Food Delivery Apps indicated that subscription programs are improving consumer retention; driving higher ordering frequencies and helping in expansion of non-food categories. Food-techs therefore continue to push subscriptions despite an impact on revenue per order. Consumers are also increasingly joining these programs due to bundled benefits such as better value proposition, wider selection and quality options. In India, Zomato recently launched Zomato Pro Plus subscription program (presently an invite-only program) that promises unlimited free deliveries to its members (refer media report), while also retaining all the existing benefits of Zomato Pro subscription program. Swiggy too runs its own subscription program called Swiggy Super that offers free deliveries and incremental incentives.
Swiggy too saw strong growth momentum in Jun’21 with daily order volumes growing 2.5x on a YoY basis (~1.5mn orders per day in Jun’21). We expect near-term tailwinds such as reopening of corporate offices and upcoming sports events (such as IPL and T20 World
Cup) to continue to drive strong order volume growth for the industry.
