More Plates on the Platform
Despite a wider dip in discretionary spending, online food delivery leader Zomato is seeing success by aggressively adding new restaurants to its platform. This strategic move has played a key role in driving a 27% year-on-year growth in their food-delivery gross order value (GOV).
Cloud Kitchens Take Center Stage
A significant portion of Zomato’s new restaurant partners are cloud kitchens, known for their delivery-focused operations and lower overhead costs. This aligns with changing consumer preferences and helps cater to the growing demand for convenient food options.
Muted Demand, Outperforming Peers
While the overall restaurant industry faces a subdued demand environment, Zomato’s GOV growth surpassed expectations compared to competitors. Their December quarter performance fell short of internal projections, reflecting the broader economic slowdown, but still outpaced other industry players.
Growth Strategy Under the Spotlight
Zomato’s restaurant onboarding strategy seems to be proving effective in countering the current economic headwinds. Their focus on cloud kitchens and expanding partnerships positions them well to capture a larger share of the delivery market, even amidst challenging market conditions.
Looking Ahead
As the economic landscape evolves, it remains to be seen if Zomato can sustain its growth momentum. However, their proactive approach to adding new restaurants and adapting to changing consumer trends demonstrates a strategic awareness that could propel them forward in the competitive food delivery market.
Read more.. Marketing News, Advertising News, PR and Finance News, Digital News.
