On-demand rickshaw aggregator and delivery company Jugnoo will now deliver food from nearby restaurants with its newly launched ‘Menus’ service after initially entering the food delivery space with the launch of ‘Fatafat’ service in August last year. The new service is currently live in Noida, Gurgaon, Indore, Chandigarh and Jaipur; Jugnoo plans to launch Menus across all Jugnoo locations in India in coming months.
‘Fatafat’ was a meal and tiffin service which did not aggregate restaurants but rather included food items sourced from undisclosed brands. The newly launched ‘Jugnoo Menus’ will aggregate restaurants and outlets including Burger King, Pizza Hut, Subway, Baskin Robins, Super Donut, Burger point, Rolla costa, Copper Chimney, Marky Momos, Dhaba.com among others. Food will be delivered via Jugnoo’s existing network of autorickshaw drivers and claims to ensure “quick and convenient delivery”.
Apart from food-delivery, Jugnoo also provides grocery delivery service called “Grocery” in Ocotber last year which is currently live in Chandigarh through tie ups with local wholesalers. Grocery was introduced after Jugnoo launched a fruits and vegetables delivery service called Fresh in the same year .
On why Jugnoo is branching out to food delivery
While launching Fatafat last year, the company mentioned that the logic behind the move was for ensuring profitability of its hyperlocal delivery business category’. Drivers have a “lucrative role” in every delivery service of its including Fatafat and Dodo deliveries; and by branching out to food-delivery the company claims that it is trying to ‘allocate logistics resources optimally’.
Ola had tried food delivery and shut down within a year
Jugnoo’s competitor Ola had earlier debuted its food delivery service called OlaCafe in March 2015. Users could order food from nearby restaurants using the Ola app. It was available in parts of Bangalore, Hyderabad, Delhi and Mumbai and users could pay either via Ola money or through cash. By March 2016, Ola shut down the app; a Livemint report stated that OlaCafe ‘failed to meet expectations’ after it faced competition from other food delivery services like Zomato, Swiggy, and Tinyown, according to sources that spoke to the publication.