FSSAI License

Key Insights on Setting up an Online Food Delivery Marketplace in India

calendar01 Jul, 2020
timeReading Time: 4 Minutes
Online food delivery marketplace

The online food delivery marketplace in India has a splendid future. The progress of online food ordering players is a perfect example for those interested in setting their online food ordering and delivery marketplace in India. Also, in recent times most of the aspiring entrepreneurs have started considering this highly promising business idea.

According to the sources, near about 44% of consumers from the USA prefer using online food delivery platforms at least one time in a month. All of a sudden, Indian consumers have started banking upon online food delivery services for ordering food. By looking at the potential of this segment of the startup business, we have a question to put forward- Isn’t it a wise decision to invest in the online food delivery marketplace in India? 

By staying at home, consumers can get the privilege to satiate their hunger after ordering whatever they love via online food delivery services in India. In the online food delivery business, FoodPanda, Zomato, UberEats, and Swiggy have proved their mettle. Initially, the trend has gained pace in the urban and semi-urban regions, but eventually, it has found momentum in most Indian states.  

All the e-commerce food platforms need to acquire FSSAI License for smoothly running the food-related business anywhere in India. According to the FSSAI guidelines, obtaining the FSSAI License is a mandatory thing for online food delivery business enthusiasts. You need to get a food license for ensuring that safe and standard food is reaching up to the customers’ hands. There is also a mandatory provision to adhere to standards concerning healthful working space and a properly trained staff.

Mandatory Licenses for Setting up an Online Food Delivery Marketplace in India

In order to commence an online food delivery marketplace in India, aspiring food delivery marketplace entrepreneurs must comply with the compulsory licenses as well as permits noted below-

  • Get your business registered as a Limited Liability Partnership, Sole Proprietor Firm, One Person Company, Partnership Firms, or a Pvt. Ltd. Company.
  • It is vital to go for GST registration for serving via e-commerce platforms.
  • Vendor Agreement must get signed with all the suppliers. The trade-related terms and conditions, along with relevant terms applicable, should get declared in that.
  • A record of terms and conditions must get sketched for confining the liability of the application or website in use or used.
  • Privacy policy needs to get outlined to evade getting penalized under the roof of Section 43A- Information Technology Act, 2000[1].
  • It’s crucial to draft data privacy agreements along with user agreements.
  • An agreement or a ‘Memorandum of Understanding’ should get signed with all the manufacturers along with sellers. It should affirm that all the manufacturers/brand owners or sellers are acting in accordance with the FSSAI Act and also abiding by its rules and regulations. The MOU must comprise the FSSAI Food License number.
  • All the e-FBOs should acquire a Central License from the end of Central Licensing Authority. It is essential to get such a type of license for the intact supply chain that consists of the head office of the e-commerce food business operators, transporters, storage, manufacturers as well as distribution units. If food delivery businesses fail to comply with the FSSAI guidelines, they will come under the pressure to close their business on an immediate basis.
  • A Food License from FSSAI must get obtained. All e-commerce food business operators got coverage under Schedule-1 of Food Safety and Standards Regulations, 2011.
 Licenses for Online Food Delivery

Read our article:What is National Food Security Card, and How to download it?

FSSAI License for Online Food Delivery Marketplace in India

FSSAI has brought a new kit of guidelines for the food delivery platforms. These guidelines emphasized that all the e-commerce food business operators must exhibit the FSSAI License number of all those restaurants placed on their platform. Non-Compliance with rules, as well as guidelines framed by FSSAI, may lead to penalty charged in the form of fines, imprisonment along with license cancellation in some cases.

In case the e-commerce platform gets a complaint from the customers’ end with respect to the food quality, the online food delivery marketplace in India must forward the information into the chamber of the concerned manufacturer or owner.

In order to get the issues resolved, the manufacturer or the owner must adopt immediate measures. The e-commerce food business operator would have to take out that particular food item from its list on the online platform that is non-compliant with the FSSAI rules and guidelines. All the e-commerce food business operators must get their License by applying for the same online. The online food marketplace needs to get it registered on the system first and login for the completion of the entire application process in the time frame of 30 days of registering online.

The e-commerce food business entrepreneur can acquire Central License for a time range of 1-5 years. The License Fees for new FSSAI Central License – Rs. 7500/Year. All the e-commerce food business operators must consider one point that they should reapply for the FSSAI License renewal before the expiry of the current License.

Online Food Delivery Marketplace in India- a Better Future is in Store

  • Going through the market research reports, we perceived that India’s online food delivery market would widen its horizon at CAGR of 30.55% on the basis of revenue and 10.19% on the basis of users during 2020-2024.
  • This segment of India’s online food industry would become a market of $8 billion by 2022.
Note: Major players extending its operations in the online food delivery market in India are FreshMenu, Swiggy, Zomato, and Faasos.

Bottom Line

The growing disposable incomes and frenetic work schedule have made the online food delivery marketplace in India a trending venture. Establishing an online food ordering and delivery marketplace seems to require fewer complexities, but the reality is different. Thus, our Corpbiz experts are here to support you with the mandatory legal licenses and registrations like FSSAI License, GST Registration, etc. Embrace our dedicated services concerning setting up an online food delivery marketplace in India and set new milestones in the food industry.

Read our article:A 360-Degree Guide on Starting a Restaurant Business in India

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