Indian Zomato looks back at grocery delivery
In today’s digital food delivery market, restaurant and grocery categories work together. Ahead of its initial public offering (IPO) on July 14, senior executives at the India-based restaurant delivery service Zomato, which operates in nine countries on three continents, revealed during a press briefing Thursday, July 8 that the company plans to return to grocery delivery on a more permanent basis, after a brief stint in the grocery store under the name by Zomato Market launched in April 2020.
“The grocery store is a great opportunity, and it’s in its infancy right now, but it’s growing rapidly,” Zomato CFO Akshant Goyal said at the briefing, mint reports. “We think our platform lends itself well for us to do more than what we are doing today.”
News of Zomato’s grocery store intentions comes as queues all over the world get blurred. In the USA, DoorDash recently announced a major partnership with a grocery chain Albertson Enterprises to use the restaurant delivery service driver network to process grocery orders within the hour, a move that calls into question Instacart’s hold over third-party grocery delivery. In the United Kingdom, the meal delivery service Deliveroo delivers groceries from several of the country’s largest supermarket and convenience chains, and a delivery service based in the Netherlands Just eat take out.com recently extended its meal delivery service in Germany to the grocery category. For Zomato, the transition to grocery shopping outside of quarantine begins not internally but thanks to its investments.
“We are actively experimenting in the [grocery] space, and recently invested $ 100 million for a minority stake in [India-based online grocer] Grofers, with the idea of being more exposed to this space and building our own strategies, ”said Goyal.
It probably won’t be a global effort. The company revealed in its April prospectus that despite its presence in 23 countries, it has “taken a conscious strategic call to focus solely on the Indian market in the future”.
As companies that primarily offered ready meals enter grocery stores, grocery stores are also offering more ready-made meal options, combining categories into a single connected pillar. Take, for example, the Midwestern supermarket chain Hy-Vee‘s Mealtime To Go curbside or giant grocery store pickup service Kroger‘s Home chef ready meals. Meanwhile, many restaurants have, since the start of the pandemic, branched out into selling ready-to-cook meal kits and packaged foods, moving further into the grocery store space.
“Take eat – a pillar that reflects the blurring of the lines between the verticals that people use to buy, prepare and consume their food,” Karen Webster wrote in a recent article on Consumer Behavior in the Connected Economy. today. “Eat is a new ecosystem that reflects the way businesses and individuals use connected devices, apps, payments, and other technologies to meet a consumer’s very basic need for and consume food. “
While groceries once made up the vast majority of food consumed in the home, the boom in restaurant delivery has also helped make the two categories more similar. The PYMNTS study, The Bring-It-To-Me Economy: How Online Marketplaces And Aggregators Drive Omnichannel Commerce, created in collaboration with Carat through Fiserv, finds that two-thirds of consumers now order restaurant meals to eat at home, and restaurant patrons are 31% more likely to order for consumption off-premises than on-site. By noting the link between consumers’ eating habits and their eating habits, Zomato has a chance to become a key part of the overall food category.