Coronavirus: Zomato expands hyperlocal delivery service 'Zomato Market' to Bengaluru and Mumbai
In the first week of April, the Gurugram-based foodtech unicorn Zomato entered the hyperlocal grocery delivery space with Zomato Market. The service on doorstep delivery of groceries started across Delhi, Punjab, and Kerala.
Now, the same has expanded to Bengaluru and Mumbai. With the nation under a 21-day lockdown to curb the spread of the coronavirus pandemic, the demand for essential service delivery has shot up. Looking to serve the demand, Zomato has launched Zomato Market, its hyperlocal grocery delivery service.
The updated Zomato app lists a few of the neighbouring stores that stock groceries and essentials. Since the lockdown, every delivery player has been focused on supplying essentials. Even the pizza chain Dominos has ventured into delivery of groceries and essentials.
However, supply is still a challenge. The supply chain works from production to consumption. These have different facets – from the farmers to the mandis to mills to wholesalers, and finally, to the retailers. With the lockdown in place, several parts of this chain have snapped.
Zomato also isn’t the first to foray into the segment. Bengaluru-based hyperlocal delivery player Dunzo has been doing the same for four years now. Last year, Swiggy forayed into hyperlocal delivery and since then has significantly ramped up its services.
The previous two weeks saw a massive 70-80 percent increase in the number of orders, with order size increasing substantially by 15-20 percent. FMCG and staples are some of the most popular products ordered online.
But while the demand for groceries online is increasing, the demand for online food delivery has dropped significantly. Food delivery as a service has seen a 10-20 percent drop from the second week of March, according to a RedSeer report. This is primarily because restaurants, main points of social gathering, have been shut.
Also, another challenge most delivery platforms are facing is the dearth of delivery executives. While BigBasket, and Swiggy, are aggressively hiring delivery partners, few are willing to go on the streets. With the government in different states providing 'passes' to ease their movement, many delivery executives are still fearful and worried about their safety and health.
Edited by Kanishk Singh