Zomato's Grocery Delivery Service Is Going To Be Discontinued

Latest Update- 03/01/2023

According to people who have knowledge of the developments Zomato has officially launched the integration of food and grocery delivery fleets in selected areas of Delhi-NCR, Lucknow, Jaipur, Chennai, and a few other cities. This approach has the potential to save delivery costs as much as 40% over time.

While Zomato and its fast commerce partner Blinkit still have different delivery partner applications a third rider app has been developed where delivery professionals may join up to handle both food and shopping orders.

In a $570 million deal last month, Zomato completed the acquisition of Blinkit. Since then the grocery delivery option has also been added to the meal delivery app's consumer app.

The impact of the fleet integration is being tested. According to a source who wished to remain anonymous the objective is to boost the workload for delivery drivers in order to increase their pay.

There are times of the day when fewer orders for food delivery are placed. If they so want the riders will be able to accept supermarket orders during certain hours thanks to the new technology he continued.

Delivery partners have been going to push back at Zomato and its main partner Swiggy for slowly reducing the number of incentives and lower payouts for each order. Riders have also gone on strike several times in places like Bengaluru, Hyderabad, Delhi, Noida, and Patna in protest of compensation.

Akshant Goyal, the chief financial officer of Zomato, had stated that the two businesses would pool delivery fleets to some extent at the time of the Blinkit deal announcement.

Last Updated- 14/09/2021

Zomato's Grocery Delivery service will be discontinued. The service was only offered in a few places and delivered within 45 minutes. Due to a lack of order fulfillment, poor customer experience, and growing competition from rivals Swiggy, Jio Mart, Bigbasket, and Dunzo, who deliver goods in 15 minutes. The food delivery platform Zomato has officially suspended its grocery delivery business. 

Zomato began offering food delivery services using a marketplace approach in July, allowing users to purchase from their local retailers. Swiggy and Dunzo, on the other hand, operate on a different business strategy, creating specialized dark shops and then delivering items within 15-20 minutes. According to reports, Zomato had told its grocery partners that the service had been discontinued owing to modest success. The email says that shop catalogs are constantly changing and inventory levels fluctuate. This has resulted in order fulfillment gaps, resulting in a negative customer experience. In the same time frame, the express delivery model, which promises delivery in under 15 minutes and has near-perfect fulfillment rates, has gained a lot of momentum with clients and is fast increasing, according to the company's email. Zomato had previously announced that it has invested USD 100 million in Grofers, a food delivery company.