How A Hyderabad-based Start-Up Is All Geared Up To Revolutionize The Online Food Delivery Market?
We Indians are passionate about two things- movies and food. Thanks to rapid digitalization which has made it easier for movie buffs and foodies to satisfy their cravings. While there are tons of digital content available online, the presence of online food delivery apps in India has revolutionized the food service industry.
If we talk about the stats, the number of food delivery app users in India has already surpassed the mark of 184 million, which in turn is generating a massive revenue of USD 9,207 million! By 2022, the market is expected to touch the figure of USD 8 billion, with a robust growth rate of 25 to 30 percent.
No doubt, the numbers are encouraging. But the current business model has several loopholes and there are impending challenges ahead! Restaurants and other food-service businesses nowadays are often found to be complaining about the high commission model, unfair penalty system, paid promotions, etc. So, who is going to listen to their woes?
It is where the food delivery app ‘Yumzy’ steps in…
Launched in 2019, the Hyderabad-based start-up owned by Suresh Reddy, today offers its services in some of the major cities like Hyderabad, Chennai, Bengaluru, and Vizag. In just 10 months, it has on-boarded 4000+ restaurants.
Yumzy’s business model runs on one core aspect- ‘offering more control and flexibility to the restaurants’. In 2019, we already saw how the #logout campaign caused a ripple in the entire foodservice industry. Over 2000 restaurants pulled themselves out of the membership plans.
What makes Yumzy different from Swiggy and Zomato?
Suresh says, “Yumzy is the eco-system that empowers restaurants to make them independent and self-sustained without depending on the third-party food aggregators any more. It is ironic that the online ordering platforms these days charge steep rates as commissions from the restaurants. They also end up spending more on click ads and discounts to get visibility and conversions from a huge list of restaurants listed in the app. In the end, the restaurants never make money but live with the hope that one day they will start making profits.”
The eco-system of the Yumzy food delivery app also helps the restaurants have a firm grip on their existing customers. Building a base of loyal and regular customers is a tough nut to crack these days. Both Swiggy and Zomato often flood the market with huge offers and discounts. But who is going to burn the amount from their pocket still remains a major question! It is where the restaurants end up compromising on the quality and quantity aspect. It not only damages the restaurant’s brand but also takes away their loyal customers.
On the other hand, Yumzy empowers all the restaurant partners with the right and inexpensive tools to reach out to their customers. Besides that, it also helps them with market analytics for making smart decisions on their offering and serves their customers better.
How does Yumzy plan to take it forward?
Yumzy food delivery app has a clear vision and a result-driven plan to achieve its target. The start-up is aiming to onboard at least 20,000 restaurants in the next 6 months, and more than 65,000 by the end of 2022, encompassing more than 24 cities in India. Looking at its business model, it would not be wrong to say that even in the long run it would remain feasible.
In case you don’t know, companies like Swiggy and Zomato are still bleeding at least USD 30 million every month. They do have the backing up of some big investors. But it is not a sustainable option in the long-run. It could be the reason why both Swiggy and Zomato are reducing discounts. So the million-dollar question is- will customers keep ordering food from Swiggy and Zomato? Having a practical and long-term strategy like Yumzy is perhaps the need of the hours.
Why Yumzy could bring in a win-win situation for the restaurants and their customers?
The concept behind Yumzy’s business model is easy to fathom. On one hand, it empowers the restaurant and makes them self-sufficient in generating orders, without the need to spend unnecessarily on flashy marketing and high commission. The money saved can be passed on to the customers in the form of discounts and deals.
On the other hand, customers will no longer complain about the reduced quality and quantity of food. If everything goes according to the plan, Yumzy can secure the third spot in the list of top food delivery apps in India.
