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Indian 'cloud restaurants' eat delivery apps' lunch

A motorcycle driver working for the food delivery company Swiggy in Bangalore. (Photo by

BANGALORE, India -- Despite forecasts that India's online food delivery services are set for strong growth, startups have yet to crack the market, with many companies closing or cutting staff in 2016. But as the nascent industry evolves experts say that "cloud" restaurants are emerging as the most likely route to success.

According to the National Restaurant Association of India, the food services sector's total revenues for 2016 will amount to about $48 billion, about two-thirds of which is accounted for by sales of traditional street foods. However, that is changing quickly.

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