Continuing its streak of experiments, foodtech major Zomato is now testing a new feature in parts of Bengaluru and Mumbai that offers priority deliveries to users at an extra charge.
According to a report by Moneycontrol, a user in Bengaluru was offered food delivery within 16-21 minutes by paying an additional INR 29. The standard delivery time for the same order was displayed as 21 minutes on the app.
The company is charging an additional fee for priority deliveries from Zomato Gold users as well, according to the report.
Sources within the company have confirmed the development and stated that the offering is being piloted in select areas in Bengaluru and Mumbai.
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The newly introduced feature will support the foodtech major’s profitability by providing an additional source of income.
This development comes at a time when Zomato has been experimenting with a range of new offerings to boost its revenue. Earlier this month, reports emerged that Zomato was piloting last-mile delivery services for office-goers within corporate parks. Last week, it also unveiled an all-electric “large order fleet” designed to handle orders for up to 50 people at once.
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In addition, last month, it introduced a “Pure Veg Fleet,” complete with green uniforms and a new mode on its app catering to customers with 100% vegetarian dietary preferences. However, the decision to outfit the delivery executives of the new fleet with green uniforms was swiftly reversed after facing criticism online.
Just this week, the foodtech giant raised its platform fee by 25% to INR 5 per order in its key markets, including Delhi-NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow. Adding to this adjustment, the company also made the decision to suspend its intercity delivery service, ‘Intercity Legends,’ as part of its efforts to streamline and consolidate operations.
Continue Exploring: Zomato raises platform fee to INR 5, temporarily halts intercity delivery service
Zomato’s shares have been soaring on the stock exchanges, fueled by the company’s robust financial performance and increasing profitability. In the quarter that ended in December 2023 (Q3 FY24), Zomato saw its net profit surge to INR 138 Cr, quadrupling from INR 36 Cr in the previous quarter.
In Q3 FY24, operating revenue increased to INR 3,288 crore from INR 2,848 crore in Q2 FY24.
Consequently, Zomato’s shares have surged by over 200% in the past 12 months and by nearly 50% on a year-to-date (YTD) basis.
Moreover, brokerages have expressed confidence in the foodtech giant. Kotak Institutional Equities maintained a ‘BUY’ rating on Zomato and raised the price target (PT) to INR 210, while Motilal Oswal identified the stock as one of its top picks.
Zomato’s shares concluded Wednesday’s (April 24) trading session down by 1.68% at INR 184.4 on the BSE.
Continue Exploring: Zomato’s shares surge to record high, nearing INR 200 mark as Kotak raises price target to INR 210