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Zomato doubled its revenue to $394 million in 2019-20 (MAR)
Zomato doubled its revenue to $394 million in 2019-20 (MAR)

Zomato won’t charge eateries for takeaway

  • Zomato said that the gross merchandise value (GMV) run rate of food orders on its platform was 110% of pre-covid levels

Zomato has decided not to charge commission and forgo payment gateway fees for takeaway orders, to help partner restaurants increase revenue amid crisis. In 2018, the food delivery unicorn had introduced takeaway services, under which a customer could place orders on its platform, pay online, and collect the food directly from the restaurants.

Zomato on Wednesday also said that the gross merchandise value (GMV) run rate of food orders on its platform was 110% of pre-covid levels.

At present, more than 55,000 restaurants were live on its takeaway platform, serving “tens of thousands" of orders on a weekly basis, Zomato founder and chief executive officer Deepinder Goyal said in a Twitter post. “To help the restaurant sector, we will forgo payment gateway charges incurred on all such orders. We have already seen a more than 200% increase in takeaway order volume in the last few months. We encourage our customers to wear masks and practice social distancing while picking up their orders," Goyal said in a series of tweets.

Zomato said it has delivered more than 130 million orders since the lockdown was imposed in March.

“While the above signs have been more than encouraging, we know that this growth has not been uniform and the overall food service industry is still far from full recovery. The sector will continue to need all the help to get back to pre-covid levels," Zomato said in a blog.

For restaurants that have started delivery services, takeaway provides another avenue to access more customers and increase their business.

In October, Goyal tweeted that food delivery volumes in India reached pre-covid peaks, with Zomato servicing close to 92 million orders since 23 March. The company said it expects food delivery to grow at 15% month-on-month.

Rival Swiggy said its pan-India food delivery volumes have recovered by almost 85%in October with more than 100 million deliveries facilitated since the lockdown was eased as it on-boards 7,000 new restaurants every month.

Last month, Mint had reported that smaller towns and cities in India were aiding recovery for the food delivery sector, with remote working arrangements allowing professionals to head home from metros.

Food volumes and GMV for smaller towns and satellite metro cities, such as Kochi, Lucknow, Visakhapatnam, Mysuru, and Guwahati, have doubled because of reverse migration, with some cities performing at 150% of pre-covid levels, Swiggy said.

Metros, however, saw an impact in value terms because of the exodus with Bengaluru and Chennai reaching only 80% of pre-covid GMV levels, Swiggy said.

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