Zomato has introduced 'Limitless Delivery' in seven major Indian cities, enabling food orders from restaurants up to 40 kilometers away. This strategic shift aims to cater to consumer demand for variety, distinct from the industry's focus on hyper-local delivery. Investors will be monitoring how this expansion impacts the company's operational costs and profit margins in the coming quarters.
Zomato, now operating under the entity Eternal Ltd, launched its 'Limitless Delivery' initiative on November 5, 2026. The service allows customers in seven major cities—Delhi NCR, Mumbai, Bengaluru, Chennai, Pune, Kolkata, and Hyderabad—to place orders from restaurants located up to 40 kilometers from their delivery address. The company has made this feature accessible through a specific 'Explore More' link on its mobile application.
This expansion is driven by internal research which found that over 65% of app interactions are based on user curiosity, with many customers browsing multiple menus before making a final choice. By removing the traditional geographic limits, the company aims to convert this exploratory browsing behavior into completed transactions, thereby increasing its total order volume.
From a financial perspective, the company is building on a strong base. In the September 2026 quarter, the firm reported a food delivery net order value of Rs 11,445 crore, marking a 21.5% year-over-year increase. While this volume growth is significant, the expansion into long-distance delivery brings notable risks. Historically, long-distance logistics are more expensive due to higher fuel consumption, longer delivery times, and the need to manage rider availability across larger zones.
This move puts the company on a different strategic path compared to its main rival, Swiggy. While Swiggy has been focusing on improving profitability by increasing order density in local areas and keeping delivery distances short, Zomato is betting that offering a wider variety of options will justify the higher cost of longer transit.
Investors may note that this is not the company’s first attempt to stretch its delivery network. Past experiments, such as 'Intercity Legends,' faced hurdles in finding the right balance between product cost and consumer demand, which eventually led to the suspension of that service. Whether 'Limitless Delivery' can overcome these operational hurdles remains to be seen. The company has introduced a fee structure for these longer routes to help cover rising costs, but the success of the model will depend on whether consumers are willing to pay these premiums consistently.
The key monitorables for shareholders in the next few quarters will be the impact on operating profit margins and the actual adoption rate of these long-distance orders. If the cost of delivering these orders exceeds the revenue generated, it could pressure the company’s overall profitability despite higher order values. Monitoring the management's commentary on delivery efficiency and cost management in upcoming filings will be essential to understanding the long-term viability of this model.