Ixigo, a key player in India’s travel booking sector, is set to acquire a 51% stake in Zoop Web Services Private Limited, a specialized train food delivery service that partners with the Indian Railway Catering and Tourism Corporation (IRCTC). The acquisition, valued at Rs 12.54 crore, is structured as a mix of primary and secondary share purchases, along with a non-compete fee.

Expanding in the E-Catering Industry

Through this acquisition, Ixigo aims to strengthen its footprint in the rapidly growing e-catering segment within India’s railways. Zoop currently operates across 192 railway stations and collaborates with 400 restaurants, allowing Ixigo to enhance its offerings for train passengers by integrating Zoop’s food delivery services with its own platform. With train travel being a significant revenue stream for Ixigo, this acquisition aligns with its broader strategic objectives.

Enhancing Passenger Experience

Ixigo’s leadership highlighted the role of reliable food service in enhancing the travel experience, particularly during train journeys where food options can be limited. Integrating Zoop’s capabilities will allow Ixigo to provide passengers with expanded choices, contributing to an improved overall journey experience.

Deal Structure and Future Expansion

Approved by Ixigo’s board on October 24, 2024, the transaction is anticipated to close by year-end, pending regulatory conditions. The investment is a mix of primary and secondary share acquisitions and secures Ixigo’s control over Zoop’s operations as a subsidiary. Notably, Ixigo also has an option to buy the remaining 49% stake, allowing for potential future expansion based on Zoop’s growth and market conditions.

Launch of “Food on Train” Feature

With Zoop’s acquisition, Ixigo has launched a “Food on Train” feature that allows passengers to pre-order meals at select railway stations and have them delivered directly to their seats. This feature includes real-time tracking and cancellation options, further enhancing convenience. The integration leverages Ixigo’s train scheduling data to ensure timely service, aiming to reduce missed deliveries and improve customer satisfaction by providing a range of meal options from trusted vendors.

Strategic Importance of the Acquisition

This acquisition signifies Ixigo’s commitment to enhancing the travel experience for Indian train passengers as it continues to expand its suite of services in the travel tech industry. By offering integrated food delivery solutions, Ixigo aims to differentiate itself in a competitive market while addressing the needs of travelers seeking convenience and quality during their journeys.

Broader Market Context

The e-catering segment is witnessing rapid growth as more travelers seek convenient dining options while on the move. With increasing competition from other travel platforms and food delivery services, this strategic move positions Ixigo well to capitalize on emerging trends in passenger services.

Conclusion

Ixigo’s acquisition of a majority stake in Zoop Web Services marks a significant step toward enhancing the overall travel experience for Indian train passengers. By integrating reliable food delivery services into its platform, Ixigo is not only expanding its service offerings but also addressing a critical aspect of train travel that has often been overlooked.

As this partnership develops, it will be interesting to see how it influences customer satisfaction and loyalty within India’s evolving travel landscape. The focus on improving passenger experiences through innovative solutions like Zoop’s services underscores Ixigo’s commitment to leading in the travel tech industry.