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Zomato Launches ‘Food Rescue’ Feature to Reduce Food Wastage from Cancelled Orders

• ByStartupStory     |    November 11, 2024

Zomato has unveiled an innovative feature called ‘Food Rescue’ aimed at reducing food wastage by offering canceled orders at a discounted price to nearby customers. Announced on Monday, the feature allows Zomato users to claim freshly prepared meals from canceled orders, with a promise of fast delivery and discounted rates, helping prevent excess food from being discarded.

Deepinder Goyal, Zomato’s founder, explained the motivation behind the feature: “We don’t encourage order cancellations at Zomato because it leads to a tremendous amount of food wastage.”

According to Goyal, even with strict no-refund policies, Zomato still sees over 4 lakh canceled orders each month, resulting in large amounts of food that could otherwise go to waste. “Inspite 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,” he added.

How ‘Food Rescue’ Works for Customers

When an order is canceled, it will become available on the Zomato app at a discounted price to customers within a 3-kilometer radius of the delivery partner carrying the order. These customers can view and claim the order quickly, as the option remains open for only a limited time to ensure food freshness. However, to avoid confusion, the original customer and users in their immediate vicinity won’t have access to the claimed order.

For customers who paid online for their canceled order, Zomato has structured a compensation plan where the new customer’s payment will be shared with both the original customer and the restaurant. Zomato itself will only retain the amount needed to cover required government taxes.

The feature comes with certain conditions: orders containing sensitive items like ice cream, smoothies, and other perishable products are excluded from Food Rescue to prevent food safety issues. Additionally, customers who select vegetarian options on the app will only see vegetarian Food Rescue orders.

Impact on Restaurant Partners and Delivery Partners

For restaurant partners, Zomato assures compensation for canceled orders. If a new customer claims the canceled meal, the restaurant will still receive a portion of the new payment, ensuring no loss on their end. Restaurant partners can view Food Rescue transactions in their Order History and weekly payout statements, and they have the option to opt out of the program through the partner app or dashboard.

Zomato also confirmed that delivery partners will be fully compensated for their efforts in handling canceled orders, from pickup to final delivery, providing them security in the new initiative.

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