Consolidation in on-demand will revolve around channels, such as Zomato, that drive traffic using content and context to connect with local customers. Zomato’s acquisition of Runnr, one of India’s GrubHub-like companies, is a bet that Zomato has untapped demand for delivery in its current audience.
Zomato started out as a restaurant guide, but today it offers additional services including point-of-sale services and, in India and the UAE, online ordering and delivery. That puts it in competition with the likes of well-backed Swiggy and Delivery Hero-owned FoodPanda, and that’s where Runnr will be put to work. The newly acquired startup will be run independently by CEO Mohit Kumar which means it will continue to serve other customers and segments beyond Zomato’s food orders.