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51% of Domino’s delivery sales were online sales in Q4 FY17

Jubilant Foodworks, the company which operates Domino’s Pizza and Dunkin Donuts in India, reported (pdf) that online ordering contributed 51% to delivery sales for the quarter ended March 31, 2017 (Q4 FY17). The company also stated that 68% of the online orders were placed through the mobile app. Note that the online delivery sales are exclusively for Domino’s Pizza. The company hasn’t disclosed online sales for Dunkin Donuts.

This is a significant increase from a year earlier (Q4 FY16), when online contribution to delivery sales stood at 41% and mobile orders accounted for 38% of online orders.

The company also mentioned that the number of downloads of the mobile app stood at 6.4 million at the end of Q4 FY17, as compared to 3.9 million in the same period last year.

Jubilant Foodworks operates 1,127 Domino’s Pizza restaurants across 265 Indian cities, while the company operates 60 Dunkin Donuts restaurants across 16 cities.

The company reported operating revenue of Rs 612.8 crore for Q4 FY17, a decline of 0.9% from the corresponding quarter last year. Operating revenue reported for the year ended March 31, 2017 (FY17) is Rs 2,546.07 crore, a marginal increase of 5.6% from Rs 2,410.21 crore in FY16. The company, however, does not provide a differentiation between sales at the restaurants and through delivery.

Food ordering surge on Zomato

Zomato reported food ordering revenue of $9 million for the fiscal year ended March 31, 2017 (FY17), which accounted for 18.36% of the company’s overall revenue of $49 million. Food ordering revenue for FY17 was eight times the revenue generated in FY16. It also reported 2.1 million monthly orders in March, which was four times the order volume in March 2016. The company currently offers food ordering services in 13 cities in India and 3 in the UAE, with plans of launching food ordering in Beirut next.

Note that Zomato prefers to let restaurants do the delivery, where it makes an average commission rate of 8.5%.

Developments in the online food delivery sector:

– Last month, online food ordering and delivery platform Swiggy raised $80 million in Series E funding led by global internet and entertainment group Naspers, with participation from existing investors. At the time, ET Tech reported that the company had reduced delivery cost by 35%. This is noteworthy because in December last year Swiggy started charging delivery charges for orders below Rs 250.

– Earlier this year, Uber announced plans of launch UberEATS, its standalone on-demand meal delivery app in India. The company is currently taking user input by asking them to list their favourite restaurants in their city, besides independently getting restaurants and cab drivers onboard.

– In the same month, on-demand rickshaw aggregator and delivery company Jugnoo started delivering food from nearby restaurants with its newly launched ‘Menus’ service, after initially entering the food delivery space with the launch of ‘Fatafat’ service in August last year.

– Rocket Internet’s Foodpanda was acquired by group company Delivery Hero in December last year. It’s worth noting that last month Naspers had invested $421.3 million in Delivery Hero as well.

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