Zomato Online Food Discovering Platform all set for delivering its own
Zomato Online Food Discovering platform all set with a new delivering food plan. It starts with a small set of restaurants. This statement is given by the top investor in a call with analysts.
Some Information about this Self-Fulfilled Food Delivery Platform:
This food delivery platform planned this self-fulfilled delivering food to catch up Bengaluru- based rival swiggy which is leading in the online food delivery industry by good volume. Tiis company earlier said about the swiggy self-fulfilled delivery of food business that “profitable unit economics of a self-fulfilled delivery model, followed by Swiggy , is not viable.”.
In June 2016 Zomato reported about its business. Zomato said 80% profit of the business is fulfilled by the restaurants and rest 20% is from their logistic partners such as Delhivery and Grab.
The company said that the per order profit from restaurants is 21 rs and the logistic partners gives 11.9 rs per order. A loss of 9.1 rs per delivery the Zomato has to pay while delivery given by the logistic partners.
Mr.Sanjeev Bikhchandani, executive vice chairman, Info Edge, which owns close to 47% stake in Zomato said “Zomato is evaluating online deliveries (that it can fulfil) on its own, but it will be done mainly for a small segment of restaurants”.
Zomato also equally focused on the growth of the high margin advertising business this financial year with the food delivering business till the end of this financial year march 2017.
Last year Zomato redesigned the advertisement products. The new COO of the company Mr. Deepak Gulati is expected to drive this advertisement sales business for FY18.
According to the earlier blog post of zomato advertisement business, which grew by 58% to $38 million in FY17, still accounted for a lion’s share of revenues as compared to the food-delivery business, which grew 8 times to $9 million.
“In FY17, the online ordering business grew faster than the advertising sales business but in FY18 the focus will be equally levied on both,” said Bikhchandani.