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Bloomberg Quint
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Zomato Food Rescue: Plate Half Full, Restaurateurs Say 'No Thanks!'
- Restaurateurs have expressed reluctance to participate in Zomato's food rescue initiative. The concept allows for food from cancelled orders to be bought by customers at a discounted price. Although the idea has merit, restaurant owners are concerned about damage to their loyalty and the possibility that food quality will not be maintained throughout the process. Some also pointed out that a customer could end up ordering something they hadn't intended because it was discounted. Zomato implemented a nominal relisting enablement fee for these orders, from which they took no proceeds beyond necessary taxes. However, they have since stated that any payment from new customers claiming a rescued order would be divided between the original customer and the restaurant. Restaurants will be compensated for the original order and the delivery partner.
- Although initially mandatory, the food rescue scheme was relaunched as a voluntary initiative. Sagar Daryani, CEO of WOW! Momo, said the service was worth considering, but only if the aggregator shared more detail about the process. Pranav Rungta, who runs a string of eateries and cloud kitchens in Mumbai referred to the concept of food rescue as “complicating a simple problem”, and argued that this initiative could harm a restaurant’s reputation.
- Zomato CEO Deepinder Goyal announced the service on Twitter, stating that the company experiences over 400,000 cancelled orders each month despite having a no-refund policy. The rescue scheme permits customers located within a 3 km radius of a cancelled order to see the available items on the app, but listings are only visible for a limited time to maintain their freshness. Orders containing perishable or temperature-sensitive items will not be included in the rescue opportunity. For participating restaurants, potential contamination and violating food safety guidelines could put licences at risk.
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