Daily Meals Market Has Changed Food Tech Platforms

It has become much easier to order food. Whatever we desire shows up at our doorstep within minutes by clicking a few buttons on an app. The booming food tech industry is contributing to introduction of new services which targets all meals of the day and the competition between the startups is leading towards consumers enjoying many benefits. 

Faasos, an online food delivery portal recently launched a new service which will deliver meals daily on a pre-order basis, starting in January. Faasos Daily intends to entice customers with a daily meals plan with lesser costs than on-demand delivery service. The new service was launched in Gurgaon with 300 customers already participating and further expansion of the service will target Bengaluru, Pune and Mumbai. Faasos Daily will cut down the costs of ordering food daily by introducing smaller portions which will be priced at 30% cheaper than the normal rates. This move will help in increasing customer engagement with the service leading to an 25% increase in revenue. Jaydeep Barman, co-founder and chief executive of Faasos said, “With Faasos Daily, the prices will be lower, hence we will make less money out of these orders. But, they will be delivered in a processed manner as compared with on-demand delivery and we can dispatch four to five meals at one go, which brings the delivery cost down. It is a trade-off between gross margins and cost per delivery.”

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Yumist, started by the ex-CMO of Zomato Alok Jain, targets urban working professionals with their low cost food. Some items on their menu are available for as low Rs.65. Yumist has its own infrastructure and provides daily meals at a fraction of the cost than on-demand platforms. Speaking to Techcrunch, Jain said, “Having come from Zomato and seen what’s happening, a lot of tech stuff is happening [in the food industry] but there’s also a large market for daily meals. People are very price sensitive and don’t want to spend more than a dollar. This market is twenty-times larger than the restaurant industry, but hasn’t seen any change over last five decades. Yet, if I need a cab, I press a button and get it. The consumer has evolved but the experience in the daily meals market hasn’t.”

The daily meals market has changed with these startups targeting single working professionals, especially in the metros. The easy method of ordering and the affordable cost has proven to be the deal maker when it comes to online food ordering.