Zomato introduces ‘Food Rescue’, to offer cancelled orders at discounted price to reduce wastage

Deepinder Goyal, the CEO of Zomato announced the launch of the new feature in a post on social media platform X on November 10.

Meanwhile, shares of Zomato Ltd gained over 4% to trade at an intraday high of ₹259.5 apiece on the NSE on November 11. The Zomato stock settled at ₹258 apiece, up 3.73%, on the NSE.

Zomato said in a blog post that around 4 lakh orders on their way to the customers are cancelled every month. As a part of the ‘Food Rescue’ feature, orders cancelled by users will show on the apps of other users, who can buy them at lower prices. The food will be delivered in the original untampered packaging.

Announcing about the new initiative on X, Goyal said, “In spite of stringent policies, and a no-refund policy for cancellations, more than 4 lakh perfectly good orders get cancelled on Zomato, for various reasons by customers. 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.”

How Zomato will benefit from the initiative

Zomato added that the company will not keep any proceeds from the sale except the required government taxes. It is anticipated that the feature could boost the app’s usage and user retention, as the customers will spend more time looking for cancelled orders. The company will also compensate its delivery workers for the entire trip, from the initial pickup to the final drop-off at the new customer’s location.

How Customers can use Zomato's ‘Food Rescue’ feature

The customers will need to open the Zomato app and look for cancelled orders near them. The cancelled orders within a 3-kilometre radius will appear on the app. The orders can be claimed for only a few minutes. If a customer opts for the order, the amount paid by the new customer will be shared with the original customer (if they made an online payment), and with the restaurant partner. The company added that orders containing items sensitive to distances or temperature such as ice creams, shakes, smoothies and perishable items will not be eligible for Food Rescue. Additionally, the app will also take into account the food preferences of the customer and show cancelled orders for non-vegetarian food only to those customers who prefer non-veg.

On the restaurant partner’s end, compensation for the cancelled order and a part of the amount paid by the new customer will be received if the order is claimed.