Food delivery giant Zomato has launched “Zomato for Enterprise” (ZFE), a new platform aimed at simplifying corporate food expense management. CEO Deepinder Goyal announced the initiative, marking a significant step in the company’s ongoing diversification strategy.
ZFE allows employees to charge their business-related food orders directly to their employers, streamlining the reimbursement process. The platform provides companies with tools to manage budgets, set ordering rules, and monitor expenses. Goyal stated that over 100 top companies are already utilising ZFE. He encouraged other corporate leaders to explore the platform within their organisations, inviting them to contact Zomato for further details.
The launch is part of a broader series of features Zomato has introduced recently. The company unveiled an ‘Order Sheduling’ feature, allowing users to plan meals up to two days in advance. Additionally, it launched a ‘Group Ordering’ function, making it easier for teams to place collective food orders.
Analysts have noted that Zomato’s ability to identify and navigate multiple “S-curves”—or stages of growth in different business opportunities—has been a key factor in its recent financial success. This success has been driven notably by its quick-commerce arm, Blinkit, and its B2B restaurant supply unit, Hyperpure.
In the competitive online-ordering space, optimising Gross Transaction Value (GTV) has been crucial, particularly due to its impact on delivery costs and profitability. However, Zomato’s strategy extends beyond traditional GTV optimisation. By diversifying its offerings, the company has managed to decouple GTV from revenue, enabling it to pursue topline growth in certain segments while improving profitability in others. This approach provides Zomato with greater flexibility in its business model and potentially higher profit margins.
Zomato’s strategic flexibility is further demonstrated by its recent acquisitions, including the purchase of Blinkit during the pandemic and Paytm’s entertainment ticketing business, which Zomato plans to spin off into a new “District” app focused on the going-out segment.
However, not all of Zomato’s ventures have been without challenges. The company recently shut down its intercity food delivery service ‘Legends’ after a two-year run, citing difficulties in achieving product-market fit. This exit contrasts with competitors like Tastes2Plates, which have carved out a niche through mature technological expertise, albeit on a smaller revenue scale.
From: financialexpress
Financial News
