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‘Food delivery’ between cities will be profitable with scale; Zomato

Zomato has extended its Intercity Legends service to Bangalore as well. Zomato is currently offering renowned dishes from ten major cities and has partnered with around 120 restaurants. From Lucknow’s famous Tunday Galawati Kebabs to Kolkata’s decadent Gulab Patti Sandesh, customers can use the firm’s delivery service to order famous dishes. The company has said that it will be able to make profits even at a slight scale. ‘We do not believe paying Rs. 600 for a biryani is considered a luxury by our customers,’ says Siddharth Jhawar, Vice President, Global Growth at Zomato.

Customers using Zomato’s interstate services fall into three categories, according to the company. In terms of the platform’s success, sweets and desserts are in the lead. According to Jhawar, variables like the behaviour of recurring users were taken into account while assessing the pilot’s effectiveness. Refund requests, complaints, and customer evaluations were among the other measures.

The online meal delivery service Zomato has started a trial initiative for Indian restaurants to highlight dishes that best represent the regional cuisines of the places they are from. The hardest aspect of the procedure is keeping food at a consistent temperature between 5 and 10 degrees Celsius, which is accomplished by using a specific coolant. Before the pilot was launched, many meals were tried at various times and in various environments.

Similar principles apply to Zomato’s intercity agreements as they do to their regular restaurant relationships. In addition to shipping fees, the company also levies greater commissions. An average dish costs Rs. 600, of which Rs. 200 goes toward processing and Rs. 80–100 goes on last-mile delivery. The weight and volume of the dish will also affect how much delivery will cost.


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