Zomato - Priming The Innovation Engine: ICICI Securities

ICICI Securities Report

Zomato Ltd.’s ability to ‘execute’ at scale is well recognised by investors. We believe the company is now gearing up to improve its credentials as an ‘innovator’.

We note it has launched multiple new initiatives in the past 40 days which aim at improving customer experience or exploring adjacencies in its core ‘food delivery’ business.

While the launch of ‘veg only’ fleet and ‘large order’ fleet may be aimed at growing its user base/usage occasions, the introduction of ‘delivery on priority’ seems to be an attempt to monetise ‘convenience’ and ‘peace of mind’.

We believe all these steps are in the right direction and reflect Zomato’s ability to address customer needs.

At the same time, the suspension of ‘Intercity Legends’ is indicative of its agile ‘return on investment-oriented’ decision making. Maintain Buy.

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