food in-india
TRANSCRIPT
INTERNET & FOOD IN INDIA!
RITESH DWIVEDY
What is JustEat? How it works, product, benefits
Is food such a big deal? How big is the opportunity? Changing social fabric
The JustEat Journey
Challenges in the JustEat model
Opportunities in Food
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CONTENTS
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WHAT IS JUSTEAT?
The Reliable Network
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HOW IT WORKS
Hungry Surfer
Places order on Order received INSTANTLY at the
restaurant
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or
Mobile apps, GPRS printers or pos
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JUST EAT Website
Mobile Apps
Partner websites
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Restaurant delivers foodto the customer4
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PRODUCTS
B2B – JUST EAT POS
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B2C – ORDERING AT A FINGERTIP
Technology that is tackling the operational challenges of the Indian delivery market. Examples:
EPOS
Menu updation
Manage orders
Record order
details
Manage Payroll
Generate reports
Analyze perform
ance
Manage servers
Manage coupons
/ discount vouchers
Food in India is a big deal!
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WHY A BIG OPPORTUNITY?
1.2B population, 430M people between age of 10 & 29 years
117M smartphone users
QSRs growing at > 20%
USD $1.6B delivery market
Average order size is ₹400
Average consumer in tier 1 cities orders food once a week
1-2% of orders placed online.
TIER 1 CITY MARKET SIZE
NAME Bangalore NCR Mumbai Pune Chennai HyderabadPopulation (M) 8.5 22 18 6.8 4.7 3
# of delivery restaurants 2,479 6,417 5,250 1,983 1,371 875Ann del market size (M) 80 208 170 64 44 28
Active net pop (M) 1.7 5 6.2 1.8 2.2 1.2Ecomm population (M) 1.1 2.8 2.3 0.9 0.6 0.4
Estimated 50,000 delivery restaurants nationwide. Growth driven by organized sector, which grew at an explosive 36% in 2012.
Internet population growing at 20%
Mobile shopping grew by 800% in 2013 (link)
Top 6 metros make up about $600M of the total $1.6B Market
CHANGING TRADITIONS, COUPLED WITH A GROWING MIDDLE CLASS WORKFORCE
Our Core Segments – and what matters to them
Young workforce getting younger. 50% aged less than 35 years
Middle class up from 5% to 20% in 2015. Expected to be 50% in 2050Eat outs have become a need
Double income aspirational family
Ordering is faster and easier Updated restaurant menu to be viewed online No need to talk to a busy restaurant for placing order Ease of giving specific instructions Address can be stored and one click ordering is easy Can see reviews and ratings of restaurants Exclusive discounts, loyalty rewards points available To be able to place orders for food without disturbing my work Error-free ordering
Why users love JUST EAT?Choice, Convenience, Value
WORKAHOLICHAS NO TIME FOR COOKINGWANTS A FAST AND PRACTICAL WAY OF ORDERING
FAMILYKNOWS HOW TO COOK BUT HAS NO TIME FOR ITLIKES VARIETY TO PLEASE ALL ITS MEMBERS
DOUBLE INCOME, NO KIDS DINK
A typical user is 30 yearsold, works for an IT companyand spends an average of Rs.400 onordering food from restaurants onthe weekends
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LEADING TO EXPLOSION IN HOME DELIVERIES…
Source: JustEat primary research, among 500 educated professionals in Bangalore, 2006
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TIMELINE
HungryBangalore.com starts operations
Seed round from IAN Series A fromJUST EAT
Operations extended to other cities
2015• India’s largest online food ordering portal• Operating in over 26 cities of India (Focus in Tier 1 cities)• Contracts with 3,500+ restaurants (serving 350,000 dishes from 52 cuisines)• 75% orders placed on mobiles• 90% orders with online payment• Average customer orders 16 times a year through Justeat
2006 2007 2008 2010 2011 2012 2013 2014 2015
Series B from JE, Axon and Forum
Acquisition
Challenges in the JustEat model
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Unorganized industry Black is the favorite color (cash based business) Menu design is unscientific, prices fluctuate randomly High order cancellation – disregard to customer experience Complete disregard to CRM, repeat orders etc
Technology stone age Order routing to restaurants is partly automated Order lifecycle tracking is nonexistent Inventory management is not data driven. Dish inventory unpredictable
Nature of business Short window for order placement Ordering is unplanned, waiting is pain A hungry customer is an angry customer
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CHALLENGES
Opportunity in Food
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A smart QSR Own complete order lifecycle – make and deliver Reduce dependence on real estate Use technology to offer a delightful experience
Ideas which can improve kitchen capacity utilization of restaurants
Restaurant focussed ingredients suppliers
Innovation in packaging
No Dominos in Indian Food? Is pizza my staple food Food is a hyperlocal business – a QSR chain focusing on localized Indian food
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WHATS NEXT IN FOOD?