Articles

Rapidly Expanding Home Delivery in India

September, 2019

In a couple of years, home delivery services in India have significantly evolved due to the rising middle-class income level, developments in infrastructure, and advancements in technology. The home delivery business model is witnessing a significant change, owing to the increasing number of start-ups and intense competition among service providers across India. This is resulting in the availability of several delivery options and convenience, which is allowing customers to order from a wide range of service providers.

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There are multiple platforms for home delivery services, including aggregators and new-delivery players. The aggregators are predominantly using the traditional-delivery medium by collecting orders from customers and routing them to restaurants. In this model, the end-service providers handle the delivery themselves. However, the new-delivery players have come up with their own logistics networks, providing delivery for restaurants. To remain competitive in the market, home delivery service providers are leveraging advancements in digital marketing to change the landscape of the home delivery industry.

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Indian per capita income has increased 45%, since 2006, owing to the increasing employment and consumer spending, especially due to the adoption of IT services in the country. This has resulted in changing social life and other needs, thereby fueling demand for home delivery services in India, especially home delivery services associated with food and restaurant.

Few of the key happenings are detailed below:

  • July 2019, Amazon had plans to provide online food delivery business in India. The company is working with a local partner, Catamaran, to launch its services.
  • August 2019, Due to rising competition in mobility solutions, Indian Oil Corporation (IOC), which is among the largest fuel retailer, has initiated door-step delivery of diesel in Pune and Chennai and planning to provide this service to other locations as well.
  • August 2019, Amazon India launched Amazon Fresh store, which is a 2-hour grocery delivery of daily essentials in Bengaluru.
  • August 2019, Hero MotoCorp announced that it offers home delivery of its 2-wheelers to customers by charging Rs. 349. Currently, this service is only available in Bangalore, Mumbai, and Noida.

Conclusively, with the increasing adoption of technologies and the growing demand for home delivery services in India, service providers will become more adaptive. Considering the significant demand from consumers and intense market competition, home delivery service providers will certainly adopt several other technologies to gain a competitive advantage.

– Rahul Kumar Pandey
ICT – Research Analyst
Infoholic Research