Zomato, India’s leading foodtech platform, has launched its new app, District, for its growing going-out business. The app, which is available for download on both iOS and Android platforms, allows users to discover and reserve tables at restaurants, as well as book tickets for movies, sports events, live performances, and other entertainment activities. This launch comes three months after Zomato first announced its intention to enter the going-out space, signaling the company’s commitment to diversifying its business portfolio.
A New Chapter for Zomato’s B2C Business
With the rollout of the District app, Zomato is targeting its going-out business to become the third-largest B2C segment in its operations. Currently, the company’s main revenue streams come from food delivery and dine-out services, which have seen significant growth in recent years. By expanding into the broader lifestyle and entertainment sector, Zomato aims to capitalize on the growing consumer demand for experiences beyond food delivery, which has seen a surge as more people are venturing out to socialize and enjoy leisure activities after the pandemic.
Zomato’s foray into this space reflects its strategic ambition to move beyond just being a food delivery platform and become a comprehensive lifestyle service provider for its users. The District app serves as a one-stop destination for users seeking to plan outings, book restaurant reservations, and attend events, effectively positioning itself as an all-encompassing solution for social and entertainment needs.
Features and Functionality of the District App
The District app offers several features designed to enhance the customer experience in the going-out segment:
- Restaurant Discovery & Reservation: Users can discover and explore a wide range of dining options based on their preferences, including different cuisines, locations, and ambiance. The app also allows them to reserve tables at their favorite restaurants with ease, ensuring a hassle-free dining experience.
- Event Ticketing: In addition to restaurant reservations, the app also enables users to book tickets for movies, sports events, live performances, and other entertainment activities. This makes it easy for customers to plan an entire outing, from dining to entertainment, all within one platform.
- Personalized Recommendations: Leveraging Zomato’s vast data on customer preferences and dining habits, the District app provides personalized suggestions for restaurants and events, helping users discover new places to visit and things to do based on their tastes and interests.
- Seamless User Experience: The app has been designed to offer an intuitive and seamless experience, ensuring that customers can easily navigate through different sections, book reservations, and purchase tickets without any friction.
Zomato’s Focus on Profitable Dine-Out Business
The launch of District is heavily influenced by Zomato’s already profitable dine-out business, which is operating at a run-rate of more than $500 million annualized gross order value (GOV), according to Zomato CEO Deepinder Goyal. The dine-out segment has proven to be a significant contributor to Zomato’s overall growth, and the company is now looking to further capitalize on this success by expanding its offerings into other lifestyle and entertainment areas.
With Blinkit (formerly Grofers) as the parent company, Zomato is already well-positioned in the consumer goods and services space. By adding entertainment and event booking services through District, Zomato is diversifying its revenue streams and creating more touchpoints for users to engage with its platform.
Looking Ahead
As the District app gains traction, it has the potential to become a major player in the competitive going-out business, which includes incumbents such as BookMyShow, Zomato’s own competitors in the restaurant reservation space, and a variety of specialized event-ticketing apps. Zomato’s extensive user base, brand recognition, and experience in the food and hospitality sector give it a significant advantage in this space.
Looking ahead, Zomato aims to scale the District app by expanding its offerings and partnerships, which could include collaborations with more restaurants, entertainment venues, and event organizers. As more people look for experiences outside their homes, Zomato’s push into the going-out business is timely and could further strengthen its position as a dominant force in the lifestyle and entertainment sector.
In conclusion, District marks a bold step for Zomato as it diversifies its business model and taps into the growing consumer demand for leisure and entertainment services. By leveraging its existing dine-out business and expanding into event booking, Zomato is set to become a more integrated part of people’s social lives, offering a seamless and comprehensive solution for dining and entertainment needs.
