Zomato Expands to 300 Cities to Beat Swiggy

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In a move to beat rival Swiggy, food delivery unicorn Zomato has now expanded to 300 cities, serving over 250 million users in these cities. The company revealed these numbers along with the launch of Zomato Lite app, which is targetted at users in Tier 2, 3 cities as well as rural India.

Zomato is banking on the increased penetration of fintech services based on UPI and other private payment platforms, as well as exposure to more cuisines in semi-urban areas for its next phase of growth.

In its initial run in many smaller towns, the company is seeing good traction. Zomato says it’s onboarding 45-50 restaurants in each new city on average, a figure that’s “bound to move northward over the coming weeks.”

In recent months, Zomato has expanded its delivery operations to include partners from smaller cities and towns who complete food deliveries on bicycles and electric scooters.

The company is also also working on introducing e-cycles in its delivery fleet to meet the resource constraints in smaller cities for conventional vehicles. For this, the company has tied up with private EV makers and companies to arrange a delivery fleet. With various approaches to making deliveries, the average delivery time now stands at 30.5 minutes, according to Zomato.

“Even if the chosen city is tiny in area, having a considerable percentage of student presence encourages us to pilot our services there,” Zomato said in a release.

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