The one grudge I have with most consumer startups is that they only focus on one thing: using every rule in the book to drive (meaningless) consumption.
They make people eat (and consume) more.
They make people stop going outside and talk to others (max out on screen time)
They throw soft porn at them (in the name of Bharat)
In short, most consumer products eventually turn unhealthy.
They disrupt the food chain using discounts. And break many hearts when they fizzle out (for instance, a lower class guy buying cars on EMI on false promises made by taxi companies).
But then, Zomato, I am glad to see is thinking different. The company is now *pivoting* to become farm-to-fork one by owning the entire food chain.
The goods are procured directly from the source. Vegetables, for instance, are sourced from small independent farmers and FPOs (farmer producer organisations) that don’t use pesticides. Poultry is procured from farms that ensure that the chicken is antibiotic residue-free. Big-ticket grocery items come directly from the big consumer companies. To ensure that quality standards are adhered to, Zomato has roped in Equinox Labs, an independent food quality auditing firm, with the mandate to regularly test samples.
“We are trying to transform Zomato into a foods company, much on the lines of a farm-to-fork model,” says Deepinder Goyal, co-founder of Zomato, which started in 2008 as a food discovery and ratings platform. The intent, he lets on, is not only to supply ‘clean’ and ‘fresh’ produce to the restaurants but also make a strong business proposition out of it. [via]
This is post Zomato’s acquisition of WOTO (We organise the unorganised) which has now rebranded to HyperPure, and this bet is delivering a revenue of $5mn per month.
This is an interesting move, given that most food companies often tend to stay on the delivery side and often stay away from the ‘real hard’ things, i.e. the foodchain.