Hi, share your knowledge with the community!

How do you calculate the market size of the Food Delivery Service industry?

Wibi

assume that it is an open-ended question:

- choose a city/region

- no specific target market in terms of supply/demand side

THEERTHA HARIHARAN replied on 06/30/2018

Let us consider the city of Coimbatore, Tamil Nadu, India for our calculation.Coimbatore has a total population of 10,50,721 people. Then approximately it will be about 2,62,681 households. Since Coimbatore is one of the urbanised households in India. Since it is also called the Manchester of South India. Food delivery service is a huge market here.The city has a huge amount of people with upper middleclass and rich background.

It is hard to figure out the exact percentage of upper middle class and rich in india since only about 3% of Indians pay income tax and file their tax returns. Since Coimbatore is one of the urbanised centres , the number of people who are ready to afford food delivery is quite high than the national average. Already few industries are doing fine including SWIGGY which was loaunched recently. Many Restaurents already have their own Food Delivery Service. Since the many companies like Uber have already launched apps to place orders the competition is going to be fierce.

Considering 30% of the population come under affordable/willing category a little larger than the national average, we get 78,804 households. Eliminating various constraints such as Restaurents, Traditional Hotels, Various other conventional competitions it would be like 60% of the households who will be willing. Then we get 47,282 households. Considering on average they order once a month for average of Rs.1,750 then, The market size would be 5,67,384 deliveries a year, thats 1,554 deliveries per day.

Related BootCamp article(s)

Market Sizing

Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.

15 Comment(s)

Getting Up to Speed

In order to repeatedly demonstrate prerequisite skills under the pressure of a real case interview, you need to learn the basics and practice cases.

3 Comment(s)

Important Facts

It's essential to know some key figures regarding geographies, population, economies for your case interviews. We summarized them for you here.

9 Comment(s)

Related case(s)

Your client, large automotive OEM WyCar, has developed its first fully electric vehicle (EV) and introduced it as a pilot on the Austrian market last year. However, sales have been far below the expected numbers. The management has engaged you to support them in understanding the reasons and advise ... Open whole case

You have inherited the “Old Winery” from your grandfather, a winery which has been family owned for five generations and can be dated back to the 16th century. Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in the conventional way, i.e ... Open whole case

Nutripremium

Solved 35.2k times
4.5 5 1030
| Rating: (4.5 / 5.0) |

Nutripremium is a very well-known premium nutrition food company in Europe (€1 billion revenue last year). It is based in Spain and has an excellent market share not only in its home country but also in Portugal, France, Italy and Germany. Nutripremium has two main lines of products: Vitam ... Open whole case

Children vaccine

Solved 32.7k times
4.4 5 970
| Rating: (4.4 / 5.0) |

Beyer, one of the biggest pharmaceutical companies in the world, just invented a very reliable vaccine against Chickenpox, a disease that affects children in the age from 2 to 16 years. Beyer came to you wondering what their potential sales in Europe in the first year would be if they launched th ... Open whole case

Gas station

Solved 23.3k times
4.3 5 460
| Rating: (4.3 / 5.0) |

How many gas stations are there in Paris? Suppose a friend of yours wants to open a gas station in Paris. What aspects should he consider? Open whole case