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Presented By :
Miss. Neha Sharma
1
Topics to be covered:
 A. Introduction To Online Food Delivery Services :
 1. Meaning
 2.Process
 3. Top Leaders Of Online Food Delivery Services
 3.Current Statistics
 B.Demand Analysis Of Online Food Delivering Services :
 1.Demand Concepts.
 2.Demand Determinants
 3.Shift In Demand Curve
 4. Price Elasticity Of Demand
 5. Income Elasticity Of Demand
 C. Conclusion 2
A. Introduction To Online
Food Delivery Services :
3
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
Process of Online Food
Delivery Services
5
3.Top Online Food Delivery
Service Providers in India
6
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
Graph No.01
8
B. Demand Analysis Of
Online Food Delivery
Services
9
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
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
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
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
4. Demographical Factors
Users by Age
4.Demand Determinants Of Online
Food Delivery Services:
14
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
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. 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
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
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
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
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
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
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
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
Thank You !
25

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Demand analysis of online food delivery

  • 1. Presented By : Miss. Neha Sharma 1
  • 2. Topics to be covered:  A. Introduction To Online Food Delivery Services :  1. Meaning  2.Process  3. Top Leaders Of Online Food Delivery Services  3.Current Statistics  B.Demand Analysis Of Online Food Delivering Services :  1.Demand Concepts.  2.Demand Determinants  3.Shift In Demand Curve  4. Price Elasticity Of Demand  5. Income Elasticity Of Demand  C. Conclusion 2
  • 3. A. Introduction To Online Food Delivery Services : 3
  • 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
  • 5. Process of Online Food Delivery Services 5
  • 6. 3.Top Online Food Delivery Service Providers in India 6
  • 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
  • 9. B. Demand Analysis Of Online Food Delivery Services 9
  • 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
  • 14. 4. Demographical Factors Users by Age 4.Demand Determinants Of Online Food Delivery Services: 14
  • 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