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Foodtech Unicorn Zomato commits 100% adoption of EVs by 2030

ISN Webteam
05 Jun 2021
New Update
Foodtech Unicorn Zomato commits 100% adoption of EVs by 2030

Bengaluru-based foodtech startup Zomato today announced, it will convert 100% of its delivery fleet to electric vehicles by the year 2030. The announcement comes almost a month after when the company announced its funding plans towards environmental projects to offset delivery carbon footprint. The company said in a blog post, it will join EV100 - the global initiative of companies to fully switch to electric vehicles.

In a blog post, Zomato's co-founder and CEO Deepinder Goyal said, "Zomato was already making some of its deliveries in states like Delhi, Bangalore, Mumbai using EV vehicles and will try and fully convert to using them fully by 2030."

He further said, "The current EV fleet is a small fraction of the active fleet of delivery partners, and we understand that getting to 100% adoption of EVs will not be easy, but is essential in the long run,” Goyal said. “At the moment, the adoption rate is very low for us and the two-wheeler industry in general. We believe key barriers that currently impact adoption include limited battery range, lack of charging infrastructure, higher upfront costs, and lack of trust in new technology.”

"However, given the rapid innovation in this field and positive push by the government, we expect a much faster transition to EVs for the two-wheeler industry over time," he added.

Zomato has already been engaging actively with certain EV players to come up with certain design pilots and also create business models that help in a more swift transition towards using EV vehicles.

It recently filed its Draft Red Herring Prospectus (DHRP) to SEBI for an initial public offering (IPO) of Rs 8,250 crore at a valuation of at least $6.4 billion. The IPO would be the largest IPO since March 2020 after State Bank Of India (SBI) had raised around Rs 10,000 crore. The company intends to raise a sum of Rs 8,250 crores to Rs 7,500 crores as a fresh issue and 750 crores as an offer for sale.

The company has been doing well after the initial shock near the first covid wave. It said it has already crossed its expectations and in some belts across India, has even surpassed their pre covid levels because more people are now embracing online food delivery. Certainly bright days ahead for the food delivery business.

Earlier in February 2021, Zomato had raised $250 million from its existing investors Tiger Global, Fidelity and Kora. Besides Zomato, many other startups and companies looking forward in adopting electric vehicles in their business operations.

Walmart-owned Flipkart had also announced that it will deploy at least 25,000 EV by 2030 in its fleet as part of its commitment to transitioning its logistical fleet to EV after having joined the climate group’s EV100 initiative. The e-commerce company has already started using 2 wheeler and 3 wheeler electric vehicles in cities - Hyderabad, Delhi, Pune, Kolkata, Guwahati, etc.

Amazon had earlier pledged to introduce 10,000 EV vehicles for delivery and also to deploy 1 lakh electric vehicles by 2030 as part of its commitment to the EV100 initiative.

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