The Data Dining

Title of an Article: The Data Dinings

Article Identification:

An Article, “The Data Dining “, was written by siddhant Jumde.

Introduction

Over the past four years, The food and restaurant landscape has evolved fast and the
disruption, which many of us have witnessed and participated in, happen due to a reason with
increased Internet penetration, higher disposable incomes and rasing consumer awareness, we
are turning to technology to manage some of our most basic needs, including food.
Consequently food delivery aggregation has emerged as a new category. After all, consumers
want their food to be delivered as soon as possible, at any time of the day and anywhere they
wish, at the touch of button.

The Window of Opportunity:

The author says that “ less than a decade ago, the way the nation consumed food was
completely different”. Back then, the market was highly segmented and “ordering in”Was not
yet a part of our culinary vocabulary. Eating out was predominantly occasion-driven while
ordering food was limited to dialing a few restaurants who offered home delivery or calling a
trusty pizza chain. Thus author claims that there was window of opportunity giving them idea
for market olaces and aggregators who listed down restaurants across city areas giving
customer some measure of convenience. But , the author argument was in retrospect, the
market place model was fraught with difficulties, more often the restaurants did not deliver or
charged a lot and payment options were limited , long waiting periods , faild services and
minimum order values also made things difficult. Restaurants had not adapted to the digital
age and were struggling to scale their operations while increasing margins , which would
benefit everybody in the ecosystem.

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 The Data Dining

The Silver Bullet

In 2014, Team swiggy pioneered a business model by investing in two things- Logistics via a
dedicated delivery fleet and technology to stay seamlessly connected with everyone it gave
rise to a new triad involving customers, restaurants and delivery partners.

The author shares how was it done? They built a massive marketplace where consumer could
search for / discover restaurants, scan menus, Complete orders and get their food delivered as
early as possible. Addie by machine learning (based on the people’s past orders, searches and
interactions). A fast discovery of restaurants is powered by algorithms which makes
thousands of calculations and take into account crucial data as food preference, cuisine’s, and
locality and price points. Aft6er an order is placed and confirmed by the restaurant’s the
assignment algorithm factors in several parameters such as restaurants efficiency and traffic
conditions before assigning a delivery partner and indicating the best route for him to follow.

The author gives some opinions that , the solution lies in the granular understanding of Indian
food preferences , customer restaurants and logistics and mangling these with superior
technology and consumer experience. Slowly , not just us but also the restaurants ralised that
the much-neglected delivery segment in contributing to their top and bottom lines alike. It has
changed the way they look at business operations and the wheels are finally set motion. In
month of March 2015 , the Indian food delivery sector reached its first milestone of one
million orders.

Break way Growth

Over the past three years, Traditional delivery players like QSR’s have seen a twofold growth
in the number of orders while the pure-play food delivery segment has witinessed a 900 times
rise. The numbers are quite telling and point a picture of the bullish growth in the segment. A
few months ago, when swiggy surpassed a million orders on a single day, It was clear that the
next phase of food delivery had arrived.

According to a report by consultancy firm Redseer, Foodtech is among the fastest growing
internet industries in India. It has seen as overall GMV growth of around 140 per cent in
2017, with the number of orders increasing at a staggering 176 per cent. This corroborates a
CISA report that pegs the Indian food delivery market at $6 billion , which could reach $30
billion by 2022. For instance , Swiggy operates in 50 plus cities across the country , but

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 The Data Dining

millions from 100 cities have already downloaded the app and are hoping to savour our
services soon.

Incidentally, a need- mover to take food delivery to the next 40 million will be affordability.
As food ordering becomes main stream, consumers are looking for economically sustainable
solutions. Swiggy launched SWIGGY SUPER, a subscription programme that does away
with delivery fees, and swiggy POP, the curate and single- serve meals which are reasonably
priced.

Plugging the gaps in hyper local delivery is another critical area over past few years, there
has been an increase in the food chains following consumer demand. Simultaneously the
restaurants industry is slowly but surely adapting to access kitchens (Delivery only kitchens,
similar to cloud kitchens which prepare food and sell across platforms) thanks to their cost
effective model , efficiency and the ease of setting up. By using data and insights, we are
working with our restaurant partners to bridge the gaps in supply, especially in under-served
locations.

4. Summary of the article

As author had some opinions about the food delivery services, before four years ago, the
fo0od and restaurants landscape has evolved fast and the disruption , In that time zone their
were no food delivery services. As the technology was turning to manage some of our most
basic needs, including food and food delivery aggregation has emerged as anew category.
Thus, author suggest that there is an window of opportunity for the marketplace to and
highly segmented and ordering was not yet part of our circular, Eating out was predominantly
occasion driven while ordering food was limited to dialing a few restaurants who offered
home delivery or calling a trusty pizza chain. i.e. before the food delivery services was
introduced as advanced in technology, the marketplace model was facing with difficulties
more often most of the restaurants did not ready to adapt the gigital age and failed to meet
those requirements.

Thus in 2014 Team Swiggy Pioneered a business model by introducing two things- logistics
via a dedicated delivery fleeter and technology to stay seamlessly connected with each and
every people in the ecosystem .

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 The Data Dining

The author says how was it done? According to author Swiggy company, built a massive
marketplace where consumers could search for a discover restaurants, scan menus, complete
order details and get their food delivery as easily as possible. Therefore, by building on
Technology app, allowing the consumers to order their preferred food and maintaining an
portal of their pervious orders and placing the exact locality of the consumers, calculate the
several parameters such as restaurants efficiency and traffic conditions before assigning
delivery partner and indicating the best route for him/her to follow in order to reach the food
as earlier as possible to the consumers. The author also gives solution which lies in the
granular understanding of Indian food preferences, customers’ restaurants and logistics and
managing these with superior technology and consumer experience. At the time, in month of
March 2015, the Indian food delivery sector reached its first milestone of one million orders.

The author also talks over past three years ago,” The traditional delivery player like QSR’s
has seen twofold growth in the number of orders while the pure-play food delivery segment
has witnessed a 900 times”. After few month ago, when swiggy surpassed a million order on
a single day. It was clear that the next phase of food delivery had arrived.

The author shares some facts that according to report by consultancy firm Redseer “ foodtech
is among the fastest growing internet industries in India. It has seen an overall GMV growth
around 140% in 2017, with number of orders increasing at a staggering 176%”. The author
also illustrates by giving example of swiggy that “Swiggy operates in 50 plus cities across the
country , but a million from 100 cities have already downloaded the app and are hoping to
savour our services soon”. Thus, by launching swiggy super.

Finally author suggests that the restaurant Industry is slowly but surely adapting to access
kitchens. And thanking them for their cost effective model, efficiency and the ease of setting
up.

Critique

We eat out a lot more than we used to, and we also share our lives on social media a lot more.
This has turned nearly everyone into a food critic, mostly on social media, with profound
impact on how menus are planned and dishes are presented . Nobody wants to serve a dish
that doesn’t look terrific on Instagram. Awareness and knowledge of food is now greater than
ever.

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 The Data Dining

Yes, I am for the author and support the author’s point of view, As consumption patterns are
changing globally , a curious trend has emerged by 2015 restaurant sales surpassed grocery
sales. This shift happened over two decades as restaurant supply and dining out were quite
common. Therefore, the transition to food delivery aggregators is hardly surprising in India,
despite the rapid mushrooming of new restaurants, dining out never really took off due to a
three-pronged supply deficit.

Even I would like to share some fact that, currently of the 90 meals consumed every month,
10-15 meals are not home- made and 50-60% of these are delivered. Looking at the current
growth and consumer behaviour, they except that in the next 10-15 years, 75-80% of them
will be delivered to homes and offices.

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Conclusion of the article review

Finally, with changing consumer dynamics, burgeoning salaries and rise of the urban
population, There is a latent demand for convince. Now that food delivery aggregators have
cemented this type of consumers experiences through mass adaptation, the same level of
benefits will be excepted across all areas of hyper local delivery. And those who own the
consumers’ mindshare will take the lead in driving the new convenience economy.

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