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News In Brief Business and Economy

Zomato Launches 'District' App for Android and iPhone Users

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Zomato Launches 'District' App for Android and iPhone Users
18 Nov 2024
6 min read

News Synopsis

Zomato, a leading foodtech company, has officially launched its ‘District’ app for both Android and iOS platforms. This app is designed to serve Zomato’s growing ‘going-out’ business, marking a significant step in its expansion into the entertainment and dining space. This launch comes more than three months after the initial announcement, with the company positioning this as a key component of its B2C strategy. The ‘District’ app aims to establish itself as the third-largest business vertical for Zomato after food delivery and quick commerce.

Features of the 'District' App

The ‘District’ app is intended to offer a wide range of services for users looking to plan their social outings. The app allows customers to easily discover and reserve tables at restaurants, as well as book tickets for various entertainment events, including movies, sports, live performances, and more. This multi-purpose platform is designed to integrate dining and entertainment, giving users the ability to make reservations and event bookings in one place.

Zomato has not provided detailed comments on the rollout of the app yet, as the company’s representatives are currently reviewing responses, with an update expected in due course.

Zomato's Strategic Focus on Going Out Business

The launch of the ‘District’ app is part of Zomato’s broader strategy to build out its ‘going out’ segment. The company has indicated that it aims to make this new segment its third-largest B2C business. According to Zomato’s CEO, Deepinder Goyal, the dining out business, which is profitable and growing, is already operating at a run-rate of over $500 million in annualized gross order value. This expansion into entertainment and dining reservations highlights Zomato’s ambition to diversify its revenue streams beyond food delivery.

New Features to Stay Ahead of Competitors

Zomato’s introduction of the ‘District’ app comes on the heels of several new feature launches aimed at keeping the platform ahead of competitors in the crowded foodtech and tech-enabled service market. Recently, Zomato rolled out a feature called ‘Book Now, Sell Anytime,’ which allows users to buy event tickets in advance and resell them within the app in case they are unable to attend. This flexibility provides users with more control over their purchases and adds value to the platform.

Additionally, Zomato introduced the ‘Food Rescue’ feature, designed to reduce food wastage. This feature enables users to purchase canceled food orders from nearby areas, providing a cost-effective way for consumers to buy food while helping reduce food waste in the process.

Zomato's Financial Growth and Profitability

Zomato’s continued push into new features and business areas is supported by the strong growth seen in its quick commerce business, Blinkit. The company’s quick commerce segment has contributed significantly to its financial success. In the latest financial report, Zomato’s net profit surged 389%, reaching INR 176 crore in Q2 FY25, compared to INR 36 crore in the same quarter of the previous year. The company’s operating revenue also saw a robust 68.5% increase, rising to INR 4,799 crore in Q2 FY25 from INR 2,848 crore in Q2 FY24.

Conclusion

Zomato’s introduction of the ‘District’ app represents the company’s efforts to evolve beyond its traditional food delivery model by expanding into the entertainment and dining space. With strong growth in Blinkit and the launch of innovative new features, Zomato is positioning itself to maintain a competitive edge in the rapidly changing foodtech and digital service industries.