Zomato, a Restaurant discovery, and Food Delivery firm, announced its partnership with Paytm today, allowing its customers to order food online directly from Paytm. With this partnership, Zomato users can now browse restaurants listed on Zomato on the Paytm app and order food instantly from the digital payment app.
The service is currently live for all Paytm Android app users in Delhi-NCR and will soon be available across India, that too on both Android and iOS. With the collaboration with Paytm, Zomato will be able to add new users and expand its online food ordering business.
The partnership news follows Paytm’s waving off all additional charges on booking train tickets through its platform. Zomato, on the other hand, recently expanded its online ordering and food delivery service to an additional 30 cities in India.
Mohit Gupta, the CEO, Zomato, said, “We are excited to be partnering with them to integrate our online food delivery service with their mobile app. This will allow us to reach a larger user base and add to the overall customer-experience of ordering from Zomato.”
He continued further as he spoke about Paytm having a strong user-base in tier 2 and tier 3 cities, where users frequently use Zomato for a wide array of everyday payments. At present, Zomato has over 80,000 restaurants across 120 cities and has been delivering orders at a monthly order run rate of 28 million.
Food and beverage are among one of the largest payment categories for Paytm, both in terms of volume and the number of transactions. In line with the same Paytm is also giving an introductory offer of a cashback worth up to Rs. 100 for the customers ordering food through its app. There is a dedicated “Hungry” promo code one can use to avail the cashback on food orders.
“Paytm’s association with Zomato is a valuable addition to our platform in bringing the convenience of ordering food online on our app. A majority of our customers are from tier 2 and tier 3 cities. With this new addition, we are sure of driving growth of online food ordering further across the country,” Renu Satti, senior vice president of Paytm said.
With Paytm’s venture into the food ordering business, it could make competition tougher for Swiggy and Uber Eats- both of which are attracting a large number of customers in India at the moment. Cab aggregator platform Ola has also recently integrated Foodpanda into its app to bring another major food delivery app player back to the market. Foodpanda has also recently expanded to over 50 Indian cities in October – just a month after expanding its operations to 20 cities.
As the demand-supply scales struggle to balance themselves out, app users are more
than content to sit back and reap the benefits of a competitive market that leaves them spoilt for choice, ladled with innumerable cashbacks and discounts.