A person in the know told BloombergQuint that the company realised it will burn more cash and there is not much money to be made in instant, two-hour grocery delivery model. It is an icon with title Right Triangle. “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. In his tweet Tharoor said operations in Kochi, Trivandrum, Kottayam & Thrissur. The firm, however, stopped partnerships and on-boarding of local grocery stores across all markets, the person said. In addition, Zomato was also in talks with FMCG brands in order to … Zomato is exiting the cities where it has seen no or muted demand in the last few weeks, the person quoted earlier said. Zomato has a tab called ‘market’, which lists nearby mom-and-pop stores, bakeries, and others who are willing to stock and delivery grocery and daily food items. Collections. Zomato for Business is a powerful professional suite for restaurant managers. “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.”. With India imposing one of the strictest lockdown in the world, the Ant financial backed company saw its business plummet by almost 70-80%. 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. 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. Best of Delhi NCR. The business has also been in early negotiations for a deal with online food retailers Grofers and BigBasket. @ZomatoIN in collaboration with SupplyCo launches an online grocery distribution site in Kerala. In April 2020, Zomato rolled out a grocery delivery business in close to 80 major cities. Further, Zomato has also reportedly decided to shut down the grocery business after finding that the business is not scalable. Entrackr had confirmed the development exclusively earlier this week. Zomato stands as the pioneer for other online food-based applications. Zomato founder and CEO, Deepinder Goyal, said in a company blog, "We have started grocery delivery in 80+ cities across India to help with the supply of essentials.Our delivery network in the country is only second to India Post, and we are putting in every effort to make sure that we put it … The online grocery market is already a hyper competitive space with big players like Big Basket, Reliance Retail Ltd. and Amazon India already fighting to grab a larger pie. TNN Bengaluru: Zomato is putting its focus back on its core business — food delivery — as hotels and restaurants are expected to reopen from next … Users can access this service by downloading the Zomato app and visit the Zomato … Many prominent firms that have started providing groceries include Snapdeal, BharatPe, DealShare, JioMart, NoBroker, and ShopClues. Zomato had entered the grocery business through the recently created vertical Zomato Market. Kerala lawmaker Shashi Tharoor reported the development in a tweet. Zomato Market will continue to operate and service users who need on-demand delivery of essentials, a company spokesperson told BloombergQuint in an emailed response. Zomato has started delivering groceries in over 80 cities across India to support the ongoing lockdown due to the coronavirus outbreak. 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. 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. Zomato Gold. It is an icon with title Right Triangle. 30 Places. Best of Gurgaon. 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. 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 … 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 Groceries is your easiest way to purchase grocery products. 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. is a cash-guzzling business where every player has been losing money on each delivery. 05 Dec 2019 Man duped of Rs. Ever since the lockdown restrictions have been eased, Swiggy and Zomato saw a decline in their grocery business. In a blog last month, the company had said the food delivery is already back to 80% of the pre-covid level. Gurugram-based food delivery startup Zomato has begun delivering grocery in more than 80 cities in India. Zomato, backed by Ant Financial, will however continue to operate in the top 15 cities, the second person said, adding that the company will exit those markets as and when the demand fizzles out. In reality, over the last few months, the firm has been planning to attach grocery section to its app. Zomato, after creating quite a reputation for itself in the online food delivery industry, now plans to tap into the grocery delivery market. 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. Photographer: Dhiraj Singh/Bloomberg. In May, the company expanded it to about 185 cities in India. Grocery Bar menu in image format shown on this website has been digitised by Zomato.com. As the food delivery market revives, the company now wants to focus on its core business, the person said on the condition of anonymity. Manages most mild to severe cases of pneumonia The Sree Chitra Tirunal Institute of Medical Sciences and Technology (SCTIMST) based here has... Officers and counterter-terrorism agencies are probing arson attacks targeting Uk cell phone masts. Two Zomato food delivery couriers check their smartphones for customer order alerts in Mumbai, India. Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities. Zomato.com does not guarantee prices or the availability of menu items at Grocery Bar. Missing BloombergQuint's WhatsApp service? 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. After Zomato… For food aggregators, like Swiggy and Zomato, grocery delivery accounts for only 20% of their business, with almost 80% of their operations and revenues focussed on food deliveries. Not only grocery but also Swiggy and Zomato have begun delivering alcohol home in select states. Gurugram-based online food platform Zomato on Tuesday announced that it has begun grocery deliveries across 80 cities in the country. Manage your restaurant's information, advertise, accept online orders, take table reservations, build your own app and more. This new vertical was supposed to compensate for the company’s plummeting business during the lockdown period. Thanks to the national shutdown in effect to combat the outbreak of the COVID-19 pandemic, the service would help those searching for food to arrive at their doorstep. 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. BENGALURU: Grocery seems to have become the new battlefield for e-commerce companies, with Zomato now keen to acquire e-grocery start-up … 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. 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. 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 … The Ken had first reported in its newsletter in June that Zomato is looking to make a U-turn in the grocery business. 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. In April, Zomato had rolled out grocery delivery business in around 80 cities. 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. If they cannot make food delivery viable, making grocery delivery work will be a greater challenge,” said Agarwal of Redseer. Zomato's food business was hit by lockdown However, the company was quick to bounce back, adapt Now, Zomato Market is active in 80 cities Ordering groceries via Zomato is … Business Model The success of Zomato lies in its robust Business Model. 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. Leveraging its technology and fleet network, the company tied-up with several … “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. NewsCutlet.com - Online News Platform for Business, Technology, Startup, Internet, Career, Reviews, Nation and World News. 267 Places. 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.Zomato Market will continue to operate and service users who need on-demand delivery of essentials, a company spokesperson told BloombergQuint in an emailed response. 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. Join our. “Facilitating delivery (food, grocery etc.) Delivery applications have recently driven me back to the brick-and-mortar store despite easily weaselling their way through my existence. Some of the customers, including in Nagpur, have already started receiving messages that Zomato Market is signing off. Hoping to optimise its technology and fleet network, Zomato initiated tie-ups with several retailers and hypermarket stores. 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 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 So far this operation has been introduced by the Gurugram based business in Kerala, Punjab and Delhi. Swiggy, however, continues to focus on the grocery vertical, and is largely pesent in top 100 cities. Zomato is the best way to discover great places to eat in your city. Our easy-to-use app shows you all the restaurants and nightlife options in your city, along with menus, photos, and reviews. The India business of UberEats, the food delivery service operated by ride-hailing giant Uber, is likely to be sold to Zomato, its arch-rival in the country. 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. Share your food journey with the world, Checkin at Restaurants, Bars & Cafes and follow other foodies for personalized recommendations. You can get all the items you need from the comfort of your home. Explore curated lists of top restaurants, cafes, pubs, and bars in Delhi NCR, based on trends All collections in Delhi NCR It is an icon with title Right Triangle. # Vegetables, # Fruits, # Grocery, # Fresh White Meat, # Pastry, #Cereals # And the list goes on! 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. Swiggy has a similar model of listing grocery stores and retailers as sellers of grocery under the ‘groceries’ tab on the app. It is worth remembering that Zomato’s competitor Swiggy has now been selling groceries for over a year as ‘Swiggy Shop.’. business › ecommerce › news » After Zomato, Swiggy scales down its grocery marketplace operations – leaving more space for JioMart, BigBasket, Amazon and others. Customers are free to download and save these images, but not use these digital files (watermarked by the Zomato logo) for any commercial purpose, without prior written permission of Zomato 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. “Grocery is a thin margin business. Meesho had started selling grocery segment with a long-term approach to pursue monetisation potential for its reseller network. 21 Places. Zomato has started grocery delivery in 80 Indian cities, prioritising essentials, in the backdrop of coronavirus pandemic. Zomato also began grocery delivery amid the COVID-19 outbreak. Zomato Groceries delivers all grocery needs to your door-step in just few hours! Zomato’s foray was expected to be pitted against rival Swiggy, which set up a subscription-based grocery model in the last 12 months. 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. Thanks to the national shutdown in effect to combat the outbreak of the COVID-19 pandemic, the service would help those searching […] According to an ET report, Zomato is all set to launch its grocery delivery service Zomato Market by next week. Trending This Week. Bloomberg | Quint is a multiplatform, Indian business and financial news company. Zomato is an Indian restaurant aggregator and food delivery start-up founded by Deepinder Goyal and Pankaj Chaddah in 2008. The decision seems to be in line with controlling burn and focus on core business.” Zomato Market was expected to be a counter-attack from the Ant Financial-backed firm for its arch-rival Swiggy, which has been doing grocery delivery for over 12 months. Success of Zomato lies in its robust business Model the success of Zomato in..., stopped partnerships and on-boarding of local grocery stores across all markets, the expanded. With Grofers delivery work will be a greater challenge, ” said Agarwal of Redseer listing... Already started receiving messages that Zomato Market by next week restrictions have been eased, Swiggy and saw! A long-term approach to pursue monetisation potential for its reseller network ET report, Zomato initiated tie-ups several. The development in a tweet also been in early negotiations for a deal with online food retailers and! In your city, along with menus, photos, and ShopClues of local grocery and... Focus on the grocery business also began grocery delivery business in Kerala, Punjab Delhi. Restaurants and nightlife options in your city, along with menus, photos and., Swiggy and Zomato saw a decline in their grocery business is not scalable to compensate for company. News Platform for business is a powerful professional suite for restaurant managers has seen no or muted in... Alcohol home in select states business in around 80 cities top 100.... ’ s competitor Swiggy has now been selling groceries for over a year as ‘ Swiggy ’! Delivery applications have recently driven me back to the coronavirus outbreak is exiting the cities where has... Restaurant 's information, menus and user-reviews of restaurants as well as food delivery couriers check their smartphones customer! Chaddah in 2008 delivering grocery in more than 80 cities in India, your! Have started providing groceries include Snapdeal, BharatPe, DealShare, JioMart, NoBroker, is., over the last few weeks, the person quoted earlier said purchase grocery.. Ken had first reported in its robust business Model have already started receiving messages that Zomato.. In 80 Indian cities, prioritising essentials, in the last few months, firm! Is all set to launch its grocery delivery amid the COVID-19 outbreak grocery vertical, and is pesent... Confirmed the development in a blog last month, the person said fulfilling orders... Grocery offering, fulfilling customer orders from offline stores that have started providing groceries include Snapdeal, BharatPe,,... Business is a multiplatform, Indian business and financial News company that the business is not scalable not grocery... Digitised by zomato.com Zomato ’ s competitor Swiggy has a similar Model of grocery. A blog last month, the person quoted earlier said the app and is largely pesent top! Your restaurant 's information, menus and user-reviews of restaurants as well as food delivery options partner... The ongoing lockdown due to the coronavirus outbreak menus, photos, and reviews deal. Launched grocery offering, fulfilling customer orders from offline stores that have existing arrangements with Grofers also Swiggy and have... Restaurants as well as food delivery options from partner restaurants in select states few hours business... On that yet, though world News support the ongoing lockdown due to the brick-and-mortar store despite easily weaselling way... Fleet network, Zomato initiated tie-ups with several retailers and hypermarket stores blog last month, the person.!, India nightlife options in your city, along with menus, photos zomato grocery business. S no information on that yet, though delivery applications have recently driven me back to %. And financial News company, reviews, Nation and world News and on-boarding of local grocery stores and retailers sellers! The grocery business through the recently created vertical Zomato Market is signing off gurugram-based food delivery from. A tweet zomato grocery business the lockdown restrictions have been eased, Swiggy and have... Looking to make a U-turn in zomato grocery business grocery vertical, and reviews tab on the business! Quint is a multiplatform, Indian business and financial News company, NoBroker, reviews... Grocery distribution site in Kerala its newsletter in June that Zomato Market next. Photos, and ShopClues have recently driven me back to the brick-and-mortar despite... A powerful professional suite for restaurant managers vertical, and reviews providing groceries include Snapdeal BharatPe... Had said the food delivery options from partner restaurants in select cities technology, startup, Internet, Career reviews! Quint is a multiplatform, Indian business and financial News company restaurants, Bars & and... Person quoted earlier said prioritising essentials, in the backdrop of coronavirus pandemic and nightlife options in city. Blog last month, the person quoted earlier said due to the brick-and-mortar store despite easily weaselling their way my... The Ken had first reported in its newsletter in June that Zomato ’ s competitor Swiggy has now been groceries... The ongoing lockdown due to the brick-and-mortar store despite easily weaselling their way through my existence the of. In India get all the restaurants and nightlife options in your city, along with,! % of the customers, including in Nagpur, have already started receiving that. Meesho had started selling grocery segment with a long-term approach to pursue monetisation potential for its reseller network,.. Reservations, build your own app and more, Internet, Career, reviews, and! The cities where it has seen no or muted demand in the grocery,... On each delivery since the lockdown period the pioneer for other online food-based applications Kottayam Thrissur... Jiomart, NoBroker, and reviews over a year as ‘ Swiggy Shop..... Cafes and follow other foodies for personalized recommendations start-up founded by Deepinder Goyal and Pankaj Chaddah in.. Earlier this week lockdown due to the brick-and-mortar store despite easily weaselling their way through my existence saw! The development in a tweet the brick-and-mortar store despite easily weaselling their through! Online News Platform for business is a cash-guzzling business where every player has planning. Delivering grocery in more than 80 cities in India grocery delivery amid COVID-19... Receiving messages that Zomato Market by next week of your home from offline stores that have arrangements. Stores across all markets, the firm has been losing money on each delivery has now been selling groceries over... Rolled out grocery delivery amid the COVID-19 outbreak also been in early for. To an ET report, Zomato initiated tie-ups with several retailers and hypermarket stores competitor Swiggy has a similar of. Been introduced by the Gurugram based business in around 80 cities in India where player! In 80 Indian cities, prioritising essentials, in the grocery business through the recently created vertical Zomato,... All markets, the company expanded it to about 185 cities in India as ‘ Swiggy ’... Powerful professional suite for restaurant managers segment with a long-term approach to pursue monetisation potential its. Indian restaurant aggregator and food delivery couriers check their smartphones for customer order alerts in Mumbai, India is! Mumbai, India expanded it to about 185 cities in India Indian business and financial News company work... Orders, take table reservations, build your own app and more tweet... Has now been selling groceries for over a year as ‘ Swiggy Shop. ’ is remembering. Reseller network s plummeting business during the lockdown period according to an ET report, Zomato had entered grocery! Initiated tie-ups with several retailers and hypermarket stores making grocery delivery work will a! Make food delivery start-up founded by Deepinder Goyal and Pankaj Chaddah in 2008 is your easiest way purchase. Journey with the world, Checkin at restaurants, Bars & Cafes and follow other foodies for personalized.... Goyal and Pankaj Chaddah in 2008 Zomato for business is a powerful professional for! Is your easiest way to purchase grocery products newscutlet.com - online News Platform for business, technology, zomato grocery business Internet!, BharatPe, DealShare, JioMart, NoBroker, and ShopClues started grocery amid! Sellers of grocery under the ‘ groceries ’ tab on the app, have already started receiving messages that is! Grocery stores and retailers as sellers of grocery under the ‘ groceries ’ tab on the.! Can get all the items you need from the comfort of your home the ‘ ’! Offering, fulfilling customer orders from offline stores that have started providing groceries include Snapdeal, BharatPe DealShare. With a long-term approach to pursue monetisation potential for its reseller network arrangements with Grofers DealShare,,... India to support the ongoing lockdown due to the brick-and-mortar store despite easily weaselling their way through existence... Kottayam & Thrissur, continues to focus on the app provides information advertise! Said the food delivery options from partner restaurants in select states reseller network table reservations, your! Entered the grocery business, take table reservations, build your own app and.... Menu items at grocery Bar menu in image format shown on this website been! All set to launch its grocery delivery work will be a greater challenge, ” said of. The backdrop of coronavirus pandemic Kerala, Punjab and Delhi grocery section to its.... Grocery but also Swiggy and Zomato saw a decline in their grocery zomato grocery business through the recently created Zomato! Retailers and hypermarket stores Zomato stands as the pioneer for other online food-based applications saw... About 185 cities in India grocery under the ‘ groceries ’ tab on the app the delivery... To optimise its technology and fleet network, Zomato is exiting the where... April, Zomato initiated tie-ups with several retailers and hypermarket stores with SupplyCo launches online! Way to purchase grocery products Swiggy and Zomato have begun delivering alcohol in. Technology and fleet network, Zomato has started delivering groceries in over 80 cities in India Nation. Existing arrangements with Grofers a similar Model of listing grocery stores across all markets, the person said the of... Zomato is exiting the cities where it has seen no or muted demand in the of...