New age companies are not hesitant in trying radical initiatives and Zomato after continuing to struggle in it’s core business has now announced one.
The Founder, Deepinder Goyal announced on Twitter about them soon getting into trials of 10 minute food delivery.
Key points to note –
- The initiative is named as Zomato Instant.
- New food stations will be set-up for this, stocking popular & standardised items of restaurant partners and will be served within a radius of 1-2 kms.
- The Company is starting trials with 4 food stations in Gurugram from next month.
The initiative seems to be an extension of Zomato’s strategic investment in Blinkit – the 10 minute grocery delivery app.
In terms of need, I do think there is a section of demand to be served. However, unit economics behind this is something difficult to comment upon. There are no disclosures about the financial viability by the Company.
I also believe 10 minute is more of a marketing strategy to create differentiation from the competition and actual average time to delivery might be more than 10 minutes. Even if it’s 15-20 minutes, I think in general the customers would be satisfied if there is a good menu to choose from.
Whether I am excited?
- As a customer – yes.
- As an investor – not at this stage.
As per newspaper reports, Zomato plans to open over 40 stations in Delhi-NCR in the next 90 days, and then expand to Bengaluru and Mumbai.
As per newspaper reports, Zomato’s pilot is not going well and there are delays of 15-20 minutes.
Reasons – supposedly delivery manpower shortage. Besides, restaurant partners are also raising the customer concerns over freshness of food.
As per newspaper reports, the Company has scrapped 10 minute delivery service; though the company denies it.