Indian food aggregator platforms Swiggy and Zomato have made it to the ‘Top 10’ e-commerce based food delivery companies in the world.
A report published by Canada-headquartered global research firm ETC Group titled ‘Food Baron 2022 – Crisis Profiteering, Digitalization and Shifting Power’ has placed Swiggy and Zomato at 9th and 10th position respectively.
Most importantly, both of them are part of over 100 Indian rhinos. Unicorns are companies that have a net worth of more than US$1 billion.
According to the research firm, the food delivery sector refers to digital, on-demand platforms for ordering and paying for ready meals, groceries and other retail items. The restaurant/retailer fills the orders and courier delivers them to the customers within the stipulated time frame.
China’s publicly listed food platform Meituan topped the list, followed by the UK’s Deliveroo and the US’s Uber Eats.
In addition, Ele.me, DoorDash, Just Eat Takeaway/Grubhub, Delivery Hero, and iFood found themselves in fourth to eighth place.
“The food delivery sector is rapidly consolidating, but ownership is a dynamic target. As companies struggle for regional hegemony, they are buying, selling and swapping stakes in competitors,” the report said. “
“Venture capital and big tech investments have given a boost to the sector, but companies have yet to turn profits, even in the region’s favorable conditions of the global pandemic when delivery has become more of a necessity than convenience. ,” it added.
Against that backdrop, it said transforming the business model to move toward profitability — most prominently by adding grocery and pharmacy delivery — is currently underway.
The report also focused on issues faced by workers in the gig economy.
It has been said that delivery workers are considered independent contractors rather than employees in most parts of the world. Therefore they are ineligible for Social Security, injury compensation or other benefits.
“There are indications that some governments may be ready to implement labor reforms to try to end free rides on the platform. In the United States, New York City is seeking to regulate the food delivery sector, increase minimum wages and others. became the first city to pass legislation to establish worker safety,” the research report said.
A major problem facing the sector is the significant increase in waste from takeaway single-use packaging, the report said.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)