Zomato is Trialing Priority Deliveries in Bengaluru and Mumbai with an Extra Fee

In its ongoing quest for innovation, Zomato, a leading player in the foodtech industry, is currently testing out a fresh feature in select areas of Bengaluru and Mumbai. This new perk allows users to enjoy priority deliveries for a little extra cash.

For instance, in Bengaluru, a user was recently given the option to have their food delivered within 16-21 minutes for just an extra INR 29, according to a Moneycontrol report. This is a significant reduction from the standard delivery time of 21 minutes as displayed on the app.

Interestingly, Zomato isn’t just offering this speedy service to regular users; even Zomato Gold members are being asked to chip in a bit more for these priority deliveries, as per the report.

Related: Zomato Slapped with INR 23 Cr Tax Notice by Karnataka Authority

Insiders from the company have affirmed the progress to Inc42, sharing that the service is currently undergoing testing in specific zones across Bengaluru and Mumbai. This fresh addition is poised to carve out a new avenue of income for the leading foodtech company, lending a hand in fortifying its overall profitability.

In recent times, Zomato has been exploring various new offerings to boost its income. Just a while back, news surfaced about Zomato’s trial of providing last-mile delivery services to professionals in corporate complexes. Not long after, they introduced an electric ‘large order fleet,’ capable of delivering meals to as many as 50 people at once.

Adding to their innovations, they recently introduced a ‘Pure Veg Fleet’ sporting green uniforms, along with a new app feature catering specifically to customers adhering to a 100% vegetarian diet. However, the decision to outfit delivery personnel of this new fleet in green attire faced swift criticism online and was subsequently withdrawn.

Earlier this week, the leading foodtech company boosted its platform fee by 25% to INR 5 per order across major hubs like Delhi NCR, Bengaluru, Mumbai, Hyderabad, and Lucknow. Not stopping there, it also paused its intercity delivery service ‘Intercity Legends’ to streamline and strengthen its operations further.

Zomato’s shares have been soaring on the stock market, thanks to its robust financial performance and increasing profitability. In the quarter ending December 2023 (Q3 FY24), Zomato saw its net profit skyrocket to INR 138 Cr from INR 36 Cr in the previous quarter.

In the third quarter of the fiscal year 2024, Zomato saw a significant boost in its operating revenue, climbing to INR 3,288 Cr from INR 2,848 Cr in the second quarter. This impressive growth has translated into a remarkable surge in Zomato’s stock, with shares skyrocketing over 200% in the last year and almost 50% year-to-date. Not only that, but brokerage firms have also expressed their confidence in the foodtech giant. Kotak Institutional Equities has reaffirmed its ‘BUY’ rating on Zomato, raising the price target to INR 210, while Motilal Oswal has highlighted the stock as one of its top choices. Despite a slight dip in Wednesday’s trading session, with shares closing 1.68% lower at INR 184.4 on the BSE, the overall outlook remains positive for Zomato.

Zomato is innovating its delivery services by testing priority deliveries in select areas of Bengaluru and Mumbai, aiming to boost profitability. This initiative, along with diversifying offerings such as last-mile delivery services and specialized fleets, reflects the company’s commitment to meeting evolving consumer needs. Notably, Zomato’s financial performance has been robust, leading to soaring stock market performance and positive outlook from brokerage firms. This strategic trajectory underscores Zomato’s dedication to staying at the forefront of the foodtech industry.