Zomato Experimenting Yet Again! Pilots B2B Logistics Service For Ecommerce Giants

Foodtech behemoth Zomato is evaluating B2B (business-to-business) logistical solutions as it continues its wave of trial launches. The gurugram-based business intends to work with e-commerce platforms to assist them to deliver food, pharmaceuticals, and other consumer products to clients.

In the previous 30-45 days, the listed unicorn is also believed to have contacted smaller food and retail aggregators, pharmacies, and consumer brands to sign on them for the pilot run. According to the source, Zomato is now fulfilling ‘a few thousand’ orders every day as part of the experimental project.

Going Beyond Food Delivery
According to reports, Zomato charges its B2B clients anywhere from Rs 10 to INR 15 per kilometer for the service.

In comparison to other participants in the market, Zomato is hardly offering a significantly different price range for the service. It is a commodity, logistics. Customers can get a wonderful product from Zomato that has trained drivers and faster delivery times. From a cost-center standpoint, it won’t make much of a difference for the company

Zomato’s decision to enter the B2B logistics market could aid the company in increasing size and optimizing fleet utilization as it seeks to take advantage of the underlying income opportunity. It might also be Zomato’s strategy for avoiding any rivalry with other companies as it explores the hyperlocal market.

The most recent event comes days after Zomato’s quick-commerce division Blinkit was in the spotlight a few weeks ago after hundreds of its delivery execs in the Delhi-NCR region went on strike in protest of poor pay and working conditions.

The new B2B logistics pilot program could aid Zomato in increasing its revenue and fending off any rivalry from other companies while it conducts research in the hyperlocal market. Additionally, it might enable Zomato to expand and maximize the use of its fleet.

However, the company’s experimental runs beyond the food business have mostly fallen into a brick wall. While Zomato still holds over fifty percent of the market share and is one of the biggest names in the food tech industry, the company’s food delivery business experienced a decline in the quarter that ended in the last month of 2022, and its net loss increased to INR 346.6 Cr. during the same period.

Seeking Revenue Growth
Zomato has been testing a tonne of new services over the past year, despite claims from industry insiders that the metro city phenomena of meal delivery are slowing down.

Between Q3 of FY21 and Q3 of FY22, the gross order value increased by 85 percent, reaching Rs 5,500 crore, but between Q3 of FY22 and Q3 of FY23, the growth slowed to just 21 percent.

It started a new service in February to provide students and office workers with quick and inexpensive home-style meals. These meals are offered for breakfast and lunchtime for as little as Rs 89 per consumption, delivery fees excluded.

The company introduced its ‘Legends’ inter-city meal delivery service last year to let clients place orders from well-known eateries in other cities. While it was once offered to anyone who wanted it, it is now only included in the company’s just-launched Gold subscription scheme.

Zomato Experimenting yet again
In recent years, Zomato has conducted several experimental projects, including its own private-label label nutritional supplements business, the supermarket delivery company, Zomato Wings, and the Legends inter-city meal delivery service.

Zomato’s quick-commerce division, Blinkit, also revealed that it was introducing electronic and valuable goods delivery from grocery stores as well as offering printout delivery for users. It was stated earlier this year that Blinkit was exploring expanding its capabilities by entering the at-home services market, similar to Urban Company.

In its pilot project, Zomato collaborates with a few e-commerce companies to identify their logistics needs and develop custom solutions. The last-mile delivery component of the logistics process, which is frequently the most difficult and expensive, is the project’s main area of attention.

With the help of its cutting-edge technology and driven by data algorithms, the food delivery company widely recognized fleet of delivery companies should be able to optimize delivery routes, cut down on transit times, and improve overall efficiency.

What the Future Holds!
Zomato’s introduction into the B2B logistics market is marked by the pilot project. Based on the comments and insights received throughout the pilot phase, the company intends to improve its offerings. If it is successful, the firm wants to expand its logistical operations, work with more e-commerce companies, and reach more people worldwide.

Conclusion
The company’s entry into the business-to-business logistics sector is a calculated effort to diversify its offerings and engage with the quickly expanding e-commerce market. It promises to offer affordable and effective logistics options for e-commerce companies by utilizing its current infrastructure, wide network, and technological know-how. Zomato’s debut into the B2B logistics market is anticipated to transform last-mile delivery operations as the pilot project develops, helping both e-commerce companies and end customers.

Proofread & Published By Naveenika Chauhan