Zomato has launched a new service called Food Rescue to help reduce food waste. With this service, users can book cancelled food orders at a lower price. When an order is cancelled, it will appear on the app for customers within a 3km radius of the delivery partner. Customers can then book the cancelled order at a discounted price.
Zomato CEO Deepinder Goyal highlighted that the main concern for the platform, restaurants, and customers who cancel orders is preventing food waste. He mentioned that despite strict policies, including a zero-refund rule, over 4 lakh "perfectly good orders" are cancelled every month for various reasons.
“The top concern for us, the restaurant industry, and even the customers who cancel these orders, is to somehow save the food from going to waste,” said Goyal.
When a customer cancels an order, it becomes available for others to book at a discounted price. The app will show a pop-up with the order details and discount to customers within a 3km radius of the delivery partner carrying the order. The pop-up will be available for a few minutes before it is offered to others to ensure freshness. Customers who cancel the order and those nearby won’t see the offer.
Once someone books the cancelled order, the payment is split between the original customer and the restaurant, with Zomato not taking any proceeds, except for applicable taxes. The service does not apply to perishable items like ice cream or shakes, and customers will only see food choices that match their preferences, such as vegetarian orders.
“Zomato will not keep any proceeds (except the required government taxes),” said the company in a blog post.