InvestorQ : Do you think that food delivery in 10 minutes by Zomato will have demand in the market?
Moii Chavate made post

Do you think that food delivery in 10 minutes by Zomato will have demand in the market?

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Tisha Malhotra answered.
2 months ago
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This may be early days, but it is an idea worth experimenting. Most ecommerce models are commoditized. Instant food delivery will work for few products and in selected areas, especially a great idea for clusters. The idea is to kill any incentive to drive to the store for goods by making the delivery process super-efficient. This model can be a logistical nightmare for food but that is the direction in which this business is gradually evolving.

The big advantage of this model is that it combines two very important and powerful aspects of the internet i.e. efficiency and choice. Obviously, only some food products would eventually qualify for 10 minute delivery due to practical reasons. But the crux of the matter is that the customer now has a choice. Do they want a quick bite delivered in 10 minutes or are they willing to wait it out for 40 minutes to get a meal of their choice.

That is the right perspective. What Zomato has done is it has opened a much wider spectrum of choices for the customers. However, it must be said in advance that there are 2 key challenges for Zomato. Firstly, the full logistics value chain behind the 10-minute delivery model is going to be Herculean and complicated. Secondly, quick delivery will add to costs, but not much to profits. That is the big challenge for Zomato to contend with!

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