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HomeNewsAfter successful trial run, Zomato expands priority food delivery service to Delhi,...

After successful trial run, Zomato expands priority food delivery service to Delhi, Hyderabad, and Pune

Ritesh Agarwal, Founder, OYO

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Several weeks following the trial run of its priority food delivery service in select areas of Mumbai and Bengaluru, Zomato, the foodtech giant, has now broadened its reach to encompass additional cities such as Delhi, Hyderabad, and Pune.

According to information provided on the Zomato app, the company is offering users in select cities the option to prioritize their orders, resulting in delivery up to 5 minutes quicker than the standard service.

Zomato is levying a fee of INR 19 to INR 29 per order for priority deliveries, including ‘Zomato Gold’ users who are also subject to this additional charge for prioritized service.

Zomato asserts that priority orders are individually handled and not grouped with other orders, ensuring expedited deliveries.

Continue Exploring: Zomato tests priority deliveries in Bengaluru, Mumbai with extra charges

The expansion of the priority delivery service is anticipated to bolster Zomato’s revenue stream further.

This development comes at a time when Zomato has been exploring a variety of new initiatives to enhance its revenue. Last month, it was reportedly conducting trials of last-mile delivery services tailored for office workers within corporate parks.

It recently launched an all-electric “large order fleet” designed to accommodate orders for up to 50 people at once.

Continue Exploring: Zomato launches all-electric ‘large order fleet’ for events and gatherings

In March, the foodtech major launched a “Pure Veg Fleet,” featuring delivery personnel in green uniforms and introduced a new app mode catering to 100% vegetarian dietary preferences. However, the decision to have separate uniforms for this fleet’s personnel was later revoked due to online backlash.

Continue Exploring: Zomato renames ‘Pure Veg’ mode to ‘Veg Only’ amid social media backlash

Last month, the company raised its platform fee to INR 5 per order from INR 4 earlier.

Last week, Zomato announced its fourth consecutive profitable quarter, attributing the success to the introduction of new fees and offerings. The company’s consolidated profit after tax surged by 26.8% to INR 175 Cr in the quarter ending March 31 of the financial year 2023-24 (FY24), up from INR 138 Cr in the previous quarter.

Revenue from operations surged by over 8% to INR 3,562 Cr in the quarter, up from INR 3,288 Cr in Q3 FY24.

Continue Exploring: Zomato’s Q4 net profit surges 27% quarter-over-quarter to INR 175 Cr

Nonetheless, Zomato witnessed a decrease in the Gross Order Value (GOV) of its food delivery segment compared to the previous quarter, dropping to INR 8,439 Cr from INR 8,486 Cr. However, there was a notable 28% increase in GOV on a year-over-year basis.

During Q4, the average monthly transacting customers for the food delivery business increased to 19 Mn, up from 18.8 Mn in the previous quarter.

After the results, various brokerages, including Bernstein, revised their target prices for Zomato. The stock concluded Wednesday’s (May 15) trading session with a 2.4% increase, reaching INR 191.95 on the BSE.

Continue Exploring: Bernstein raises Zomato’s price target to INR 230, upholds ‘OUTPERFORM’ rating following strong Q4 results

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