Ownly, magicpin eye bigger slice of India’s food delivery market

New Delhi: Food delivery platforms Ownly and magicpin are eyeing a bigger share of India's food delivery market, citing growing restaurant participation and order volumes across major cities.

The developments come as India's food delivery sector sees more platforms seeking a foothold in the market, while restaurants push for greater control over commercial terms and customer-facing promotions.

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Anshoo Sharma, Founder and CEO, magicpin, told PTI that the platform has seen growth across major cities, with both restaurant partnerships and daily orders increasing.

"Restaurants appreciate the transparency we bring to the table and as a genuine alternative, with operations across top major cities throughout India. It is our restaurant partners and customers who have helped us to become India's third-largest food delivery app, and we only see a growth trajectory going forward," Sharma said.

"We have experienced growth across all the major cities across India, and our operations continue to run smoothly, with steady growth in both restaurant partnerships and daily orders," he added.

Aravind Sanka, co-founder at Rapido & Ownly, said the platform is already generating significant order volumes for some restaurant partners.

"If restaurants continue to see better economics and customers continue to get transparent pricing, growth will follow. Our focus is on increasing restaurant participation, order density and making Ownly the preferred platform for everyday food ordering," he said.

Sanka said there was room for multiple players in India's food delivery market, which he described as under-penetrated.

Also Read: Zomato's Deepinder Goyal shrugs off Rapido, Swiggy's budget food bets

"Competition is good. It keeps everyone honest. Food delivery in India is still massively under-penetrated, so there's room for multiple players," Sanka said.

He added that Ownly is currently focused on executing in its existing markets and plans to expand to more cities after establishing its operating model.

The comments come against the backdrop of negotiations between restaurant bodies in Bengaluru and food delivery aggregators Swiggy and Zomato.

A section of restaurants in Bengaluru had threatened to disengage from both Swiggy and Zomato from August 15. Following talks, the deadline has now been deferred to August 31.

Ananth Narayan, Chapter Head, NRAI Bengaluru, who was part of the negotiations between restaurant bodies and food delivery aggregators including Swiggy and Zomato, said the restaurants have deferred the boycott till August 31.

He expressed optimism that the minutes of the meeting should be signed by all parties by Monday or Tuesday "in all probability", thereby resolving the issues.

Narayan said the entry of more players would not hurt the industry and could instead help expand the market and benefit restaurateurs. "When the market is big, 2-3-4 more players coming in wouldn't damage anybody. The more players, the more the industry will grow, and the more restaurateurs will prosper. It's a win-win for everybody."

He observed that India's food delivery industry will move away from a duopoly in the coming years, with more players coming in.

The Bengaluru negotiations have also focused on the terms governing discounts and promotional offers on restaurant orders.

Narayan said both Swiggy and Zomato have agreed to an OTP-based opt-in SMS mechanism, requiring restaurants' approval for discounts, promotional offers, validity to be on a particular platform, and some other points.

Elaborating on the issues faced by restaurants in dealing with Swiggy and Zomato in the past, Narayan informed that there have been a lot of instances of discounts being levied on a restaurant's offerings without its approval, and multiple instances where the full refunds due have not been issued.

"We told them (Swiggy and Zomato), from September 1, we will decide what to do. It is not a gun to their head, it is simply that the restaurant industry cannot survive on these terms," Narayan told PTI.

Responses could not be obtained from Swiggy and Zomato over the issue.