Zomato's Food Rescue Deep Dark Secret: Smart Move, Big Impact

To cut down on food wastage from cancelled orders, Zomato has introduced a new service called Food Rescue. Customers can purchase cancelled orders from nearby restaurants at a discounted price as long as the food is still in its original packaging thanks to this scheme. This study looks closely at this strategy, its potential outcomes, and the implications for customers and restaurants.

What is Zomato's New Food Rescue Strategy?

Zomato reports that almost 400,000 orders are cancelled each month, so the Food Rescue tool aims to address the severe food waste problem. Zomato wants to address the issue of excellent food being thrown out because of cancellations by enabling local users to claim these cancelled orders at a discounted price. To increase overall app usage and retention, users may regularly check the app for possible discounted orders. If an order is claimed, restaurants will still be compensated for cancelled orders and receive a portion of the new customer's sales.

Although reducing food waste and promoting sustainability are the main objectives of Zomato's "Food Rescue" campaign, there are several tactical benefits as well. Zomato can increase consumer engagement by offering reduced meals, attracting new users, and encouraging current customers to place more frequent orders. Additionally, by establishing Zomato as an environmentally concerned corporation, this project can enhance the company's reputation. Additionally, Zomato may obtain essential data insights to improve personalised recommendations and optimise its algorithms by monitoring user preferences and behaviours under the "Food Rescue" function. Working with food banks or NGOs could strengthen Zomato's dedication to social impact and create new collaboration options, improving the company's reputation and community reach.

There are various benefits to Zomato's Food Rescue feature:

• Consumer Cost Savings: Meals are available to consumers at drastically lower costs, making eating more accessible.

• Fast Access to Food: Since the food is still in its original container, customers can obtain it minutes after claiming it, guaranteeing freshness.

• Environmental Impact: Zomato helps with environmental sustainability initiatives by cutting down on food waste.

Several factors will affect how well the Food Rescue tool works:

• User Adoption: The function may gain traction if customers accept the concept of buying cancelled orders and see its benefits.

• Restaurant Participation: This program has excellent support from the supply side, as confirmed by 99.9% of restaurant partners.

• Quality Assurance: Preserving the food's freshness and safety for eating is essential to preserving customer confidence.

Zomato's Deep Dark Secret

Zomato's "Food Rescue" initiative is a strategic move that can benefit the company financially

The company earns from both the original order (as restaurants are compensated) and potentially from the resale of cancelled orders. However, Zomato states it will only keep proceeds from necessary taxes. In addition to paying for cancelled orders, restaurants will get a portion of sales proceeds if a new customer claims the order. Restaurants can reduce losses related to food waste by taking part in this initiative. While customers who cancel orders can lose their original payments (based on their payment method), restaurants receive compensation for cancellations.

Conclusion

Zomato's Food Rescue function is a creative tactic meant to reduce food waste while giving customers access to reasonably priced dinner options. User adoption, restaurant involvement, and food quality maintenance are critical to its success. 

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