Food-delivery platforms generate ₹1.2 trillion, support 1.37 million jobs

Study by NCAER and Prosus finds sector growing faster than economy, boosting restaurants and labour markets

Food-delivery platforms generated ₹1.2 trillion in gross output in 2023-24, employed 1.37 million workers and supported nearly three additional jobs for every platform-linked role, according to a study by the National Council of Applied Economic Research (NCAER). The findings show the sector is expanding faster than the broader economy and ranks among the highest employment multipliers in India’s services sector.

 

The results were published as part of two studies released by NCAER in collaboration with technology investment firm Prosus, examining the impact of food-delivery platforms on restaurants, labour markets and the wider economy.

 

“The sector’s contribution to output, employment and indirect taxes is not only measurable but growing at a pace far exceeding that of the broader economy,” said Bornali Bhandari, professor, NCAER. “At the restaurant level, the evidence of expanded market access, higher compliance and improved operational capabilities points to a structural shift in how food services businesses participate in the economy. This research aims to equip policymakers with credible data on a sector that has scaled rapidly and is now deeply woven into India’s digital and economic fabric.”

 

Titled ‘Impact of Food Delivery Platform on the Indian Economy: GDP, Employment and Taxes’ and ‘Impact of Food Delivery Platforms on Restaurants’, the studies examine how food-delivery platforms are reshaping restaurants, labour markets and the wider economy. Based on input-output analysis of 640 restaurants across 28 cities, they complete a three-year NCAER research programme on India’s food-delivery sector.

 

The study shows that platforms have delivered tangible gains for restaurants. Nearly 59 per cent of restaurant owners reported reaching new customers, 52.7 per cent added new menu items, and about half saw an increase in overall customers. Over the period from 2019 to 2023, the share of restaurant revenue coming from platforms rose from 22 per cent to 29 per cent.

 

“Platforms have become an essential bridge to demand, enabling restaurants to reach customers far beyond their immediate surroundings and giving many of them their first exposure to digital visibility, regulatory compliance and data-driven decision-making,” said Sehraj Singh, managing director, India, and VP, group public policy and corporate affairs, Prosus. “The sector’s million-plus workers, supported by India’s growing digital infrastructure, represent one of the most dynamic labour segments in the country.”

 

The studies also highlight policy implications. Platform participation is accelerating MSME formalisation, suggesting scope for targeted incentives, especially in smaller cities. Given the sector’s high employment multiplier, the researchers recommend incorporating platform metrics into national labour and economic statistics.

 

The research calls for balanced regulation that protects small businesses while preserving innovation and consumer benefits, and for more portable social protections for platform workers. Together, the studies offer an evidence base for policy debates on digital platforms, MSMEs and labour markets, highlighting the sector’s growing role in India’s services economy.

 

Key findings from the Economic Impact study demonstrate:

 

?-? The food-delivery platform sector generated ₹1.2 trillion in gross output in 2023-24 and has been expanding at a rate faster than that of the overall economy

 

?-? The sector directly employed 1.37 million workers in 2023-24, up from 1.08 million in 2021-22

 

?-? Each platform-linked job supports 2.7 additional jobs across the wider economy, making it one of the highest employment multipliers in India’s services sector.

 

Showcasing meaningful gains for restaurants on platforms, the Restaurant Impact study indicates:

 

?-? 59 per cent of restaurant owners reported expanded reach to new customers

 

?-? 52.7 per cent added new menu items

 

?-? 50.4 per cent witnessed an increase in customers

 

?-? Restaurants’ revenue share from platforms increased from 22 per cent to 29 per cent (from 2019 to 2023)

 

(Source: Study by NCAER and Prosus)