“The shortage of delivery fleet and the intense heatwave in the North, which has also led to a limited workforce in deliveries, are causing delivery delays of 15-20 minutes, unlike the 10-minute commitment offered by Zomato Instant”Said one of the aforementioned people. “Also, Instant doesn’t have a separate delivery team yet.”
On the app, Zomato Instant displays an average delivery time of 15-20 minutes. The company said the plan, launched in April, is working as planned.
“The 10-minute delivery pilot in Gurgaon’s limited locations is on track. The pilot was intended to identify a consumer demand for quick trade and we succeeded, “a Zomato spokesperson said.” The future course for the pilot is to deepen our penetration in Gurgaon before extending it to other cities and develop a model that works best for our restaurants and delivery partners. ”
According to a person in discussion with the company, Zomato Instant was close to launching services in Bengaluru this month, but the plan has been suspended. The person was told by a senior company executive that the instant process had been added to the ongoing investigation by the Competition Commission of India (CCI) of Zomato and his colleagues. This is part of the Antitrust investigation into online food delivery operators on platform neutrality and data masking.
Discover the stories of your interest
Launch in Bangalore pending
“They were about to start Zomato Instant in Bengaluru, but the CCI came on the scene and, in addition to Gurgaon, they had to suspend plans to expand it to other cities,” said the aforementioned person.
The Gurgaon pilot is limited, with brands like Chaayos, Dana Choga, and Caterspoint signing up for delivery in 10 minutes. Zomato said fast service involves mini ‘kitchen workstations‘within the neighborhood clusters.
Zomato Instant’s launch and focus on 10-minute delivery was to kickstart ultra-fast food delivery, the folks quoted above said. However, the company could settle for a longer time frame eventually, these folks said.
The instant plan was thwarted by several restaurant chains.
“It has to be closer to 10-20 minutes of prep and delivery each… that’s the minimum. It is simply impossible to do the whole process in 10 minutes. It will settle on a sustainable number in terms of cooking, paying the bellhops and probably charging a premium for ultra-fast delivery, ”an executive said.
The CEO of a large fast-service restaurant chain said, “Unlike groceries, which are prepackaged, the dynamics of fresh food delivery are very different. by restaurants and consumers “.
Another food executive said the company is bullish on ultrafast supply and will constantly expand it.
Zomato Instant has faced challenges such as the migration of motorcyclists to grocery delivery startups for fast commerce and a shortage of delivery personnel.
ET reported May 11 that Zomato, Swiggy and Zepto, among others, were seeing delivery times lengthening as workers battled rising fuel prices and returned to pre-pandemic jobs aside from demand pressure from multiple ultra-fast delivery startups.
After being pushed back against Zomato Instant, partner of the restaurant they are also wary of delivering food within 10 minutes. “Customers will lose confidence when they get their food in 10 minutes. They have doubts about the freshness of the product, “said one person who was approached to participate in the pilot.
Zomato charges a commission of 18-25% per order for deliveries depending on the agreement with the partner restaurants in the market.
ET reported on April 22 that the company is exploring various commercial deals for Zomato Instant, including buying a predetermined wholesale amount from restaurant partners and selling it to consumers for a markup. This will allow the aggregator to acquire a larger chunk of the commission, a source added.