2 Big Indian Startups Join Hands for Better Delivery

Zomato's food ordering will now be available through the Snapdeal app.

Zomato and Snapdeal are considered to be one of the biggest startups in the country. Both the companies have been largely successful in their markets showing a lot of innovation and expertise. In a sort of first, the two big startups have entered a partnership to deliver better services to the customers.

Zomato’s food ordering will now be available through the Snapdeal app. Several experts have termed this move to be surprising and spontaneous. According to the Tech Portal, an email sent to the partners by Zomato co-founder, read, “Zomato has partnered with Snapdeal to enable customers to order food online through the Snapdeal app.” The partnership will be rolled out in phases. Zomato was recently in the news as it became the first Indian unicorn startup to go breakeven. Starting off as a restaurant discovery platform, Zomato ventured into the online ordering segment in April last year. The online food ordering is now available in more than 14 cities across India. The announcement of the partnership comes at a time when food delivery players like Foodpanda and Swiggy are suffering from losses and are on a verge of quitting the hyperlocal industry. Even other food delivery companies like PepperTap and Grofers are struggling to firm their feet in the hyperlocal industry. The partnership move with Snapdeal seems to be a try by Zomato to disrupt the apps market along with increasing their customer base in the online ordering market. Both Zomato and Snapdeal are one of the biggest unicorns in India. Both the companies have more than $1Bn valuation in the private market. Earlier last month, Zomato had declared that it went break-even in 5+ major markets including India. Other major markets included UAE, Lebanon, Qatar, The Philippines and Indonesia. Just a few months back, Zomato also entered into a strategic partnership with the logistics partner Delhivery. Along with it, the company also made some investments in two new hyperlocal delivery set-ups, Pickingo and Grab. These investments were to improve the last-mile delivery of the company. However, the inking with Snapdeal seems to be completely focused on improving their reach in the online ordering industry.

This move might definitely help Zomato in acquiring the new customers who already have the Snapdeal app and who can then order food online through it without installing any separate app for Zomato. Companies like Foodpanda and Swiggy has been reeling under the pressure of performing the food market. However, BSE recently validated that the food tech revolution in India will continue to grow in the coming months. The consumers will continue to enjoy more choices rather than just pizza delivery option. The industry will continue to pick up further pace in the coming months. The growth in the food sector has paved the way for a whole host of new companies. Food delivery marketplaces, Internet-First restaurants (or “cloud kitchens” as some call them), a couple of physical restaurant brands pivoted to delivery only, Recipe Boxes, Chef marketplaces, and many more have entered the market.


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