Zomato has introduced a new application, District, for iOS and Android users, marking its expansion into the “going-out” services market. The app will allow customers to book dining experiences, movie tickets, sports events, live performances, and more.
A Strategic Expansion
Following its success in food delivery through Zomato and quick commerce with Blinkit, the company aims to establish itself in a third major vertical. In August 2024, Zomato acquired Paytm’s entertainment and ticketing business for ₹2,048.4 crore ($244 million) to strengthen its presence in the going-out category.
CEO’s Vision
In the Q1FY25 shareholders’ letter, Zomato CEO Deepinder Goyal highlighted the company’s focus on diversifying its offerings.
“Today, Zomato and Blinkit serve customers’ needs at home. However, our dining-out business helps customers discover restaurants for dining out. With a run rate of $500 million+ annualized Gross Order Value (GOV), it is already profitable,” Goyal stated.
Expanding on Zomato’s vision, he added, “We believe there’s immense potential in the going-out space, from movies and sports ticketing to shopping and staycations. By creating a one-stop destination app, we aim to revolutionize this segment through the District app.”
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Competition and Market Challenges
Zomato’s foray into ticketing services will face stiff competition from existing players like BookMyShow, backed by Reliance. To strengthen its financial position amidst competitive pressures, Zomato recently raised ₹8,500 crore through a Qualified Institutional Placement (QIP).
Innovation to Reduce Food Wastage
In addition to its new app, Zomato launched a feature to tackle food wastage. Cancelled orders, which amount to approximately 4 lakh per month, will now be offered to customers at discounted prices. This initiative aligns with Zomato’s broader goal of sustainability and customer satisfaction.
With its District app and recent innovations, Zomato is poised to become a key player in the going-out ecosystem, offering customers an integrated platform for entertainment and dining experiences.
