YMApps Mobifood – Food ride home on tweets, apps
About 5,000 registered customers tweet to order desi style wraps and rolls from fast food chain Faaso’s. Domino’s Pizza has had a million downloads of its delivery mobile app launched 24 months ago.
These are some figures reflecting how young Indians are using smartphones to kill their hunger. They are reaching out to their favourite eating joints on mobile phones even as long travel time and hectic professional careers increase dependence on prepared food.
A report by retail consultancy firm Technopak, shared exclusively with TOI, said food services companies are using social media, mobile and the internet for its cost-effectiveness and instant reach.
Faaso’s — a five year-old chain with 65 outlets across Mumbai, Bangalore and Pune — gets more than 15% of its orders through the web and mobile platforms and expects business through this vertical doubling in the next six months.
YMApps is an e-commerce platform for ordering food online. YMApps is unique kind of platform build on a base of SaaS, YMApps is unique service launched under the umbrella of Aptegra Solutions Pvt.Ltd.
It is not just the national chains alone that are riding on this home delivery model. Bangalore-based Ammi’s Biryani and Mani’s Dum Biryani are launching mobile apps next month, bypassing even the internet appealing to the young tech-savvy consumer.
“Youngsters are increasingly spending more time on their phones than on their desktops or watching television. Identifying this, we started taking orders on Twitter,” said Soumyadeep Barman, head of marketing and technology, at Faaso’s, which is funded by Sequoia Capital.
This is in sync with the broader experiences of traditional retailers, who are realizing the e-tailing potential as against only brick-and-mortar format, said the Technopak report titled India Food Services Trends 2014.
“We have seen the progression of consumers shifting from calls to internet and now to ordering on smartphones,” said Joseph Cherian, chief executive of GFA Global, which operates 78 Pizza Corner outlets in India. The company launched a mobile app just two months ago.
Mobile apps give the added advantage of customizing and tracking customer orders which helps in developing stickiness and higher repeat orders.
Technopak data showed that 78% of the food services outlets in Mumbai have delivery options. It is 61% in the Delhi National Capital Region and 48% in Bangalore. Domino’s Pizza, the market leader in the organized pizza business, received 50% of the last quarter revenue, pegged at Rs 385 crore, from deliveries, according to Technopak. And 14% of those home deliveries came via orders on internet and mobile apps.
Online food ordering platform Food Panda gets 25% orders through its mobile app. “We are seeing a phenomenal 60-70% growth month-on-month in orders made through our app. Mobile is eating in to the share of internet as an ordering medium,” said Rohit Chadda, MD and India co-founder of Food Panda, backed by Berlin-based incubator of internet startups.
“Urban youth, the biggest user of social media platforms, is the primary target group of most restaurant formats. And engaging through social media makes enormous business sense,” said Tarun Jain VP, food services and agriculture, at Technopak. Chadda, however, said that smaller players would benefit by being on a platform like Food Panda instead of building individual apps as customers are unlikely to download each of these on their phones.
Navaj Sharief of Ammi’s Biryani believes that his mobile app and social media initiatives drive an additional 15% growth to the home-delivery business. Jayanth Narayanan of Mani’s Dum Biryani said, “We expect both internet and mobile app to bring additional 10% each to out delivery vertical. But going forward it will be the mobile application that would grow faster.”