Have you heard the name of Yumist? It is an India-based startup targets the mass-market food industry with daily meals. It has increased its investment to $2 million to expand its business from three cities to eight. The current cities from which it operates are Gurgaon, South Delhi and Bangalore. It has 200 staff, of which 20 are non-operational.
Yumist has a different proposition to FoodPanda or Zomato which focus on delivering from restaurants. But it cooks its own meals, handles storage and delivery which saves much time and optimizes its process. It was founded in November 2014 by beverage entrepreneur Abhimanyu Maheshwari and ex-Zomato CMO Alok Jain. The meals that it serves daily cost up to 65 INR or around $1. The company is more inclined to the urban workers who order meals during lunch break.
In an interview one of the founder members Alok Jain said,
‘Having come from Zomato and seen what’s happening, a lot of tech stuff is happening but there’s also a large market for daily meals. People are very sensitive and don’t want to spend more than a dollar.’
The team is planning to expand its presence gradually in eight more cities by the end of 2016. According to Jain’s point of view, Yumist started rather slow. He explained that the team initially tested its scale before testing its unit economics. Currently the company is spending around 34 INR per delivery t planning to reduce that cost to 20 INR using technology to optimize its delivery team.
Jain further added saying,
‘This market is twenty-times larger than the restaurant industry, but hasn’t seen any change over last five decades. Yet, if I need a cab, I press a button and get it. The consumer has evolved but the experience in the daily meals market has not.’
The company may not introduce weekend meals very soon as it has recently expanded to serving dinners and lunches. It plans to keep its head down until March in the three cities and will gradually have gross margin profit at a company level.