Zomato Pilots Food Vending Machines

Zomato is piloting a new model called Zomato Now, installing food vending machines at corporate workplaces in Gurugram in partnership with food and restaurant brands. The initiative aims to bring food closer to consumers by setting up vending machines at workplaces.

The food vending machines are being set up at a few corporate offices in Gurugram as a pilot. This move is part of Zomato's efforts to expand its food delivery business, which generated ₹606 Cr in adjusted EBITDA in Q1 FY27. The company's food delivery business revenue increased 37% YoY to ₹3,100 Cr.

Zomato has been launching several models in recent times, including Zomato Instant, Everyday, and Ritual. The company's sister firm, Blinkit, has also been expanding its 10-minute food delivery service Bistro, which operates through its own cloud kitchens. Eternal CFO Akshant Goyal said Blinkit was adding around 10 kitchens a quarter for Bistro.

## Why it matters The initiative is significant as it marks Zomato's latest attempt at rapid food delivery. By partnering with restaurants for the vending machine segment, Zomato may potentially revive its relationship with these players, who have been protesting against platforms like Zomato and Swiggy due to higher promotional fees and other charges. The success of this pilot could also impact the future of food delivery in India, with other companies potentially following suit.

The stakes are high for Zomato, as its food delivery business operating profit is ₹621 Cr, and the company is looking to increase its revenue. With Blinkit contributing nearly five times more revenue than Zomato's food delivery business, the company is under pressure to perform. The outcome of this pilot will be closely watched, as it could determine the direction of Zomato's food delivery business in the future.

## What happens next As the pilot continues, Zomato will likely monitor the response from consumers and restaurants, and make adjustments as needed. If successful, the company may expand the vending machine model to other locations, potentially disrupting the traditional food delivery market. The impact on Zomato's relationships with restaurants and its revenue will also be closely watched.