Food delivery major Zomato anticipates a robust 30 per cent annual growth in its core business over the next five years, according to Rakesh Ranjan, CEO of Zomato's food delivery division. This optimism is fueled by expanding restaurant partnerships and increasing demand in India’s urban markets, driven by a burgeoning middle class and affluent population.
Ranjan emphasised the nascent stage of the food delivery sector in India, viewing heightened competition as a catalyst for innovation. "More competition will only foster innovation and growth, which will benefit the sector overall," he revealed to leading to news wire. He also hailed Swiggy's recent market debut with a valuation of $12.1 billion as a positive sign for the industry.
Zomato, commanding 58 per cent of the market share, reported a gross order value (GOV) of Rs 32,224 crore in the last fiscal year, marking an average annual growth of 30 per cent over the past four years. The segment accounts for 58 per cent of the company’s total revenue. As of March, Zomato had 247,000 active restaurant partners, an 18 per cent increase year-on-year.
To further enhance its offerings, Zomato has rolled out features such as scheduled deliveries, discounted options for canceled orders, and specialised services for large events. However, the company faces challenges with high attrition rates among delivery drivers. To address this, Zomato is offering additional benefits and increased flexibility to retain gig workers.
With a firm belief in the sector's potential, Ranjan expressed confidence in sustaining the current growth trajectory for years to come.
(With inputs from Reuters)
