food delivery companies, broadly dominated by Zomato and Swiggy. Consumers had shied away from online food ordering due to apprehensions on safety and a general preference for home-cooked food.
But things picked up later on and the recovery has been faster. Analysts reckon the pandemic has helped companies improve unit economics and add more consumers, as the frequency to dine out has dropped.Analysts from Kotak Institutional Equities wrote in a report on 24 January, “We now see several covid-related tailwinds benefiting the industry: (1) greater propensity of restaurants to be available for delivery (several fine-dining restaurants have begun listing on delivery platforms), (2) generally a greater inclination by consumers to place higher.