Zomato's 17 million users data gets stolen by hacker

Shares of Zomato rose by up to 6 percent in early trade on November 25, driven by its inclusion in the 30-stock BSE Sensex and shareholder approval for a Rs 8,500 crore Qualified Institutional Placement (QIP). By 9:20 AM, Zomato's shares were trading at Rs 279.16 on the NSE.  

With this inclusion, Zomato becomes the first new-age technology company to join the Sensex, replacing JSW Steel in the index from December 23. This development aligns with Zomato's strong performance this year, with its shares rallying over 113 percent. Asia Index Private, a wholly-owned subsidiary of BSE, announced the reconstitution of key indices, including the BSE 100 and BSE Sensex 50.  

In addition to the Sensex inclusion, Zomato's shareholders approved the company's QIP to raise Rs 8,500 crore. This comes after the company's board cleared the fundraise last month to strengthen its balance sheet. The need for additional funds is evident as Zomato reported a reduction in its cash reserves by Rs 1,726 crore during the September quarter, attributed primarily to the Rs 2,014 crore acquisition of Paytm’s entertainment ticketing business. The company’s cash balance now stands at approximately Rs 10,800 crore, down from Rs 14,400 crore, reflecting its investments in quick commerce and other acquisitions.  

Zomato emphasized its commitment to maintaining service quality while addressing the challenges of a competitive market. The company aims to sustain margins in its core business and achieve adjusted EBITDA break-even for its quick commerce segment. It also stated there are no plans for further minority investments or acquisitions at this time.  

Analysts have expressed optimism regarding Zomato's growth trajectory. Akriti Mehrotra, Research Analyst at StoxBox, highlighted the company's cost management and efficiency, noting that the Blinkit acquisition has significantly strengthened its quick commerce business. "Blinkit has reached its breakeven point, contributing to the overall profitability and stability of Zomato's operations," she said.  

Viral Bhatt, Founder of Money Mantra, also acknowledged Zomato's strong brand position and diversified business model as key factors offering growth potential in the evolving food delivery and quick commerce sectors.  

These developments mark a significant step forward for Zomato in India's competitive retail and technology sectors.  

India’s food delivery industry is poised for significant growth, with Zomato expecting its food delivery segment to expand at an annual rate of 30 percent over the next five years. Rakesh Ranjan, CEO of Zomato’s food delivery division, shared this outlook while commenting on the broader implications of Swiggy's recent listing on the stock market, which he described as a positive development for the sector.

“The food delivery sector is still in its nascent stages in the country and ... more competition will only foster innovation and growth which will benefit the sector overall,” Ranjan said.

The growth of app-based delivery services catering to food and groceries has surged in India, driven by rising demand from affluent and middle-class consumers in urban areas. Swiggy’s public listing in November, which garnered a valuation of $12.1 billion, underscores the growing importance of this sector. Zomato, which went public three years earlier, holds a 58 percent share of the food delivery market, compared to Swiggy’s 34 percent.

In the last fiscal year, Zomato's food delivery business accounted for approximately 58 percent of the company’s revenue, with a gross order value (encompassing food costs, platform fees, and delivery charges) reaching Rs 322.24 billion ($3.82 billion). This represented an average annual growth rate of 30 percent over four years. Ranjan anticipates this momentum will continue, driven by the addition of new restaurant partners and expanded offerings.

As of March, Zomato had around 247,000 average monthly active restaurant partners on its platform, an 18 percent increase from the previous year. To enhance user experience, the company has introduced new features such as scheduled deliveries, discounted rates for canceled orders, and a large-order service for group events of up to 50 people.

Despite its growth trajectory, the company faces challenges, particularly with high attrition rates among delivery drivers. To address this, Zomato is focusing on offering additional benefits and flexibility to attract and retain gig workers, a crucial component of its operations.

The National Stock Exchange of India (NSE) has announced a partnership with online food delivery platform Zomato to launch a financial literacy and investor awareness initiative targeting gig workers. This program will specifically focus on Zomato’s delivery partners, aiming to provide financial education to over 50,000 gig workers across India.

The initiative will cover essential personal finance topics, including budgeting, saving, debt management, investing basics, and insurance. To make the program accessible to a broad audience, NSE plans to offer it in multiple regional languages, allowing delivery partners from diverse backgrounds to benefit.

"This partnership with Zomato is a significant step in expanding our outreach to a critical segment of the workforce that drives the digital economy. By equipping delivery partners with financial skills, we aim to contribute to their financial independence and overall financial well-being," said Sriram Krishnan, Chief Business Development Officer, NSE.

Rakesh Ranjan, CEO of Food Delivery at Zomato stated, "This program has been curated to suit delivery partners' needs, equipping them with the right knowledge and skill-set to become financially independent. Over 2,000 delivery partners have already taken a step toward financial literacy, and we’re looking forward to scaling this further in the next few months."

In a related development, Zomato recently introduced a food rescue feature aimed at reducing food wastage. This feature allows nearby customers to claim canceled orders at a discounted rate, ensuring the food reaches customers in its original packaging within minutes. This initiative, shared by Zomato Co-founder and CEO Deepinder Goyal on LinkedIn, represents Zomato’s broader efforts to address food wastage by making canceled orders available at "unbeatable prices." 

Through initiatives like these, Zomato and NSE demonstrate a shared commitment to supporting the gig economy workforce and fostering financial independence and sustainability.

In light of an ongoing Competition Commission of India (CCI) investigation into potential anti-competitive practices, Zomato and Swiggy have reiterated their commitment to adhering to competition regulations and clarified that the CCI has not made any final decisions.

Both companies labeled recent reports on the CCI’s probe as “misleading,” stating that these reports incorrectly suggest that final determinations on alleged unfair practices, such as preferential treatment for certain restaurant partners, have been made. Zomato, in a regulatory statement, clarified that the CCI issued a preliminary order on April 4, 2022, mandating the Director General's office to examine possible violations of the Competition Act.

In response, Zomato stated, “Since the intimation of April 5, 2022, the CCI, on merits, has not passed any order. The aforementioned news article is misleading.” The company further asserted, “We will continue to work with the CCI to explain why our practices comply with the Competition Act and they don’t have any adverse effect.”

Swiggy also addressed the media reports, expressing that some coverage confuses the investigative process with a final conclusion. "Based on order of the CCI dated April 5, 2022, the Director General probed certain aspects of the conduct of our business, and its inquiry and report of March 2024 is a preliminary step in an ongoing probe by the CCI, and not a final decision as some reports suggest,” Swiggy stated.

As Zomato and Swiggy continue to operate within the competitive landscape of India's hospitality and food retail sectors, both companies assert their commitment to regulatory compliance amid the ongoing CCI review.

The Competition Commission of India (CCI) has concluded an investigation indicating that food delivery giants Zomato and Swiggy may have engaged in practices that disadvantage competition in India’s retail and hospitality markets. Allegations include preferential treatment for specific restaurant partners, which the CCI had deemed worthy of scrutiny after a complaint from the National Restaurant Association of India (NRAI) in April 2022. The initial findings were compiled in a report submitted earlier this year.

The CCI's Director General (DG) submitted the investigation report to the concerned parties, and subsequent hearings are expected. Based on these discussions, CCI will issue a final decision on the matter. The NRAI has reviewed a redacted version of the investigation report, shared with the association in March 2024. According to an NRAI statement, “In order to properly protect the interests of the market, we have petitioned the High Court very recently in November 2024 to request CCI to grant us access to the report in its entirety.” 

NRAI President Sagar Daryani expressed hope that the CCI would accelerate its review of additional issues raised in the 2022 petition. Swiggy also disclosed the CCI case in its Red Herring Prospectus for its recent Initial Public Offering, which concluded last Friday. The initial April 2022 order for the probe cited a “conflict of interest situation,” stating that an investigation was necessary to determine how certain private brands and entities may benefit from preferential treatment over others.

According to the CCI’s 2022 assessment, the preferential treatment potentially given to Restaurant Partners (RPs) in which platforms hold an equity or revenue stake could restrict other RPs from fair competition. The CCI noted that the platforms’ influence over search rankings, delivery management, and other critical areas could create an uneven playing field. Additionally, the commission flagged that Zomato and Swiggy's contracts with restaurant partners contained price parity clauses that prevent these restaurants from offering lower prices or greater discounts on their own platforms or other aggregators, helping to ensure that the minimum price or maximum discounts benefit the platforms exclusively.

Sagar Daryani, NRAI President said, “NRAI has been consistently raising the issue of anti-competitive and predatory practices of the food delivery aggregators for the last few years, and today, we are glad to read in the news that supposedly CCI has found some merits in our contention. I hope that CCI will also speed up the investigation on the other issues raised by the NRAI in its petition in 2022.”

Daryani further noted the importance of equitable market growth in India’s hospitality sector, stating, “We totally understand that the online business growth is an extremely important tool to grow the overall size of the sector and help India achieve the coveted target size of a $5 Trillion economy. However, it is imperative that the marketplaces like Swiggy and Zomato create a healthy and equitable market environment for the overall healthy growth within the sector.”

The NRAI initially brought its complaint against Zomato and Swiggy to the CCI in September 2021, citing concerns over practices including exclusivity agreements. In response, the CCI opened an investigation, during which NRAI members provided information to assist in assessing the impact of these practices on the market. Following its review of the redacted DG report, NRAI has petitioned the High Court to access the complete report, stating it remains committed to supporting a fair, competitive environment in line with Indian laws and regulations.

NRAI has refrained from commenting on the DG Report’s specific findings, as it remains a confidential document under CCI regulations.

Food delivery platform Zomato has confirmed an increase in its platform fee to Rs 10, which is in place across certain cities just ahead of the festive season. The company clarified that this adjustment is part of routine business operations, refuting claims that the fee hike is merely a rumour.

In a regulatory filing, Zomato stated, “At the outset, we would like to state that this is not a rumour, as the source of information mentioned in the article is the Zomato mobile application itself which is public and available for everyone to see and check. We have indeed increased the platform fee yesterday across certain cities. Such changes in our platform fee are a routine business matter and are done from time to time and may vary from city to city."

Zomato first introduced a platform fee in August 2023, charging Rs 2 per order, which was increased to Rs 4 by January 2024. The latest hike to Rs 10 applies to all users, including Zomato Gold members, and is in addition to other charges such as GST, delivery fees, and restaurant service fees.

In response, competitor Swiggy also increased its platform fee to Rs 10 per order. However, unlike Zomato's app, which labels the fee as temporary due to the festive season rush, Swiggy’s fee hike appears to be permanent, as no notification has been issued about its duration.

This fee increase follows Zomato’s strong Q2 performance, where the company reported a profit surge of 388.9 percent to Rs 176 crore. Revenue from operations grew by 68.5 percent, reaching Rs 4,799 crore, compared to Rs 2,848 crore during the same period in FY24.

As detailed in its annual report from August, Zomato collected Rs 83 crore in platform fees by March. The platform fee has been a key contributor to Zomato's 27 percent year-on-year revenue growth, with total revenue reaching Rs 7,792 crore for FY24.

Zomato's decision to increase the platform fee reflects broader efforts in the Indian retail and hospitality sectors to manage operational costs while capitalizing on the seasonal demand surge.

According to a regulatory filing, Zomato’s board of directors will meet on October 22, 2024, to consider raising funds through a qualified institution placement (QIP). The company has not disclosed the exact amount it intends to raise.

The filing stated, "A meeting of the board of directors of the company is scheduled to be held on Tuesday, October 22, 2024, inter-alia, to consider and approve raising of funds by issuance of equity shares by way of qualified institutions placement, as may be permitted under applicable laws, subject to such regulatory/statutory approvals, including the notice for the postal ballot for obtaining the shareholders’ approval in this regard." 

Additionally, the board will review and approve Zomato’s financial results for the second quarter (Q2) of the financial year 2024-25 (FY25).

If approved, this will mark Zomato's first fundraising event since its stock market listing three years ago. The timing is significant as competition within the food delivery and quick commerce sectors intensifies. Zomato’s key competitor, Swiggy, is preparing for an initial public offering (IPO) and aims to raise up to $450 million through fresh capital.

As of the first quarter of FY25, Zomato holds cash reserves of Rs 12,539 crore (approximately $1.5 billion). Industry experts suggest that this potential fundraising move could be a strategic play to counter Swiggy's upcoming IPO.

In the first quarter of FY25, Zomato reported a consolidated profit of Rs 253 crore, up from Rs 175 crore in the previous quarter and Rs 2 crore in the same period last year. The company's revenue from operations grew by 74 percent year-on-year to Rs 4,206 crore, compared to Rs 2,416 crore in the previous year. 

Zomato's food delivery business is now profitable, and its quick commerce unit, Blinkit, is also nearing break-even, according to the company's management.

Meanwhile, Zepto, another player in the quick commerce sector, is looking to raise between $100 million and $150 million, following a series of fundraises amounting to over $1.2 billion in the past 14 months.

Zomato, the online food delivery aggregator, has received a Goods and Services Tax (GST) demand order of Rs 17.7 crore from the Assistant Commissioner of Revenue, West Bengal. The demand includes GST on delivery charges, along with interest and penalties. This order pertains to the period between April 2021 and March 2022.

In a regulatory filing, Zomato stated, "We believe that we have a strong case on merits and the Company will be filing an appeal against the order before the appropriate authority." The demand consists of Rs 11.12 crore in GST, Rs 5.46 crore in interest, and a penalty of Rs 1.11 crore.

Zomato further clarified that it had provided relevant documents and judicial precedents in response to the show cause notice, but these appear to have been disregarded by the authorities in their decision. The company emphasized its confidence in the strength of its case and does not foresee any significant financial impact as a result of the order.

This is not the first instance of Zomato receiving tax demand notices, as it has faced similar issues with various authorities in the past. However, the company is committed to addressing the current matter through the proper legal channels.

Online food delivery platform Zomato has been issued GST tax demand orders totaling over Rs 4.59 crore by authorities in Tamil Nadu and West Bengal, including applicable interest and penalties.

Zomato has announced its intention to appeal against these orders, which were passed by the Assistant Commissioner of GST and Central Excise, Nungambakkam Division, Tamil Nadu, and the Assistant Commissioner of Revenue, Government of West Bengal.

The Tamil Nadu tax authority issued an Adjudication Order under Section 73 of the Central Goods and Services Tax Act, 2017, and the Tamil Nadu Goods and Services Tax Act, 2017. The order demands GST of Rs 81,16,518, along with an unspecified amount of interest and a penalty of Rs 8,21,290.

Similarly, the West Bengal authority passed an adjudication order under Section 73 of the Central Goods and Services Tax Act, 2017, and the West Bengal Goods and Services Tax Act, 2017. This order demands GST of Rs 1,92,43,792, interest of Rs 1,58,12,070, and a penalty of Rs 19,24,379.

In a regulatory filing, Zomato stated that it had provided a response supported by relevant documents and judicial precedents, which it believes were not fully considered by the authorities in their decision. 

Food delivery major Zomato on Wednesday announced that it is introducing Zomato For Enterprise (ZFE) for companies to solve food expense management. 

The introduction of ZFE comes after a week of its shutting down the 'Intercity Legends' service.

Legends offered iconic dishes from 10 cities to other parts of the country. The company had earlier put on hold the service and restarted it in July with a few tweaks.

"Excited to introduce Zomato for Enterprise (ZFE), a platform designed for companies to solve food expense management. A lot of Zomato orders placed by corporate employees are business-related and need to be reimbursed by the company. The reimbursement process is cumbersome and time-consuming,” shared Deepinder Goyal, CEO, Zomato in a post on X.

He also shared that over 100 top companies are already using ZFE, and their feedback has helped shape this initiative. 

"With ZFE, employees can simply bill their business orders directly to their employer, without having to pay. Companies can use ZFE to add employees, set budgets, define ordering rules and much more. ZFE adds convenience to your employees, while we take care of the rest - with complete transparency,” he added.
 

Zomato has decided to discontinue its intercity food delivery service, "Legends," following two years of operation. Deepinder Goyal, CEO of Zomato, shared the update on the social media platform X (formerly Twitter), stating, "After two years of trying, not finding product market fit, we have decided to shut down the service with immediate effect."

Launched in August 2022, "Legends" was designed to offer consumers a selection of delicacies from ten cities across India, delivered directly to their homes. The service, however, encountered several challenges from the beginning. In November 2022, Siddharth Jhawar, the head of the intercity delivery service, resigned, which marked the first significant setback. Although Zomato quietly halted the service in April 2023, it was briefly relaunched in July with revised features, including a minimum order value of Rs 5,000 and a focus on delivering pre-stocked food items to select customers in major cities like Delhi NCR, Bengaluru, and Mumbai.

In addition to shutting down "Legends," Zomato recently discontinued its hyperlocal delivery service, "Xtreme," which was launched in October 2022. This service enabled merchants to send and receive small parcels but was closed last month as part of the company's strategic adjustments.

This week, Zomato made headlines with the acquisition of Paytm Insider. One 97 Communications (OCL), the parent company of Paytm, announced that it had entered into definitive agreements to sell its entertainment ticketing business, which includes movies, sports, and events ticketing, to Zomato. The deal is valued at Rs 2,048 crore.

Antfin Singapore Holding on Tuesday divested a little over 2 per cent stake in online food delivery firm Zomato for Rs 4,771 crore through open market transactions.

Antfin Singapore Holding Pte is an arm of Ant Financial Group, while the latter is a part of Chinese e-commerce giant Alibaba.

According to the bulk deal data available on the BSE, Antfin Singapore Holding sold 18,54,40,550 shares in two tranches, amounting to a 2.1 per cent stake in Gurugram-based Zomato.

The shares were disposed of in the price range of Rs 257.17-257.46 apiece, taking the transaction value to Rs 4,771.66 crore.

After the share sale, Antfin Singapore Holding's stake has been reduced to 2.14 per cent from 4.24 per cent.

Details of buyers of Zomato's shares could not be ascertained.

Shares of Zomato rose 0.27 per cent to close at Rs 263 apiece on the BSE.

In March this year, Antfin Singapore Holding pared a 2 per cent stake in Zomato for Rs 2,827 crore.

Earlier this month, food delivery aggregator Zomato reported a multifold jump in consolidated net profit to Rs 253 crore for the April-June quarter of 2024-25 compared to Rs 2 crore in the year-ago period.

The company's revenue from operations jumped more than 74 per cent to Rs 4,206 crore in the first quarter of this fiscal from Rs 2,416 crore in the April-June period of last year.

Its total expenses also rose to Rs 4,203 crore during the quarter under review, from Rs 2,612 crore a year ago.

The reporting segments for the group include the food ordering and delivery business, Hyperpure Supplies (B2B), its quick commerce offering Blinkit, the going out segment and all other residual segments.

Zomato CEO Deepinder Goyal announced on Sunday that the company will remove AI-generated food images from its listings by the end of this month, in response to a surge of customer complaints. The decision reflects the company’s commitment to maintaining authenticity in its platform, which is vital in the hospitality and retail industries in India.

Goyal announced X (formerly Twitter), addressing the concerns raised by users who found these AI-generated images to be misleading. "I received numerous complaints about these misleading images," Goyal stated, adding that the issue had resulted in a "breach of trust between customers and restaurants" and led to "increased refunds and lower customer ratings."

While Zomato employs AI in various parts of its operations to enhance efficiency, Goyal emphasized that the company discourages the use of AI for dish images on restaurant menus. "At Zomato, we use various forms of AI to make our workflows efficient. However, one place where we strongly discourage the use of AI is images for dishes in restaurant menus," he said.

To ensure a more transparent experience for its users, Zomato will not only remove existing AI-generated images but will also reject new submissions of such images. Goyal urged restaurant partners and Zomato's internal marketing team to avoid using AI-generated visuals for promotional purposes.

Instead, Goyal encouraged restaurant owners to take advantage of Zomato's free real food photography service. "Restaurant owners—if you haven't yet invested in real food shots for your menu, please reach out to our catalog support team to schedule a photoshoot," he advised, clarifying that Zomato offers this service at cost, with no profit margin.

This move underscores the growing concern about the ethical implications of AI-generated content, especially in sectors where authenticity is crucial. By removing AI-generated images, Zomato aims to rebuild trust with its users and provide a more accurate representation of the food being offered.

The announcement follows Zomato's strong Q1 FY25 financial results, which revealed a 74 percent year-on-year growth in revenue and a 126 percent increase in net profit, highlighting the company's robust performance despite the challenges.

Gurgaon-based food delivery platform Zomato has unveiled a new $458 million employee stock purchase plan.

According to Zomato's regulatory filing, which can be viewed through the National Stock Exchange, the board has received shareholder approval to grant 18,26,27,402 ESOP options under its new plan, increasing the entire ESOP pool to 31,07,80,714 options. 

The entire value of the ESOP pool is Rs 6,609 crore, or $796 million, while the newly added ESOPs are valued at Rs 3,800 crore, or $458 million. 

Zomato reached its all-time high share price of Rs 209.84 today after the ESOP approval. As a result, the company's overall market value has grown to Rs 1,84,060 crore, or $22.17 billion. 

In a separate statement, Zomato stated that it no longer intended to pursue the lending or credit business and that it had voluntarily withdrawn its application for a certificate of registration with the Reserve Bank of India to conduct the activity of an NBFC.

Zomato was sent a GST demand notice for Rs 9.5 crore earlier this week. The Gurugram-based company has now received two GST notices in as many months, after receiving an Rs 184 crore penalty notice in April of this year.

In FY24, the company had strong growth. Zomato's operational revenue increased from Rs 7,079 crore in FY22 to Rs 12,114 crore in FY24, a 71% annual increase. Additionally, the company's profits in FY24 were Rs 351 crore, compared to a loss of Rs 971 crore in FY23.

Zomato Ltd., the online food delivery platform, has been served with a Goods and Service Tax (GST) demand amounting to ₹9.45 crore by the Karnataka Assistant Commissioner of Commercial Taxes (Audit) in a recent filing.

The state's tax authority has imposed a GST of ₹5,01,95,462 on Zomato, to which an additional interest amount of ₹3.93 crore has been applied, and a fine of ₹50.19 lakh has been levied, resulting in a final tax amount of ₹9.45 crore. This demand comes following an audit of Zomato's GST returns and accounts for the financial year 2019-20.

Zomato shares rose by 0.10 per cent to close at ₹200.35 on 28 June,  a slight increase from their previous high of ₹200.15 set earlier.

In response to the tax notice, Zomato expressed confidence in its case and intends to appeal the decision to the relevant authority. 

This isn't the first time Zomato has faced GST-related scrutiny. In 2021, the company also encountered a significant GST tax demand of ₹11.82 crore from the Centre's Additional Commissioner, Central Goods and Services Tax, Gurugram, which it also contested, citing a strong case.

In its ongoing quest to expand its range of services, the leading food technology company, Zomato has introduced a new platform designed specifically for its restaurant partners.

This platform is designed to assist restaurants with a variety of operational needs, including recruitment, FSSAI registrations, tax filings, and trademark applications. It is available to Zomato's restaurant partners through their respective restaurant partner or dining app.

The company has been testing this service for the last six months and reports that it has already assisted more than 3,200 restaurant partners, including well-known names such as Havmor, Dastaan-e-Dawat, Berry on Top, Nutri Bar, and Cheelizza.

“The restaurant services hub platform is only a step towards our vision of creating a full-stack solution for any restaurant owner looking to set up shop or scale their existing business,” Zomato Food Delivery CEO Rakesh Ranjan said in a statement.

Furthermore, Zomato plans to incorporate additional features such as point of sale integrations and hygiene inspections.

In terms of recruitment, Zomato has collaborated with several vendors, including Apna, WorkIndia, Shiftz, Rozgaar Inc, and Kaam.com. The recruitment services range from INR 299 to 5,250.

Meanwhile, for FSSAI registrations, trademark protection, and GST filings, Zomato has partnered with vendors such as SRV Taxcon, GoAuditz, Plans4U, among others.

In light of the severe heatwave affecting much of India, food delivery platform Zomato recently urged customers to avoid ordering food during peak afternoon hours. The advisory comes as several states experience record-breaking temperatures, with the Indian Meteorological Department (IMD) predicting continued extreme heat in the coming days. However, Delhi saw some respite on Saturday with a light drizzle cooling the temperatures slightly.

“Please avoid ordering during peak afternoon unless necessary," Zomato posted on social media platform X, prompting a strong response from users online.

The request aimed to protect Zomato's delivery executives from the intense midday heat. Despite the good intentions, the message was criticized by the internet community.

Many users disagreed with Zomato's suggestion, arguing that a food delivery company should not ask customers to avoid ordering during lunch hours. Several commenters pointed out that if Zomato truly cared about its delivery staff, it should consider halting services during the hottest part of the day.

One user remarked, "Bro, you are in food services and people order food when it is essential. If you care about your employees, you would be posting ‘Our services are unavailable during peak afternoon hours.’”

Another user added, "Is it even real? Though I appreciate the concern, lunchtime orders cannot be postponed to dinner. If so, Zomato needs to identify ‘necessary’ orders and not-so-necessary orders.”

A third suggested, “Please close the business for 4 hours, 12-4 PM. That would be the right approach.”

Other comments included concerns about those who live alone and rely on food delivery during the day. One user wrote, “Wow, a food delivery app asking its customers not to order in the afternoon. What about those who stay alone? If you’re really concerned about the delivery guys' well-being, increase their incentives. You guys already charge a platform fee on every order to pay Goyal’s bills.”

The heated response underscores the challenge of balancing employee welfare with customer expectations in extreme weather conditions. Zomato's advisory, while well-intentioned, highlights the need for more robust measures to protect delivery staff during adverse weather conditions.

Zomato's share price fell by 6 percent during early trading on Tuesday following the release of its Q4 financial results. The shares dropped to Rs 182.10 on the BSE, a decline of 5.98 percent.

The food delivery service reported a consolidated net profit of Rs 175 crore for Q4 FY24, a significant turnaround from the Rs 188 crore loss in the same quarter last year. This represents a 27 percent increase from the Rs 138 crore net profit in the December quarter. Zomato's operational revenue for Q4FY24 rose by 73 percent year-on-year, reaching Rs 3,562 crore compared to Rs 2,056 crore. The gross order value (GOV) for the March quarter increased by 51 percent year-on-year to Rs 13,536 crore.

At the operational level, Zomato posted an EBITDA of Rs 86 crore, a notable improvement from the Rs 226 crore loss in the same period the previous year. Additionally, Zomato's quick commerce arm, Blinkit, achieved operational EBITDA break-even in March 2024. Analysts have maintained a positive outlook on Zomato shares, with some raising their target prices based on Blinkit's continued strong performance.

Emkay Global Financial Services commented on the results, stating that Zomato's revenue exceeded their estimates, although margins were impacted by higher-than-expected ESOP costs. They have adjusted their FY25E earnings per share (EPS) estimates down by approximately 20 percent but retained a 'Buy' rating with a target price of Rs 230 per share.

Nuvama Institutional Equities highlighted Blinkit's plans to increase its dark store count from 525 in Q4FY24 to 1000 by the end of FY25. This expansion is expected to impact short-term profitability but solidify Blinkit's leadership in quick commerce. Nuvama raised their target price for Zomato shares to Rs 245 from Rs 180, maintaining a 'Buy' rating.

Elara Capital expressed confidence in Zomato's strong position in the food delivery market and Blinkit's superior execution. They raised their consolidated revenue estimates for FY25E and FY26E by 22 percent and 33 percent, respectively, but only modestly increased their consolidated earnings estimates due to higher ESOP costs and lower EBITDA for Blinkit. Elara raised their target price for Zomato shares to Rs 280 from Rs 250, maintaining a 'Buy' rating.

Gurgaon-based food delivery platform Zomato has increased its platform fee by 25% to Rs 5 per order. 

The platform fee is an extra charge on every order, separate from the delivery fee. Zomato started this fee in August 2023 at Rs 2 per order and then raised it to Rs 3 in October. Earlier this year, on January 1, they increased it to Rs 4 from Rs 3.

The company has also suspended its intercity delivery service, Intercity Legends.

These developments come on the heels of the company receiving tax demands and penalty orders from authorities. 

The Intercity Legends, was an initiative that used to deliver famous dishes from renowned restaurants across select cities in India. This service included biryani from Lucknow and Hyderabad and sweets from Kolkata and Bengaluru. 

Zomato transported these dishes by flight every day or two, depending on their perishability, keeping them frozen throughout the journey. 

But now, when you select the 'Legends' section on Zomato's app, the following message appears: "Enhancements are underway. Please stay tuned as we will be back to serve you soon." 

Meanwhile, Zomato has received a tax demand and penalty order amounting to Rs 11.82 crore related to GST on export services provided to its subsidiaries located outside India from July 2017 to March 2021.
 

Deepinder Goyal, Chief Executive Officer and Founder, Zomato on Tuesday announced the launch of a "large fleet order", a first in India. 

The new fleet will handle group or party events for a gathering of up to 50 people. 

The feature will have "an all-electric fleet." 

"Today, we are excited to introduce India's first large order fleet, designed to handle all your large (group/party/event) orders with ease. This is an all-electric fleet, designed specifically to serve orders for a gathering of upto 50 people,” he shared on a post on X.

He added that earlier large orders were handled by multiple delivery partners and the customer experience was not what the company aspired for. 

"Such large orders were earlier served by multiple regular fleet delivery partners, and the customer experience wasn't what we really aspired for. These new vehicles should solve most of the problems our customers face while placing large orders on Zomato," pointed.

"Having said that, these vehicles are still 'work in progress', and we are in the process of adding important enhancements to them - like cooling compartments, and hot boxes with temperature control - to ensure everything arrives just the way you like," he further mentioned.

He also added that he loves building products and services that help them serve the communities better.

Simpl, India's leading Checkout Network has unveiled an extended collaboration with Zomato.

This expansion integrates Simpl's 1-Tap Checkout feature with Zomato Gold, Intercity Legends, and Zomato Everyday, aiming to elevate convenience for numerous customers nationwide.

The initiative seeks to boost conversions, elevate average order value, and enhance user retention on the platform, among other benefits.

This expansion aligns with Zomato's overarching goal of providing enhanced food experiences conveniently to its customers.

By integrating Simpl's 1-Tap Checkout into Zomato, both companies anticipate the participation of millions of new and existing users, broadening the scope of services offered.

This development holds importance as Simpl has surpassed 100 million checkouts on Zomato within six years since 2017, indicating a robust consumer inclination towards streamlined checkout experiences.

The expansion will be fueled by the rising influx of customers from tier-3 cities and beyond transitioning to online platforms, alongside the escalating frequency of orders from customers in metropolitan and tier-1,2 cities.

This trend is further supported by an expanding customer base seeking convenience through Simpl's 1-Tap Checkout.

Both companies anticipate substantial growth in their clientele over the upcoming years as a result.

“Convenience is becoming a real differentiator in e-commerce today after selection and affordability, particularly with respect to food ordering and delivery, where customers transact more frequently than for any other category. This necessitates the need for a hassle free checkout solution which offers near zero transaction failures and a 1-Tap experience. These fundamentals have driven more than 100 million transactions on Zomato till date and we are excited to cater to a larger customer base with the Zomato Gold, Intercity Legends and Zomato Every day, helping further deepen our presence in this space”. said Nitya Sharma, Founder and Chief Executive Officer, Simpl.

The remarkable checkout success rate of 99% achieved through Simpl's 1-Tap feature on Zomato underscores customers' growing preference for added convenience.

Over the past five years, Simpl's contribution to the platform's checkout process has witnessed substantial growth. Moreover, spending per user via 1-Tap checkout has surged by nearly 27 times since 2018.

Notably, on New Year's Eve 2024, the platform recorded its highest-ever single transaction amounting to Rs 18,807 facilitated through Simpl's 1-Tap Checkout on Zomato.

 “Our endeavour is to deliver exceptional and convenient customer experience at all times. Simpl has been our long standing partner and the integration across offerings has allowed us to extend 1-Tap access to our customers, making their interaction with the platform seamless and hassle free". said Rakesh Ranjan, Chief Executive Officer, Food Delivery, Zomato.

Simpl's 1-Tap Checkout, accessible through 26,000 merchants, provides a seamless checkout experience with minimal transaction errors, making it the choice for millions of consumers.

Presently, numerous prominent enterprises and emerging Direct-to-Customer (D2C) merchants in the food and hyperlocal delivery sectors extend Simpl's 1-Tap Checkout to millions of their customers nationwide.

Zomato Ltd, an online food delivery company, announced a consolidated net profit of Rs 138 crore for the December quarter.

This marks a significant turnaround from the consolidated net loss of Rs 347 crore reported in the same quarter of the previous fiscal year, as stated in a regulatory filing by Zomato Ltd on Thursday.

In the third quarter of the current fiscal year, consolidated revenue from operations amounted to Rs 3,288 crore, compared to Rs 1,948 crore recorded in the corresponding period last year, according to the company's statement.

The company recorded an increase in total expenses, reaching Rs 3,383 crore, up from Rs 2,485 crore in the same period last year, according to the company's statement.

According to a MoneyControl report, Tata Group is said to be gearing up for an entry into the online food delivery industry.

Utilizing the government's Open Network for Digital Commerce (ONDC), Tata's 'super app', Tata Neu, aims to launch its own food ordering service. The report, referencing four informed individuals, highlighted these upcoming developments.

The Tata Neu app currently features a food category section, displaying menus exclusively from restaurants affiliated with the Tata Group's hotel company, which operates the Taj brand.

The report suggests that integrating with ONDC could enable the app to access a wide range of eateries across various cities already connected to the network.

As per the report, Swiggy and Zomato dominate over 95 percent of the food delivery market. Additionally, the two companies collectively processed nearly USD 6 billion in gross order value during the fiscal year 2023.

According to the report, Gaurav Porwal, a senior vice president at Tata Digital, is spearheading the ONDC initiative at Tata Neu.

This branch of the conglomerate also encompasses acquired consumer internet ventures such as the online grocer BigBasket and online pharmacy 1mg.

The report indicates that Tata Neu will function as a buyer-side application within ONDC, operating in the business-to-consumer capacity.

This approach is anticipated to make its foray into food ordering cost-efficient, as it won't require deploying a fleet of delivery riders or persuading restaurants to list on the app.

In the government-supported network, a single entity isn't required to manage every aspect of an e-commerce transaction independently.

Various participants can handle customer orders, logistics, and merchant onboarding collectively.

The report further mentioned that Tata Neu is collaborating closely with Magicpin, supported by Zomato, for its ONDC integration.

This Gurgaon-based startup is assisting the company as a technology service provider for the front end.

Magicpin has also aided other firms, including fintech leader Paytm and ride-hailing service Ola, in integrating with ONDC.

Additionally, Magicpin holds the distinction of being the foremost seller-side platform on ONDC with regard to restaurant enlistment.

The startup has successfully onboarded over 50,000 eateries onto the network. Magicpin fulfills three roles within ONDC: technology service provider, seller-side application, and buyer-side application.

Zomato, a food-delivery platform and Stripe, an international financial infrastructure provider, have both secured final approval from the regulator to operate as online payment aggregators.

Zomato obtained approval from the Reserve Bank of India (RBI) on January 24, while Stripe received the green light on January 15.

The recent approvals bring the total number of entities granted the regulator's final authorization to operate as online aggregators in the country to 11.

In December of the previous year, the RBI granted final approval to payment gateways Razorpay and Cashfree to function as payment aggregators. This clearance allowed them to onboard new merchants, marking the end of a year-long embargo.

During a similar timeframe, Google Pay, the prominent player in payments, along with expense management platform Enkash and neo-banking startup Open Financial, also obtained approval from the regulator.

In a BSE filing on Thursday, Zomato announced that its subsidiary, Zomato Payments Pvt Ltd has received approval from the RBI to function as a payment aggregator.

As per an informed source, the Gurugram-based company has no intention of entering the fintech sector as an independent entity. Instead, it is obtaining financial services licenses to enhance its offerings within its own ecosystem.

"Internally, the company has been deliberating on leveraging its payment processing infrastructure across various apps catering to both consumers and merchants, including services such as food delivery, dining out, Blinkit, Hyperpure, and more," stated the individual.

In 2022, Zomato established a non-banking financial company (NBFC) and submitted an application for a license to provide lending products specifically designed for its restaurant partners.

In that same year, Zomato introduced Zomato Pay as the third version of its dining out program, enabling customers to make payments and access discounts at partner restaurants through the Zomato app.

The central bank has been implementing thorough checks at various levels to ensure the careful selection of companies for the ultimate approval to function as a payment aggregator.

The RBI had additionally prohibited other payment gateways, including Paytm and PayU, from bringing onboard new merchants. Both entities were instructed to submit their applications again.

In a strategic move aimed at minimizing losses and improving financial viability in anticipation of its upcoming public listing later this year, Swiggy is said to be considering doubling its platform fee for food orders.

The suggested adjustment involves raising the current platform fee of Rs 5 to Rs 10 per food order and is a key element of Swiggy's ongoing initiatives to streamline its financial performance.

As per sources, Swiggy has reportedly commenced trials of the envisioned fee structure within its app, focusing on specific users.

This move follows the company's introduction of the platform fee model in April 2023, where an initial extra charge of Rs 2 was applied to specific food orders, irrespective of the order size.

Having noted that the supplementary fee did not negatively affect order quantities, Swiggy extended the platform fee to include all users.

Gradually, the company increased the fee to its present Rs 5, and certain customers continue to pay Rs 3, although the rationale behind the tiered system remains undisclosed by the company.

As per a spokesperson from Swiggy, "There have been no alterations to Swiggy's platform fee, and there are no imminent plans for a substantial increase. We consistently conduct minor experiments to gain a better understanding of consumer preferences. The recent trial was one such experiment, and its expansion in the future will depend on its success in aligning with our goal of providing the best service to our users. Continuously seeking ways to enhance affordability, our latest initiative, Pockethero, is an illustration of this commitment. Pockethero, tailored for budget-conscious consumers, is currently being rolled out nationwide."

Significantly, Zomato, a key rival of Swiggy, has similarly raised its platform fee from Rs 2 to Rs 5 in specific instances.

The implementation of an extra charge on each order has emerged as a prevalent tactic adopted by food delivery firms, aiding in bolstering their financial well-being, given the substantial daily order volumes managed by these platforms.

Although Swiggy has not formally introduced the Rs 10 platform fee, the company has previously hinted at higher amounts, temporarily reduced certain fees, and later raised charges.

This step-by-step strategy is anticipated to be employed if the intended outcomes are realized.

Swiggy's co-founder and group CEO, Sriharsha Majety, shared with the media at Davos, emphasizing the company's dedication to expansion. He highlighted that Swiggy Instamart, the rapid-commerce division, will be a central driver in the company's future growth.

While placing emphasis on Instamart, Swiggy remains committed to innovation within its food delivery sector by introducing more affordable food choices to appeal to a wider customer demographic.

As the platform fee trial progresses, both the industry and users will keenly observe Swiggy's strategy and its implications for the overall food delivery sector.

Zomato, the online food delivery giant, has implemented a 33% hike in its platform fee for users in important markets, raising it to Rs 4 per order from the earlier Rs 3.

On New Year's Eve, the company temporarily increased the fee to a maximum of Rs 9 per order in specific markets. This fee surge aligned with Zomato's high order volume on December 31.

CEO Deepinder Goyal shared on X that the order volumes surpassed the combined figures of the previous six years' New Year's Eve, spanning from 2015 to 2020.

The Gurugram-headquartered company implemented a uniform flat platform fee in August 2023, initially set at Rs 2 per order and subsequently raised to Rs 3 in most significant markets.

Likewise, Zomato's competitor, Swiggy, initiated a Rs 2 fee last year, later upping it to Rs 3.

As per the report, Zomato applies the platform fee on top of the delivery charge. Nevertheless, this delivery fee is exempted for participants enrolled in its loyalty program, Zomato Gold, where members pay an initial fee and gain benefits like discounts and complimentary deliveries. The platform fee is also applicable to Zomato Gold members.

During the July-September quarterly results, Zomato's leadership correlated the improvement of its take rate, which signifies the percentage of revenue earned per food delivery order, with the introduction of the platform fee.

In the September 2023 quarter, Zomato announced a post-tax profit of Rs 36 crore. The company notified its shareholders, via a filing, that the revenue from operations surged by 71% in Q2 FY24, hitting Rs 2,848 crore.

This expansion was driven by a 47% increase year-over-year in gross order values (GOV) encompassing food delivery, quick commerce segments, and activities related to dining out and live events.
 

Zomato's CEO, Deepinder Goyal, responded to media speculation, stating that the company currently has no intentions of pursuing an acquisition, contrary to reports suggesting a $2 billion offer for Shiprocket.

Goyal addressed circulating mainstream media articles claiming Zomato's $2 billion offer to acquire Shiprocket, firmly denying the statement. He cautioned investors about the inaccuracies in the news and emphasized Zomato's current focus on existing ventures, confirming no immediate plans for acquisition.

Previously, certain media sources inaccurately reported Zomato's alleged offer of approximately $2 billion (about Rs 16,600 crore) to the shipping startup.

Goyal mentioned that although the company typically refrains from addressing such speculations, it's making an exception due to the substantial mentioned deal size.

Zomato's CEO, Deepinder Goyal, dismissed reports of a $2 billion acquisition offer for Shiprocket, affirming that the company currently isn't considering any acquisition.

Flower Aura has introduced its cake collection on Swiggy and Zomato.

The partnership between Flower Aura and these platforms is geared towards making their diverse range of cakes more accessible to customers, aiming to improve convenience and reach.

Through this collaboration, Flower Aura aims to simplify the ordering process for a variety of treats like Red Velvet Jar Cake, Vanilla Blueberry Cake, and Black Forest Mini Cake, among others.

“Through this alliance, we've exponentially expanded our reach, connecting with a broader customer base to cater to every celebration. Our latest collaboration with Zomato and Swiggy perfectly aligns with our dedication to making our sweet indulgences more accessible. Now, anyone can conveniently order their favourite desserts from the comfort of home, at any time they desire. This strategic partnership promises not just to broaden our clientele but also to revolutionize our business operations, marking a remarkable milestone in our journey.” said Shrey Sehgal, Founder & CEO, Flower Aura.

Flower Aura recently inaugurated a 26,000-square-foot central kitchen in Delhi NCR, a significant step to meet the rising demand from Swiggy/Zomato users.

Flower Aura excels in creating luxurious cakes and desserts. Their alliance with two prominent food delivery platforms is poised to enhance convenience by ensuring prompt doorstep delivery of their exquisite range within a swift 30-minute timeframe.

This partnership seamlessly aligns with their recent efforts to make their diverse product range more accessible.

Zomato, the online food delivery platform announced a consolidated profit of Rs 36 crore for the second quarter ending in September 2023, propelled by robust growth in its revenue.

In the same quarter of the previous financial year, the company had posted a loss of Rs 251 crore.

During the current quarter, the revenue from operations amounted to Rs 2,848 crore, marking a significant increase from the Rs 1,661 crore recorded in the corresponding period last year.

As per a regulatory filing, the total expenses for the quarter being reviewed amounted to Rs 3,039 crore, while in the same quarter of the previous year, it was Rs 2,092 crore. Additionally, the company's board has granted approval for the sale of its complete 30% voting rights in ZMT Europe LDA, an associate firm situated in Portugal, for a total sale value of approximately 1.80 lakh euros (equivalent to approximately Rs 1,59,45,300).

In a letter addressed to shareholders, the company also shared that its quick commerce business, Blinkit, has achieved a positive contribution for the first time throughout the entire quarter.

The contribution margin, expressed as a percentage of the gross order value (GOV) in the business, has shown a positive shift from -7.3 percent in Q2FY23 (when the business was acquired) to a current 1.3 percent in Q2FY24.

Deepinder Goyal, Founder and CEO said that the strong growth trend observed in Q1FY24 has persisted into Q2FY24, propelled by robust expansion across all of the company's operations. He also highlighted the company's profitability, mentioning that they achieved their second consecutive profitable quarter, with an Adjusted EBITDA of Rs 41 crore. This represents a substantial improvement compared to the Rs 12 crore profit in the previous quarter (Q1FY24) and a significant turnaround from the loss of Rs 192 crore during the same quarter last year (Q2FY23).

EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a metric employed to evaluate a company's operational efficiency.

Zomato's CFO, Akshant Goyal, expressed that they anticipate a moderate quarter-on-quarter (QoQ) growth in Gross Order Value (GOV) for food delivery in the upcoming quarter, roughly in the high single digits. This growth is expected to result in approximately 25-30 percent year-on-year (YoY) expansion in GOV.

In reference to the recently introduced platform fee, Akshant mentioned that, beginning in Q2FY24, all customers, including Zomato Gold members, are now incurring a modest platform fee, typically ranging from Rs 2 to Rs 5 per order. This fee is implemented to improve the company's long-term economic sustainability while ensuring that their services remain affordable for customers.

Albinder Dhindsa, the founder of Blinkit, mentioned that when comparing year-on-year (YoY) figures, the Gross Order Value (GOV) growth for Blinkit reached 86 percent, aligning with their expectations and past performance. This growth was primarily attributed to increased sales from existing stores, emphasizing their commitment to meeting a wider range of customer needs while maintaining consistent service quality. Additionally, they expanded by 28 new stores during the quarter, resulting in a total of 411 stores by the quarter's end.

Akshant also commented on Blinkit, highlighting that quick commerce experienced more robust growth during festivals compared to food delivery. With major festivals like Navratri, Dussehra, Diwali, and others scheduled for the December quarter, they anticipate another quarter of substantial growth for Blinkit.

Japanese tech-giant SoftBank’s venture capital fund SVF Growth, Singapore, is planning to sell 1.1% stake in Indian food delivery firm Zomato for 10.24 billion rupees ($123.24 million).

According to the reports, SVF Growth will sell the stake at an offer price of 109.4 rupees to 111.65 rupees per share, a 2% discount to its current market price at the lower end, the report added.

In August, SoftBank’s Vision Fund sold a 1.17% stake in Zomato in a deal valued at 9.47 billion rupees at 94.7 rupees apiece in bulk deals.

Similarly, private equity firm Tiger Global, also sold its remaining 11.24 billion rupees stake in the company after cutting 2.34% stake last year.

Zomato shares have gained 88.3% so far this year and closed 1.4% lower on Thursday.

A majority of Zomato shares are owned by just three venture capital investors, namely, Softbank, Sequoia, and Tiger Global.

The Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has partnered with Zomato to offer a broader array of food options for rail travelers through its E-Catering segment.

“This is to inform that in view of widening the range of options available to rail passengers for ordering food of their choice under IRCTC’s E- Catering segment, IRCTC has tied up with M/s. Zomato Limited for supply and delivery of preordered meals through IRCTC’s E-catering portal as a Proof of Concept (PoC) in the first phase at five Railway stations i.e. New Delhi, Prayagraj, Kanpur, Lucknow & Varanasi," shared IRCTC in a statement. 

As part of this collaboration, IRCTC has initiated a Proof of Concept (PoC) at five prominent railway stations: New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi. 

Under this PoC, passengers can conveniently order and receive preordered meals via the IRCTC E-Catering portal with the assistance of Zomato.

This strategic alliance is set to provide rail passengers with more choices and convenience when it comes to their culinary preferences, making their travel experience more enjoyable and comfortable.
 

Food delivery platform Zomato has started the process of liquidating its wholly-owned subsidiary in Portugal – Zomato Media Portugal, Unipessoal Lda (ZM Portugal), as per BSE filings.

The Gurgaon-based platform that exited all of its international businesses in 2021 including; Australia, New Zealand, Jordan, Ireland and Indonesia.

As per reports, Zomato decided to shut down international businesses as they do not contribute to its revenues, following its listing on the exchanges.

“As disclosed in our red herring prospectus dated July 6, 2021, and prospectus dated July 19, 2021, ZM Portugal does not have any active business operations. It may be further noted that ZM Portugal is not a material subsidiary of the company and the dissolution of ZM Portugal will not affect the turnover/revenue of the company,” read the filing.

The net worth of ZM Portugal was Rs 1.2 crore, it added.

In Nov 2022, Zomato announced that it is discontinuing food delivery service through its app in the UAE and has sold its business to Kuwait-based food-delivery startup Talabat in 2019 for $172 million, and was providing services to Talabat through its app.
 

Zomato, the popular food ordering and delivery platform, has introduced an innovative open platform called 'Zomato Food Trends.' This new initiative aims to offer valuable data insights to restaurant partners, according to a recent press release by the company.
 

Brand will provide insights by analyzing data from millions of transactions across the country.
 

According to Zomato's press release, restaurant partners can utilize this platform to access valuable information regarding demand and supply gaps, pricing distribution, and trending demands for various dishes or cuisines. By doing so, they can adapt their strategies and enhance their sales performance.
 

Zomato has extended access to the Zomato Food Trends platform beyond their restaurant partners, making it freely available to the general public as well.
 

Gurgaon-based food delivery platform Zomato is preparing to integrate generative artificial intelligence (AI) into its range of services.

According to media reports, Zomato has initiated trials with AI technology to enhance the overall customer experience.

"Sources familiar with the matter revealed that Zomato, along with its quick commerce platform Blinkit, plans to recruit engineers specializing in machine learning, data science, and natural language processing to build AI-driven products," shared ET in its report.

The company has also appointed a dedicated head of AI product development to lead these endeavors.

Moreover, Zomato is said to be considering the integration of AI technology into multiple customer-facing aspects such as search functions and notifications, as well as backend tools including product photography and customer support.

The aim is to improve the overall customer experience across both Zomato and Blinkit platforms. The company plans to develop and implement these AI tools accordingly.

A spokesperson from Zomato has confirmed the upcoming AI development by acknowledging that the company has been refining neural networks over the past year.

These neural networks are utilized to predict various factors, including food preparation and delivery time, among other functionalities.

Likewise, Blinkit has leveraged machine learning techniques to streamline supply chain expenses and minimize delivery durations.

The company is also actively exploring the potential of generative AI. As an example, Blinkit now provides an extensive range of recipes along with the corresponding ingredients, made possible through generative AI, on its mobile application.

Meanwhile, it has been reported that Zomato is engaged in partnerships with notable companies including Google, Adobe, OpenAI, and Microsoft to drive advancements in AI technology.

The spokesperson for Zomato mentioned that the company has been actively recruiting engineers with expertise in machine learning for several years.

 Zomato is continuously on the lookout for skilled engineers who can contribute to the development of innovative models that enhance customer satisfaction and optimize operational efficiency.

Notably, Albinder Dhindsa, the CEO of Blinkit, emphasized in a recent blog post that a specialized team, consisting of engineers and a product manager, has recently developed 'Recipe Rover.'

This cutting-edge engine, powered by ChatGPT and Midjourney technologies, offers recipe recommendations and aids users in identifying the required ingredients. Dhindsa's blog post highlighted the successful creation of this innovative tool by the dedicated team at Blinkit.

A recent report from consulting firm Redseer revealed that online food-delivery companies witnessed a moderate 7% growth in their business during the recently concluded Indian Premier League (IPL) 2023.

The growth was attributed to their cautious approach towards marketing campaigns and advertisements, resulting in limited expenditure.
 

Due to the focus on attaining profitability, online food delivery platforms such as Zomato and Swiggy reduced their marketing expenditures during the latest edition of the IPL, according to the report.

This approach aligns with the overall trend among consumer internet companies to prioritize cost efficiency and profitability over aggressive marketing strategies.

According to the Redseer report, instead of relying on extravagant and attention-grabbing advertisements, food delivery companies adopted subtle and understated strategies, leading to a 7% increase in their business.

The report highlights the effectiveness of these more subdued approaches in driving growth for these platforms during the IPL.
 

Kushal Bhatnagar, an associate partner at Redseer Strategy Consultants, highlighted the shift in approach by online food delivery giants during the IPL seasons from 2017 to 2020.

During this period, these companies made a significant presence on prime-time television with attention-grabbing advertisements and offered attractive discounts of 50% to 60% at various restaurants, resulting in a more than 50% surge in business during the IPL 2020 season.

However, in the IPL 2023 season, there was a noticeable change in strategy and approach.

In previous seasons, food-delivery platforms effectively collaborated with over-the-top (OTT) platforms and developed tailored advertisements to maximize their impact.

This integration, along with customized marketing campaigns, played a significant role in driving the increase in business during those seasons.

In the IPL 2023 season, JioCinema, owned by Viacom18, served as the digital broadcaster for the tournament, whereas Disney Hotstar held the broadcasting rights for previous editions of the IPL.

As per the report, food delivery companies experienced consistent growth in their business from 2018 to 2020, with the percentage increasing from 43% to 52% during this period.

However, a significant decline occurred in 2020 when the IPL was postponed due to the Covid-19 pandemic.
 

Despite a slight recovery in 2021 and 2022 with growth rates of 6% and 7% respectively, the figures are still far below the levels observed before the pandemic.

Additionally, food delivery witnessed a growth of nearly 2.5 times among customers residing in tier-2 cities and beyond, in comparison to more established markets.
 

Zomato has made key level changes at its food and grocery delivery platform by elevating Rakesh Ranjan, and Rinshul Chandra as chief executive officer and chief operating officer of food ordering and delivery vertical, respectively.

The company has also appointed Rishi Arora as the CEO of its B2B vertical Hyperpure, shared Zomato in a regulatory filing.

Zomato announced the appointments at a time when it had reported positive adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) excluding quick commerce for the first time at Rs 28 crore during January-March.

The company on Friday reported a 70% year-on-year jump in its operational revenue for the March-quarter to Rs 2,056 crore, and its net loss narrowed to Rs 187.6 crore in the quarter, compared to Rs 359.7 crore in the year-ago period.

“Rakesh, Rinshul and Rishi have been with Zomato/Blinkit for more than five years across various roles. We believe that a change of leadership every now and then with capable people at the helm brings new perspectives to the business enabling it to evolve faster,” shared the company by adding that such leadership changes are also great for people development, and we are confident that our people strategy will set up for success even decades from now.

While Ranjan was business head of new businesses at Zomato, Chandra was vice president of product at the company. Arora, meanwhile, has been with Blinkit, formerly known as Grofers, for almost nine years and held the position of senior vice president of operations before being elevated to cofounder of Blinkit in July last year.

These appointments come in the backdrop of a series of senior level exits at the company, including cofounders like Mohit Gupta and Gunjan Patidar, who was also its chief technology officer. Senior executives like head of new initiatives Rahul Ganjoo and Siddharth Jhawar, who was the head of Zomato’s intercity delivery, also quit last year.

According to a note by HSBC Global Research, Zomato has been able to regain its market share against its competitor Swiggy, following the reintroduction of its loyalty program.

This comes after Zomato had lost some of its market share to Swiggy in the second half of 2022.

Zomato, based in Gurgaon, reintroduced its loyalty program, Zomato Gold, in January. The company had previously replaced the subscription program with Zomato Pro almost 30 months ago, and Zomato Pro was discontinued last year.

The new Zomato Gold membership can be purchased for Rs 149 for a three-month subscription, which is a discounted rate compared to the quarterly membership fee of Rs 999.

HSBC Global Research reported that during the January-June 2022 period, Zomato held a 55% market share, while Swiggy held the remaining 45%. However, during the October-December 2022 quarter, Zomato's market share decreased slightly to 54%, with Swiggy holding 46%.

The report predicts that Zomato's market share will rise to 57% in the fiscal year 2023-24 (April-March).

According to HSBC Global Research, Zomato's contribution margin may be negatively impacted by Zomato Gold during the ongoing January-March quarter.

HSBC Global Research noted that there may be a negative impact of Rs 10-12 per order from Zomato Gold, starting from the fourth quarter of the fiscal year 2023. This could be a concern for investors, but HSBC believes that Zomato can counter this impact by pursuing higher take-rates (commission) and cost-cutting measures.

Zomato's contribution margin for the period of October-December was reported as Rs 21.50 per order.

According to the HSBC Global Research report, Zomato's EBITDA margins are expected to improve in the upcoming quarters despite the impact of Zomato Gold. Additionally, the report noted that Swiggy is currently burning more cash than Zomato.

Food delivery platform, Swiggy and Zomato have lodged a complaint with the Delhi government regarding the issuance of fines to their two-wheeler delivery personnel under the pretext of the bike-taxi service ban in the capital.

The food delivery companies have also asked the government for clarification on the directive, arguing that the notice has been misinterpreted, as the ban is only applicable to bike taxi providers.

In a letter addressed to the government, Swiggy has stated that delivery riders are being fined exorbitant amounts of up to Rs 15,000, under the guise of the bike taxi service ban.

According to a spokesperson from Swiggy, the recent alterations in regulations regarding bike taxi services in Delhi have led to chaos and disturbance for food and quick commerce delivery platforms. Despite the notification being solely applicable to bike taxi service providers, delivery personnel are being mistakenly issued fines.

Zomato has written a letter to the Delhi government's transport department to request clarification on the issue, stating that the RTO officials have misinterpreted the notification.

Dinker Vashisht, who is the Group Vice President in charge of Public Policy, Regulatory, and Sustainability at the online food delivery platform, has stated that the Regional Transport Office (RTO) officials have misconstrued the instructions. As a result, they have begun imposing fines on delivery partners who work with last-mile delivery aggregators, such as food delivery platforms and e-commerce operators.

He has requested immediate intervention on the matter, stating that it has created a disturbance in services and has caused uncertainty among delivery partners. They are now hesitant to provide their services as they fear being fined and subjected to harassment while on duty.

Gurgaon-based food delivery platform Zomato has launched 'Zomato Everyday' marking its entry into the cost-effective home-style meals cooked by home chefs.

This takes the place of Zomato Instant, under which the business intended to provide 10-minute deliveries for a limited selection of foods.

According to chief financial officer Akshant Goyal, Zomato Daily will require "less cash" than Zomato Instant.

“Our food partners will collaborate with the home-chefs, who design each recipe with love and care to serve you home-styled, wholesome food at the best prices within minutes,” shared Deepinder Goyal, CEO & Founder, Zomato in a blog post.

By using only the finest ingredients, the food not only tastes delicious, but every dish is of the highest quality, it said.

It won't require a lot of assets, but we'll need to open a finishing station to serve the public. “We currently intend to test the infrastructure we created for Zomato Instant. In the upcoming weeks, we'll roll this out in Bangalore and Gurgaon using the identical finishing stations,” added Goyal.

A consumer can "browse the menu, personalise your meal, and have hot and wonderful food delivered straight to your home within minutes," the company claimed, making ordering even easier.

Zomato Everyday is currently available only in select areas of Gurugram.

Food delivery firm Zomato has relaunched its loyalty program Gold which offers a bunch of benefits to its users including free delivery, no delay guarantee and special access during rush hours.

The cost of the new Gold programme is Rs 149 for three months.

The old "Pro Plus" programme will be replaced by the new one. Existing Pro/Pro Plus participants are entitled to a free three-month Gold subscription.

Members of the new programme will receive limitless free deliveries from all restaurants within a 10-kilometer radius or for orders over Rs 199, Rs 100 coupons for orders that take longer than expected, and additional promotions of up to 30% off delivery and up to 40% off flat dining at more than 25,000 restaurant partners.

Additionally, gold members will have access to more eateries during busy periods like holidays and rush hour. The number of times a user may utilise the membership's perks, including free delivery, is not limited.

The news came almost a month after Deepinder Goyal, the CEO and founder of Zomato, hinted in a tweet from December that the Gold programme would make a comeback.