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Zomato gets 21M food delivery orders every month: Deepinder Goyal


We missed this earlier.

Zomato said that it is now doing 21 million monthly food orders in India, Deepinder Goyal, Zomato’s co-founder and CEO said in a blog post in the first week of October. It is also getting an additional 2 million orders over the phone, which Goyal discounted off of the monthly number.

According to the company, the following has taken place in the last 9 months (Jan to Sep 2018)

  • Presence increased from 15 cities to 38
  • Annualised GMV increased from $210 million to $1 billion
  • Total orders (phone excluded) increased from 3.5 million monthly to 21 million monthly
  • 26% orders delivered through Zomato Logistics increased to 86% ordered delivered through Logistics
  • 5,400 riders increased to 74,000 riders (9 out of 10 orders are delivered by Zomato, up from 3 out of 10 in January)
  • Zomato was adding 197,000 new monthly users in January, and now adds 2.4 million new monthly users (It is unclear if these are only for the platform or food delivery or both)
  • Its average delivery time has reduced from 39 minutes to 33 minutes
  • Online food ordering revenues have increased from 35% to 65% of overall revenues
  • The number of (listed?) restaurants (offering food delivery) has increased from 28,000 to 54,000

Goyal credits Zomato’s acquisition of Runnr, which had itself acquired TinyOwl (remember TinyOwl, anyone?) with respect to increased Zomato deliveries.

Its worth looking at Runnr’s past:

  • In 2016, after Runnr acquired TinyOwl, it pivoted from logistics into B2C food delivery.
  • In the same year, food delivery accounted for 80% of Runnr’s orders, which was then handling 12,000-15,000 orders daily.
  • Runnr had then counted KFC, McDonald’s, Myntra, Pizza Hut, Snapdeal, the now defunct PepperTap, Faasos, Xiaomi, GrabEat and others as clients.

Will last mile delivery ever be profitable?

  • In the same year, ie 2016, Goyal had prophesied (incorrectly nonetheless) that its competitors had about 6-9 months left looking at the way they were operating. “Making last mile logistics in the food space work is very very hard,” he said then.
  • In July 2017, he said, “we don’t think that doing food delivery only for a logistics business is a sustainable or profitable option … we will continue our hybrid delivery model. We believe this approach solves for both a) providing large number of choices to consumers and b) having a sustainable and profitable business model…”.

Also read from 2016: Zomato’s unit economics for food delivery in India – Deepinder Goyal, Zomato

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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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