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Zomato introduces online ordering in Delhi; restaurants with better ratings to pay less commission

food order (1)

Restaurant aggregator Zomato has started its food delivery service in Delhi NCR with Mumbai, Bangalore in the offing along with more cities. (Hat tip: Manish Malik) Zomato had been planning to launch the service in March, Deepinder Goyal, chief executive and founder of Zomato, had said in a Reddit Ask Me Anything.

No need to call, click to order

Zomato has issued an app update for iOS and Android with a new interface (fewer clicks, Zomato claims), Apple Watch support (because, y’know) along with online food ordering. The company plans to introduce it on the Windows Phone in the future. Users need to click on the “+” on the home screen to order online, and there’s no need to call for the same. On clicking “+”, the user will see a host of restaurants which take orders online and can be filtered by the “nearby” filter.

After ordering food, users can pay and track through the app. NextBigWhat reports that Zomato does not confirm the order itself but has given its partner restaurants iPads which have the Zomato app built in. This acts as Zomato’s direct line with restaurants which need order confirmation.

Zomato’s Pay with Cashless system 

Interestingly, the new update also includes Cashless, an online product payment active in Dubai which was meant to launch in India this month. With Cashless, a user can open a tab by visiting the Cashless-integrated restaurant’s page on the Zomato app and tapping on “Pay with Zomato Cashless”. The bill would be settled using the user’s credit card. This feature was available only through the iOS app until last week but now supports the Android app as well.

Zomato’s commission based on user rating

The food delivery service also makes rating the restaurant post delivery compulsory. In case the user misses rating, the app prompts users to rate the restaurant before placing their next order. This rating is displayed on Zomato’s restaurant rating on the app. Zomato will charge the restaurant a commission of 7.5% per processed order for a 5 star rating whereas 1 star rating restaurants will be charged 15% per order.

MaplePOS acquisition

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Last week, Zomato acquired cloud-based restaurant point-of-sale (POS) product MaplePOS for an undisclosed amount. The company will work on integrating MaplePOS’s services with Zomato over the next few months, after which the service will be available to restaurant businesses from September. Zomato, which has a presence in 22 countries, has already renamed MaplePOS to Zomato Base.

In the same week, competitor foodpanda also launched a food home delivery service in 5 cities – Bangalore, Delhi, Hyderabad, Mumbai and Pune. The company plans to expand the service to 7 other cities over the next 3-6 months, although it did not name specific cities. Foodpanda CEO Saurabh Kochhar, who was hired last month, claimed that 20% of the orders received by them in these 5 cities opted for the delivery service already.

Earlier this month, Zomato raised $50 million in a fresh round of funding from InfoEdge and other investors. Of this, InfoEdge invested an amount Rs 1.55 billion (~$24.8 million), while the rest was invested by undisclosed investors. Before this, in November last year, it raised $60 million (around Rs 370 crore) co-led by new investor Vy Capital and existing investor Info Edge with participation from Sequoia Capital.

Image Credit: Flickr user California Bakery

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Written By

I'm a MediaNama alumna from 2015-16 (remember TinyOwl?) now back to cover e-services like food and grocery delivery, app based transport and policies, platforms and media in India.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



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