Market size of online food delivery in India 2020-2026

In 2023, the Indian online food delivery market was worth 7.4 billion U.S. dollars. The delivery market was expected to grow and reach 24 billion U.S. dollars in 2026 .

Growth in the online food delivery sector post-COVID-19

Restricted mobility during the coronavirus pandemic and lockdowns led to the monumental growth in the online food delivery sector in the country. Restaurants and cafes, which did not offer delivery services earlier, had to provide or join food delivery services to stay afloat. However, to sustain this increased influx in revenue post lockdowns, delivery services came up with with customer retention strategies such as pay-later and subscription offers.

Demand for gig employees in online food delivery

The rising demand for online food delivery services along with hikes in fuel prices and flat pay led to a shortage in personnel in the delivery sector. Furthermore, about 40 percent of the drivers in leading delivery services like Zomato and Swiggy would quit within a month of joining. Higher wages and transition to electric vehicles could pave the way for retaining gig employees.