Retailers in states such as Maharashtra, Odisha and Jharkhand don’t want food delivery apps entering the highly state-centric and excise-regulated liquor space.
Food delivery app Swiggy has started doorstep delivery of alcohol in Jharkhand, while rival Zomato told ET that it plans to launch the service on Friday.
E-commerce giant Amazon with deep pockets has entered the vast online food delivery market in India, with launching Amazon Food at select pin codes in Bengaluru. Leading food ordering and delivery platforms Swiggy and Zomato on Thursday said they have started home delivery of alcohol in Ranchi and plan to expand it to other cities going forward.Swiggy, Zomato begin home delivery of alcohol; Amazon enters Indian food delivery market
This comes at a time when both food aggregators have made a big push in delivering grocery and products for daily use during the ongoing nationwide lockdown.
Zomato has created a Zomato Talent Directory for employers to access employee profiles listed on its forum.
The service, which was initially started in Mumbai last week, has now been extended to over 30 cities, including Delhi, Mumbai, Bengaluru, Kolkata, Jaipur, Bhopal, Indore, Raipur, Kanpur, Nivea India said in a statement.
Zomato has said it will let go of 520 people and undertake up to a 50% pay cut for remainder of the organisation.
Zomato wants to cash in on the high demand for booze during the country's Covid-19 lockdown.
To ensure safe delivery of alcohol and in compliance with applicable laws, Swiggy has introduced measures such as mandatory age verification and user authentication to fulfil orders.
Under the partnerships, Del Monte range of premium food products, including tomato ketchup, mayo, pasta, olive oil and fruit drinks will be delivered to consumers' homes amidst the continuing lockdown.
Contactless dining, Zomato said, will minimise customer contact with anything that someone else might have touched, by eliminating use of high-touch elements.
Zomato, a unicorn in the online food delivery space, will let go of 13% of its workforce and cuts salaries across the organisation to tackle the COVID-19 India crisis. The company has around 4,000 employees in different roles. Here's a report by ET NOW's Chandrar Srikant. Watch.COVID-19 impact: Zomato to layoff around 13% employees and cuts salaries across organisation
Swiggy said if someone's notice period is three months and they've spent five years with the company, they will get eight months of salary.
Jain has worked in leadership roles with Pepsi, the Coca Cola Company & more recently with Zomato.
When contacted by ET, a spokesperson for CarDekho confirmed the layoffs and pay cuts, without answering specific queries or providing details.
Online food delivery orders for Zomato & Swiggy have dropped 70% in the last 10 days to under 1 million a day.
Customers have also expressed concern about the health of delivery partners given their exposure to multiple people. In fact, Red-Seer Consulting has forecast a 30% drop in food delivery volumes in India for early March.
Zomato said that all the customers who came in contact with the restaurant’s employee have been contacted by the relevant authorities.
Amazon has been luring eateries with competitive commissions as a part of its larger plan to build a comprehensive product portfolio.
The idea is to extend cases beyond restaurants and create products for customers for use in homes.
Japanese conglomerate SoftBank Vision Fund, the largest shareholder in Grofers, may look to invest around $100-200 million in the merged entity, sources close to the matter said.
In April, Zomato initiated a voluntary salary reduction programme, which also offers affected employees’ additional stock in lieu of the cash cut from their pay cheques.
Food delivery companies take offers of $5-10 million in tough conditions.
These channel partnerships have been done in a phased manner, with Flipkart being the first e-commerce platform to enable the availability of its essential products in Mumbai, Bengaluru and Delhi.
The aim here is to ensure last-mile delivery of essentials to households in India during the Covid-19 lockdown.
A home-delivery system makes it very convenient and safe for customers to get access to the wellness products, which otherwise might be difficult due to these lockdown conditions, the company said in a statement.
With Covid-19 and automation, GoI’s one-time employment darlings could become prodigal liabilities.
Zomato said it has been operating at 30% delivery capacity. The company has also been facing issues across cities while delivering food despite being classified as an essential service.
The potential acquisition suggests that the Silicon Valley disruptor is doubling down on its fastest-growing service in a scramble to adapt to what is likely to be a long business interruption.
Users will be prompted to agree to package delivery terms and conditions, and after confirming that the item complies with those terms, users can request delivery.
New-age brands in the grooming, hygiene, premium packaged foods and clothing space are expanding their online footprints beyond Amazon and BigBasket, moving supply chains from China to India and rejigging product portfolios due to the Covid-19 pandemic.
Passes were also being issued to authorized vendors for the supply of essential goods, according to DGP Dinkar Gupta, adding that for home delivery of Medicines, in particular, necessary tie-ups are being made with the respective Chemist Associations, so that orders can be taken on phone and home delivery is accordingly undertaken.
Chinese investors have emerged as the biggest backers of the country’s startup economy.
Paytm said it will also contribute up to Rs 10 for every payment transaction using the Paytm app, and also give Rs 5 crore for innovators who are developing medical instruments or medicines to combat the virus.
General Atlantic manages $35 billion in assets across the world, and has been among the rare growth-stage funds to make several bets on fledgling companies in the domestic technology space.
Tamil Nadu and parts of Punjab, Uttar Pradesh, Gujarat, Goa, Chhattisgarh, Bihar, Assam, and Pondicherry have not allowed food delivery businesses to operate during the lockdown.
In an email addressed to employees on Sunday, Deepinder Goyal, CEO, Zomato said, “While the foundation of Zomato was built before Mohit Gupta joined us, he has been instrumental in strengthening it over the last two years.
Last week, the ecommerce industry had proposed standard operating procedures to stem the spread of the virus, which included compulsory installation of the app by all of its on-ground staff, among other precautions.
Much of the layoffs will stem from distress sales and company closures.
Food-delivery apps Zomato and Swiggy, too, have doubled down on the grocery category since it began seeing an uptick in demand. While Swiggy was already present in the grocery delivery segment, Zomato tied up with Grofers to launch the services.
Earlier three FMCG makers - ITC Foods, Marico and Britannia - had announced partenships with several firms to get their products delivered at consumer's doorsteps by using the service of app-based aggregators.
The lockdown has also brought many high-end outfits down to the business of food delivery—fine-dining brands like Masque and Bombay Canteen, and hotel chains like Accor, Hilton, and Conrad, and Sheraton have started home delivery.
One of the delivery boys of startup Dunzo said that he had got only three orders by Friday afternoon, which typically is around 10 by that time. “My colleagues are also seeing fewer orders,” he added.
This is a major step towards diversification and a move to keep demand high at a time when most businesses are registering a slowdown. Online food ordering has taken a hit in the past week with order numbers falling by as much as 20%.
The move comes as these companies have started taking a series of measures to scale up hygiene practices with the coronavirus outbreak, and they look to win consumer trust.
The foray into grocery and delivery of essentials have also been pushed by local governments and allows these businesses to get curfew passes to stay operational during the lockdown period.
The move could lead to a further slowdown of FDI investments in an already tough year.
For the current initiative, Zomato has partnered with various NGOs to make sure of responsible distribution of the meal kits bought by the funds while maintaining social distancing.
Food delivery volumes are expected to take a further dent after a delivery staff tested positive for Covid-19.
The option is, however, available only for those who have opted for a prepaid order and not cash on delivery.
Swiggy and Zomato said they are doubling down on the health food segment while cloud kitchen operators such as Rebel Foods and Freshmenu have introduced new health brands on their platforms.
The move — which essentially allows these restaurants to list on rival platforms such as Swiggy — underlines a major shift in strategy for Zomato.
The company is already in discussions with few startups and is likely to close deals soon.
He led a series of M&A transactions when he was with PropTiger, including acquisitions like Housing.com and Makaan.com.
Over the last six to eight months, the two dominant players have also started passing on restaurant packing charges and certain taxes to consumers and cut down on losses per order.
The more premium Edition card is priced at Rs 3,000 (exclusive of taxes). Apart from the basic features such as Zomato credits on every purchase, the card holders will get lounge access at certain domestic airports and will offered a global Gold membership.
The all-stock transaction will give the US-based ride-hailing company about 10% shareholding in Gurgaon-based Zomato.
Co-working spaces face a more daunting task as it has to monitor gig workers from multiple companies.
BigBasket also issued a statement announcing that they will be restart their services in Ahmedabad, Bangalore, Bhopal, Coimbatore, Indore, Mumbai, Mysore, Noida, Surat, Vadodara . But as the demand is very high there will be delay in services for upto a week.
Swiggy said it is taking proactive measures to help minimise the chances of spread of the coronavirus, and that it is training its delivery staff in best practices for respiratory hygiene.
Swiggy is in talks with several state governments to seek permission for home delivery of alcohol from local licensed retailers, a top executive has said.
As demand for home delivery spikes, consumer internet firms are beefing up hygiene and safety measures for delivery agents and consumers.
The investment comes just a few weeks after rival Zomato acquired UberEats India. UberEats India has since then ceased to exist as a separate brand locally with users being redirected to Zomato’s app. Weeks prior to the deal, Zomato raised $150 million from existing investor Ant Financial, an Alibaba affiliate at a valuation of $3 billion.
Zomato acquired Uber’s food delivery business in India in an all stock transaction on Tuesday, which gives the ride hailing major a 9.99% ownership in the Gurugram-headquartered company.
Hit hard by the coronavirus pandemic-triggered lockdown, the premier hotel chain Hilton will now serve select food items at doorsteps via Zomato and Swiggy.
Zomato was last valued at $2 billion when it picked up capital last year after it sold its UAE delivery business to Berlin-based Delivery Hero for $172 million (Rs 1,220 crore) and separately raised $105 million.
Zomato on Tuesday announced that it has acquired Uber's Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform. ET NOW's Nayantara Rai caught up with Sanjeev Bikhchandani, founder and executive vice chairman of Info Edge India, second largest shareholder of Zomato on the $350 millions of UberEats deal. Listen-in!!!Watch: Info Edge India's Sanjeev Bikhchandani on Zomato-UberEats $350 mn deal
Zomato on Tuesday announced that it has acquired Uber's Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform. According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore. Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.Zomato acquires UberEats India in all-stock deal, first big consolidation in food delivery space
Swiggy currently has 100 such brands on its platform that were co-created with 95 restaurant partners across 13 cities.
Zomato's live order-tracking feature is streamlined with in-restaurant operation to provide the best experience for diners by delivering their food as hot and fresh as possible, the statement said.
Premium joints are nudging customers to order directly through social media platforms like Instagram, WhatsApp or through phones to woo the customers. Some are customising offerings, tweaking their menu, offering cookery classes on video conferencing app Zoom and even providing at-home catering services.
Firms cater to the needs of the workers who miss out on regular employee benefits as they are not full-time staff.
Indian consumers are willing to pay a premium to get hygienic and nutritional daily essentials, prompting exporters of horticulture produce to draw strategies for the domestic market.
This sector has attracted more than $1.5 billion of investments. The most recent investors include Facebook, Tiger Global, Matrix Partners and GGV Capital.
Talks for the acquisition come even as Zomato is in the midst of raising capital where it has already got a commitment from existing backer Ant Financial for $200 million. The funding round will value Zomato over $3 billion, and a potential share-swap may also happen using that benchmark.
The tea retailer, that had revenues of Rs 138 crore during FY18-19, is also expanding its own fleet for making for delivery within a kilometre radius of their stores
Zomato’s valuation, which stood at over $3 bn in Jan, seems to have been discounted during its buyout.
The appointment of the chartered accountant comes nearly a year after its previous chief financial officer, Sameer Maheshwary, resigned from the company after having spent less than six months at the food delivery platform.
Swiggy, which has partnered with supermarket chains, local retailers and drug maker Cipla, said it would deliver essentials from neighbourhood stores and distribution centres of large brands.
"The idea is to only improve the quality of our business and Uber Eats was a step in that direction. It was not about buying a number three player, but buying a number one or number two is some cities where we were lagging behind," Goyal said.
The digital onboarding comes even as these startups have managed to push the envelope with respect to safety measures for their workforce and delivery partners.
Ola — backed by global marquee investors including SoftBank, Tiger Global, Tencent, and Steadview Capital—employs about 4,000 people in its Indian operations. It was valued at around $6 billion during its last funding round in September.
In an email to employees, Aggarwal made it clear that the prognosis ahead for the business is "very unclear and uncertain" and the impact of this crisis is "definitely going to be long-drawn for us".
Rapido is targeting garnering a quarter of its revenues from its logistics venture, up from 10% earlier.
On jobs front, top 5 insurance companies believe that they can hire upto 5000 people on business boom. Tata Steel also confirmed to honour all the offers it has made and start off digital training for fresh hires.
The food delivery firm is looking to get restaurants to fund a larger chunk of promotions.
In a letter to Commerce minister Piyush Goyal dated January 24, the Confederation of All India Traders (CAIT) alleged that the common phenomenon in these companies of incurring huge yearly losses and earning revenues is not a healthy business practice.
The company is making all efforts to achieve its mission, 'Better Food for Everyone', Zomato founder Deepinder Goyal said. We started 11 years ago and now present in 550 cities in India and we serve around 48 million people every month.
Sanjeev Bikhchandani, executive vice-chairman of Info Edge, said he was confident that Deepinder Goyal-led Zomato would not only defend its turf, in the face of an anticipated entry by Amazon into the space, but also grow in the face of increased competition.
Black Swan events, an idea popularised by the Lebanese-American scholar Nassim Nicholas Taleb, refers to low-probability events that have a high impact.
His suggestion as well as warning received an overwhelming response as well as support on the microblogging site. Swiggy, however, responded to Rao’s tweet reiterating its commitment to road safety.
The deal was a “smart, strategic” move and “shows strong execution on the part of Uber management, who has said repeatedly that unless Uber is 1 or 2 in a given market, or on a clear trajectory to get there, it would exit that market.”
Imported liquor brands could soon take up significant shelf space at your neighbourhood wine and beer shop, as airport duty free stores, bars and restaurants that account for more than half of all premium spirits sales in India remain shut.
If the merger goes through, Zomato and UberEats may emerge as the biggest by number of orders and size ahead of Swiggy in a hotly contested and cash-intensive online food delivery market.
Mumbai and Bengaluru police have fined many food delivery agents who put incentives ahead of rules.
How to succeed in the stock market when the Indian economy is in a dire state.
Across the sector, monthly growth fell to 1-2% between Aug and Oct, hurt by a slowdown in consumer spending, cut in discounts and promotions.
Things are improving. Day by day, we see positive improvement on ground, says Tata Consumer, COO, Foods.
BookMyShow is promoting free-to-watch Instagram Live performances in an effort to keep its users engaged, while restaurant aggregator and food delivery firm Zomato is targeting a push into alcohol delivery.
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