Page 56 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

Food delivery as a proportion of restaurant food in various geographies (%)

18.0
16.5
16.0 16.2
15.6
14.0
12.0 11.8
10.0 10.2 10.2
8.7
8.0
6.0 6.5 6.0
4.0 3.7
2.2
2.0
2019 2020 2025 2030 2019 2020 2019 2020 2019 2020 2025
India USA China SE Asia

While the food delivery space was crowded a few years ago, only a few companies
managed to survive. Once customers get acquainted to these services, companies can

economics. Here’s a case in point: Zomato’s unit economics has gradually improved over

while restricting its discounts at the same time.

Fiscal 2020 unit economics (r) Fiscal 2021 unit economics (r)

27.0 (45.7)

15.3 (52.0) 62.8
43.6 (8.3)
(15.3)
(21.7) (15.7) 20.5
(30.5)

Commission Customer Delivery Discount Other Contribution Commission Customer Delivery Discount Other Contribution
Delivery Cost Variable Delivery Cost Variable
Charges Charges Costs Charges Charges Costs

The Age of Content

While India’s digital shift owes a lot to an accelerated shift to access, what has truly catalysed
it is the pull and scope of content. Given its lower per capita and education levels, its history
of cinema and its multitude languages, India has probably always been biased towards
visual content, and the digital ecosystem has led to its explosive expansion.

54 Edelweiss Securities Limited