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Food Delivery Platform Zomato Goes Global

The number of women leaders at Zomato has dropped from 45 per cent to 15 per cent over the last two years

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Zomato. Twitter

Do you know that Indore requests more midnight deliveries than Mumbai or 70 per cent of online food delivery platform Zomato’s regular users in Kolhapur had never tried food delivery in their life — even over a phone call?

While Ooty has registered the highest average transaction value, Manipal has the highest delivery frequencies among all cities on Zomato, according to the company’s short-form annual report.

In Alwar, someone requested 292 deliveries from 48 different restaurants while in Jaipur, a delivery worth Rs 1.84 lakh was made in 415 boxes.

In Guwahati, a Zomato delivery was done by crossing the Brahmaputra river on a boat!

Gurgaon-based Zomato, which registered a three-fold jump in revenue at $206 million for the financial year 2018-2019 (with a loss of $294 million), is witnessing people increasingly going online to book tables not just in India but globally.

“Our reservations service is now offered in eight countries across over 16,000 restaurants. Over 1 million diners in India are reserving tables on Zomato every month,” said Deepinder Goyal, Founder and CEO, Zomato.

According to him, unit economics of the food delivery business have come a long way.

“We now lose Rs 25 per delivery, compared to Rs 44 per delivery in March 2018. Our last mile cost per delivery is now Rs 65, compared to Rs 86 in March last year. The number of deliveries per rider per hour has gone up to 1.4 from 0.9 last year,” Goyal informed.

Image source: zomato.com

Zomato Gold — that provides benefits uniquely designed for users who see great value in frequently dining out — has partnered with over 10,000 restaurants globally to offer either 1+1 on food or 2+2 on beverages.

“As on March 31, we have over 1 million active subscribers of Zomato Gold globally compared to 170k active users,” Goyal said.

Zomato Gold in also available in four cities outside India — Jakarta, Manila, Auckland and Beirut.

Currently active in seven cities, food@work by Zomato serves 125,000 meals a day, partners with 300 caterers and serves 70 companies.

“We have also partnered with Tier-1 caterers like Elior and Voila to the cash-and-carry segment providing better compliance and food safety,” said the Zomato founder.

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According to him, most of the losses ($294 million) are on account of the food delivery business in India.

“We have had tremendous growth aided by promotional marketing spends to acquire new users and be the first-to-market in many cities in India,” he said.

The number of women leaders at Zomato has dropped from 45 per cent to 15 per cent over the last two years.

“Yes, that is bad. We are committed to taking that number up in the near future,” said Goyal. (IANS)

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NRAI Slams Zomato for Extending its “Gold” Programme on its Delivery Platform

It is another instance of Zomato changing the goalpost

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NRAI, Zomato, Gold
The programme is currently available in 16 cities. Pixabay

The National Restaurant Association of India (NRAI) on Saturday slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt by the online food aggregator to shore up the sinking fortunes of its flagship Gold programme.

Zomato has announced to take its Gold programme where existing and new Zomato Gold members will be able to use Gold for home delivery orders. The programme is currently available in 16 cities.

Zomato Gold was till date available only on eating out at fine-dine restaurants.

“It is another instance of Zomato changing the goalpost. Gold was originally launched as a tool to promote the culture of ‘dining out’, but now it is being extended on deliveries too,” said NRAI, which has been at loggerheads with Zomato regarding the Gold programme over deep discounting practices.

NRAI, Zomato, Gold
The National Restaurant Association of India (NRAI) on Saturday slammed Zomato for extending its “Gold” programme on its delivery platform, saying it is a desperate attempt. Pixabay

“Essentially, it is now a programme that merely promotes ‘deep discounts’ on both dine-in and delivery verticals, the cost of which is borne solely by the restaurant partners,” the restaurants’ trade body added.

NRAI also said that it continues to remain firm in its belief that Zomato Gold in its current form is an unacceptable proposition.

“We expressed the same unequivocally to the Zomato team in our recent talks. However, in utter disregard to the viability of the restaurant fraternity, they have chosen to extend the programme further to the delivery vertical as well,” the NRAI said.

“The NRAI remains steadfast in its belief that Zomato Gold in its current form is not acceptable in either dine-in or delivery segment,” Anurag Katriar, President of NRAI, had said in a statement.

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According to the NRAI, Zomato’s move will be calamitous to the business in the delivery segment and NRAI appeals to all restaurants and cloud kitchen entrepreneurs to stay away from Zomato Gold on delivery.

“Offer right quality at the right price, rather than falling for such discount gimmicks,” NRAI told Zomato, adding that the #ZoGoIsNoGo campaign is on and “we continue to #StayLoggedOut.”

According to Zomato, food delivery was in its early stages when it launched the Gold programme in 2017.

“We thank our restaurant partners for all the feedback, and users for the love they have shown towards Zomato Gold. It is very much these conversations, that led us to put forward a better and bigger Gold programme,” Gaurav Gupta, Co-founder and COO, Zomato, said in a statement.

NRAI, Zomato, Gold
Zomato has announced to take its Gold programme where existing and new Zomato Gold members will be able to use Gold for home delivery orders. Pixabay

The Gold programme drives 25-30 per cent business for its restaurant partners and more and more Gold users (90 per cent) are exploring new restaurants because of the programme.

“It, therefore, makes eminent sense to extend this discovery behaviour to the delivery restaurant base,” said Gupta.

Zomato has always been hellbent to make its contentious Gold programme available for delivery.

“With over 13,000 establishments across 41 cities, Zomato Gold for Delivery brings a wide choice of great restaurants to Zomato Gold members,” added Mohit Gupta, CEO, Delivery, Zomato.

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Gold on delivery will offer the second-highest priced item on the order for free, except for combos, MRP items and special dishes.

It will only apply on minimum order values of Rs 300 with discount capped at Rs 300 per order.

New users will pay Rs 1,800 for an annual package that will give them access to dining out and delivery privileges. (IANS)