The food tech unicorn launched a pilot project in NCR to understand the viability of a delivery segment that is witnessing immense growth.
Zomato is evolving and venturing into exciting new segments. In a pilot project it is currently running in the National Capital Region (NCR), the food-tech-and-delivery company is looking to cash in on people’s preference to party at home.
It has tied up with three-and four-wheeler service providers to make large deliveries since bike riders cannot handle bulk packages. The party ordering segment is likely to help Zomato push up its order value, explore the virgin at-home party ordering segment, besides save costs. Big-ticket orders require special big boxes and delivery bags.
A food delivery company spends Rs 50-60 to deliver one dish to a customer. If 15 to 50 packets are being delivered to one address, it helps reduce the cost incurred. If the average size of food orders in metro cities is between Rs 400 and Rs 800, a party order can be almost ten times that amount, going up to Rs 3,000 to Rs 4,000 per order. Zomato has confirmed that it has seen a rise and rise in big orders over the past few months.
Over the New Year eve, the food delivery platform sent out 3,200 meals per minute, the largest that they have delivered, setting new precedents. “Our order velocity right now is the highest we have seen in our life so far (approximately 2500 orders per minute (opm)). Surpassed India vs Pakistan day wala opm. And it’s only 6 pm! I hope our tech lives through this,” Zomato CEO Deepinder Goyal revealed in a tweet on December 31st.
Founded over a decade ago, Zomato, over the years, has managed to establish itself as the purveyor of food discovery and delivery. Towards the end of December 2020, Goyal revealed in a series of tweets that Zomato had raised a $660 million in funding, pushing its post-money valuation to $ 3.9 billion.
In early 2021, the food-tech unicorn is gearing up for their Initial Public Offering (IPO). Zomato has reported an increase in revenue by about 84%, going from Rs 1,350 crore in the financial year 2019 to Rs 2,485 crore in the current financial year.
Along with the increase in the revenue, Zomato has reported a sharp 161% increase in their losses. The 2019 fiscal year reported a loss of Rs 940 crore, whereas the losses in the current fiscal years surmount to Rs 2,451 crore. A Financial Express report, which examined the company’s regulatory filings, suggests that Zomato’s losses can be attributed to a 37% rise in expenses in fiscal year ’20, which stands at Rs 4,628 crore, as compared to the preceding fiscal year when the reported losses were Rs 3,383 crore.
The times ahead are exciting for not just Zomato, but other food tech and delivery platforms such as Dineout and Swiggy. The writing is clearly on the wall. According to a Google and Boston Consulting Group (BCG) report, India’s online food ordering market will touch $7.5-8 billion by 2022, up from $4 billion now and platforms such as Zomato and their close partners have a lot to gain.
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