Food delivery from Zomato could become significantly more expensive, with potential price increases of 10% to 30%. The rise is attributed to the company's initiative to shift from conventional plastic packaging to more sustainable and biodegradable alternatives.
The Cost of Going Green
Anjali Ravi Kumar, Chief Sustainability Officer at Zomato Limited, stated that while the move away from plastic is crucial for environmental reasons, it directly impacts consumer costs. Currently, packaging constitutes about 5% of a typical food order bill, a cost already absorbed by the customer. The introduction of greener materials such as Bagasse, aluminium, paper, and earthenware comes with a higher price tag.
Kumar highlighted that the primary hurdle in adopting these eco-friendly options is their affordability. Consumers have shown reluctance to pay a premium for sustainable packaging, limiting its widespread acceptance. However, Zomato believes that increased adoption and economies of scale will eventually drive down these costs.
Zomato's Initiatives for Sustainable Packaging
To overcome these challenges, Zomato has been actively encouraging packaging startups and its restaurant partners to innovate and find ways to reduce costs through improved manufacturing and distribution processes. A key part of this effort is PackSwitch, an interactive website designed to assist restaurants, cloud kitchens, and independent food entrepreneurs in selecting appropriate sustainable packaging for their diverse menu items.
The PackSwitch platform offers comprehensive information on various alternative packaging materials, detailing their functionality, business viability, and environmental footprint. Packaging decisions are critical, especially for food delivery, as materials must withstand the entire delivery journey while accommodating everything from biryani to desserts.
Empowering Consumer Choice
In addition to supporting restaurants, Zomato has also introduced a 'low-plastic-packaging' filter on its app. This feature allows customers to easily identify and choose restaurants that are committed to using reduced-plastic packaging for their main menu offerings.
The company's broader 'Plastic-Free Future Programme' has already recognized over 10,000 restaurants across more than 500 cities for their efforts in adopting alternatives to plastic packaging. Zomato continues to push for wider integration of these sustainable materials across its extensive network.