COVID-19 impact on ordering restaurant food via apps India 2020

According to a survey by LocalCircles in May 2020, around 65 percent of respondents did not want to order restaurant food for delivery within 30 days after the coronavirus (COVID-19) lockdown got lifted. In contrast, about three percent said they would order more than four times within this period.

Consumer sentiment after the 2020 lockdown

The Indian government imposed a nationwide lockdown from March 25 to May 31, 2020. Similar to other countries, India’s economy was hit hard by the measures with some industries such as tourism, hospitality, and aviation nearly coming to a standstill. Consumer sentiment dipped from 106 in February to 44 in May 2020 in rural areas. In urban areas, this dropped from 104 to 37 during the same time period. In terms of job security, the perception remained stable, whereas the confidence in the future financial situation decreased significantly during the lockdown.

The food delivery industry: winner or loser of the crisis?

Food delivery expected to boom during the lockdown period when eating out was restricted. However, a survey by Rakuten in June 2020 showed that many Indians ordered less food and, instead, worked on their home cooking skills. Newspapers reported that the two major players on the delivery market, Swiggy and Zomato, had to dismiss some of their drivers or reduced the salary. After the lockdown, when people got used to their “new normal”, the food delivery market gathered pace again.