Author Topic: Zomato - Food delivery an important revenue stream  (Read 1809 times)

wiredlife

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Zomato - Food delivery an important revenue stream
« on: April 07, 2017, 11:14:40 AM »
Food delivery is becoming an important revenue stream for Zomato, and at US$9 mn contributed ~18% to its total FY2017 revenues. Based on disclosed revenues and commission rates (~8.5%), we reckon that Zomato fulfilled ~16 mn food delivery orders in FY2017. Unit economics disclosed by Zomato a few months back lead us to believe that Zomato would have generated net margins (after accounting for direct data, customer support and payment gateway costs) of US$4 mn. ~90% of orders are now fulfilled by the restaurant directly, which has supported Zomato?s food delivery unit economics.

After scaling up the food delivery business, Zomato is looking to scale up its other product offerings such as: (1) table reservations, launched in July 2016 in India and UAE with 24,000 restaurants in its fold, (2) Zomato Gold, launched in Lisbon and Dubai in March 2017, a subscription based service providing restaurant-funded add-ons, (3) Zomato base, to be launched in FY2018, a restaurant Point of Sale product to be introduced in India and UAE.