Zomato Launches Social Food Recommendation Feature: Get Inspired by Friends’ Orders

News Synopsis
Zomato, one of India's leading food tech platforms, continues to push boundaries with its new feature, “Recommendations from Friends.” This initiative allows users to receive food suggestions based on the preferences of their friends. The new feature enhances user engagement by letting them sync their contacts and see which restaurants their friends are ordering from and what dishes they recommend.
Zomato Introduces “Recommendations from Friends” Feature
The new feature, announced by Sahibjeet Singh Sawhney, Zomato’s marketing head, on LinkedIn, reads, “Introducing Recommendations from Friends. See which restaurants your friends are ordering from; what dishes they are recommending — get inspired while feeling bad about your own food choices.” This playful tone reflects Zomato’s aim to make food discovery more social and enjoyable, helping users make informed dining choices.
By syncing contacts with the app, users can view their friends’ orders, restaurant reviews, and meal preferences, thereby receiving personalized recommendations. Zomato hopes that this feature will increase user interaction and encourage them to try new places and dishes.
Zomato Expands Its Offerings with New Features
This launch comes as part of Zomato’s ongoing strategy to diversify its services. The company has recently ventured into the "going-out" business with its “District” app, which aims to become the third-largest business-to-consumer (B2C) segment for Zomato. Through the District app, users can explore and reserve tables at restaurants, as well as book tickets for movies, sports events, and live performances.
Zomato’s Food Rescue and Other New Initiatives
In addition to the "Recommendations from Friends" feature, Zomato has rolled out several other innovative initiatives, such as the “Food Rescue” program. This initiative helps reduce food waste by allowing users to buy canceled orders from nearby restaurants at discounted prices. It’s a win-win for both consumers and restaurants, ensuring that surplus food doesn’t go to waste.
Another key initiative is the “Book Now, Sell Anytime” feature, which allows users to buy event tickets in advance and resell them on the app if their plans change. These features further solidify Zomato’s position as a tech-driven company focused on solving real-world problems while enhancing user experience.
Zomato's Financial Performance and Stock Movement
Zomato continues to perform well in the stock market. The company recently raised INR 8,500 Cr (around $1 billion) through its first qualified institutional placement (QIP). The funds will support its quick commerce venture, Blinkit, as well as other growth projects. On December 5, 2024, Zomato’s shares hit a fresh all-time high of INR 304.50 during intraday trading.
Zomato Reports Q2 FY25 Profit Decline
Despite the company’s strong market performance, Zomato reported a 30% decline in its consolidated net profit for Q2 FY25, which stood at INR 176 Cr compared to INR 253 Cr in Q1 FY25. This decline is attributed to higher operational costs and investments in new growth initiatives. However, the company remains optimistic about its long-term strategy, focusing on diversifying its business and expanding its user base.
What’s Next for Zomato?
With its continuous experimentation in the foodtech space, Zomato is positioning itself as more than just a food delivery platform. The launch of new features, apps, and initiatives reflects Zomato’s vision to become a lifestyle brand, combining dining, entertainment, and convenience into a single app. It will be interesting to see how these moves impact the company’s growth and user retention in the coming months.
Conclusion: Zomato's Social Touch and Strategic Expansion
Zomato’s introduction of the “Recommendations from Friends” feature marks an exciting step towards making food discovery more engaging and personalized for its users. By incorporating a social element into the app, Zomato allows users to connect and discover dining options through their network, which is likely to drive more interactions and broaden food exploration.
Moreover, the company’s continuous expansion into new business areas, such as the “District” app and the “Food Rescue” program, highlights its commitment to becoming a multifaceted platform that goes beyond food delivery. With innovative features like “Book Now, Sell Anytime,” Zomato is not just keeping pace with the evolving market but is actively shaping the future of the food tech industry.
Despite a slight decline in profits in Q2 FY25, Zomato’s strong stock performance and ability to raise substantial funds through its QIP further strengthen its position in the market. As Zomato diversifies its services and focuses on enhancing user experience, it is well-positioned for long-term growth and success in an increasingly competitive landscape.
By staying ahead with new features and continuous innovation, Zomato is reinforcing its role as a key player in the food and lifestyle tech sector, ensuring that it remains relevant and appealing to both existing and new users.
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