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Zomato to launch online food ordering business in India with $50 mn
12 Feb 2015

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.

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