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Project Report On ZOMATO of Mr. D.XALXO.pdf
1. PROJECT REPORT ON
MARKETING MANAGEMENT
(Session 2021-23)
Guided By Submitted By
Mr. SURYENDU MISHRA DHARMADEEP XALXO
ASST.PROFESSOR OF MARKETING MBA III SEMESTER
ROLL NO.- 2106369010
ACADEMY OF MANAGEMENT AND INFORMATION
TECHNOLOGY
RECOGNIZED BY GOVT OF ODISHA & AFFLIATED TO BPUT.
BIDYA VIHAR, PLOT NO.67/68 IID CENTER, KHORDHA
2. CERTIFICATE FROM THE PROJECT GUIDE
This is to certify that the Project Report titled “Market analysis of
Zomato” is a bonafide work of Dharmadeep Xalxo enrolment number undertaken
for the partial fulfillment of Master In Business Administration of Biju Pattnaik
University of Technology under my guidance. This project work is original and has
not been submitted earlier for the award of any degree or diploma of any other
University or Institution.
Signature of the Guide
Mr. Suryendu Mishra
Department of MBA, AMIT, KHORDHA
3. I Dharmadeep Xalxo Son of Late Deonis Xalxo certify that the
project report entitled on “Digital Marketing”, Market analysis report
on Zomato, prepared by me is my personal and is authentic work
under the guidance of Mr. Suryendu Mishra, Department of MBA
Place: Khordha Signature of the Student
Date: 08/04/2023 Dharmadeep Xalxo
MBA III SEMESTER
Roll No. - 2106369010
4. 1
.
Introduction 3
2
.
Objectives of analysis 8
3
.
Problems faced by the company 8
4
.
Analysis 10
Zomato in Indian market 10
Zomato business model 11
Marketing strategies 12
Zomato vs Swiggy
22
5
.
Suggestions for improvement 27
6
.
Conclusion 28
5. ZOMATO
ZOMATO : AN INDIAN STARTUP GROWING
STRONGERANDSUCCESSFUL
INTRODUCTION:-
Zomato is an Indian
multinational restaurant
aggregator and food
delivery company
founded by Pankaj
Chaddah and Deepinder
Goyal in 2008. Zomato
provides information,
menus and user-reviews
of restaurants as well as
food delivery options
from partner restaurants
in select cities.
Type of Company:
Public,Unlisted
Industry:
Onlinefoodordering
Founded : July 2008; 12 years ago
Founder : Deepinder
Goyal andPankaj Chaddah
Headquarters : Gurgaon,
Haryana, India Area served :
Worldwide
Key people : Deepinder Goyal (Founder&CEO), Pankaj
Chaddah(Co- Founder),Gaurav Gupta (COO)
Services : Food delivery
Revenue : Increase ₹2,486 crore (US$350
million) (2020) Net income: Negative increase
₹−2,451 crore (US$−340million) (2020)Owner Info
: Edge(18.6%), Uber(9.1%), Alipay
Singapore(8.3%), Antfin
Singapore(8.2%)
Number of
employees : 5,000+
Website : https://www.zomato.com/bhubaneswar
6. How was Zomato started?
The story of Zomato started in the office of Bain & Company in
Delhi. Deepinder and Pankaj worked at this company when they
thought of this idea. They saw people standing in a queue at
lunchtime and give the order for their food when their turn came.
From there they got an idea of “Foodiebay” which became a
prologue to Zomato.
At first, they started scanning all the menu items of the restaurant
and listed them on their intranet website Foodiebay.com. Later on,
after seeing a huge surge in their traffic, they decidedto launch
their website open to the public.
They began listing restaurants from Deli NCR on their portal and
quickly expanded to other cities like Kolkata and Mumbai. In
November 2010 they changed the name Foodiebay to Zomato.
Their idea germinated in the form of Foodiebay.com they put up
scanned copies of the food court menu onto their company’s private
network. Everyone at the company soon started using this service and
there was a sudden surge in the website traffic.
By now this wasn’t just confined to the walls of their office.
Everyone else around their vicinity also started using these scanned
copies. The first professional restaurant menu that Deepinder and
Pankaj uploaded onto their site was that of Hauz Khas in Delhi.
After this, they started expanding this idea into other metropolitan
cities of the country including Kolkata, Mumbai, and Bangalore.
And once a word was around, thousands of people started using their
website to get to know about the best restaurants around. It was this
interest from people around that encourage both Pankaj and
Deepinder to think of going PAN India with this idea. This is when
the idea of renaming the site came into their minds. They wanted
something with more of a punch and something easier to remember
and hence came the word ZOMATO in November 2010.
The founders then wanted to make life a little easier for their users
and hence came the idea of building a mobile application. With this
growth in their business and their ideas arose a needfor funding.
7. .
The story behind the name Zomato
One of the reasons why they decided to change the name in late
2010 from Foodiebay to Zomato was that they wanted a powerful
brand name. After endless debate over several cups of coffee, they
came up with the name Zomato. Decided to keep the idea of food
at the center and choose a name that is short, easy to remember and
makes people think of food. Zomato’s got a zing to it and is
originally a play on the word ‘tomato’. They also wanted to avoid
any confusion with “ebay”, they wanted to be sure that they
weren’t taking any chances when creating a brand they’d want to
take international. Focusing on brand recall and communicating
what they stood for is of primary importance to any consumer
internet company and to think they have got most of it right.
Zomato - Startup Launch
When the founders launched this website, it wasn’t called Zomato
back then, it was called Foodiebay. And it initially started out in
Delhi, then the services were extended to cities like Mumbai and
Kolkata. With the tremendous user base and growth rates that
Foodiebay brought in to the founders, they decided to modify it and
take it international. And that’s when this venture started being
called Zomato, as we know of it today. It was in 2010 when
Foodiebay was officially rechristened as Zomato.
Zomato - Name, Tagline, and Logo
The founders changed Foodiebay to 'Zomato' to make it more
prominent, simple to memorize and primarily to eliminate the
confusion with the website eBay. Zomato's tagline is"Never have a
bad meal".
Zomato - Business Model and Revenue Model
The main source of revenue for Zomato now is the advertisements
channel that the portal offers to display. This accounts for most of its
revenue followed by the commissions that it charges to the
restaurants. It works on a commission business model.
8. Zomato - Hyperpure
Hyperpure by Zomato is changing the way restaurants work. It
is Zomato’s B2B foodtech vertical. Hyperpure allows
restaurants to buy everything online from vegetables, fruits,
poultry, groceries, meats, seafood to dairy and beverages. It
claims to be working directly withfarmers, mills, producers, and
processors to source these products thus ensuring quality and
consistency.
It is an initiative by Zomato to provide fresh, hygienic, high
quality ingredients and supplies
Zomato at a glance
Currently, there are over 100 million Zomato users worldwide
and people use the applicationto get in touch with other
foodies aroundthe globe so that they can get the best of food in
whatever place possible. This being an added advantage, big
restaurants from around the globe post their advertisements on
the Zomato app and this is basically how Zomato makes its
money.
As of 2018, Zomato clocks 3 million orders on a monthly basis with
1.4 million restaurants listed on its platform. It is available in
10,000cities and 23 countries worldwide.
Another form of income for them is the sale of tickets for food
festivals that they partner with or sponsor. Not to forget the
hardships that Deepinder Goyal and Pankaj have had to face
in their quest to the top of the mountain. Since the whole plan
from the start of this business wasto be able to reach out to each
street in every city to provide the best services to its users, there
have been multiple ups and downs. Zomato’s services in the
cities of Kochi, Coimbatore,Lucknow and Indore are currently
suspended because their markets weren’t ready forthis level of
business
These small downfalls have however never disheartened either
Deepinder or Pankaj. Zomato proudly boasts over 1.5 million
restaurants on its database and they don’t seem like they want
to stop at this and one day hope to be at power with global
players present across the world. Zomato is also India’s first-
ever globalapplication.
Both Deepinder and Pankaj are leaving no stone unturned and this is the
main reason as to why Zomato continues to climb up the ladder of success.
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The biggest challenge faced while setting Zomato up and while
taking it overseas.
One of the biggest challenges faced by any fast-growing company is
finding the right talent to fuel growth. Today they have a team of
about 650 people globally and are looking at tripling that number in
the near future. They keep innovating in the ways they hire and try to
ensure that people fit in well in terms of skill, culture and attitude.
However, the challenge continuesto be finding the right people for the
right job. Another major challenge has been to make sure that they
have covered each and every street in the cities they’re launching in.
The information needs to be relevant and comprehensive for users to
keep coming back to use our product. Data collection teams in each
city hit the streets on a daily basis and collect data first hand.
Onething learned while going international is that there is no
alternative to doing own market research or data collection. They send
out teams to scout a market before decide to launch there and have
their own teams working on gathering data to ensure accuracy and
exhaustiveness. In fact, it was encouraging for the team to see Pankaj,
Zomato’s Co-Founder and COO, sweating it out on the streets
collecting data in the Dubai summer to launch Zomato UAE two
weeks after Ramadan.
Fundings raised by Zomato
This idea of Deepinder’s and Pankaj’s impressed Sanjeev
Bikhchandani, the founder of Naukri.com. In December of 2010,
Sanjeev Bikhchandani provided Zomato with a funding of1 million
USD through his company Info Edge India and from here on, there
was no looking back.
The next round of funding that they got was again from Info Edge India and this
time it was
3.5 million USD and again in the year 2013, Zomato received a
staggering 10 million USDfrom Info Edge India which made Info
Edge India a holder of nearly 50% of the shares in the start-up. Other
investors for Zomato include Sequoia Capital, VY Capital, and
Temasek. The funds just kept coming in after this. By the end of
2018, it is estimated that Zomato would’ve received a funding of
more than 300 million USD. This funding then gave Zomato the idea
of expanding into more cities across India apart from Delhi,
10. Bangalore,Kolkata, and Mumbai. So, they moved into Hyderabad,
Ahmedabad, Pune, Chennai, etc. In September 2012, Zomato
launched its services in Dubai, Sri Lanka, United Kingdom, South
Africa, Turkey, and New Zealand.
Investments by Zomato
Between 2010 and 2013, Zomato raised approximately US$16.7
million from Info Edge India, giving Info Edge India a 57.9% stake
in Zomato. In November 2013, it raised an additional US$37
million from Sequoia Capital and Info Edge India.
In November 2014, Zomato completed another round of funding of
US$60 million at a post- money valuation of ~US$660 million. This
round of funding was being led jointly by Info EdgeIndia and Vy
Capital, with participation from Sequoia Capital.
While in April 2015, Info Edge India, Vy Capital and Sequoia
Capital led another round of funding for US$50 million. This was
followed by another US$60 million funding ledby Temasek, a
Singapore government-owned investment company, along with Vy
Capital in September.
In October 2018, Zomato raised $210 million from Alibaba's payment
affiliate Ant Financial. Ant Financial received an ownership stake
of over 10% of the company as part of the round, which valued
Zomato at around $2 billion. Zomato had also raisedan additional
$150 million also from Ant Financial earlier in 2018.
In September 2020, Zomato raised $62 million from Temasek, after
previously committedcapitol from Ant Financial never came through.
In October 2020, as part of a Series J round of funding, Zomato
raised $52 millionfrom Kora,a US-based Investment firm.
In February 2021, Zomato raised US$250 million from five
investors, including TigerGlobal Management, at a valuation of
US$5.4 billion.
Expansion of Zomato in India – 2023
With the launch in 17 new cities, Zomato has expanded its online
ordering and food delivery services to 225 cities in India, the online
restaurant guide and food ordering firm said Monday.
The newly launched cities include Bulandshahr, Shahjahanpur, Solan,
Palwal, Rewari, Machilipatnam, Nandyal, Bhimavaram, Ongole,
Srikakulam, Kadapa, Kottayam, Kollam, Khanna, Gurdaspur,
Ambur and Deoghar.
11. "Emerging cities are a major growth avenue for us and we expect them to
constitutemore than 50 per cent of our total order volume by the end of the year," Zomato
Founder and CEO Deepinder Goyal said As the company grows, it is also trying to create value
for everyone in the ecosystem, he added.
"With 1.8 lakh delivery partners, we are creating jobs and skill-
building opportunities for many in India. We are developing Zomato
Kitchen hubs in smaller cities in India to drive growth for our
restaurant partners," Goyal said.
How Does Zomato Work?
The main work of Zomato is to suggest local and nearby restaurants
to users and receive orders from them. Users can place orders from
their favorite restaurant based on ratings and reviews shared by
previous customers.Perhaps this is why more and more startup
owners are interested in developing an app similar to Zomato. It
offers comfortto the users and helps business owners reach their local
food business to new heights.Zomato’s working flow is simple,
Step 1: From the desiccated app solution or website, users can
explore various restaurants and order meals.
Step 2: Particular restaurant owners receive an order request
and start preparing a meal. Step 3: Once the food is ready to
dispatch, it will be handed over to delivery providers. Step 4:
Delivery providers deliver the meal to the customer’s preferred
location.
Step 5: From the given payment options, customers can make
payments and share reviews based on their experience.
OBJECTIVES OF ANALYSIS
Zomato started as a Foodiebay.com startup, a service provider app
which was supposed to be a restaurant directory which started in
Delhi. Slowly Zomato expanded to other countries aswell as cities in
India. Launching a food delivery app in a country where people were
not very used to takeouts, back then the culture of eating out was
not popular in India. But an app which gave the service of ordering
12. food and delivering it to our door step became popular and became a
success.
The main objective behind this analysis is finding out how
Zomato managed to survive in the Indian market and how
founders made it a huge success? What were their strategies?
How the company handled the pandemic covid-19? And
comparing Zomato with one of the top food delivery company
Swiggy.
SUCCESS DOESN’T COMES WITH STEP 1.
PROBLEMS AND TOUGH TIMES ZOMATO FACED.
The most significant hurdle they faced was to find a way to cover all the
areas in all the pivotal cities so the people who hinge on them do not fail
to miss the finest restaurants. This complication was present in the initial
stages and endures to be a hurdle.
The graph of Zomato, that looks excellent this far, did not stay the
same post 2014. The year 2015 brought with it hardships of all
kinds and it was then that the company had to make some harsh
decisions. After acquiring Urban spoon and rebranding it as its
own, the venture failed miserably, so much, that the company was
forced to lay off 300 employees to curb its losses, 10% of which were
from the US.
By 2016, things went out of hand to an extent that Zomato had to
roll back its operations in various countries like the US, UK,
Brazil, Chile, Sri Lanka, Canada, Italy, Slovakia, and Ireland. And
when it finally resumed its operations in the said countries, Zomato
had to work with remote services.
There’s more lined up in their story. Zomato faced a major setback
in the year 2017 when its existence was put at stake with a cyber-
attack. A hacker had breached into the records of 17 million users
from the database of the company. Soon after, Zomato understood
that the data could only be accessed by the hacker and the breach
was resolved after communicating with the hacker. As it later
turned out, the hacker was only trying to prove a point that there
existed security loopholes in the system.
13. Consequently, in the year 2019, a campaign called #logout
surfaced where restaurants listedon the platform called the
company out for eating their profit margins via its features like
Infinity Dining and Zomato Gold, which provided heavy
discounts to customers.
Covid-19 Impact
Online restaurant guide and food ordering platform Zomato,
In year2020 may laid offaround 13% of its workforce on
account of the impact of covid-19 pandemic. Thecompany had
around 4,000 employees in different roles. Founder and CEO
Deepinder Goyal said multiple aspectsof the company’s
business have changed dramatically over the last couple of
months and many of these changes are expected to be
permanent. “While we continue to builda more focussed
Zomato, we do not foresee havingenough work for all our
employees. We owe all our colleagues a challenging work
environment, but we won’t be able to offer that to around 13
per cent of our workforce going forward,” he added.
Zomato faced several hurdles across cities while trying to
deliver food. Online food delivery orders dropped up to 70%
during 1st waveof covid, as customers step back to place orders
and top restaurants were shut amid a lockdown.
Zomato being a food delivery company faced problems post
lockdown too as customers were afraid to order food because
it could have been a potential carrier of virus. Even after
restaurants opened orders were less in number. Now that
restaurants and Zomato is using protective measures still if
Zomato doesn’t innovates and markets properly it will
facedownturn because of tough rivals like Swiggy which is
getting popular.
14. ANALYSIS:
Pankaj Chaddah and Deepinder Goyal are the master brains behind
this great food delivery application 'Zomato'. Zomato has been and
is the most widely used ordering application that attracted many
customers with its innovatory strategies.
In the early 2000s, we weren’t accustomed to using our phones for
purposes other than calling and text messaging. In fact, most of us
were oblivious to the opportunities that this magic box could
present! The end of the first decade of the century brought with it a
revolution like no other. And it was during those crucial years of
transformation when the foundation of Zomato was laid in India.
Zomato in India Market
Initially ‘Foodiebay’ only offered menu of the restaurants and review
the properties online but later Chaddah and Goyal introduced food
ordering. After that it started becoming popular. People working
private jobs, bachelors, students, teenagers were the first target of
the company as there were many reasons people could use food
delivery. Working people had to wait inlines at restaurants during
lunch which wasted time, people wanted to explore dishes and
cuisines fancy restaurants offered and Zomato gave them this
service. Enjoying food without actually visiting the restaurants.
People no longer had to wait in lines or visit the place. Zomato made
food one tap away which was new to Indian market and attracted my
people.
15. The founders of Zomato, Deepinder Goyal and Pankaj Chaddah consider that hiring the correct
persons is the primary reason for their company's startling growth and moreover, it was also
the greatest hurdle encountered by them while building Zomato. Now, they have a squad who
are vital in bricking their dream project.
The Success Story of Zomato
Food is the prime mover for anyone across the globe. Of
course, there are many people whoyearn for food and to taste a
variety of cuisines that are available. Thefurtherance in the
technology has paved a way for the creation of many
innovations and it is no less to mention that food delivery app
development is one among them. brains behind this great food
delivery application 'Zomato'. Zomatohas been and is the most
widely used ordering application that attractemany customers
with its innovatory strategies
In this extravagantly ornate system, it has become hard for every person to disburse time
on everything. Besides, cooking food after a busy day entails a lot of time and that is what
that has gained huge rage about these food delivering applications, where food will be
delivered directly at your doorsteps.
For all these ingenious thoughts, there are those unusual people who have a perfect
understanding of all the trends and so are these people Pankaj Chaddah and Deepinder
Goyal. They are the master
The formula of Zomato’s Success
Zomato’s business model in detail
Restaurant Listings / Advertising
In its first avatar, Zomato was just a listing platform and a
restaurant directory. This brought in advertising revenues
from restaurants who joined the platform. Extending this
further after the launch of food delivery and restaurant
reservations, Zomato now charges commissions from
restaurants to be placed prominently on the feed.
Restaurants can pay to have their events or offers
promoted as well as their overall banner, which brings
improved visibility and conversions from Zomatousers.
16. Food Delivery
To begin with, through its food delivery business, Zomato
charges a commission to the restaurants on the basis of orders.
While users pay a delivery fee, Zomato earns through
restaurants who pay a commission for each delivery, which is
then split among the delivery partner and the company.
Commissions from restaurants vary based onwhether Zomato
is fulfilling the delivery or whether the restaurant uses its
own riders.This is said to contribute in a small way to the
company’s total income due to huge competitionand need for
deep discounts etc.
Subscription Programmes
With Zomato Gold for consumers and users, and subscription
solutions for restaurants, Zomato opened up a steady stream of
revenue. While users pay a subscription fee to access the
Zomato Gold loyalty programme which brings exclusive
offers, restaurants also pay a monthly fee to be part of
Zomato’s bouquet of offers. Restaurants also pay Zomato a
monthly fee for miscellaneous services such as live tracking,
Zomato-brandedtamper-proof packaging and more.
Live Events
With Zomaland, Zomato entered the branded live events
market last year. Zomato charges users an entry fee to attend
Zomaland, where besides food, they can witness live musical
performances and other acts. In 2018, it had organised the
entertainment carnival in Delhi, Pune, and Bengaluru, where
Zomato claimed over 100K people showed up. This year,
Zomaland is going to Pune, Delhi, Bangalore, Hyderabad,
Mumbai, Jaipur, Pune, Chandigarh, and Kolkata.
White Label Access
Zomato also enables services such as Zomato White label
under which they give offers to the restaurants to develop a
customized food delivery app. It also works with cloud
kitchens and restaurants for consultancy services. Zomato
works with select restaurant operators to help in identifying
locations for expansions at a minimal fixed cost, but with
increased options for the user. It provides the requisite licenses
and operational enablement for such restaurant partners.
Zomato Kitchens
In order to be able to provide kitchen infrastructure services to
select restaurant operators, Zomato works with entrepreneurs to
set up and operate Zomato Kitchens under different labels.
17. This helps entrepreneurs fund restaurants in the right
location with an investment of INR 35 Lakh and more.
Zomato claims itoffers returns in the range of INR 2 Lakh
to INR 4 Lakh per month to the investors, with 180+
affiliate kitchens already up and running.
As it has grown in size and scale, Zomato has tried to reduce the
reliance on cash-burn reliant models and streamlined to enter
enablement and other user-generated streams of revenue.
Zomato’s cash burn is mostly in retaining users against its rival
Swiggy. However, being in the line of fire for deep discounting
practices, Zomato may soon be able to earn fromother parts of
its business model.
Marketing strategies
What makes ZOMATO Best:
Target Keywords
Zomato targets over 900K keywords to rank high in search
results. That’s why it is hasa dominant position in search
results. The keywords include restaurant names, dish names,
and some phrases that relate to the user’s search query like
“cafes near me” or “order online food,” etc.
Pages on website
Zomato allows restaurants to create and maintain their pages on
its website. There areover 6500 registered restaurants on
Zomato. That is why Zomato has over 54 million pages onits
website. We know that the more pages a website creates, the
higher it ranks on search engines, and that’s how it ranks at the
top.
18. URL linking
We have heard of the SEO strategy to put keywords in URLs. It
helps the search engine to understand your pages better and
show it in the search result pages.
Zomato understands this practice well and takes their top
keywords to create URLs. It uses keywords like coffee near
me, bars near me, and food near me.
Internal Linking
Zomato increases its domain authority by getting backlinks
from 12,274,172 domains. It also gets high authority backlinks
from gov and edu domains. By getting qualitylinks, Zomato
makes its SEO game stronger.
19. An app that targets the
customers of the 18-35
age group, cannot miss
social media marketing.
Zomato understands that
most of its target groups
are active social media
users. So, it focuses on
creating social media ads
and creates engaging
posts to connect with the
audience.
0.73% of Zomato’s
traffic comesfrom social
media.
Zomato followers on
different social media
platforms are:
Facebook- 1.8 million
Instagram- 430K
Twitter-1.4 million Zomato understands what kind of posts will engage the users; hence
it follows the meme marketing strategy for theirsocial media. Even Zomato’s Instagram
bio says “Meme
Page…occasionally
Posting brand posts due to business team pressure.”
20. Zomato creates ads for its existing to get more orders from them.
For instance,look at this Facebook ad:
21. Zomato’s Paid Advertisement
Zomato runs Google ads to target specific customers. When a user
searches for something Google displays organic search results along
with paid ads. These are Google ads. Zomato targets both branded
and non-branded keywords for Google ads. Furthermore, it targets
keywords that are related to various dishes, online orders, restaurant
names, etc.
When a user searches for online food orders on Google, then
Google displays paidads from Zomato.
Zomato gets approx. 0.56% of its traffic from paid search ads.
Zomato’s Email Marketing Strategy
Zomato knows well how to utilize the Email Marketing tool
optimally. Zomato’s Email marketing is one of the wittiest and
compelling strategies. With compelling subject lines and a call to
action, Zomato maintains its brand loyalty.
In its recent email marketing campaign, Zomato created emails with
the theme of Amazon Prime Video’s famous series Mirzapur season
-2. Zomato included subject lines related to Mirzapur characters.
“Munna Bhaiya invited you to a weekend” and “enjoys a weekend to
guddu to be true “are some examples.
Phenomenal job with Also, one of its best email marketing strategies
was when it created a resume for Biryani. Zomato included phrases
related to food like “curriculum Vitae of Biryani,” Also it used the
CTA “hire now” instead of using “order now.” That’s how Zomato
does a its Email Marketing Strategy.
22. Zomato’s Visual Advertising
Zomato comes up with some of the best visual adverts to connect
the audience with their platform. Be it their video adverts or
billboards, Zomato comes up with great content.
Zomato post Covid-19
Zomato has recovered 75-80% of its pre-Covid sales. However,
dining-in at restaurants is still at just 8-10%. Restaurants in Delhi
NCR and Chennai are worst hit, with 88% and 91% respectively still
closed for dining-in business, with the outlook for the industry
looking bleaker.
Out of the 83% restaurants that are not open for business, 10%
restaurants have already shut down permanently and we anticipate
an additional 30% restaurantsto not reopen at all. Remaining 43%
are closed right now but likely to open, as the situation becomes
better. Zomato, which has 180,000 restaurants listed on the platform
and nearly 27 million monthly active users. It has delivered 70
million orders and estimated that the overall food delivery industry
would have done 200 million orders. Restaurants in residential areas
were found to be doing 50% better than those in commercial areas
and consumers are moving their spends from eating out to home
delivery. The report also said that 1 in 5 customers in metros have
now opened the Zomato app in smaller towns, underlining
migration as most companies are expected to continue work-from-
home policies for the coming months. Zomato has recently entered
a strategic partnership with In Cred, where the latter will extend
credit facilities to the former’s restaurant partners.
The food delivery industry was one of the worst-affected segments
during the pandemic withits Gross Merchandize Value (GMV) falling
short of the pre-COVID levels. However, we can now see a revival
trend in the industry. The food delivery business has crossed pre –
covid run rate and is expected to grow further in the months to come.
The In Cred-Zomato tie-up will extend financial assistance to cash-
strapped businesses for meeting their business growth and working
capital needs. Saurabh Jhalaria, CEO (SME Business), InCred said in
a statement, “The COVID- 19 outbreak has led to a sharp decrease in
footfall, order volume, and bucket size within the food services
segment. In this context, platforms such as Zomato have enabled
physical businesses to recover seamlessly. We are happy to join hands
with Zomato.”
23. Co-founder Pankaj Chaddah has started a new venture with former
Zomato executive Pooja Khanna called Mindhouse, a mental wellness
startup that offers users guided meditation sessions and techniques.
Mindhouse started in December 2019 by offering guided meditation
sessions at three physical studios in Gurugram. The company,
however, shifted focus to an online model due to lockdown curbs
last year. The mobile app provides meditation and yoga content
through a mixture of live classes and an on- demand library of audio
and video content. It also recommends content based on various goals
chosen by the user like sleep, relaxed mind, patience, and focus
among others along with their past experience in meditation. The
company offers this service through various plans starting with Rs
499 for a monthly plan and going up to Rs 999 for a three-month
plan and Rs 1,999 for a yearly plan. It also offers a free tier with
access to limited features and content. Corporates will be one of the
key focus areas forthe startup, having already partnered with
500 companies in the past few months amid lockdown, Mindhouse
co-founder Pooja Khanna told ET. Chaddah added that international
expansion is also in the works, with the startup expecting to roll out
its product to the rest of the world bythe end of July 2020. The
company currently employs 25 people in the country.
For our restaurant partners and restaurant workers
Zomato Gold Support Fund – with the goal of helping out the
restaurants that are finding it difficult to support their
workers, we have launched the Zomato Gold Support Fund.
Individual users can contribute to this cause by purchasing or
renewing an annual gold membership. All proceedsfrom the
Zomato Gold subscriptions in the month of April 2020 will
go towards supporting restaurant workers in need and the
users will get an additional year of Gold free, as a token of
our gratitude. This has already been launched in India and
UAE, and will be live in other markets over the next few
days.
Takeaway – we are launching takeaway in Australia and
Portugal, to support restaurantsin the current situation and
also help our users, with what is a need of thehour in
thesetimes.
24. Our underprivileged community – India’s daily wage workers
Food Security – Zomato’s mission is ‘better food for more
people’. And for some underserved segments of our
country, ‘better food’ simply means being able to put some
food on the table.
Feeding Foundation – Zomato runs a not-for-profit called the
Feeding Foundation (in India, known as Feeding India). The
purpose of Feeding Foundation is to leverage our relationship
with the food industry, and our users to be able to provide
food security to millions of people whorun the risk of dying
from hunger. In the middle of this chapter, we also started the
Philippines chapter of the Feeding Foundation, called
Feeding Philippines.
Feed the Daily Wager – about 450 million Indians depend on
daily wages to run their household and have lost their
livelihoods due to the lockdown. All these people are going
hungry and they desperately need someone’s support. To
help with the situation, we started the “Feed the Daily
Wager” initiative in India, wherein weare distributing ration kits
to daily wager communities. These ration kits provide 100
meals to a family (three meals a day for a family of five, for
a week).
This initiative is powered by people like you – we have been
able to raise ₹25 crores for this from individuals and
corporates, and are aiming to double the amount. If you
haven’t already done so, please donate towards feeding our
daily wagersat http://www.feedingindia.org/donate; countless
drops fill an ocean – please add yours.
We have already distributed more than 100,000 ration kits (to
the same number of daily wager families) in more than 20
cities as of now. Apart from our mega cities, we have now
also started distributing these ration kits in other cities like
Patna, Jhansi, Guwahati, Dehradun etc.
We plan to distribute 1M ration kits as part of this initiative,
and have alreadysecured supplies to do that.
25. Working for Feeding India is incredibly humbling. Here are
some images andconversations that will move you.
For people who are directly affected by COVID-19
Food for quarantine facilities – as an essential service provider,
it is important we find more than just a few ways to help our
community fight against this pandemic. We have teamed up
with Apollo Hospitals to deliver food to those who are in
isolation wards, in their quarantine facilities. We are
currently doing this in Bangalore and Hyderabad, and are
expanding this support to hospitals/quarantine facilities
across major cities.
Zomato vs Swiggy
Why do some people only choose Zomato or Swiggy over another?
About Swiggy
Swiggy is a food ordering and delivery platform in India. The foodtech unicorn
started operations in 2014 in Bengaluru, and acts as a bridge between customers
and restaurants. Itutilised a technology platform that allows customers to order
food from nearby restaurants and get it delivered to their doorstep. It was
foundedby Sriharsha Majety, Nandan Reddy (Co-founder) and Rahul Jamini
(Co-founder) with a business model B2C and B2B. It isknown as India’s fastest
unicorn. From being late entrant in the online food ordering space in 2014, Swiggy
has galloped its way to billion-dollar valuation in four years forcing other food tech
companies to play catch up.
26. How Swiggy app works and earns
Users sign up for Swiggy mobile app and become customers
Customers open the app, select the restaurant, and order the food
The app confirms the delivery location
The restaurant receives the order and confirms it
Local delivery boy confirms the pick-up and drop location of the order
Customers receive the notification showcasing the
confirmation of the order and the person who will deliver the
order
Customers track the entire journey from mobile app starting
from the order confirmation to the moment order gets
delivered. They can also track the delivery boy’s location.
Swiggy marks your ordered completed, once delivered
After the order completion, Swiggy app asks customer’s reviews and
ratings on food, taste, and delivery service.
Swiggy’s idea to connect local foodies with local restaurants gave the
brand advantage of an early mover. But the brand relies on restaurants
and local delivery personnel to grow the business. And the company
has to pay incentives to local delivery boys to keep the business
going. So Swiggy’s revenue stream comes from different, multiple
sources.
Here they are:
Commissions
Swiggy charges 15-25% commission on total order bill (inclusive of
Goods and Service Tax) from restaurants. The percentage of the
commission depends on various factors like the number of orders,
location of the restaurant, the commission chargedby competitors, etc.
Delivery Charges
Swiggy doesn’t follow any minimum order model. It can deliver
food for even less than Rs.100/- only. Instead of being a hurdle, it’s
the most significant advantage for Swiggy as the app often receives
an order value of less than Rs. 100/- for which Swiggy applies
delivery charges.
Delivery charges rotate around Rs.10-20/- for orders less than
Rs.250/-. Swiggy increases its delivery charges in times of high
demand, rains, special occasions, or midnight delivery. If customers
need emergency food at midnight, they have to pay a little bit higher,
or customers prefer to order on time to avoid paying high. Either
way, Swiggy wins.
27. Advertising
Swiggy follows two advertising revenue models simultaneously:
Banner Promotions and Priority Restaurant listing.
Swiggy started displaying and promoting banners of available
restaurants based on regions and rates. Swiggy charges premium from
restaurants in exchange for displaying their banners in its app.
Affiliate Income
Swiggy offers credit cards as well from where it generates income as
an affiliate. The food- service brand has partnered financial biggies,
including American Express, Citibank, ICICI Bank, HSBC, etc.
Other Income Sources
Swiggy keeps expanding its revenue sources along with its growth. It
has started Swiggy Access allowing restaurants to set up kitchens at
locations where they can’treach. For this, restaurants pay higher than
average commissions.
Swiggy added another source via Swiggy Super, a membership
program for regular customers. It offers unlimited free delivery for
orders above Rs. 99/-.
Zomato and Swiggy
The comparison between two top most food delivery companies in India.
Zomato’s business point is unique and different in relation to Swiggy.
If we take a gander at Zomato, it centres around food alone.
Whether we want toknow whatis a decent food restaurant to visit
or want to order food online, or review food, we go to Zomato.
Where on the other side, Swiggy centres around their delivery
ecosystem. They’re currentlyexploring new fields into delivering
groceries, medicines, anything etc.
28. Login page
Swiggy - Before even joining and signing in customers are indicated
offers and coupons, with the goal that it produces interest and
individuals, regardless of whether weren’t anticipating exploring the
application, Sign In. It also has a feedback option below Offers.
Swiggy givesyou an option to give feedback, before the login.
Zomato - Zomato goes for simplicity, provides options for login, i.e.,
via Facebook, Google or Email.
Account
Both Swiggy and Zomato’s account page serves almost the same
thing. The account page lets you manage your address, check how
much balance do you have in your wallet, etc.
Swiggy - Swiggy has designed its account page to be less intuitive.
On the account page, when you scroll you don’t see any important
factor, there’s insights on your past orders, and as opposed to looking
over additional, you want to go to different pagesand all things
considered check food instead.
Zomato - Zomato’s account page is very engaging. It even has a
profile of the user. People can maintain their profile page, where they
can write reviews about restaurants, add photographs. One can follow
fellow foodie companions. Eating and updating reviews adds up to
the stats, where one review can get you 25 points and from just being
a foodie, you can upgrade yourself to become connoisseur, sharing it
with your community.
Home screen
Swiggy - As you scroll down on the Swiggy’s home screen page,
there are many repetitive features and categories, even old promo
cards, which hinders the food search process.
Zomato - Zomato’s home screen has more contrast and is
exceptionally captivating. ZomatoPro advertisements and
promotions, are all over the places
29. Food display
Swiggy - Food restaurants displayed are simple and easy to work
with. At one pointthe scrolling stops and ends up with 'LIVE FOR
FOOD' quote.
Zomato – It advertises and takes up a lot of space to display the food
places available. The users at one point will get tired of scrolling and
may or may not settle with any restaurant. Zomato has endless
scrolling.
Search
Swiggy - There is a separate page just for the search, which makes the
process of searching for any item easier and clutter free. They’ve
put smart use of restaurants, users probably might reorder from. The
recent search option is helpful.
Zomato - The search bar is available on top of the home screen. By
placing images and few options does have a clickbait which would
want the users to click on a type of cuisine, even if they aren’t
looking for anything specific.
Cart/Payment
Swiggy - It’s Go to Cart is simple and snappy as there’s a different
cart page for the users to visit. At the point when customers order
something they get notified below with a green popup of what
they’ve recently added so that they can check out quickly. But for
payment there’sa process.
Zomato - It doesn’t have a cart page or any alternate. When one
orders something there’s no visible pop message below for the order.
People can be puzzled while searching for the cart. It is that there,
when you have to double click to reach to thecart page. But the
payment system is easy and quick.
30. Location & Delivery
Swiggy and Zomato both auto detects your location. You can
anyhow separately add the location yourself. Swiggy’s delivery system
is faster by 5 minutes. But Zomato gives amazing offers and
discounts. Their marketing strategies, no doubt stands out.
Conclusion of comparison
The food delivery industry has emerged as one of the biggest online
platforms specially in lockdown. The shape of the market is
changing with a breakneck speed with food tech companies like
Swiggy, Zomato and many more. As the decade draws to a close
we have started to see some signs of consolidation in a market which
has undergone several shifts in terms of strategies and operating
procedures. The decade certainly belonged to the two top start-ups in
the space Swiggy and Zomato. They are both great in their own
specific manner. Where Zomato’s speciality is marketing and offers
concocting these insane ideas online competitions, promo ads and
games for their users to be involved in and win amazing cash back
prices, Swiggy doesn’t hold back either with their efficient user
experience. Both the companies keep on updating their apps and
never fail to amaze the customers.
The answer to How people choose Zomato or Swiggy is simple.
Preference.
Some people prefer fast service and hate to wait they usually go for Swiggy
not minding thepries. But people who want to try different options, want
discounts and cashbacks go for Zomato.
Some people use both the apps. Whichever is suitable. They
switch app if can’tfind arestaurantor a good offer in one.
SUGGESTIONS FOR IMPROVEMENT
How Zomato fails and what can the company do to improve
Customer satisfaction
Customer service is satisfactory but from the start till now few customers face problems
which aren’t heard or solved by the company. Zomato should focus a little more on
customer service as this problem can lead to bad reputation and company can go
downhill.
31. Application
As much as the app is user friendly it creates problems too which
isn’t being solvedeven after many complaints. The app usually fails to
detect the customers exact location also sometimes give wrong or
long routes to the delivery guys which creates problem and delays the
order. Company updates the app on discounts and offers and invests
too much in marketing but is ignoring such important problems. They
should fix this problem so that it becomes easy for delivery guys to
find and reach the location easy and early.
False rating
There have been reports of false rating. Reports being true or not even
if a rumour its definitely hurting the image of the company. Zomato
should take some action to solvethis problem as building a goodwill
takes years but it takes no time to ruin.
Packaging
Well, the packaging is mostly done by the restaurants but if anything
goes wrong with the packaging the blame straight goes on Zomato.
To avoid that company should take extra measures with packaging
as no customer would want to eat a carelessly packaged food.
Employees
When I say Zomato needs to improve employee wise everyone
starting from executives to the delivery men all need to be more
customer friendly and better at their job. Executives are rudeto the
customers and some delivery guys are too unaware of the locations
and need to be directed by customers many times. It makes
inconvenient for customers and they would rather choose different
app rather than taking all the pain.
32. CONCLUSION:-
If we go by numbers, Zomato witnessed a record rise of 225% in
its revenue in the very first half of FY2023. The company’s biannual
report revealed that it had registered
$205 Mn in revenue as compared to $63 Mn (in the first half) of last year.
Zomato’s journey thus far has witnessed crests and troughs of its
own. But it wouldn’t be wrong to say that ups and downs are faced
by almost all startup companies in their initial years. What really
matters, in the end, is their resilience, their will to stand by the
organization and its valuesand the decisions they make in difficult
situations.
As for the founders, Deepindar and Pankaj, they’ve done a
phenomenal job of keeping Zomato afloat even in times of crisis.
Where in early 2018, Pankaj announced that he’d like to quit
Zomato and take some time off before he turned “professionally
active” again, he continuesto hold a stake of 3.11% in the
organization.
Today, the company is looking forward to raising more funds with a
vision to expand its service portfolio. It aims to reach newer markets
and explore other related domains of growth. As Zomato battles it
out with Swiggy - its biggest competitor, it will be interesting to see
what lies ahead for this organization especially in a time when bigger
players are entering the market.
