comscore Zomato announces acquisition of hyperlocal logistics startup Runnr

Zomato announces acquisition of hyperlocal logistics startup Runnr

The deal allows Zomato to strengthen its food delivery operations as competition rises.

  • Published: September 14, 2017 8:49 AM IST

India’s leading food startup Zomato has acquired on-demand food delivery service Runnr in a bid to strengthen its logistics division. While the size of the deal is not known, Runnr’s 1,500-strong workforce will join the Zomato team on completion of the acquisition. Zomato’s food delivery operations started two years ago, and last month, hit 3 million orders. Runnr, on the other hand, is said to be fulfilling about 300,000 orders every month. The merger had been in the works for some months. Also Read - Zomato faces backlash on Twitter after it fires employee calls Hindi a 'national language'

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“With the combination of Zomato and Runnr, we have everything in the stack of building a delightful food delivery service end to end listings, discovery, reviews, ordering, and now, logistics, Zomato co-founder and CEO Deepinder Goyal said in a blog post. “We have always maintained that the most cost-efficient delivery fleet is the restaurant s own, where they can utilise the same staff during off-peak hours for back-of-house and marketing activities. That belief is still intact,” he added. ALSO READ: Zomato partners Ola cabs for in-app ride booking, food ordering on Ola Play Also Read - Zomato invites few lucky customers to get unlimited free deliveries, no surge fees and more

Runnr will continue to operate as an independent logistics company (owned by Zomato), and will offer the full range of logistical services to players in sectors of pharma, grocery, and e-commerce among others. “This will ensure that the delivery fleet capacity that we build operates on a positive unit economics level while serving the mega-peaks in the food delivery business,” Goyal stated. Runnr Founder & CEO Mohit Kumar will continue to be at the helm of the company. ALSO READ: Zomato Treats subscription plan launched in India; members get free dessert with every order

Runnr, which started as a hyperlocal logistics provider Roadrunnr, pivoted as an independent food delivery startup after its acquisition of TinyOwl turned against it. In 2o15, Runnr received $11 million in funding from from Sequoia Capital, Nexus Venture Partners, and others. And last August, it secured another $7 million from existing investors. This year, however, it scaled down its B2C services, and currently services 40 localities in two cities. For Zomato, the acquisition allows it to ramp up its delivery unit in the face of rising competition from Swiggy, and the newly-launched UberEats.

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  • Published Date: September 14, 2017 8:49 AM IST

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