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Aug, 21 2014

Zomato, the online restaurant discovery site to start delivery biz

Zomato plans to start the delivery service in another few weeks carrying third party transactions.

Zomato, the online restaurant discovery site is planning to start delivering food soon. The company is taking such initiative in a bid to boost its revenues. According to sources, the company is planning to start the service in another few weeks and has carried out some third party transactions on a pilot basis.

However,  Deepinder Goyal, Founder, Zomato, was not available for a comment. In the past, Goyal had always maintained that the company will never enter into online food ordering business. The reason was lack of customisation, technological issues and poor logistics. However, India has witnessed the emergence of several online food ordering platforms such as Foodpanda, Tastykhana, JustEat and JustDial. These portals have not only been able to bring on platform thousands of restaurants and consumers but have also attracted a few international investors thus proving that such a model would work among the Indian consumers.

At present, the company allows consumers to read menus across restaurants in 24 Indian cities but a consumer has to still make phone calls to the restaurant to place an order. Online food portals have witnessed over 150 per cent growth in their orders last year on the back of increased Net penetration, growth in smartphone users and changing lifestyle.

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