“Pure Veg Fleet” launched by Zomato aiming to gain market share of vegetarian food consumers

On March 19th, Zomato launched a “Pure Veg Mode” along with a “Pure Veg Fleet” on its platform, catering to customers with a 100% vegetarian dietary preference. This fleet exclusively delivers vegetarian food in green-labelled boxes, ensuring no cross-contamination with non-vegetarian options from restaurants. Founder Deepinder Goyal also announced plans for specialized fleets catering to different food categories.

Subsequently, Goyal provided an important update regarding the veg fleet, stating that on-ground segregation using the colour green would be eliminated. All delivery riders will now wear the same red uniform. Non-vegetarian orders will remain discreet on the streets but visible on the app. This measure aims to prevent any mis-association of red-uniformed delivery partners with non-vegetarian food, thereby avoiding potential conflicts with Resident Welfare Associations (RWAs) or societies during special occasions.

Zomato shares are currently trading at Rs 160.10, boasting multibagger returns of 198.97% over the past year. During a recent conference call, the company provided business guidance, anticipating adjusted revenue growth of more than 40% year-on-year, with expectations for north region of 50% growth in adjusted revenue over the next few quarters.

The company is focusing on Blinkit’s robust performance and aims to expand its footprint in larger cities. The quick-commerce business is also experiencing rapid growth and improved contribution margins.

Regarding outlook, the company emphasized that Monthly Transacting Customer (MTC) growth is expected to drive future expansion. Management has increased platform fees, ad income, and commission revenue, contributing to an improved take rate.

Reflecting on the recent decision regarding the veg fleet, Goyal acknowledged the unintended consequences and expressed gratitude for the valuable feedback. He stated, “Thanks to everyone for the discussions last night. Your feedback, both positive and critical, has been invaluable in helping us reach an optimal solution.”

What percentage of population eats vegetarian food only?

In India 19% of population does not eat egg, chicken, fish & other meat where 13% are male and 25% are females

Following data shows State wise veg population in percentage:

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.