Zomato has unveiled a new initiative called "Food Rescue," designed to help reduce food wastage by allowing users to purchase cancelled orders at discounted prices. This feature offers users the chance to buy food orders that were initially cancelled, with the added benefit of a lower price.
The company reports that approximately 400,000 food orders are cancelled on its platform each month. Through the "Food Rescue" feature, cancelled orders will appear on the Zomato app for nearby users, allowing them to purchase these items at a reduced cost in their original packaging. Zomato’s CEO, Deepinder Goyal, shared this announcement on X, explaining that “Zomato will not keep any proceeds (except the required government taxes)” from these transactions.
To ensure delivery workers are fairly treated, Zomato confirmed they will receive full compensation for the entire journey, including both the original and new drop-off points. This could also enhance user engagement with the app, as customers may be inclined to check for available cancelled orders in their area.
How Zomato’s ‘Food Rescue’ Works
When a customer cancels an order, it will appear on the app for users within a three-kilometer radius of the delivery driver, who has only a few minutes to claim it. This time limit is key for ensuring the food remains fresh. To avoid misuse, the option will not be available to the original customer or nearby individuals, and vegetarian users won’t see non-vegetarian items.
According to Goyal, "The amount paid by the new customer will be shared with the original customer (if they made payment online), and with the restaurant partner.” This setup allows the restaurant to still receive a portion of the payment, even after a cancellation.
However, certain items sensitive to temperature and distance, like ice creams or shakes, are excluded from this feature to maintain quality. Zomato has yet to clarify if there will be limits on order prices eligible for "Food Rescue" or how discounts will be calculated, though an example screenshot showed a cancelled order of Rs 322 discounted by 50% to Rs 161.
Impact on Restaurants and Delivery Workers
Zomato noted that 99.9% of its restaurant partners “want to be a part of this initiative.” These partners will continue receiving their original order compensation, plus a share from any "Food Rescue" sale. Restaurants can view these orders in their order history and see details in their weekly payout statements.
“Delivery partners will be compensated fully for the entire trip, from the initial pickup to the final drop-off at the new customer’s location,” the company added. Should restaurants wish to opt out of "Food Rescue," they can easily do so through their partner dashboard.
The company reports that approximately 400,000 food orders are cancelled on its platform each month. Through the "Food Rescue" feature, cancelled orders will appear on the Zomato app for nearby users, allowing them to purchase these items at a reduced cost in their original packaging. Zomato’s CEO, Deepinder Goyal, shared this announcement on X, explaining that “Zomato will not keep any proceeds (except the required government taxes)” from these transactions.
To ensure delivery workers are fairly treated, Zomato confirmed they will receive full compensation for the entire journey, including both the original and new drop-off points. This could also enhance user engagement with the app, as customers may be inclined to check for available cancelled orders in their area.
How Zomato’s ‘Food Rescue’ Works
When a customer cancels an order, it will appear on the app for users within a three-kilometer radius of the delivery driver, who has only a few minutes to claim it. This time limit is key for ensuring the food remains fresh. To avoid misuse, the option will not be available to the original customer or nearby individuals, and vegetarian users won’t see non-vegetarian items.
According to Goyal, "The amount paid by the new customer will be shared with the original customer (if they made payment online), and with the restaurant partner.” This setup allows the restaurant to still receive a portion of the payment, even after a cancellation.
However, certain items sensitive to temperature and distance, like ice creams or shakes, are excluded from this feature to maintain quality. Zomato has yet to clarify if there will be limits on order prices eligible for "Food Rescue" or how discounts will be calculated, though an example screenshot showed a cancelled order of Rs 322 discounted by 50% to Rs 161.
Impact on Restaurants and Delivery Workers
Zomato noted that 99.9% of its restaurant partners “want to be a part of this initiative.” These partners will continue receiving their original order compensation, plus a share from any "Food Rescue" sale. Restaurants can view these orders in their order history and see details in their weekly payout statements.
“Delivery partners will be compensated fully for the entire trip, from the initial pickup to the final drop-off at the new customer’s location,” the company added. Should restaurants wish to opt out of "Food Rescue," they can easily do so through their partner dashboard.
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