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Everything about Zomato’s 10-minute food delivery business model

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Zomato’s new service” Zomato Instant” has raised the bar for customer satisfaction in the quick commerce space. As stated by Zomato- it’s not a service, it’s a campaign. The news has garnered a lot of attention as the company will be the first one globally to launch a service such as this.

As quoted by Zomato’s co-founder in a blog post “After becoming a frequent customer of Blinkit (one of Zomato’s investments in the quick commerce space), I started feeling that the 30-minute average delivery time by Zomato is too slow, and will soon have to become obsolete. If we don’t make it obsolete, someone else will”.

Change in business model from 30-minute delivery to 10-minute delivery

To make a mark in this quick commerce category, Zomato has come up with a new business model to make this implausible transition from 30-minute delivery to 10-minute delivery, a success. 

First of all, let’s understand the working of a 30-min food delivery model. 

The model is primarily divided into four sections as given below, along with time bifurcations for each section to make 30 min delivery possible.

  • Confirmation of food order – 30-40 Seconds
  • Food Preparation time – 7-12 minutes
  • Assigning order to delivery partner/ pick up time – 0-3 minutes
  • Food delivery time( within a 3 Km radius) – 15-20 min

Zomato has cut short the time from 30 minutes to 10 minutes with 3 step optimization as given below.

  • Food Preparation time – Reduced to 3 min – Owing to a curated menu.
  • Pick up time by delivery partner- Reduced to 30 seconds
  • Food delivery Time – Reduced to 3 minutes – within a delivery radius of 1.5 km

This instant gratification is a result of a lot of innovation. Deepinder Goel, the CEO of Zomato, stated, “Innovating and leading from the front is the only way to survive in the tech industry, and here we are with our 10-minute food delivery offering”.

He further stated “We deeply care about how we do what we do. So the first thing we told ourselves when we thought about instant food delivery was “no compromises”. We narrowed down to eight principles around which we are building Zomato Instant”

Furthermore, he elaborated on the principles being:  

  • The food should be affordable, almost as home-cooked meals.
  • Ingredients should be fresh. 
  • Leading hygiene practices
  • Minimizing the use of plastic packaging
  • Convenience for faster consumption 
  • The supply chain will be traceable
  • The safety of the delivery partners is a top priority. 
  • Collaboration with Restaurants“

Customer concerns and probable solutions by Zomato

This launch has come up with a lot of questions from the customer’s end. The concerns are related to the time of delivery, its impact on the quality of the food delivered, and the safety of the delivery partners. 

In a world where 30-minute food delivery has been a challenge owing to the variables associated with the food delivery business, 10 min delivery seems nearly impossible. It is natural for a customer to be apprehensive of such a proposition. 

Following are the major concerns raised by customers. Deepinder Goel has come up with answers in the first go, anticipating the apprehension for this service.

ConcernsSolutions by Zomato
One of the major concerns of customers is the safety of the delivery fleet. In order to meet the 10 min delivery time, the delivery riders will be under a lot of pressure. This can be a major cause of many road accidents.Zomato assures the 10 min delivery plan will be executed taking into consideration the safety of the delivery personnel. As per the CEO of Zomato, the delivery fleet shall not be informed about the promised delivery time, hence they will carry no pressure to deliver within the promised time window. To make it more feasible the delivery radius is reduced to 1.5 km in place of 3 km in case of 30 min delivery. Further, the company will not incentivize fast deliveries, nor will penalize late deliveries.
Another major concern shared by the customers is the quality and freshness of the food. 10 minutes is a very short span for a food item to be cooked and delivered.Zomato instant will be working in the footsteps of 10 min delivery followed by grocery delivery companies like Blinkit and Dunzo. Deepinder Goel shared that the quality, hygiene, packaging, and safety of the delivery partners will not be compromised. He listed a few popular and standardized items that the company expects, can be delivered in 10 minutes window. “Bread Omelette, Poha, Coffee, Chai, Biryani, Momos, etc,” are a few examples of the instant food items that will be available for 10 min delivery.

Zomato has come up with convincing statements and solutions to the concerns raised by customers or their competitors. Seems like Zomato has given multi-dimensional thought to making this instant delivery possible, without compromising the quality of food or optimizing the delivery time on roads. 

Conclusion

The future of the food delivery industry is about to see a significant change post the 10-minute delivery launched by Zomato. Being the first one in this category, Zomato’s 10-minute delivery feature is anticipated to become the latest trend and an integral feature of any online food delivery business. 

Food delivery within such a short span can be made possible if backed with extensive and streamlined delivery management software. Yo!Yumm is a highly customizable software, with a feature-rich platform to bring your business to par with the latest trends in the industry.

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