Coca-Cola reportedly plans to acquire a minority stake in the Indian online food ordering app, Thrive. If the deal goes through, it will be Coca-Cola’s first investment in a startup in the Indian market. The company is yet to disclose the size of the deal and other finer details.
Thrive and Coca-Cola Deal
Thrive’s strategic investment by Coca-Cola will give the beverage maker a clear edge over its rivals in India. Coca-Cola’s acquisition of a minority stake in Thrive is expected to encourage consumer loyalty towards Coca-Cola’s beverages, particularly when placing food orders through the Thrive app. Additionally, it will enable Coca-Cola to offer customised orders, sell package deals and meal combinations, and push loyalty codes. The deal will drive consumer engagement for Coca-Cola with both restaurants and consumers. It will give Coca-Cola access to consumer data as the startup has a large base of mid-sized restaurant partners offering diverse cuisines.
Coca-Cola’s Previous Partnerships
Coca-Cola has established exclusive partnerships with McDonald’s fast-food chain in the Indian market. In September, Coca-Cola launched its global meal platform “Coke is Cooking” in India. With this new strategic investment in Thrive, Coca-Cola can expand its presence further in the Indian food and beverage market.
Thrive’s Previous Investments
Jubilant FoodWorks, the operator of Domino’s Pizza in India, had acquired a 35% stake in Thrive for approximately INR 24.75 crore. Jubilant FoodWorks invested, intending to expand its direct delivery capabilities and gain access to consumer data. The purpose behind the investment made by Jubilant FoodWorks was to expand its direct delivery capabilities. Also, to gain access to consumer data. Since its introduction, Thrive has attracted a sizable number of restaurants. This is because it only takes a quarter of the commission from the eatery. This is as opposed to the 18–25% taken by Zomato and Swiggy, and other well-known meal delivery services.
What Is Thrive?
Thrive is an online food ordering app that allows users to place orders from various restaurants and food outlets in India. The app features several mid-sized restaurant partners with a wide variety of cuisines. It charges a lower commission fee to restaurants than its competitors. Thus, making it a popular choice among small and medium-sized restaurant owners.
The Indian Food and Beverage Market
The Indian food and beverage market is one of the fastest-growing markets in the world. It has a projected annual growth rate of 11% by 2023. The growth of online food ordering apps has contributed significantly to this growth. As per available data, the Indian food ordering market was valued at INR 16,500 crore in 2020. Further, it is expected to reach INR 25,000 crore by 2022.
Thrive’s focus on mid-sized restaurants and diverse cuisines also makes it a unique option for Coca-Cola. This allows the beverage maker to tap into different market segments. By offering customised orders, package deals, and meal combinations, Coca-Cola can further strengthen its partnership with Thrive and create a more immersive experience for consumers.
Coca-Cola’s investment in the startup will also likely impact its existing partnerships in the Indian market. With exclusive partnerships with McDonald’s and a global meal platform, Coca-Cola is already a major player in India’s food and beverage industry. However, by investing in Thrive, Coca-Cola can offer a more comprehensive range of services. Thus, reach out to a wider audience.
The Indian food and beverage market is highly competitive, with established players like Zomato and Swiggy dominating the market. However, Thrive’s unique business model and low commission fee have helped it gain a foothold in the market. Coca-Cola’s investment in the startup indicates that it recognises the potential of the Indian food and beverage market and is willing to invest in innovative startups to gain a competitive edge.
Coca-Cola looks to acquire a minority stake in the startup as a part of its larger strategy to expand its presence in the Indian market. With a projected annual growth rate of 11%, the Indian food and beverage market is an attractive investment opportunity for beverage makers like Coca-Cola. The market is also driven by changing consumer preferences, with an increasing number of consumers opting for online food ordering and home delivery services.