Zomato Introduces ‘Food Rescue’ Feature to Combat Food Wastage

Zomato, the food delivery company, has launched a new feature called Food Rescue. This feature lets users purchase canceled orders at discounted rates, aiming to minimize food wastage.

“Cancelled orders will now pop up for nearby customers, who can grab them at an unbeatable price, in their original untampered packaging, and receive them in just minutes,” Zomato cofounder and chief executive Deepinder Goyal wrote in a post on X on Sunday.

More than 400,000 orders are cancelled by customers on the platform per month for multiple reasons despite a no-refund policy, according to Goyal.

Cancelled orders will appear for customers located within a 3 km radius of the delivery partner carrying the order.

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Zomato Launches ‘Food Rescue’ to Cut Food Waste

Zomato has introduced the Food Rescue feature, which allows users to claim canceled orders at discounted prices to minimize food waste. However, this option will only be available for a few minutes to ensure freshness, and items like ice creams, shakes, smoothies, and other perishable goods are not eligible. The company will share proceeds with the original customer, if they paid online, and the restaurant partner, excluding government taxes. Additionally, Zomato will fully compensate delivery partners for their efforts, with an average of 498,000 active delivery partners in the last quarter.

New Features and Benefits for Restaurant Partners

Restaurant partners will be compensated for the initial canceled order and will receive a portion of the payment if the order is reclaimed by a new customer. Zomato has been actively introducing and testing various features in recent months. These include Brand Packs, which provide users with coupons for extra discounts at frequently ordered restaurants, and a feature that displays the total number of orders placed on the app. The company has also experimented with priority deliveries, charging an extra fee for faster service, and a ‘pay later’ option for select users.

Financially, Zomato has seen significant growth. In the September quarter, the company reported a 68% increase in operating revenue, reaching Rs 4,799 crore, with a profit of Rs 176 crore. The food delivery segment achieved a gross order value of Rs 9,690 crore, marking a 21% year-on-year increase.

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