Zomato expecting Tier III & IV cities to contribute 50% of monthly order volume by March 2020

Currently, the food ordering platform is present in 556 cities and towns in the country.
  • Vaishnavi Gupta Features Writer
Zomato

Zomato is expecting tier III and IV cities to contribute 50% of its monthly order volume by March 2020 from the current 35%, as it strengthens footprint across India.

Currently, the food ordering platform is present in 556 cities and towns in the country.

Deepinder Goyal, Co-Founder & CEO, Zomato, said, “Most of Zomato's cities and towns beyond the top 15 markets run profitably, and contribute to more than a third of our revenue. These cities currently contribute 35 per cent to our monthly order volume which will increase to 50 per cent by the time we expand to more than 700 cities (March 2020).”

“While average order value is lower in non-metro cities by 20 per cent, the cost of delivery is lower by 50 per cent making the economics superior in comparison to the metro cities. By all measures, our delivery business economics in non-metro cities is superior to metro cities,” he added.

The company is also committed to develop cloud kitchens to bridge the supply gap.

Goyal further stated, “In the same breath, I want to re-emphasise that we will never compete with our restaurateur partners – we will only build the kitchens – but they will be operated by restaurant brands.”

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