IRCTC partners with Swiggy rival Zomato to offer pre-ordered meal delivery to passengers

The Indian Railway Catering and Tourism Corporation (IRCTC) has joined hands with Swiggy rival Zomato with the aim of providing delivery of pre-ordered meals through its e-catering portal to travellers in a pilot programme.

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that in view of widening the range of options available to rail passengers for ordering food of their choice under IRCTC’s E-Catering segment, IRCTC has tied up with M/s. Zomato Limited for supply and delivery of preordered meals through IRCTC’s E-catering portal as a Proof of Concept (PoC) in the first phase at five Railway stations i.e. New Delhi, Prayagraj, Kanpur, Lucknow & Varanasi," the company informed in an exchange filing.

At which stations will the service be available?

Initially, the initiative will be tested as a proof of concept, allowing rail passengers to order meals via IRCTC's e-catering portal. In the first phase, this service will be introduced at five railway stations: New Delhi, Prayagraj, Kanpur, Lucknow, and Varanasi.

The partnership will help Zomato broaden its services to the growing number of railway passengers, while IRCTC will be able to offer a wider variety of food options to its users.

How well Zomato is performing in the stock market?

Zomato's stock has consistently climbed, hitting a 52-week high for two days in a row, peaking at Rs 115 on October 18. In the past month, the stock has seen a 12% surge. Over the last six months, it has soared by 111.91%, outperforming the Nifty 50 benchmark, which grew by 12.29% in the same timeframe.

A significant factor behind Zomato's impressive stock trajectory is the heightened investment by both foreign (FIIs) and domestic (DIIs) institutional investors in the recent quarter. FIIs raised their stake from 54.4% to 54.7% in Q2FY24, while DIIs upped their share from 9.9% in Q1FY24 to 13% in Q2FY24.

Zomato's first-ever profit

For the first time, Zomato reported a profit in the June 2023 quarter, registering a consolidated profit after tax of Rs 2 crore. This is a significant shift from the Rs 186 crore loss recorded in the same quarter the previous year. Furthermore, the company witnessed a robust 71% year-on-year growth in its operational revenue, which rose to Rs 2,416 crore in Q1FY24 from Rs 1,414 crore in the same period the previous year.

In a strategic move in August, Zomato introduced a platform fee of Rs 2 per order for specific users. This fee was raised to Rs 3 per order in some tier-II cities.

Even Zomato Gold subscribers, who were previously exempted, will now be subject to this fee. Zomato anticipates that this new fee structure could further boost its profitability. The company's financial results for the September quarter are yet to be announced.