HomeBusiness NewsZomato launches ‘Food Rescue’ to reduce food wastage — Here’s how it works
Food Rescue will now make canceled orders available for nearby customers, who can claim them at an “unbeatable price” while ensuring the food remains fresh.
By CNBCTV18.com November 10, 2024, 8:21:21 PM IST (Published)
In a bid to reduce food wastage caused by order cancellations, food delivery platform Zomato on Sunday announced that it has introduced a new feature, “Food Rescue,” which allows nearby customers to purchase recently canceled orders at a reduced price. This feature, which is already being scaled across the platform, aims to curb food waste while benefiting customers, restaurants, and delivery partners alike.
Every month, approximately 4 lakh orders are canceled on Zomato, resulting in a considerable amount of wasted food. In response, Zomato has implemented stringent policies and a no-refund policy to deter cancellations, but the issue persists. To tackle this, Food Rescue will now make canceled orders available for nearby customers, who can claim them at an “unbeatable price” while ensuring the food remains fresh.
Zomato founder Deepinder Goyal announced the launch in a recent post on X (formerly Twitter), saying that reducing food wastage is a priority not just for Zomato but for the entire restaurant industry.
“We don’t encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage. Inspite of stringent policies, and and a no-refund policy for cancellations, more than 4 lakh perfectly good orders get canceled 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.”
“Today, we are introducing a new feature (being scaled as we speak) – Food Rescue! Canceled orders will now pop up for nearby customers, who can grab them at an unbeatable price, in their original untampered packaging, and receive them in just minutes,” Goyal said.
We don’t encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage.
Inspite of stringent policies, and and a no-refund policy for cancellations, more than 4 lakh perfectly good orders get canceled on Zomato, for various reasons by customers.… pic.twitter.com/fGFQQNgzGJ
— Deepinder Goyal (@deepigoyal) November 10, 2024
How Food Rescue Works
When an order is canceled, the app will display it to customers within a 3 km radius of the delivery partner carrying the order. These orders are offered in their original, untampered packaging and are available for only a few minutes to ensure freshness. Items sensitive to temperature or distance, such as ice creams, shakes, and smoothies, are not eligible for the feature.
For the canceled orders that are claimed, Zomato will transfer the proceeds to the original customer (if paid online) and the restaurant, with the company retaining only the necessary tax amount. Restaurant partners will continue to receive compensation for canceled orders, plus a share of the payment from any subsequent claim on the order.