Photo: MintBengaluru: Cash-rich online food delivery companies have raised discounts and cut delivery charges to win market share in an increasingly competitive market, analysts and industry experts said. Both companies, which are in talks to raise more cash, are facing competition from Uber’s food delivery service Uber Eats, started in May 2017. According to Sreedhar Prasad, partner at KPMG Advisory, whenever a new restaurants lists on food delivery platforms, discounts are more out of the restaurant’s need to acquire customers. Although discounts on food orders are here to stay, analysts believe free delivery offers may be phased out. Food delivery app users feel that free delivery offers are a better catalyst for placing an order when compared to discounts.

Source: Mint May 08, 2018 16:52 UTC