Food delivery start-ups scale up faster in small towns: JM Financial report

Tapping small-tier cities, leveraging cloud kitchens to drive long-term growth for sector, says study

Online food delivery start-ups such as Swiggy and Zomato can count on “large long-tail” of lower-tier cities and extend their partnerships with cloud kitchens for long-term growth and profitability, according to a new report.

The start-ups have been expanding their presence in non-metros, tier-3 and -4 cities to make the full use of better business economics present in these markets. According to JM Financial report, Swiggy had reached the mark of 5,000 orders per day in just six to eight months since its launch in cities such as Patiala and Gorakhpur. It had taken the company around three years to reach