Home Delivery

Industry Awareness

Section D
Group 04
Government Regulations

• Various licenses required are Shop Act License, Health Trade License, FSSAI License, Trademark Registration, GST Registration and

Signage License.

• In December 2018, FSSAI had introduced issued revised guidelines that directly impact food delivery platforms. These include

delisting restaurants, random food sampling, making it mandatory to put indicative images, prescribing quality standards and training

staff

• The changes proposed by the Department of Consumer Affairs are wide-ranging in nature, spilling into multiple aspects. Their scopes

are beyond just e-tailers like Flipkart, Amazon India and their flash sales. It is likely to effect food delivery firms like Swiggy and

Zomato too. The rules were is aspects of flash sales, on displays and ads of sellers, writing country of origin, On cancellation charges

and explicit consumer consent and many more.

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 Competition From Foreign Firms
This industry has a huge potential to get exposed to world top food delivery giants.

Just Eat was launched in August 2001 in Denmark

Door Dash is a US-based food-tech giant. It started
trading in US stock exchange Nasdaq in December
last year and has a market capitalization of $47.6
billion.
It is an American online and mobile prepared food
and has expanded to Europe, Australia, Netherlands
ordering and delivery platform owned by Just Eat
etc. It currently has about 60 Million Users and
Takeaway that connects diners with local
generated £2.1 billion revenue in 2020, a 61 percent
restaurants
increase year-on-year.

Deliveroo is a London-based food delivery startup, Postmates is an American quick-commerce and

which works in over 200 cities. It is the most food delivery service owned by Uber that offers
popular food delivery app across Europe. There are local delivery of restaurant-prepared meals and
six million Deliveroo users, mostly in the UK other goods.
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Union Budget Allocation
The budget 2021-22 doesn’t comprise of any direct allocation to food delivery industry. But the budget announced various indirect

schemes and proposals giving impetus to the growth of the retail and e-commerce market.

• Digital Payments: - Rs1500Cr has been to promote innovation in digital payments and making it wide spread. . Innovations in digital

payments systems will help promote digital transaction and enable e-commerce businesses to shoot, so it will have a positive impact

on food delivery businesses

• Social Security Benefits: - For the first time in the union budget, gig workers have been included in the social security code. The

benefits will include state insurance and minimum wages for the workers.

• Start Up Eco-System:- The government has allocated Rs 830 crore for Start Up sector. It has established funds of funds. Tax holidays

and capital gain exemptions has been introduced to help infuse liquidity into the startup ecosystem.

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Impact of Covid-19
• As the pandemic started spreading across the country, the lockdown was imposed,

putting a halt to the e-commerce sector. In the initial weeks, production had come to

a stop; there were difficulties in getting procurements.

• During the peak of the lockdown, the number of orders of Swiggy and Zomato was

down to a minimum of 20% of the pre-Covid levels.

• The food delivery platforms changed their services to meet the new demands. A

major addition to the consumer's decision-making process was safety and hygiene.

The aggregators who were mainly in the business of delivering cooked food were

now expanding their domain to deliver groceries, packaged food, fresh vegetables

and other essentials.

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Thank You