Food delivery has grown exponentially in India, with online food delivery revenue projected to reach $8 billion by 2022. However, as delivery volumes surge, significant amounts of food are being wasted. This article examines the scale of food wastage in delivery and potential solutions to enhance efficiency.
The Growing Scale of Food Delivery in India
Some key trends highlight the growth of food delivery:
Booming online delivery - Platforms like Swiggy and Zomato processed 476 million orders in 2021, up 140% from 2020.
Cloud kitchen expansion - Number of cloud kitchens increased over 200% between 2019-2021, will reach 12,000 by 2023.
Delivery fleet growth - Food delivery fleets expanded over 90% to 1 million two-wheelers in 2021.
Restaurant partnerships - 450,000 restaurants now partner with food delivery platforms.
Penetration in smaller cities - Food delivery orders from Tier 2-3 cities have doubled since 2020.
This hyper-growth has made India one of the largest food delivery markets globally. However, as the system scales rapidly, significant gaps have also emerged.
The Concerning Scale of Wastage
Multiple sources of wastage exist across food delivery:
Supply-demand mismatch - 73% of demand prediction by cloud kitchens is incorrect resulting in excess food production.
Order cancellations - Almost 20% of placed orders are canceled by customers leading to wastage.
Sub-optimal routing - Inefficient dispatching and route planning for deliveries causes delays and wastage.
Packaging failures - Improper packaging leads to spilling and contamination during transit.
Cold chain breaks - 38% of delivery personnel do not carry insulated bags resulting in cold food safety issues.
Time delays - Average last mile delivery takes 30-45 minutes leading to cooling of food.
This wastage not only causes massive losses but also has an environmental impact. India's food delivery chains generate around 101 million kg of plastic waste annually. Minimizing wastage is crucial.
Impact of Food Wastage in Delivery
High levels of wastage negatively impacts multiple stakeholders:
Restaurants
Loss of ingredients and final product
Higher operational costs
Need for overproduction to account for wastage
Delivery platforms
Revenue loss from order cancellations
Higher last mile costs due to sub optimal routes
Reputational risks from poor consumer experience
Consumers
Dissatisfaction from cold food, incorrect orders, delays
Health risks from compromised food safety
Higher costs as restaurants pass on wastage costs
Environment
Significant carbon footprint from food wastage
Plastic waste burden from packaging
Society
Ethical implications of food wastage amid hunger
Higher food inflation from supply-demand mismatches
A collaborative effort across the delivery value chain is vital to curb wastage.
Solutions to Reduce Food Wastage
Multiple solutions can help enhance efficiency:
Supply Chain Optimisation
Demand forecasting - Leverage data analytics to predict demand more accurately across times and locations. Incorporate weather data, events, and other variables.
Inventory optimization - Use historical data to identify minimum inventory levels and production quantities needed to meet demand.
Batch size optimization - Prepare smaller batches more frequently to account for demand variability and avoid excess production.
Shelf life extension - Use ingredient pre-processing, modified atmosphere packaging and water activity reduction to extend shelf life of products by 2-3 days.
Delivery Route Optimization
Route planning algorithms - Use apps like Route4Me to optimize delivery sequence, minimize detours and balance route density.
Driver tracking - Apps like Locus to allow real-time tracking of driver location to ensure on-time deliveries.
ETAs - Provide delivery time estimates and live order tracking to customers to avoid cancellations from extended wait times.
Packaging Innovation
Insulated packaging - Use double layered kraft paper boxes, air insulated pouches to maintain food temperature during transit.
Tamper proofing - Employ tamper evident labels, seal tapes to prevent adulteration of food.
Active packaging - Incorporate phase change materials into packaging that maintain steady temperatures.
Food Handling Enhancement
Personnel training - Provide training on food safety protocols and handling practices to minimize spills and contamination.
Clean vehicles - Ensure food compartment hygiene after each delivery with disinfecting.
Cold chain integrity - Make insulated bags mandatory to maintain safe temperatures.
Customer Education
Inform customers on implications of cancellations and food safety risks from delays in collecting deliveries.
Recommend ordering smaller meal portions to avoid wastage from large portions.
Advise ordering from closer restaurants to prevent quality deterioration in transit.
Leveraging a combination of technological, operational, and demand management solutions can significantly reduce wastage across the food delivery supply chain.
Case Studies on Food Waste Reduction
Domino's
Leveraged demand forecasting algorithms to align inventory with predicted demand
Optimized inventory and production to reduce wastage by 20%
Swiggy
Used AI and ML to analyze past data and improve predictions
Achieved 15% reduction in excess food production
Rebel Foods
Opened mini-cloud kitchens to be located closer to high demand areas
Reduced average delivery time by 10-15 minutes leading to better food quality
Box8
Developed various tamper-proof, spill-proof, insulated packaging solutions
Saw 40% reduction in food spoilage complaints
Zomato
Implemented various transit relief measures for riders like pit stops, washrooms, safety gear
Rider satisfaction increased, leading to lower order cancellations
Role of Technology in Enhancing Food Delivery Efficiency
Technology innovations can help reduce wastage across the supply chain:
AI powered forecasting - Predict demand patterns and optimize inventory
IoT sensors - Monitor temperature, moisture, sanitation of food in real-time
Blockchain - Improve traceability and transparency across supply chain
Smart packaging - Incorporate sensors to track integrity, freshness, safety
Automated warehousing - Optimize inventory handling and dispatch with robotics
Machine learning - Identify root causes of wastage from data patterns
Future Outlook
India's food delivery market is still evolving. Further growth needs a foundation of efficient, sustainable and waste-free supply chains. Cooperation between restaurants, aggregators and consumers is vital to achieve this. Technology will act as a key enabler. With proactive efforts, India can set global benchmarks in responsible food delivery.
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