A service that has seen a surge in demand today is app-based food delivery platforms. Though they were a growing industry before the pandemic, the companies were also suffering significant losses all around the world despite still gaining a lot of users. However, Covid-19 has changed this to an extent and has provided a direction for the future.
Zomato – Making the most of the growing demand
Zomato, India’s leading FoodTech platform has definitely benefitted from the pandemic as far as business growth is concerned. According to their annual reports, they have seen 105% growth in revenue in 2020. The costs have also increased, but only 47%, which is small in comparison. The overall growth of the business has allowed them to reduce their EBITDA losses significantly, boosting their journey to profitability.
The global lockdown of civilians has caused an incredible surge in the number of people using these apps. Simultaneously, traditional restaurants and eateries closing down also mean that these stores have to shift their presence online.
This fostered the perfect environment for Zomato to capture a higher market share, and hence augment their earnings substantially. The shift of restaurants to the virtual world has now made it almost a necessity for business owners to use these apps as well. The current ecosystem in the food industry favours Zomato as well as other apps.
Zomato – Offering New ways to order online
Rather than the traditional method of getting food delivered at home, Zomato has added new and innovative features that will grant its users a better experience. Two such features are contactless delivery as well as contactless dining.
In the face of the Pandemic, Zomato is taking steps to ensure that users can have their food reach them safely. For this, all its staff are now trained to conduct contactless deliveries, making them a safe and attractive option.
A step further is contactless dining, which is a new initiative launched by the company for their premium ‘Zomato Pro’ users. Dining Out features were a part of Zomato Pro(fka Zomato ‘Gold’), and has been hit hard during Covid-19. To combat this, Zomato has launched a program in select cities where people can visit restaurants and eat while following a contactless, safe Covid-19 protocol.
Acquiring Uber Eats
Zomato has also made a power move in the Indian market by acquiring Uber Eats in India. This is huge for the company as this will raise their market share and allow them to compete with their rival, Swiggy, in certain parts of India.
The pandemic has completely turned the tide for them, especially for Zomato. They have managed to capitalize on the situation, pushing themselves faster and further beyond the competition. The future of this is uncertain, but Zomato’s market share has certainly increased, and it’s likely to be a mainstay even after the pandemic.