Indian meals aggregator platforms Swiggy and Zomato have featured in world’s ‘Top 10’ e-commerce-based meals supply firms. Both firms are a part of over 100 Indian unicorns. Unicorns are firms with a complete worth of over $1 billion (roughly Rs. 8,000 crore).

A report revealed by Canada-headquartered international analysis agency ETC Group titled ‘Food Barons 2022 – Crisis Profiteering, Digitalization and Shifting Power’ positioned Swiggy and Zomato within the ninth and tenth spot, respectively.

According to the analysis agency, the meals supply sector refers to digital, on-demand platforms for ordering and paying for ready meals, groceries and different retail objects. Restaurants/retailers fill the orders and couriers ship them to prospects inside a prescribed timeframe.

China’s publicly listed meals platform Meituan was on the high of the listing, adopted by the UK’s Deliveroo, and the US’ Uber Eats.

Further, Ele.me, DoorDash, Just Eat Takeaway/Grubhub, Delivery Hero, and that iFood discovered themselves within the 4th to eighth spot.

“The food delivery sector is rapidly consolidating, but ownership is a moving target. As companies jostle for regional hegemony, they are buying, selling and swapping stakes in competitors,” the report stated.

“Venture capital and Big Tech investment has fueled the sector, but companies have yet to deliver profits, even in the sector-friendly circumstances of the global pandemic when delivery became more necessity than convenience,” it added.

Against that backdrop, it stated that tweaking the enterprise mannequin to maneuver in direction of profitability — most prominently by including grocery and pharmacy supply — is presently underway.

The report additionally targeted on points confronted by employees within the gig financial system.

Delivery employees, it stated, have been thought of impartial contractors as a substitute of workers in most elements of the world. They are subsequently ineligible for social safety, harm compensation or different advantages.

“There are indications that some governments may be ready to enact labour reforms to try to end the platforms’ free ride. In the USA, New York City became the first city to pass legislation to regulate the food delivery sector, establishing minimum pay and other worker protections,” the analysis report added.

A serious downside dealing with the sector, the report stated, is the numerous enhance in trash from the takeaway single-use packaging.