants in this sector – either directly or through their portfolio companies. As the competition heats up, we are likely to see increased M&A activity in this sector. More established online food delivery companies will acquire competing companies to consolidate their position and/or win a bigger chunk of the market share.