Zomato faces backlash after announcing plans to deliver food in 10 minutes

Food-delivery giant Zomato Ltd is facing a backlash on social media for its plans to roll out a 10-minute food service

Topics


Zomato | Food delivery in India


Reuters  | 
Mumbai 


Indian food-delivery giant Zomato Ltd is facing a backlash on social media for its plans to roll out a 10-minute food service that critics say raises road-safety risks for delivery riders.

CEO Deepinder Goyal said in a post late on Monday the service “Zomato Instant” would rely on a densely located network of so-called food “finishing stations”, which will house bestseller items from restaurants and use a sophisticated demand prediction algorithm.

“Nobody in the world has so far delivered hot and fresh food in under 10 minutes at scale,” Goyal wrote on LinkedIn and Twitter. “We were eager to be the first.”

Within hours, Zomato’s announcement sparked a flurry of responses. A lawmaker questioned the business model while executives raised concerns about rider safety on Indian roads.

Zomato, which counts China’s Ant Group as an investor, did not respond to requests for comment.

Many on social media urged a rethink, saying food can wait as even ambulances in India take longer to reach patients. Some on LinkedIn questioned the need for such a model.

“I don’t want to eat food that someone has brought to me while keeping his life at risk,” wrote Gunjan Rastogi, a researcher at India’s RSB Insights & Analytics.

Karti P. Chidambaram, an Indian lawmaker, tweeted: “This is absurd! It’s going to put undue pressure on the delivery personnel.”

The Zomato CEO’s Monday announcement started by saying: “We will start with a clarification … we do not put any pressure on delivery partners.”

After it failed to convince many, Goyal issued another tweet on Tuesday stressing that delivery will be “safe” for riders who will face no penalties, urging people to understand the model “before the outrage”.

“Quick commerce” grocery startups in India have been a rage with SoftBank-backed Blinkit and rival Zepto expanding rapidly. Reuters reported in January delivery bikers said they faced pressure to meet deadlines, which often led to speeding, for fear of being rebuked by store managers.

Critics say risks are too high on Indian roads. Even in cities, most roads are riddled with potholes and motorists violate basic rules. The World Bank says India has a death every four minutes on its roads and crashes kill around 150,000 people each year.

Nevertheless, many customers have been hooked to quick commerce grocery services to meet their instant shopping needs.

“I would be happy to get my food in 10 minutes,” said one LinkedIn user, Sonu Sekharan.

(Editing by Jacqueline Wong)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor