Zomato’s ‘Food Rescue’ Revives Cancelled Orders to Curb Wastage

In a move to tackle food wastage on a massive scale, Zomato has relaunched its 'Food Rescue' initiative, which gives cancelled orders a chance to reach new customers instead of ending up as waste. With approximately 400,000 orders cancelled monthly, the food delivery giant is targeting this initiative as a sustainable solution to minimize waste and benefit restaurants, customers, and delivery partners.

Deepinder Goyal, CEO of Zomato, addressed the issue publicly, emphasizing that while Zomato discourages order cancellations, they persist and lead to substantial food wastage. "Despite stringent policies, including a no-refund policy for cancellations, more than 4 lakh perfectly good orders get cancelled on Zomato for various reasons," he stated in a post on X (formerly Twitter).

Through Food Rescue, these cancelled orders are made available to nearby customers within a 3-kilometer radius at a discounted price. The orders, delivered in their original, untampered packaging, must be claimed within minutes to ensure freshness and food quality.

The initiative incorporates several consumer-centric considerations to ensure comfort and quality for users. Vegetarian customers won’t be shown non-vegetarian orders, and temperature-sensitive items like ice creams and smoothies are excluded from the program. Also, to respect privacy, the option to claim a cancelled order is not offered to the original customer or those in close proximity.

We don't encourage order cancellation at Zomato, because it leads to a tremendous amount of food wastage.

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

— Deepinder Goyal (@deepigoyal) November 10, 2024

The financial structure of this initiative benefits all parties involved. When a new customer purchases a cancelled order, the payment is shared between the original customer (if paid online) and the restaurant, with Zomato taking no proceeds aside from mandatory government taxes. Delivery partners receive full compensation for the entire journey, including the extra distance covered for rerouted delivery. This ensures fair remuneration for all stakeholders, while customers enjoy discounted meals that might otherwise have been discarded.

Zomato reports that the initiative has received a remarkable 99.9% opt-in rate from restaurant partners, who continue to receive compensation for the original cancelled order in addition to a portion of the payment from the new customer. Restaurant partners can track these transactions through Zomato’s partner app and weekly payout statements.

The relaunch of Food Rescue follows a failed attempt to introduce the program as a mandatory policy in September. The earlier version faced pushback from restaurant partners, leading Zomato to swiftly withdraw it. Now restructured as a voluntary initiative, restaurant partners have the flexibility to opt in or out of Food Rescue through their partner app and dashboard.

Rakesh Ranjan, CEO of Zomato's food-ordering business, explained the initial challenges, stating, "It was a mistake on our part to call it a policy instead of an initiative. Thousands of orders are cancelled on an everyday basis, and we were trying to solve that. The restaurants have a choice to opt in or opt out of this initiative."

Through Food Rescue, Zomato not only seeks to make its operations more sustainable but also to create a community-driven approach that gives otherwise wasted food a second chance. With this thoughtful relaunch, Zomato aims to make a difference in food sustainability, proving that even cancelled orders can contribute to a positive impact on the environment, businesses, and consumers.