Zomato Experiments With Vending Machines For Rapid Food Delivery

Food technology company Zomato has initiated a new pilot program in Gurugram, India, experimenting with food vending machines to expand rapid food delivery. The new machines, branded 'Zomato Now,' have been installed within corporate office premises in partnership with local restaurants.

This initiative focuses on bringing food closer to consumers, rather than solely concentrating on accelerating the traditional delivery network. This approach marks a shift from the typical strategy of food platforms, which have primarily concentrated on enhancing delivery logistics.

The experiment with vending machines could potentially mend relationships with restaurants, who have recently protested against high commissions and other charges. While Zomato's food delivery business remains profitable, it faces ongoing challenges from rising delivery, customer acquisition, and regulatory costs.

Zomato has recently introduced several new models, including Zomato Instant, Everyday, and Ritual. The company's food delivery business generated an adjusted EBITDA of ₹606 crore in the first quarter, with revenue increasing 37% year-on-year to ₹3,100 crore.