Zomato is back into play! A heaven for food lovers, ZOMATO is an online portal for discovering and ordering food. Recently it has acquired a two year old, Gurgaon based, logistic tech startup- SPARSE LABS. The amount for the transaction was not disclosed, but the plans to enhance the delivery services were discussed.

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How will it work?

Playing against the own delivery fleet of it’s contender SWIGGY which is trying to control the experience and making it better. Taking the stand, Zomato aims at using the Android based mobile application by Sparse Labs to monitor the location of delivery executives around the city. It will provide the services to restaurants (on board) free of cost to enhance the business relationship. It was a necessity as more than 80% of Zomato orders are fulfilled by restaurant owners themselves.

Co-Founder and CEO Deepinder Goyal said, “There are some areas that have immense room for improvement, the most significant one being delivery tracking”; while he was stating the acquisition on his blog.

Soon Sparse Labs will be renamed as Zomato Trace. Zomato also elaborated about another product that can be fit onto bikes, which will serve as a medium of proprietary GPS tracking system. The technology will help in increasing the efficiency of deliveries in terms of cost as well as time. This will additionally help in selecting the best route and decreasing the wait time for the riders.

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Why this step was needed?

In the current scenario,Zomato works with the restaurant’s own delivery guys and its logistic partners such as Delivery and Grab. These two systems are going towards positive and negative contributions respectively. This is where Zomato is failing and facing lots of downfalls. It was explained by the statistics that Zomato earn Rs 20  after everything from its online order business fulfilled by restaurants, whereas in business through logistics it faces Rs 2 negatively. So to change the picture entirely, this acquisition is a big step by Zomato to empower its platform for much enhanced user experience.