Zomato, an Indian food delivery major reportedly expects its key meal delivery business to grow at an annual rate of 30 per cent over the next 5 years, a top executive stated, hailing the listing of SoftBank-backed peer Swiggy as a boost for the sector.
Zomato has been delivering everything- from groceries to food items within minutes have expanded rapidly in the world's most populous country, boosted by demand from the affluent and middle class in its large cities.
It was on Monday when Rakesh Ranjan, Zomato's food delivery CEO said, "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.”
Swiggy went public in November (2024), more than 3 years after Zomato hit the bourses — fetching a valuation of USD 12.1 billion.
In food delivery, Zomato has 58 per cent of the market, compared with Swiggy's 34 per cent share.
Zomato's food delivery business accounts for about 58 per cent of its topline with the gross order value — encompassing food price, platform fees and delivery charges — at 322.24 billion rupees (USD3.82 billion) last fiscal year, marking an average annual growth of 30 per cent over the last four years.
Ranjan expects the company to maintain that pace for the next four to five years, "if not more" as he eyes additional growth from the launch of new restaurants.
As of March, Zomato had roughly 247,000 average monthly active restaurant partners on its app, 18 per cent higher than a year earlier.
Zomato has also been rolling out new features, including scheduled delivery, the option to grab cancelled orders at discounted prices, and a large order fleet that supplies food for gatherings of up to 50 people.
However, "phenomenally high" attrition among delivery drivers is a challenge for the company, which is offering more benefits and flexibility to onboard more gig workers.
(USD 1 = INR 84.3490)
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Reported by Reuters
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