Teji Mandi Explains: Zomato’s 10-Minute Delivery Vision!

Teji MandiUpdated:Wednesday, March 23, 2022, 06:30 PM IST
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On March 21, 2022, Zomato announced that it would be tying up with cloud kitchens to deliver food in 10 minutes. Following the announcement, the share price of the food aggregator dipped 1%. Read to know more!

Why This Move?

According to Zomato, customers are demanding quicker answers to their needs. This is evident from the fact that sorting restaurants by fastest delivery time is one of the most used features on the Zomato app.

Zomato Founder Deepinder Goyal believes the 30-minute delivery time by Zomato is too slow and will become obsolete. Hence the company’s 10-minute food delivery offering- Zomato Instant!

What’s The Plan?

As per Zomato, the experience of having delivered 1.35 billion orders across India over the years will make the job easier. The fulfilment of the quick-delivery promise will rely on a dense finishing counters’ network, which will be located in close proximity to high-demand customer neighbourhoods. Each finishing station will house bestseller items (20-30 dishes) from various restaurants based on demand predictability.

Zomato plans to employ sophisticated dish-level demand prediction algorithms and future-ready in-stations robotics to ensure that the food is fresh and hot when picked up by the delivery partner.

Easier Said Than Done!

While the announcement might have excited many individuals, the task is easier said than done! Although Zomato has made it clear that time optimisation will not happen on the road and that it does not want to put any life at risk, it remains to be seen if delivery executives will race against time to fulfil orders or not.

Another important aspect that remains to be seen is the quality of food. Reheated food at finishing counters may not bode well for customers to fulfil the 10-minute food delivery promise!

What’s In Store For Investors?

While the 10-minute delivery will be initiated in parts of Gurgaon next month, the announcement failed to cheer Zomato’s stock price. Only time will tell whether this new step will be enough to support Zomato’s stock price when the company is accused of several corporate governance allegations!

What Lies Ahead?

The announcement left people divided into two groups. The first one welcomed the move as they would have to wait for less for their food to arrive. And the other group consists of people who are unsure of the food quality and the safety of the delivery executives.

Zomato has claimed that the move will significantly reduce the cost to end customers, while the income for their restaurant partners and delivery partners will remain the same.

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