Food Delivery Platforms Power Jobs, MSMEs and Economic Growth: NCAER–Prosus Study

India’s food delivery sector has nearly doubled in size over the last two years, emerging as a major driver of jobs and economic activity, according to a study by the National Council of Applied Economic Research (NCAER) in partnership with Prosus. The study found that food delivery platforms generated ₹1.2 lakh crore in gross output in 2023–24 and directly employed 1.37 million workers, up from 1.08 million in 2021–22. Each platform-linked job was estimated to support over 2.7 additional jobs across restaurants, agriculture, logistics, packaging, payments and technology, placing the sector among India’s highest employment-multiplier services.

Based on an input-output analysis of 640 restaurants across 28 Tier I, II and III cities, the research highlights significant benefits for restaurants joining delivery platforms. Nearly 59% of restaurant owners reported reaching new customers, while over half saw higher footfall and order volumes. Around 52% introduced new menu items, reflecting better demand visibility and experimentation. The share of restaurant revenues from food delivery platforms also rose from 22% in 2019 to 29% in 2023, underlining the growing role of digital ordering channels.

The study points to a broader structural shift, with platforms enabling formalisation and growth for MSMEs and small kitchens through access to digital tools, onboarding support, advertising, training and accounting systems. From a policy perspective, NCAER recommends recognising food delivery as a distinct and fast-growing services segment, integrating it into national labour and economic statistics, and strengthening portable social protections for platform workers, while ensuring balanced regulation that supports innovation and ease of entry, especially in Tier II and Tier III cities.

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