In a bid to tackle mounting food waste, food delivery giant Zomato has rolled out a new feature called "Food Rescue," allowing nearby customers to snap up cancelled orders at discounted prices.
The company estimates that over 400,000 orders are cancelled each month for various reasons, leading to significant food loss despite policies aimed at reducing such cancellations.
Zomato co-founder and CEO Deepinder Goyal highlighted the gravity of the problem in a recent post on X (formerly Twitter), noting that the goal is to minimize waste and redirect food to those who can use it.
"Cancelled 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 wrote.
"We don't encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage," he said.
We don't encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage.
— Deepinder Goyal (@deepigoyal) November 10, 2024
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
How does the 'Food Rescue' feature work?
The Food Rescue feature is designed to offer cancelled meals to customers within a 3 km radius of the delivery partner holding the food. The process is time-sensitive, with only a few minutes given to claim the meal to ensure it remains fresh.
According to Goyal, certain food items—such as ice creams, shakes, and other perishable products—are excluded due to their delicate nature.
One notable aspect of the program is that those closest to the original customer will not be notified of the available cancelled order, maintaining discretion and avoiding complications.
Customers who opt to claim a meal will pay a reduced price, which Zomato said it distributes between the original customer (if they paid online) and the restaurant.
Notably, the company said that it will not keep any share of these payments, aside from government-mandated taxes.
"Food Rescue will show up on your home page automatically if there's a canceled order available for you to grab. Refresh the home page to check for any newly available orders which need to be rescued," Goyal mentioned.
Providing benefits to all stakeholders
In a recent blog post, Zomato said that 99.9% of its restaurant partners have agreed to participate in the Food Rescue initiative.
The Gurugram-based company said that restaurants will still receive full payment for the cancelled order and a share from any resale, offering a small incentive to continue providing meals for redistribution. For delivery partners, the company will provide full compensation for both the initial and re-routed trips.
The feature reflects a broader trend in the food delivery industry to cut waste and increase efficiency.
Zomato's expanding arsenal of features
The Food Rescue initiative is the latest in a string of new features Zomato has introduced as it works to enhance user experience and respond to evolving consumer needs.
Earlier this year, it launched "Brand Packs" for users to buy coupon-based discounts and rolled out an option to view total order history.
In April, Zomato piloted a paid priority delivery feature, allowing customers to expedite their orders for a small fee. It also tested a "pay later" feature, giving customers flexibility in making payments before food arrives.