Swiggy, Zomato in Focus as India’s Food Delivery Sector Records ₹1.2 lakh Crore Gross Output in FY24

India’s food delivery platform sector recorded gross output of about ₹1.2 lakh crore in FY24, according to a report by NCAER and Prosus.  

The study notes that sectoral expansion during the year outpaced overall economic growth. The findings are detailed in the report Impact of Food Delivery Platform on the Indian Economy: GDP, Employment and Taxes. 

Employment Size 

Direct employment in the sector increased to 1.37 million workers in FY24, up from 1.08 million in FY22. Despite the rise in absolute numbers, the sector continued to account for around 0.2% of India’s total workforce in both periods.  

The report states that employment gains were concentrated across platform-linked delivery and support functions. 

Employment Growth Rate 

Between FY22 and FY24, employment in food delivery platforms grew at a compound annual growth rate of 12.3%.  

This compared with an all-India employment growth rate of 7.9% over the same period. The data indicates workforce expansion relative to the broader labour market. 

Production Multiplier Effect 

The report highlights spillover effects from platform activity. For every ₹10 lakh of production generated in the food delivery platform sector, total production across the economy stood at ₹25 lakh in FY22.  

This shows linkages with related sectors such as logistics, packaging and food services. 

Income and Consumption Impact 

On the income side, every ₹10 lakh generated within the sector resulted in ₹24.8 lakh of income across the wider economy in FY24. The report also estimates that ₹7 lakh was generated through consumption channels for every ₹10 lakh of sector output. 

Tax and Employment Multipliers 

In FY24, production worth ₹10 lakh in the sector generated about ₹40,000 in tax revenues. The same level of output supported the creation of three jobs across the economy, including indirect employment linked to allied services. 

Restaurant-level Outcomes 

A separate study titled Impact of Food Delivery Platforms on Restaurants points to changes at the restaurant level. About 59% of restaurant owners reported access to new customers. Around 52.7% added new menu items, while 50.4% reported an increase in customer numbers. 

Revenue Share from Platforms 

According to the report, restaurants’ revenue share from food delivery platforms rose from 22% in 2019 to 29% in 2023, indicating a gradual increase in platform-linked sales. 

Read More: Amazon Expands ‘Amazon Now’ 10-Minute Delivery Service to Gurugram! 

Conclusion 

According to the study, food delivery platforms recorded higher output and employment in FY24, with measurable spillover effects across the economy. Restaurant participation and platform-linked revenues also increased during the period.