Zomato, the popular food delivery platform, has recently launched ‘Zomato Everyday,’ a new service offering home-style meals made by home chefs. Although this move appears to be an extension of the company’s operations, questions are being raised about how it will affect the meal delivery market.
Zomato used to be a middleman or one can say an aggregator for food orders, bringing customers and businesses together. But with ‘Zomato Everyday,’ Zomato is stepping into the kitchen themselves and making their own meals.
It can seem like a decent idea at first. Zomato can offer more food options and potentially make more money. However, concerns exist over the implications for food restraunts who rely on Zomato for their operations.
Imagine this: If Zomato starts making their own meals, they could end up competing with the restaurants they used to work with. The survival of such restraints may be hampered by this, particularly the smaller ones that depend on delivery orders. The weaker players are left scrambling to keep up, much like when a large player steps in and takes over.
Concerns rise over Zomato’s initial business plan as well. With ‘Zomato Everyday,’ it appears like Zomato is moving away from its original purpose of connecting users with restaurants and towards being more of a restaurant. This could change how food delivery works and limit options for customers.
Furthermore, restaurants and hotels wishing to collaborate with Zomato may have to pay more if it keeps acting as an aggregator and preparing its own food. This can result in increased commission rates or registration costs, which would harm local eateries’ bottom lines.
And let’s not forget about fairness. How will Zomato ensure that the home chefs contributing to ‘Zomato Everyday’ are treated fairly? Will they get the recognition and support they deserve, or will they be overshadowed by Zomato’s brand?
‘Zomato Everyday’ may have seemed like a wise decision for Zomato overall, but it brings up some significant issues. It may alter the way food delivery operates, making it more difficult for small restaurants and hotels to thrive and giving patrons less alternatives. Zomato should carefully analyse the effects of their choices and how they may aid the chefs and restaurants that first made them popular.
In summary, Zomato’s foray into meal preparation may seem profitable, but the food delivery sector will suffer greatly as a result. It runs the danger of restricting competition, raising prices, and monopolising the market. Prioritising the health of hotels and restraunts while maintaining equity and diversity within the meal delivery industry are imperative tasks for Zomato. If it doesn’t, it can lose customers and damage its reputation.
Disclaimer: The opinions expressed in this publication are those of the author. They do not purport to reflect the opinions or views of the WTO or its members.