Introduction

India Online Food Delivery Market will be US$ 21.41 Billion by 2026, from US$ 4.66
Billion in 2020.India Online Food Delivery Industry will grow at a staggering CAGR of
28.94% during 2020-2026.

India online food delivery industry is going through a revolutionary phase. In recent

years, this market has shown huge prospects and attracted heavy investments. After
the US$ 250 Million new investment Zomato valuation was of US$ 5.4 Billion, up
from US$ 3.9 Billion in December last year. Similarly, its rival Swiggy is in advanced
stages of talks with SoftBank to invest up to US$ 450 Million into food delivery start-
up, which will peg its valuation to US$ 5 Billion. This is one of the few industries
which are growing with double digit CAGR. 

Online food delivery works on two delivery types i.e., Aggregator & Cloud Kitchen.
The Food Aggregators allow consumers to compare and order their meals from
different restaurants through a single app. It is more prevalent in India than Cloud
kitchens as cloud kitchens are commercial facilities purpose-built to produce food
specifically for delivery. Factors that are propelling India's online delivery market are
changing lifestyle and eating habits. Hectic schedule and growing disposable income
in India push people towards ready-to-eat food at a cheaper rate.

Getting it quickly through one-click has popularized food delivery options, especially
in urban areas. Besides, rising digitalization among millennial and increasing
proportion of working women in India are also driving the online food delivery trends
in India. Furthermore, COVID- 19 lockdowns have also positively
impacted India's online food delivery industry by the full-filling urge of eating outside.
As many leading players like Zomato, McDonald's Corporation, and Domino's Pizza
Inc. have introduced contactless delivery services.

Market failure: -

For restaurants, cloud kitchens and other kinds of food providers to get featured in
a food delivery platforms , we have pay charge of more than 20% of our order value
to the food delivery platform , for ex:- swiggy charges 23% to feature on their
platform, which is manageable to pay for entities who run the kitchens in large scale
and then can have economies of scale but for people like home bakers or people
who run a restaurant from home will not be able to pay such a huge commissions at
the same time if a delivery is covering a distance of more than 5kilometres it is
becomes a necessity for a food delivery to charge more than 20%. In this process to
make ends meet, people who run restaurants from home charge high prices.
Home needs
“Home needs” is a food delivery app for all the home bakers and home restaurateurs
with an affordable platform fee which covers a limited distance.
Flow of the application: -

1. customers can look through collection of home restaurants and select the
food from the app. Once customers pick their order, home needs gives them
various mediums to pay for the same.
2. The restaurant then accepts the order and packs it as indicated by the
prerequisites given. 
3. Food delivery agents get food from the home restaurant and deliver it to the
customer.
4. Meanwhile, one can also review and rate the food. Food delivery applications
have developed a rating system which places restaurant in an order
dependent on their evaluations and surveys. Furthermore, the customers rate
the restaurants depending on food quality, look, etc

PLATFORM DESIGN PRINCIPLES

Design for thickness; - although home needs currently deals only in food delivery services, the scope
of trades can be further extended to the other products that homepreneurs hugely produce ex:-
home grown vegetables, art and craft materials and etc,

By allowing more and more different kinds of tradable assets on the platform like cakes,
north Indian food, south Indian food and etc., it attracts the customers to come to the app but
does not dilute the platform, but by allowing too many trade classes like art and craft,
clothing and etc., later in the expansion of the business may dilute the platform. There will be
balance mainted in order to counter that.
Alleviate congestion; -
By allowing only home restaurants to feature in the platform would lead to homogeneity
among the restauranters because most of them sticks to similar cuisine and the customers
may feel the congestions choosing between them, so certain no of restaurants will be taken
for a particular cuisine, in a certain area.
So we will be charging a standard premium of 10% on the order value from the restauranters
for getting featured on the platform, although it is low compared other food delivery platform
but it still helps in removing certain amount of congestion among restaurants
We also have various kinds of preference signals in order to reduce the congestions among
the customers, example; - if customer is viewing a particular restaurant, we mention what
kind of cuisine, price range, rating of place ,distance and various other preference signals so
that customer doesn’t feel that congestion
We also record the patterns of the customer orders and very time comes to our platform we
provide him the restaurants that are apt for customers And it is a continuous process for us
to display apt restaurants for the customers with search behavior that we get from the
consumer, which reduces the congestion for the consumers
Mitigating asymmetric information :-