The IRCTC Partnership With Zomato & Swiggy For Food In Train

IRCTC partnerships with Swiggy and Zomato

Recently, IRCTC partnered with Zomato and Swiggy for food in train. These food platforms have already acquired a good space in all our phones and daily lives. Now they are ready to offer their services while we are travelling in train!

IRCTC partnerships with Swiggy and Zomato

IRCTC has partnered with Swiggy, one of online food delivery platform, for delivering pre-ordered meals to passengers of their choice and taste. This is not the very first time that IRCTC (The Indian Railway Catering and Tourism Corporation) is collaborating with an online food delivery platform, last year it has already collaborated with Zomato too, for delivering the travelers choice of food in trains. 

To have a more clear picture, let’s breakdown the story.

(1) IRCTC Partnership With Zomato 

Nobody had thought that they will be getting food of their choice while traveling in the train. But the IRCTC has made it all possible for us. 

The Indian Railway Catering and Tourism Corporation (IRCTC) was established in 1999, with the aim of making the railway journey of millions of people a comfortable and convenient one. The IRCTC since its inception has been working effectively towards their aim. 

IRCTC partnerships with Zomato

To take one more step towards fulfilling their goal, IRCTC has partnered with Zomato, one of the food delivery platforms in the market, in October 2023, to serve their passengers the food of their choice at their service. 

For that, IRCTC and Zomato signed a Proof-of-Concept (PoC), under which the passengers can order and receive pre-ordered meals via the IRCTC e-catering portal with the assistance of Zomato. 

In the first phase of its partnership, the service will be provided at selected stations, which were- 

  • New Delhi, 
  • Prayagraj, 
  • Kanpur, 
  • Lucknow and 
  • Varanasi

With time the service has expanded to 63 stations in the Indian railway network. 

After this partnership, the passengers are free to choose from various food options to select and have their own meal from the restaurant they want. One more interesting fact about this partnership is that, IRCTC has seen a rise in its revenue numbers. That’s exciting right! 

(1.1) Financial Numbers of IRCTC Partnership with Zomato 

The deal has turned out to be profitable for both, the IRCTC as well as for Zomato. Zomato, after signing a Proof-of-Concept (PoC) with IRCTC, registered a hike in its share prices. Its share prices reached a 25 week high of Rs.115 on October 18th 2023, a day after the partnership announcement with IRCTC. 

Zomato recorded a remarkable 71% year-on-year growth in its revenue from operations, by reaching Rs.2,416 crore in Q1FY24, an increase from its previous revenue of Rs.1,414 crores in the previous phase.  

Factor Numbers 
Net profit Rs.300 crores (A total of 17.4 % rise on an year-on-year basis). 
Revenue Rs.1,118.3 crores in December 2023, a 21.81% increase ( for the quarter,
according to a regulatory filing).
EBITDA margin Increased by 23.2% to Rs. 439.53 crores for the Q3 of the fiscal year. 
IRCTC Financial Numbers

The numbers above clearly tells the tale of how IRCTC and Zomato financial numbers have increased after their partnership. 

(1.2) How to order food via IRCTC e-Portal on Zomato

Steps Reasoning 
First step First enter the correct PNR number and choose an outlet according to it. 
Second step Complete the order process by selecting the food item you want to have. 
Third stepNow complete the order by selecting the payment method, i.e. doing
payment via online method or paying cash on delivery. 
Fourth step The meal will be delivered to your seat. 
Steps of How to order food via IRCTC e-portal on Zomato

(2) IRCTC Partnership with Swiggy 

Earlier in March 2024, IRCTC announced that they have partnered with another online food delivery giant, Swiggy (Bundl Technologies Ltd.), to have a more boost in their pre-ordered food services. 

The announcement of the partnership deal was made in a market filing by IRCTC. 

IRCTC partnerships with Swiggy

Swiggy signed a MoU (Memorandum of Understanding) with IRCTC, under which the Swiggy will deliver food from its wide network of restaurants to passengers at selected stations only. The service has already started from March 12, 2024.

In the first phase the service is available at selected stations like- 

  • Bangalore.
  • Bhuvneshwar, 
  • Vijayawada, and 
  • Visakhapatnam. 

The service will expand to over 59 other cities as well in the next six months, according to the officials of both the entities. 

The reason behind this strategic partnership with Swiggy, according to the senior official of the company i.e. Sanjay Kumar Jain, the managing director and chairman of IRCTC, is to make the train journey a more convenient and comfortable one for their billions of passengers who travel every day. To make this happen, Swiggy will provide a helping hand by offering its great online food delivery services to their passengers. 

Apart from this, IRCTC has already collaborated with around 17 online food delivery aggregators, including Zomato. The IRCTC partnership with Swiggy, will eventually boost up the business for both, millions of people travel by train and Swiggy has very well captivated the attention of people.

(2.1) Key Insights 

  • Both the companies have developed a reputation of leveraging technology to improve consumer experience. 
  • IRCTC and Swiggy announced plans to expand this service to 59 other stations in the next six months.
  • Swiggy connects its users to over 280,000 restaurant networks. 
  • Swiggy’s support and delivery agents will be trained in the resolution process and cancellation policies as well.
  • The food delivered to the passengers will be packed in insulated Swiggy bags to keep the meal warm and fresh. 

Food delivery in train

  • For that the Swiggy’s delivery partner would reach the selected platform, hand over the meal to the customer and mark the food delivered by the app. 
  • The partnership has taken place when the company is preparing for an initial public offering.
  • According to the managing director of the IRCTC, the company has set a target of doing Rs.30 crore business via e-catering in the fiscal year, and has already surpassed Rs.23 crores in revenue. 

(2.2) How to order food via IRCTC e-Portal on Swiggy

It includes following steps like- 

Steps Reasoning 
First step Enter the PNR number on the IRCTC app. 
Second step Next select the preferred station for food delivery.
Third step Go through the extensive list of restaurants listed on Swiggy. 
Fourth step Select the restaurant that is delivering food at the specified location
and time. 
Fifth step Choose the payment method. 
Sixth step The Swiggy delivery partner will reach the platform in specified
minutes before the delivery.
Seventh step The delivery partner will hand over the food which will be
packed in an insulated container to the customer and mark the food delivered.
Steps of how to order food via IRCTC e-portal on Swiggy

For the financial year ended on March 31st, 2023, Swiggy recorded a net loss of Rs.4,000 crores. With this partnership, Swiggy has been taking steps towards profitability.

Not only Swiggy, but IRCTC is also looking towards expanding their business more with this partnership and to offer their passengers more convenience and comfort while traveling via train. IRCTC reported a net profit to Rs.300 crores in Q3 FY24 a 17.4% increase in as compared with Rs 255.52 crore posted in Q3 FY23. 

However, the numbers of Swiggy aren’t available as the deal is signed in the early March of 2024. 

In the coming months, IRCTC and Swiggy will offer their service to more railway stations across the country, which would provide passengers with the facility to enjoy fresh and their choice of meal. 

(3) Challenges For IRCTC with Swiggy & Zomato

While the partnership between IRCTC with Swiggy and Zomato holds immense promise of delivering great services, it’s not coming without any challenges. 

Ensuring the timely delivery among the train’s strict schedules, managing food delivery in case of train delays, supply chain complexities, regulatory framework, the changing landscape of railway system, etc. are said to be the potential hurdles for these online food delivery platforms.

However, with Zomato’s and Swiggy’s service track record in food delivery and the commitment of IRCTC in ensuring that the passenger is having a convenient and comfortable journey, the collaboration is set to overcome these challenges.

(4) Summing Up: IRCTC Partnership with Swiggy and Zomato 

The IRCTC partnership with Swiggy and Zomato have provided passengers to enjoy the meal they want and from their selected restaurants. 

These partnerships have provided the companies the opportunity to expand their business more. IRCTC after collaborating with Zomato witnessed a rise in its revenue numbers which was Rs.1,118.3 crores in December 2023, a 21.81% increase from the previous year observed.

Online food delivery in train

Zomato too has seen a rise in its share prices just after the partnership with IRCTC. However, the numbers of Swiggy and IRCTC aren’t available as the deal is signed in the early March of 2024. 

Note: Want to know about the key challenges that Costco is facing while entering in the Indian market? To know about it in depth, visit the article, Why Costco is unable to enter Indian market? Key challenges.

It seems to be a win-win situation for both, i.e. the IRCTC company and the online food delivery platforms, Swiggy and Zomato, as it provides them with the opportunity to cater passengers more with their updated services and to operate more in the market!

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Published By: Aashita Singh
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