Zomato to deliver food in just 10 minutes: Here's how
What's the story
Zomato founder-CEO Deepinder Goyal on Monday announced the company will launch a 10-minute delivery service called Zomato Instant in India soon. The project will initially launch in Gurugram, where the brand will set up "a dense finishing stations' network" close to high-demand customer neighborhoods. But how will Zomato achieve this? Will your food items get costlier? Here, we answer all these questions and more.
Context
Why does this story matter?
In today's fast-paced world, consumers are used to instant gratification and do not like to wait. Hence, it is important that they have access to a service that delivers goods in a jiffy. Also, the e-commerce sector is highly competitive, and constant innovation is the only way to survive. And, Zomato Instant aims to fulfill the needs of the customers and the company alike.
Going hyperlocal
How will Zomato deliver food in 10 minutes?
The idea of delivering items in 10 minutes is not new. We have already seen grocery deliveries in 10 minutes from companies like Zepto and Blinkit. Zomato is doing the same with food delivery. In high-demand neighborhoods, the company will ready "finishing stations" with 20-30 bestselling dishes from various restaurants based on hyperlocal preferences. This will save preparation time and allow for quicker deliveries.
Concerns
Will customers pay more for faster deliveries?
According to Goyal, the Zomato Instant project is being built on principles such as affordability, proper hygiene practices, and delivery partner safety. "Due to demand predictability at a hyperlocal level, we expect that the price for the customer will get significantly reduced" but the absolute margin/income for restaurant partners and delivery partners will remain the same. So, in short, faster deliveries won't cost more.
Goals
Why is Zomato starting this project?
As per Zomato, sorting restaurants by the fastest delivery times is one of the most used features by customers. Goyal also thinks the "30-minute average delivery time by Zomato is too slow, and will soon have to become obsolete. If we don't make it obsolete, someone else will." To note, Zomato Instant will take off in April with four stations across Gurugram.
Core differences
What's the difference between 10-minute and 30-minute deliveries?
Under the Zomato Instant project, the kitchen preparation time will be around 2-4 minutes, while delivery partners will take 3-6 minutes (at an average speed of 20km/h) to travel around 1-2km. On the other hand, the 30-minute delivery entails around 15-20 minutes of kitchen preparation and 15-20 minutes of travel by the delivery partner. They make a journey of approximately 5-7km.
Results
What will be the impact on customers and delivery partners?
The company said if the Zomato Instant project proves to be successful, food items will become much more affordable (the cost to the end consumer would be reduced by at least 50%). Also, the average delivery time will go down from 30 minutes to less than 10 minutes. Finally, thanks to its influence over the supply chain, the quality of products will go up.