“Overall online spending in India is rising rapidly and expected to grow at 25 per cent over the next five years to reach over $130 billion,” said Rachit Mathur, Managing Director and Partner, India Lead of BCG’s Consumer & Retail Practice. “Riding on the wave of rapid digitization and steadily growing consumption, the reach of Food Tech companies has grown six times over the last couple of years and will continue to increase further,” Mathur added. Zomato and Swiggy currently dominate the online food delivery market in India. Zomato last week announced it has acquired Uber’s Food Delivery Business in India in an all-stock deal of nearly $350 million and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.

The Google-BCG report also suggested that consumers have common impediments that hinder adoption. A fifth of the respondents stated a lack of trust in the app as the main barrier to usage. Delivery charges (18 per cent), food quality concerns (13 per cent) and lack of customization (10 per cent) are other reasons why customers have, so far, not experimented with online food ordering.