TNN Bengaluru: Zomato is putting its focus back on its core business — food delivery — as hotels and restaurants are expected to reopen from next … Zomato is scaling down grocery delivery as its prepares to exit the business nearly five months after launch because of poor unit economics and a gradual revival in its mainstay food delivery. As the food delivery market revives, the company now wants to focus on its core business, the person said on the condition of anonymity. The talks between the two Gurgaon-based companies come close on the heels of a recent partnership that Zomato and Grofers struck for grocery delivery, which ET was the first to report. “They don't have that kind of money to invest in grocery to scale, and there is also a funding crunch for Zomato which doesn’t allow them to focus on building a separate grocery infrastructure to compete with the large grocery players,” Meena said. Zomato has already diversified into grocery deliveries as the restrictions on movement shuttered some restaurants and people hesitated to order outside food due to fears of catching the disease. Zomato is exiting the cities where it has seen no or muted demand in the last few weeks, the person quoted earlier said. Many prominent firms that have started providing groceries include Snapdeal, BharatPe, DealShare, JioMart, NoBroker, and ShopClues. In reality, over the last few months, the firm has been planning to attach grocery section to its app. According to an ET report, Zomato is all set to launch its grocery delivery service Zomato Market by next week. Zomato has started grocery delivery in 80 Indian cities, prioritising essentials, in the backdrop of coronavirus pandemic. Zomato's Founder and CEO Deepinder Goyal said the company's business was severely affected by COVID-19 lockdown and the restaurant industry itself could shrink by 25 to … Hoping to optimise its technology and fleet network, Zomato initiated tie-ups with several retailers and hypermarket stores. “Facilitating delivery (food, grocery etc.) As food orders dwindled in the past few months, grocery … Zomato for Business is a powerful professional suite for restaurant managers. Zomato also began grocery delivery amid the COVID-19 outbreak. is a cash-guzzling business where every player has been losing money on each delivery. If they cannot make food delivery viable, making grocery delivery work will be a greater challenge,” said Agarwal of Redseer. Zomato rolls out its grocery delivery service – Zomato Market As the demand for online groceries grows with people staying home due to the coronavirus pandemic, … The tieup involved Zomato Market, its newly launched grocery offering, fulfilling customer orders from offline stores that have existing arrangements with Grofers. There’s no information on that yet, though. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. Thanks to the national shutdown in effect to combat the outbreak of the COVID-19 pandemic, the service would help those searching […] Gurugram-based food delivery startup Zomato has begun delivering grocery in more than 80 cities in India. BENGALURU: Grocery seems to have become the new battlefield for e-commerce companies, with Zomato now keen to acquire e-grocery start-up … “Grocery is a thin margin business. In his tweet Tharoor said operations in Kochi, Trivandrum, Kottayam & Thrissur. During a moment of turmoil, the GSMA rejects such... Quibi threatens the introduction of social media services in the middle of quarantine and economic turmoil, Whether the game business defends the war against covid-19, Raghuram Rajan encourages PM Modi, to invest on the needy, PM Modi calls on Sonia Gandhi, who leads the other party to fight the coronavirus together, COVID-19 displays advancements in development, Kerala Institute will move the ventilator system to Wipro 3D, Ministry of Finance makes explicit “No Financial Year Extension”, After a quick pause, Twitter, WhatsApp, Instagram are back online. Trending This Week. You can get all the items you need from the comfort of your home. Photographer: Dhiraj Singh/Bloomberg. Two Zomato food delivery couriers check their smartphones for customer order alerts in Mumbai, India. Ever since the lockdown restrictions have been eased, Swiggy and Zomato saw a decline in their grocery business. Share your food journey with the world, Checkin at Restaurants, Bars & Cafes and follow other foodies for personalized recommendations. Zomato’s entry into the grocery market comes at a period when online groceries are seeing high volume growth in orders attributable largely to the authorities ‘tight implementation of residence-at-home directives to ensure socially distancing norms. Essentially Zomato is an application whose business model encircles the provision of food delivery services, provision of information, user reviews, and menus of partner restaurants. Collections. Online food ordering and delivery app Zomato is getting into grocery delivery service, timing it perhaps with a surge in demand for such services due to social distancing norms being enforced over the coronavirus pandemic. Besides, the expansion of the grocery delivery service was part of the company ‘s plan to offset the sharp downturn in business during the lockdown period. The firm, however, stopped partnerships and on-boarding of local grocery stores across all markets, the person said. Swiggy, however, continues to focus on the grocery vertical, and is largely pesent in top 100 cities. Manage your restaurant's information, advertise, accept online orders, take table reservations, build your own app and more. As the country opens up, the firm is going to spend a large proportion of their time making food delivery service "the safest, and the most loved one in town", he said, adding that the firm has scaled down grocery business in a few cities. MUMBAI: Food-delivery and restaurant discovery app Zomato is jumping on to the grocery bandwagon as the category sees a major uptick amid the Covid-19 outbreak. 30 Places. “It was expected and while it’s a very competitive category, it takes a lot of time in building grocery vertical,” Satish Meena, a senior forecast analyst at Forrester Research said over the phone. The business has also been in early negotiations for a deal with online food retailers Grofers and BigBasket. CEO and founder Deepinder Goyal, in a company blog, said, “We have started grocery delivery in 80+ cities across India to help with the supply of essentials. @ZomatoIN in collaboration with SupplyCo launches an online grocery distribution site in Kerala. After Zomato… Delivery applications have recently driven me back to the brick-and-mortar store despite easily weaselling their way through my existence. Business Model The success of Zomato lies in its robust Business Model. Further, Zomato has also reportedly decided to shut down the grocery business after finding that the business is not scalable. The Zomato app now features Zomato Market that lists local grocery stores in an area.Online grocery retailer Grofers working with Zomato to get its delivery fleet onboard Zomato has started delivering groceries in over 80 cities across India to support the ongoing lockdown due to the coronavirus outbreak. Zomato had launched the service to leverage its last-mile delivery workforce to ride the grocery wave and minimize, in whatever way possible, the impact on its core business due to Covid. Zomato.com does not guarantee prices or the availability of menu items at Grocery Bar. These services will most likely help a lot of people struggling to get their essentials as they abide by the 21-day-lockdown announced by the … Missing BloombergQuint's WhatsApp service? It is an icon with title Right Triangle. Zomato Groceries delivers all grocery needs to your door-step in just few hours! So far this operation has been introduced by the Gurugram based business in Kerala, Punjab and Delhi. While Zomato has diversified into grocery business amid falling food orders, the company will face even bigger threats from kirana stores and JioMart once the lockdown lifts. This new vertical was supposed to compensate for the company’s plummeting business during the lockdown period. Grocery Bar menu in image format shown on this website has been digitised by Zomato.com. Online food shopping and distribution platform Zomato has forayed into the grocery delivery sector under ‘Zomato Business,’ promising to sell and trying to encash the need for such options that have now opened up. China's Ant Group, which had announced an investment of $150 million earlier this year in its draft IPO prospectus, said it is now evaluating the timing of additional investment in Zomato. “And when you are doing on-demand model, the average order value is low, and the players have no control over the inventory as well.”. Swiggy, which too had aggressively expanded its grocery vertical, also scaled it down in a few of the smaller markets after the restrictions were eased, a person aware of the matter said on the condition of anonymity. The online food ordering and delivering unicorn which had launched Zomato Market in April after the nation went into a complete lockdown as people stayed home, and demand for grocery and food delivery dipped. At a time when customers are rather apprehensive about ordering cooked food, the new service from Zomato would certainly help to build a room for itself in the grocery market. Zomato Groceries is your easiest way to purchase grocery products. 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