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Zomato Cloud Kitchens : Empowering
Millennials with 3E’s
Dr. Arpita Srivastava and Ms. Radhika Malhotra
ZOMATOHELPS!
• Online restaurant
search and discovery
service
• Website founded in
2008 by Deepinder
Goyal and Pankaj
Chadda
• Formerly known as
foodiebay.com until
2010. Renamed to
Zomato as the earlier
name contained ebay in
it
History of Zomato
Creating Milestones….
Business Model
Business Model
“Assortment, Affordability, Accessibility and Quality – it is about
being a part of every value in the food chain and being a
complete food business,”
Challenges @ ZOMATO
 Scarcity of Sufficient number of Riders Captive
Delivery fleet required for efficient delivery.
Restaurants on Zomato Platform are rejecting Food
Delivery Orders.
Problems
• Inconsistency
• Withdrawal
• Salary Structure
• Consumer
Engagement
Challenge 1 : Riders @ Zomato
Solution
• New Salary and Incentive
Plans
• Weekly Salary
• Log In Duration
• Consumer Review
Salary and Incentive Plan
Permanent Rider (Pay Roll) : 10 Hrs Log in per week irrespective of
order received or not ……………………..Rs. 2,500
Incentive Rs. 20 per order + Rs. 5 on rating basis by
consumer
No. of Delivery Incentives = ex. Target of 18 delivery in a day
If 11 delivery …………….. Rs. 100 extra incentive
12 delivery ………..Rs. 250 extra incentive
18 Delivery ………Rs. 500 extra incentive
Many food delivery
‘executives’ now earn
between Rs 40,000 and
Rs 50,000 per month,
compared with Rs 18,000
to Rs 20,000 previously.
• Zomato earn about Rs 4,500 per 60-hour week in cities like Mumbai.
• Orders delivered per executive have slipped to12-15 a day from 18-20
previously because the fleet size has increased.
Result
“The switching costs for delivery boys across food delivery platforms are
fairly low, unlike ride hailing. With Zomato vying for leadership across
multiple markets, the high salaries at present can turn viable as utilization
will increase with penetration,” said Ujjwal Chaudhry, engagement
manager at Red-Seer Consulting.
Read more at:
//economictimes.indiatimes.com/articleshow/65142563.cms?utm_source=contentofinter
est&utm_medium=text&utm_campaign=cppst
Problems
• 200 thousand online
orders to be placed in
India every day.
• Order rejection by the
restaurants was a very
poor experience for all
three parties. The
already hungry customer
not only lost on the food,
but also on time. They
were then hungry AND
frustrated. The
restaurant and Zomato
lost not only the
business but also the
trust of the customer.
Challenge 2 : Restaurant partners
Rejecting Food Delivery Orders @ Zomato
Solution
• Show a disclaimer over on
the customer app.
• Item out of stock
• Increased delivery time
disclaimer on customer
app
Previously taking the restaurant
offline for a certain time, so that
they get no new orders
Rejection flow for when items marked out of stock….
 With in One week ZOMATO was able to bring rejections
down by approximately one percent.
 Decrease in chatter on the customer support’s “Delayed
Order” channel was attributed to increase in timely
deliveries.
Story is not completed yet ….
SUMMARIZING BESTPRACTICES
PUT CUSTOMERS
FIRST
• Product team
overpowers
• Focus in
website on
products than
on
advertisements
GET PERSONAL
WITH FEEDBACK
• Real Person
write back
• Not sticking to
the automated
mail culture
CUSTOMER
SERVICE AS CORE
STRENGTH
• Best people
manning the
queries
• Understanding
the business
intelligence
behind
customer
service
BE EMOTIONAL
• Customers will
only care for
product if you do
• Changed product
tagline from
“India’s #1 online
restaurant guide”
to “Discover more
places to eat
around you”.
THANKYOU.

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PPT Zomato Case Study.pptx

  • 1. Zomato Cloud Kitchens : Empowering Millennials with 3E’s Dr. Arpita Srivastava and Ms. Radhika Malhotra
  • 2.
  • 4. • Online restaurant search and discovery service • Website founded in 2008 by Deepinder Goyal and Pankaj Chadda • Formerly known as foodiebay.com until 2010. Renamed to Zomato as the earlier name contained ebay in it History of Zomato
  • 8. “Assortment, Affordability, Accessibility and Quality – it is about being a part of every value in the food chain and being a complete food business,”
  • 9.
  • 10. Challenges @ ZOMATO  Scarcity of Sufficient number of Riders Captive Delivery fleet required for efficient delivery. Restaurants on Zomato Platform are rejecting Food Delivery Orders.
  • 11. Problems • Inconsistency • Withdrawal • Salary Structure • Consumer Engagement Challenge 1 : Riders @ Zomato Solution • New Salary and Incentive Plans • Weekly Salary • Log In Duration • Consumer Review
  • 12. Salary and Incentive Plan Permanent Rider (Pay Roll) : 10 Hrs Log in per week irrespective of order received or not ……………………..Rs. 2,500 Incentive Rs. 20 per order + Rs. 5 on rating basis by consumer No. of Delivery Incentives = ex. Target of 18 delivery in a day If 11 delivery …………….. Rs. 100 extra incentive 12 delivery ………..Rs. 250 extra incentive 18 Delivery ………Rs. 500 extra incentive
  • 13. Many food delivery ‘executives’ now earn between Rs 40,000 and Rs 50,000 per month, compared with Rs 18,000 to Rs 20,000 previously.
  • 14.
  • 15. • Zomato earn about Rs 4,500 per 60-hour week in cities like Mumbai. • Orders delivered per executive have slipped to12-15 a day from 18-20 previously because the fleet size has increased. Result “The switching costs for delivery boys across food delivery platforms are fairly low, unlike ride hailing. With Zomato vying for leadership across multiple markets, the high salaries at present can turn viable as utilization will increase with penetration,” said Ujjwal Chaudhry, engagement manager at Red-Seer Consulting. Read more at: //economictimes.indiatimes.com/articleshow/65142563.cms?utm_source=contentofinter est&utm_medium=text&utm_campaign=cppst
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  • 20. Problems • 200 thousand online orders to be placed in India every day. • Order rejection by the restaurants was a very poor experience for all three parties. The already hungry customer not only lost on the food, but also on time. They were then hungry AND frustrated. The restaurant and Zomato lost not only the business but also the trust of the customer. Challenge 2 : Restaurant partners Rejecting Food Delivery Orders @ Zomato Solution • Show a disclaimer over on the customer app. • Item out of stock • Increased delivery time disclaimer on customer app Previously taking the restaurant offline for a certain time, so that they get no new orders
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  • 22. Rejection flow for when items marked out of stock….
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  • 24.  With in One week ZOMATO was able to bring rejections down by approximately one percent.  Decrease in chatter on the customer support’s “Delayed Order” channel was attributed to increase in timely deliveries.
  • 25. Story is not completed yet ….
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  • 30. SUMMARIZING BESTPRACTICES PUT CUSTOMERS FIRST • Product team overpowers • Focus in website on products than on advertisements GET PERSONAL WITH FEEDBACK • Real Person write back • Not sticking to the automated mail culture CUSTOMER SERVICE AS CORE STRENGTH • Best people manning the queries • Understanding the business intelligence behind customer service BE EMOTIONAL • Customers will only care for product if you do • Changed product tagline from “India’s #1 online restaurant guide” to “Discover more places to eat around you”.
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