Ola-owned food delivery firm, FoodPanda has announced the expansion of its delivery network in 30 new cities taking its presence to 50 cities across the country.
The newly penetrated cities by the food delivery network are Jodhpur, Kota, Udaipur, Amritsar, Ludhiana, Jalandhar, Dehradun, Allahabad, Varanasi, Surat, Vadodara, Aurangabad, Bhopal to name a few. It also targets to start operations across 100 cities by the end of November this year. Subsequently, Foodpanda will drive its expansion process in eastern and southern parts of the country.
Commenting on the expansion, Pranay Jivrajka, CEO at Foodpanda India said
We are thrilled about our expansion to 50 cities across the country; becoming the only food delivery platform to be present in these many cities across India. While our network now covers all metropolitans and major tier 1 & 2 cities across the country, we are excited about introducing the superior food experience we bring, delivered to the doorsteps of millions of first-time customers in these un-served cities! We continue to expand rapidly and aim to be present in at least a 100 cities in a month’s time as we remain focused on building India’s largest and most preferred food experience platform.”
Acknowledging Ola’s role in the expansion process, he further said
Foodpanda has also fully integrated onto the Ola platform, leveraging deep local insights around cities and customer preferences. We believe that this rapid geographical expansion will give us the opportunity to create a differentiated food experience for a billion Indians across the country.
This development emerges days after Foodpanda, acquired Mumbai-based cloud kitchen venture Holachef, which shut down its operations a few months back, for an undisclosed amount thus foraying into the cloud kitchen space.
Food Delivery- A hungry space
Food trends are constantly changing with food being a necessity for some while passion for others. Zomato and Swiggy have already made its foray into the coveted Unicorn club. This $50 billion food industry in the country is growing 15% every quarter. A space which was nascent a couple of years ago is undeniably piping hot now with over 170 million users using the platform. Zomato and Swiggy alone cater around half a million deliveries every day. On top of that, big retailers and cab hailing major firms are fostering the food domain either by acquisition (ola-foodpanda) or opening a subsidiary arm (uber-uber eats) into the domain.
According to the consulting firm, RedSeer, the food technology space has reaped over $600 million investments so far. The food-tech space has seen a radical transformation since its onset. With firms are scaling new heights, the space has witnessed a growth rate of 150 percent from $120 million in 2015 besides the Gross Merchandise Value (GMV) that is expected to touch $300 million. The sector is expected to brew $1.5 billion by the end of 2018 and $2.5-3.5 billion by 2021.
The Indian food industry comprehensive of the food and grocery market is the 6th largest market in the world and it contributes to 70% of the total sales. Out of which, the food processing industry comprises of 32%. The Indian gourmet food market is estimated at $1.3 billion and is growing at Compound Annual Growth Rate (CAGR) of 20%.