Zomato launches new ‘Food Rescue’ feature to reduce food wastage

Zomato was introduced in 2010. In order to meet their various needs, our technology platform links customers, delivery partners, and restaurant partners. Customers use our platform to find and search restaurants, order food delivery, reserve a table, write and read reviews left by other customers, view and upload photos, and make payments when dining out.

Zomato launched Food Rescue

On Sunday, November 10, Zomato, a major food delivery service, unveiled a new program called “Food Rescue” that aims to cut down on food waste by offering local consumers a discounted price on recently cancelled orders. It is anticipated that this feature will help delivery partners, patrons, and eateries alike.

What is the process for Food Rescue?

For customers who live within three kilometres of the delivery partner holding the order, the “Food Rescue” feature enables cancelled orders to show up on the app. To preserve quality, this option will only be available for a brief period of time. To maintain freshness, some products—such as shakes, ice cream, and other foods that are sensitive to temperature—are not included in this feature. Furthermore, non-vegetarian items will not be displayed to vegetarian patrons.

Customers who live close to the original order will not be able to buy it in the interim. The restaurant partner will also receive a portion of the new customer’s payment if the original customer made their payment online. Besides the required government taxes, Zomato will not keep any of the earnings.

Zomato CEO Deepinder Goyal said

Despite Zomato’s no refund policy, CEO Deepinder Goyal stated that more than 400,000 orders are cancelled every month. Order cancellation is discouraged at Zomato since it results in a significant amount of food waste. Despite stringent regulations and a no-refund cancellation policy, customers cancel over 4 lakh perfectly good orders on Zomato for a variety of reasons,” Goyal posted on social media platform X (formerly Twitter).

He added that the restaurant industry’s top priority, along with the customers who cancel orders, is to figure out how to keep the food from going to waste. “We are launching Food Rescue as a new feature today! Now, cancelled orders will appear for local clients, who can purchase them at an unbeatable price in their original, untouched packaging and have them delivered in a matter of minutes, Goyal stated.

How do Food Rescue options work for partners in restaurants and delivery?

If the order is successfully claimed, restaurant partners will get paid for the original order plus a percentage of the new customer’s purchase. It is simple for partners to opt out of the Food Rescue feature through their partner app and dashboard. 

Payment will be made to delivery partners for the entire journey, which covers the initial pickup as well as the final delivery to the new customer. Zomato’s most recent shareholder letter claims that during the previous quarter, the platform had an average of 498,000 active delivery partners each month.

The stock of Zomato Ltd. is slightly higher

The stock of Zomato Ltd. is gradually rising and is currently trading at Rs. 249 per share, approaching the 52-week high of Rs. 298.25.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.