Top Story


Home >> Digital >> Article

Google Areo uses unique model to enter food delivery and home services sector

Font Size   16
Google Areo uses unique model to enter food delivery and home services sector

At a time when most food apps struggle to establish themselves and others are forced to shut down, technology giant Google has entered the Indian food-tech and home services market with its latest app - Areo - on April 12.

The app has already seen downloads in the range of 10,000-50,000, claims Google app store.

While Google chose to keep its cards closed about its business plans, industry experts believe that Google’s experiment may work as it will function only as an aggregator and not enter the fulfilment part of the business. Thereby, Google will be playing it safe, as it will not require too many capabilities.

Calling the Areo’s aggregator model interesting and unique, Sreedhar Prasad, Partner - Internet Business, KPMG said, “If the customer intent is checking out where to buy food from, Google can become a major player because the trust factor that Google enjoys is more than any other brand.” He added that Google will take food-listing to the next level by deploying Google Reviews for restaurants and services.

“Google’s aim in the food-delivery business will be to be a one-stop aggregator, with high quality technology interface, and bring the authenticity factor to the place where one orders food from,” Prasad said.

Because of its aggregator model, Google Areo may come as competition to other apps that only list restaurants or services. “The preliminary thought is that the entry of Google Areo will impact apps that focus primarily on listings, for example, Zomato,” said Rohan Agrawal, Senior Consultant, RedSeer Consulting.

In 2016 a number of food delivery start-ups shut down, scaled down operations, and laid off employees. According to RedSeer Consulting, the industry saw a total funding of less than USD 80 million in 2016 against USD 500 million in the same period the year before. Despite the measly funding, RedSeer found that the industry (aggregators and Internet kitchens together) grew at the rate of 150 per cent year-on-year last year.

The food delivery sector may see an uptick if Google brings its innovative problem-solving capabilities to the table. “The way the food delivery app sector has been struggling with regards to unit economics and delivery cost, in particular, will not change with Google’s entry unless Google surprises us with unusual ways to solve these problems,” said Agrawal.

In addition, Agarwal said that Google Areo seems to be Google’s way of addressing the issue of users retreating from using Google Search. “Now users go to specific apps when they want to look for things, which has impacted the search volumes negatively. Google Areo seems to be an effort to reach out to those customers and give them the information they are looking for in the manner that they want,” he said.

“We are constantly experimenting with ways to better serve our users in India. In this case, Areo makes everyday chores and ordering food easier by bringing together useful local services like ordering food or hiring a cleaner in one place,” said a Google spokesperson about the launch of the app.

In Mumbai, HolaChef and Faasos have been onboarded on the Google Areo app. Sources confirm that Areo will be partnering with Scootsy and tap into the hyper-local food delivery start-up’s delivery fleet. exchange4media reached out to Google India for a comment, but did not receive a response.


Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

WhatClicks promises to be an unbiased, objective, third-party audit firm that will work with advertisers and agencies alike to help build an effective and integrated digital strategy.

V-Guard Industries, a household name for consumer electrical appliances in India, has revamped its logo in order to reflect the strength gained by the brand over the years. The company has also unveil...

The report reveals that there has been nearly 5 times more growth in video consumption in the last 12 months, with 96 percent of all usage being focused on long form video