Zomato has become one of India’s most popular food delivery app in a short period of time. What started as a platform for just displaying the menu items of restaurants has transformed into a complete app for foodies. In addition to this, Zomato appears to have silently built a new line of business in which restaurants can easily contact their suppliers.
In August 2018, Zomato acquired Bangalore-based company WOTO, which used to collect farm produce and sell it to restaurants. Since then, Zomato rebranded its service as HyperPure and is experiencing a good progress.
With HyperPure, Zomato runs large warehouses, where it directly receives food material directly from farmers. The produce is sorted, packed, inspected for quality, and delivered to restaurants. HyperPure delivers fruits, vegetables, groceries, poultry, milk products, and even packaging material to restaurants. It currently provides services to 300 restaurants in Bangalore, and Zomato says it has a monthly business of Rs. 35 crore.
It’s not something food delivery companies have traditionally done and such steps are making Zomato try new strategies in their main business also.
Talking about the problems restaurants face, WOTO founder Dhruv Sawhney had once said :
“Sourcing is an operational nightmare for restaurants. Restaurants spend disproportionate amounts of time in determining the quantities and qualities of the ingredients they buy and must guard against wastage and pilferage. HyperPure helps restaurants streamline their supply chains, and fix prices for the whole month. Zomato also brings in some of its tech nous. We even forecast demand for restaurants using machine learning. This eliminates the need for overstocking,”
in an interview with Forbes magazine.
For Zomato, it seems to be a part of a bigger plan as depending food delivery alone isn’t sustainable looking at the competition. “We are trying to transform Zomato into a foods company, much like a farm-to-fork model. The goal is to have fresh and clean food for all,” Zomato CEO Deepinder Goyal had once said.
We believe, it is a smart strategy as relates to Zomato’s core business model and this will make more restaurants to choose Zomato as getting ingredients will support them in serving quality food. Also, having certification on Zomato’s site invites health-conscious customers which are increasing in numbers.
What are your thoughts on this? Do let us know in the comments.