This presentation gives an insight about the demand analysis of the online food delivery services in India. It covers the following topics:
A. Introduction to online food delevery services
- Meaning
- Process
- Top leaders of online food delivery services
- Current Statistics
B. Demand Analysis of Online food delivery
- Demand Concepts
- Demand Determinants
- Shift in Demand Curve
- Price Elasticity of Demand
- Income Elasticity of demand
c. Conclusion
4. 1. Meaning Of Online Food
Delivery Services:
Online Food Delivery Services is basically a core service.
It is the process of food delivery or takeout from a local
restaurant or food cooperative through a web page or app.
Much like ordering consumer goods online, many of these
services allow customers to keep accounts with them in
order to make frequent ordering convenient
4
7. 4. Current Statistics About Online
Food Delivery Services In India
Revenue in the Online Food Delivery segment amounts to
US$7,120m in 2018.
Revenue is expected to show an annual growth rate
(CAGR 2018-2022) of 11.8%, resulting in a market
volume of US$11,137m by 2022.
The market's largest segment is Restaurant-to-Consumer
Delivery with a market volume of US$6,629m in 2018.
Average daily orders grew to 400,000 in the three months
to Sep 2017
7
10. 1.Demand Concepts:
Meaning of Demand :
By demand we mean the various quantities of the given
commodity or service which a customer would buy in one
market in a given period of time at various prices, ceteris
paribus.
Therefore, the 3 main component of demand is,
1. Price
2. Quantity
3. Time
10
11. 2.Law Of Demand:
It is normally depicted as an
inverse relation of quantity
demanded and price; the higher
the price of the product, the less
the consumer will demand and
vice versa.
From the figure we can say that
when the price of product
increases demand decreases &
vice versa, when the price was P1
quantity demanded was Q1,but
when the price increases to P2
then quantity decreases to Q2
11
12. 3.Demand Determinants:
When price changes, quantity demanded will change. That
is a movement along the same demand curve. When
factors other than price changes, demand curve will shift.
Further are few determinants that affects the demand for
the Online Food Delivery Services.
12
13. 4.Demand Determinants Of
Online Food Delivery Services:
1. Price of the service
2. Price/Rates of relative goods
3. Income of the Consumer
13
15. 5. Promising Income and Consumption Levels
6. Favourable Lifestyle Changes
7. Rising Number of Working Women
8. Preference of the Customers
9. Time
10. Location & Climatic Changes
4.Demand Determinants Of Online
Food Delivery Services:
15
16. 11. Education & Awareness
12. Advertisement Of The Service
13. Exclusive Offers Available
14. Food Quality Standards
15. Service Quality
16. Customer Service
4.Demand Determinants Of Online
Food Delivery Services:
16
17. 17. Mode of Payment
18. Internet Connectivity
19. Information Quality
20. Security of Customer’s Information
21. Service Portal/ Application Design & Quality
22. Government Polices
4.Demand Determinants Of Online
Food Delivery Services:
17
18. 5.Shift In Demand Curve
If there’s an increase in the
income of consumers in the
future, then there’s a possibility
that the consumer will shift
from visiting restaurants, cafes,
etc to Online Food Delivery
services
From this figure we can see that
when the income of the
consumer increase in the future
then the demand for Online
Food Delivery services
increases leading to upward
shift in demand curve.
18
19. 5.Shift In Demand Curve
Downward shift:
When the demand for the product decreases at same price
due to some other factors
For Example: the demand for Online Food Delivery
services reduces when there is an internet shutdown
enforced by the competent authorities.
Upward shift:
When the demand for the product increases at same price
due to some other factors
For Example: the demand for Online Food Delivery
services increases when there are huge offers and discounts
being provided to the customers.
19
20. 6.Price Elasticity Of Demand Of
Online Food Delivery Services:
• Price elasticity of
demand is the
measure of
responsiveness or
sensitiveness of
demand of a
commodity or
services due to a
change in its price.
20
21. 6.Price Elasticity Of Demand Of
Online Food Delivery Services:
• Few determinants of Price Elasticity of Demand Of
Online Food Delivery Services :
1. Income Level
2. Nature of Service
3. Proportion Of Income Spends On The Goods
4. Availability of substitute
5. Time Factor
6. Habits
21
22. 7.Income Elasticity Of Demand Of
Online Food Delivery Services:
Income elasticity of
demand is the measure
of responsiveness or
sensitiveness of
demand of a
commodity or services
due to a change in the
income of the
consumer.
22
23. 7.Income Elasticity Of Demand Of
Online Food Delivery Services:
• Few determinants of Income Elasticity of Demand Of
Online Food Delivery Services :
1. Nature of Service
2. Time Factor
3. Habits
4. Availability of close substitutes
5. Relative Size of Purchase
6. Definition of the Market
23
24. C. Conclusion:
After analyzing different determinants of demand we
came to know that the Online Food Delivery services is
elastic in nature therefore when there is a slight change in
the price of the services, there is a tremendous change
demand of the service because of the availability of the
substitutes in the market.
Similarly the service is also affected by various
determinants like income of consumers, demographic
details, service quality, etc.
24