Zomato pilots “Quick Delivery” feature with extra charges in select cities

This arrives days after Zomato raised its platform fees by 25% to Rs 5 per order and halted its inter-city food delivery service called Intercity legends.

Introduction to New Feature

Zomato, a leading food delivery company, is testing a new feature allowing customers to pay extra for quicker delivery in select locations such as Bengaluru and Mumbai, as reported by Moneycontrol. 

At present, the feature appears to be available for various restaurants and cuisines in these cities but not yet visible in others like Delhi-NCR and Kolkata, indicating a limited rollout.

Details of the Feature

For instance, in Bengaluru, users have the option to pay an additional Rs 29 to receive their order in 16-21 minutes, compared to the standard delivery time of 21 minutes. 

Interestingly, this extra fee is also applicable to Zomato Gold subscribers, as observed by Moneycontrol. Queries regarding this development have been sent to the company for clarification.

Context: Recent Changes in Zomato’s Operations

This initiative follows recent changes in Zomato’s operations, including a 25 percent increase in platform fees to Rs 5 per order and the suspension of its inter-city food delivery service called Intercity Legends.

Financial Performance and Market Response

Despite these adjustments, Zomato’s stock price has been on an upward trajectory, driven by improved profitability in its core business and the rapid expansion of its quick commerce arm, Blinkit. 

In the December quarter, Zomato’s food delivery business witnessed a significant 30 percent year-on-year increase in adjusted revenue, amounting to Rs 2,025 crore on a consolidated basis. Meanwhile, Blinkit experienced a doubling of revenue to Rs 644 crore during the same period.

Financial Highlights

Zomato reported a consolidated net profit of Rs 138 crore, marking a substantial turnaround from a net loss of Rs 347 crore in the previous year. 

Revenue surged to Rs 3,288 crore from Rs 1,948 crore in the corresponding period, reflecting the company’s robust performance amidst evolving market dynamics.

As Zomato prepares to announce its March quarter results in the coming weeks, these developments underscore its efforts to innovate and adapt to changing consumer preferences while maintaining its position as a key player in the food delivery industry.