Top News

Zomato to launch online food ordering business in India with $50 mn

Online restaurant search and discovery
service Zomato will reportedly start taking orders for meals on behalf of
restaurants listed on its portal, reports the
Economic
Times.

Online restaurant search and discovery
service Zomato will reportedly start taking orders for meals on behalf of
restaurants listed on its portal, reports the
Economic
Times.

“We are allocating $50 million to
launch the online food ordering business,” Deepinder Goyal, Founder & CEO, Zomato
told the Economic Times.”The service will also be launched overseas in the next
few months.” 

According to the report, in India, the service is timed to coincide with the start of
the Cricket World Cup will cover 2,000 restaurants in March and extend to10,000
restaurants in the next six months. Users
will now be able to select dishes, see their movement from the kitchen to their
table and pay with one click using a mobile app. Goyal expects to launch
similar services in Dubai, Manila, Jakarta and Sydney soon after the Indian
launch. 

In the past year, Zomato has acquired seven
companies. In January 2015, the company acquired Urbanspoon for an
estimated $60 million in an all-cash deal. Last week, FoodPanda acquired Just
Eat India
which serves orders for about 12,000 restaurants. This week, it acquired
UAE-based
food takeway portal 24h.ae for an
undisclosed sum, with a total of seven acquisitions it is now the largest
take-away ordering service in Asia. 

According to the report, Zomato which
currently earns revenue through advertisements expects to clock revenue of Rs 100
crore this fiscal. With the new food ordering business — through which it will
charge restaurants commissions ranging from 7.5% to 15% based upon the rating
of the eatery — it will gain a new stream of income. Goyal said in the report
that the company’s revenues are likely to be more than double next fiscal with
this new business

Post a series
of acquisitions
in the global market, Zomato has now decided to shift its focus
on integrating the operations of the newly acquired companies.

Talking about
how integrating different websites and apps is a challenging exercise, Deepinder
Goyal, Founder & CEO, Zomato said in the company’s official blog, “In the
Czech Republic, and Poland, language was one of the biggest. With Urbanspoon,
it’s the sheer scale of the information and the number of users we’re going to
be moving to Zomato. While pondering the smoothest way to go about this, we
were also giving some serious thought to how our two brands come together,
because that plays a huge role in the success of product integration.”

Urbanspoon is
one of the most recognized consumer internet brands in the United States,
Canada, and Australia. Goyal added, “By the time we merge the Urbanspoon
website and apps into Zomato by March this year, two-thirds of our overall
traffic will be coming from just these three countries. It’s important to us
that we don’t lose a lot of Urbanspoon users by giving them a new name, a new
logo, and a new product.”

Zomato has
decided to make this transition as smooth as possible by modifying its logo,
just four months after the launch of its heart
logo
, to that of Urbanspoon’s Spoon logo. Zomato will now be using the Spoon
in Zomato red while retaining its brand name.

“We want to make
sure that when we update the Urbanspoon app for millions of users, we don’t
give them a new name and a new icon. Doing that could make it look like they
installed the Zomato app by mistake, potentially leading to a large number of
uninstalls,” said Goyal.

This is the first
step of the migration, and users will now gradually see this new logo appearing
in the upcoming Urbanspoon and Zomato app updates, as well as in other places
online and offline.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close