SUMMARY
A user in Bengaluru was offered the option of availing food delivery within 16-21 minutes by paying an additional INR 29, as per a report
Sources within the company confirmed the development with Inc42 and said that the offering is being piloted in select areas in Bengaluru and Mumbai
Zomato has been experimenting with a slew of new offerings, including large order and ‘Pure Veg’ fleets and last-mile deliveries inside corporate parks
Continuing its spree of experiments, foodtech major zomato
is now piloting a new feature in parts of Bengaluru and Mumbai that offers priority deliveries to users at an extra charge.
A user in Bengaluru was offered the option of availing food delivery within 16-21 minutes by paying an additional INR 29, as per a Moneycontrol report. Normal delivery timing for the same order was showing as 21 minutes on the app.
The company is charging the additional fee for priority deliveries from Zomato Gold users as well, the report said.
Sources within the company confirmed the development with Inc42 and said that the offering is being piloted in select areas in Bengaluru and Mumbai.
Inc42 has reached out to Zomato for an official statement on the matter. The story will be updated on receiving a response from the company.
The new feature will create an alternate revenue stream for the foodtech major and help further bolster its profitability.
The development comes at a time when Zomato has been experimenting with a slew of new offerings to shore up its revenue. Earlier this month, it was reported that Zomato was piloting last-mile delivery services to office goers inside corporate parks. Last week, it also launched an all-electric ‘large order fleet’ to deliver large orders for up to 50 people in one go.
Last month, it also unveiled a ‘Pure Veg Fleet’ with green uniform and a new mode on its app for customers with 100% vegetarian dietary preference. However, the move to have green uniforms for the delivery executives of the new fleet was quickly revoked following an online backlash.
Earlier this week, the foodtech major hiked its platform fee by 25% to INR 5 per order in its key markets, including Delhi NCR, Bengaluru, Mumbai, Hyderabad and Lucknow. Not just this, the company also suspended its intercity delivery service ‘Intercity Legends’ as it looks to further streamline and consolidate operations.
Shares of Zomato have been on a bull run on the bourses on the back of the company’s healthy financials and improving profitability. In the quarter ended December 2023 (Q3 FY24), Zomato’s net profit quadrupled to INR 138 Cr from INR 36 Cr in the preceding quarter.
Operating revenue jumped to INR 3,288 Cr in Q3 FY24 from INR 2,848 Cr in Q2 FY24.
As a result, shares of Zomato have surged over 200% in the past 12 months and nearly 50% on a year-to-date (YTD) basis.
Not just this, brokerages have also given thumbs up to the foodtech major. While Kotak Institutional Equities has retained ‘BUY’ rating on Zomato and increased the price target (PT) to INR 210, Motilal Oswal termed the stock as one of its top picks.
Shares of Zomato closed Wednesday’s (April 24) trading session 1.68% lower at INR 184.4 on the BSE.
