Personal Selling for Online Food Business (Zomato Pvt. Ltd.)
Increasing Competition in Online Food Business UberEats, Swiggy, Foodpanda, Zomato
Impact of advertisement on restaurants in Zomato with graph
Impact of GST
Survey on restaurants to work with Zomato
Market Research: Personal Selling for Online Food Business
1. Table of Contents
Chapter 1: The problem and its background………………………………………… 1-7
1.1 Introduction: Online Food Business in India…………………………………………. 1
1.2 Zomato: Company Profile……………………………………………………………. 2
1.3 Zomato: Offerings……………………………………………………………………. 4
Goods & Service Tax Act (GST)……………………………………………………… 5
1.4 Statement of Problem…………………………………………………………………. 6
1.5 Conceptual Framework………………………………………………………………… 7
1.6 Aim & Objective……………………………………………………………………… 7
Chapter 2: Literature Review & Hypothesis…………………………………………… 8-21
Chapter 3: Personal Selling for Zomato……………………………………………………. 9
3.1 Importance of Personal Selling for Zomato…………………………………………… 9
3.2 Process of Personal Selling……………………………………………………………. 10
3.3 Mandatory Checks…………………………………………………………………….. 11
3.4 Major Competition……………………………………………………………………. 12
3.5 Zomato Exclusive Program…………………………………………………………… 13
3.6 Benefits of Online Ordering…………………………………………………………... 14
3.7 Benefits of Banner Advertising………………………………………………………. 17
3.8 Managing the Content…………………………………………………………………. 20
Chapter 4: Methodology…………………………………………………………………... 22-24
Chapter 5: Data Analysis………………………………………………………………….. 25-30
Chapter 6: Results…………………………………………………………………………. 31-32
Chapter 7: Conclusions……………………………………………………………………. 33-34
Bibliography………………………………………………………………………………. 35
Annexure…………………………………………………………………………………… 36-37
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Chapter 1: The problem and its background
1.1 Introduction: Online Food Business In India
Over the year 2016, there has been an exponential growth in the number of food startups. This area
is garnering investor’s interest, so much so that the market size of food in India is expected to
reach Rs. 42 lakh crore by 2020, reports BCG. Presently, the Indian food market is around Rs. 23
trillion.
Companies like Tastykhana and Foodpanda were the pioneers who started food ordering business.
At that time, market was in its nascent stage and they started acquiring customers with heavy
discounts and cash burnout. Other market players like Tinyowl also followed the trend which in
result spoiled the entire market. They entered into partnerships with restaurants without charging
any commissions and no delivery charges were levied on customers. Subsequently, things started
slipping out of their hands and had to close down the operations.
India based restaurant listing site Zomato also expanded its business into food orders. Zomato or
FoodPanda have made an impression on the smart Indians, but there were other similar websites
which mushroomed at one point and is now non-existent and could not stay true to their value
proposition. Global food chains and QSR like McDonald's, and Pizza Hut have their own websites
from where you could order food, other businesses who want in on the food delivery business opt
for websites like FoodPanda and Zomato. These websites earn commissions on every order and
the benefit to customers is that they are able to access a number of food websites offerings at just
one stop, avail discounts and exclusive offers to get maximum value out of their online or mobile
app orders.
The changing urban lifestyle of the average Indian is dramatic enough to be favorable for the food-
on-the-go and quick home delivery models to grow at higher rates. The ever-increasing population
crowded metro cities and longer travel times are drivers for the convenient, ready-to eat and
cheaper options of having food and groceries delivered at your doorstep. Companies that are aware
of the huge potential for growth may venture straight in, but only the fittest will survive. Businesses
who keep their value proposition and their brand active in consumer’s minds, will take the biggest
share of the Indian online food service pie. It is the ‘total recall’ of websites that would ultimately
take the biggest share of the pie.
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1.2 Zomato: Company Profile
Zomato is a global restaurant search and discovery guide, providing in-depth information of
restaurants. Zomato is used by consumers globally to discover, rate, and review restaurants, as
well as create their own personal networks of fellow food enthusiasts for trusted recommendations.
Zomato is one of the most popular apps and websites that not only let customers order food from
multiple restaurants, but also provide an exclusive phone number using which customers could
make reservations at the restaurants.
Zomato journey so far…
July 2008: Foodiebay started by Mr. Deepinder Goyal
November 2010: Foodiebay is named Zomato
October 2011: India's largest restaurant discovery service
July 2013: Launches in 5 new cities Auckland, Wellington, Manchester, Birmingham &
Cape Town
September 2012: Heads overseas and launches in Dubai, UAE
May 2012: Hosts its first restaurant Summit in India
April 2014: New social feature & launches in Lisbon, Portugal
June 2014: Acquires Menumania & adds 9 new cities in New Zealand
August 2014: Expands to Central Europe by acquiring Lunchtime in Czech & Obedovat in
Solvakia
September 2014: Acquires Gastronauci in Poland
December 2014: Acquires Cibando in Italy
January 2015: Biggest acquisiton yet, acquires Urbanspoon and enters Australia & USA
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March 2015: Acquires Table Reservations platform NexTable, Point-of-Sales system,
Maple POS
April 2015: 1 Billion valuation according to CB Insights
November 2015: Zomato book launched for table management & reservations
April 2016: Zomato Base launched - a cloud based POS system to help restaurants manage
reservations
August 2017, Zomato is based in 24 countries, over 10,000 cities, more than 1 million
restaurants and receives more than 120 million monthly visitors.
Funding Rounds so far…
Date Amount Lead Investor Investors
Apr, 2017 $20M Sequoia Capital 4
Sep, 2015 $60M Temasek Holdings & Vy Capital 2
Apr, 2015 $50M Info Edge & Vy Capital 3
Nov, 2014 $60M Info Edge & Vy Capital 3
Nov, 2013 $37M Sequoia Capital 2
Feb, 2013 $10M Info Edge 1
Sep, 2012 $2.3M Info Edge 1
Sep, 2011 $3.5M Info Edge 1
Aug, 2010 $1M — 1
Zomato has raised a total of approximately $243.8 million from its investors. Regardless of who
gets the better funding, it is the ‘total recall’ of websites that would ultimately take the biggest
share of the pie.
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1.3 Zomato: Offerings
1.3.1 Zomato Banner Advertising
Gives businesses maximum visibility to our hungry users searching for dining options in specific
locations.
Improve your Discoverability: Increase your footfall and drive more revenue by improving your
visibility through personalized banners on both our web and mobile discovery platform.
Targeted Hyperlocal Advertising: Get showcased to customers who search within specific
neighborhoods and categories.
Track Performance: Get access to state-of-the-art analytics to track the response to your campaign.
Call Tracking and Recording: Record and listen to incoming calls, and get a deeper understanding
of what your customers are looking for.
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1.3.2 Zomato Online Ordering
Let’s users explore restaurants delivering to their doorstep, browse menus and build orders in
seconds, and follow the status with real-time alerts.
Increased Business Volume: Maximize business potential through increased exposure to
customers.
Easy to Use: Managing online orders is easy — simply accept an order, cook, and have it delivered.
Online Payments: Enjoy smoother payments with more accountability, and no extra fees to banks.
Promotions: Boost order volumes with special discounts (requires a Zomato for Business Premium
subscription).
Loyalty Program: Issue loyalty stamps and rewards to your most loyal customers so they keep
ordering
Zomato-Fulfilled: Use trusted logistics partners to deliver orders even if merchants don’t have
their own delivery team (available in select cities).
Customer Support: Dedicated support team handles all customer queries, complaints, refunds, and
technical issues.
Analytics & Reports: Keep track of revenue and get access to business reports, including revenue
and ordering trends.
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1.4 Statement of Problem
There has been an exponential growth in the number of food startups in India.
COMPANY AMOUNT RAISED TILL DATE
YUMIST USD 1 MILLION
FRSH USD 618K
HOLACHEF USD 320K
SPOONJOY UNDISCLOSED
iTIFFIN USD 1 MILLION
TINYOWL USD 20 MILLION
FAASO’S USD 20 MILLION
FOODPANDA USD 147.3 MILLION
EATLO NO FUNDING
TASTYKHANA USD 5 MILLION
JUSTEAT USD 89.1 MILLION
DELIVERYCHEF UNDISCLOSED
BITE CLUB USD 500K
Source: iamWire Research
In the above table, names of those food startups have been mentioned which have caught investor’s
attention lately. But then there are innumerous food startups functioning, which still haven’t
grabbed the limelight. The increasing number of players in the market would allow restaurant
owners to sign up with other online food businesses and customers would have more options to
order from. This would cause downfall in Banner Advertisements as well as number of online
orders Zomato receives and have a major effect on the market share of Zomato.
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1.5 Conceptual Framework
This report states the major competition faced by Zomato, its limitation compared to other online
food business, the competitor’s strong and weak points and how Zomato overcomes them with
their new policies and offerings. How Zomato strives to give rich content to its users to build more
traffic and boosting the restaurants visibility.
1.6 Aim & Objective
The aim was to:
Get on board the targeted number of merchants to work with Zomato as their exclusive
partner for online ordering and merchants derive maximum value from it.
Pitching the importance of Banner Advertisements for boosting the restaurants visibility
and driving more revenue through it.
Accurate content on the website builds credibility and reliability among users and
restaurant owners. Therefore, collecting all the content and refreshing data on a daily basis.
The objective was to:
Get on board new clients as well as old drop out clients.
Conduct meetings with the merchants and arrange follow ups for collection of all relevant
documents and information.
Provide them with all the information to avoid future inconveniences.
Discuss terms and mandatory checks before signing them up on board.
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Chapter 2: Literature Review & Hypothesis
The home delivery segment is evolving, with growth estimated in the range of 30-40% over the
next five years. Total Addressable Market (TAM) for overall restaurant industry in top 7 cities in
India is worth $7 billion and estimating next rise to $15 Billion in next 2 to 3 years.
Over the year 2016, there has been an exponential growth in the number of food startups. As more
number of players are entering the market, the market share acquired by Zomato is falling. To
make sure Zomato doesn’t lose its clients and customers to other competitors. Zomato has started
with exclusivity, where Zomato is their exclusive partner for their online food ordering.
With online ordering, the merchants would tend to boost their business performance by signing on
with banner advertisements. 90% of the present revenue earned by Zomato is through Banner Ads.
Zomato wants to shift its focus from Banner Ads to Online Ordering.
For this it has provided rich and accurate content for the customers to build more traffic on the
website and mobile application. Zomato doesn’t want its merchants to reject any orders as it gives
a negative customer experience and the customer might never want to work with them again.
Zomato aims the restaurants listed on its website to have a higher rating and review as it would
show a positive customer satisfaction and would allow other users to try the platform.
The whole objective of this was to make sure Zomato stays India’s no. 1 food discovery and
delivery platform. By getting on-board more number of merchants on Online Ordering, the
customer would get variety of delivery options and cuisines to select from. There are psychological
methods used by Zomato for customer retention. The Minimum order has been kept 99 which
helps improve the volume of orders. With the increase in the number of visits on the website and
mobile application, the conversion of visitors to potential customers would gradually increase.
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Chapter 3: Personal Selling for Zomato
3.1 Importance of Personal Selling for Zomato
Due to increased expectations of clients on one end and client orientation approach of companies
on the other end, the personal selling is given more priority. When Zomato started with online
ordering in the year 2015 due to lack of resources, it couldn’t satisfy all the client needs due to
which many clients dropped out. Salesman can renew this broken relationship. Today Zomato has
a strong position in market only due to personal selling.
Salesman can provide necessary information to client about company’s offer, and also can collect
information from customer. Through this the company comes to know about the strong
competitors in that particular zone and the offers provided by them. Clients actively involve with
salesman to solve their doubts and objections. It is comparatively more effective and result-
oriented. Personal selling is not only to sell the products, but also to create permanent relationship.
Not many restaurant are aware of the new technology in the market. Salesman can provide a detail
demonstration of the mobile application, how customers order food and how the restaurant listing
would look on the mobile application as well as on the website.
Sales talks and presentation can be adjusted according to situation to suit individual nature,
motives, and problems. Meeting the clients personally provides an immediate feedback. At the end
of every meeting, the salesman can easily judge whether the client is interested to come on-board
or not.
Personal Selling benefits all parties, including client, salesman, and company. Client is satisfied
with products and services; salesman can achieve his targets; and company can improve its market
share and profits.
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3.2 Process of Personal Selling
In order to sell products to the merchants, the salesman have to get them to take a meeting. The
first process is to call the customer and arrange for the meeting (cold call). In this step, the main
objective is set the meeting and not sell the solution. As for some merchants, it can be a new
product or there might be few drop out clients who had a bad experience on Zomato.
There are few points which should be taken into consideration on the cold call:
Kick off on the right foot: Introduce yourself and the company. Ask permission to speak.
Know the answers before you’re questioned.
Solve pushbacks
Set a meeting at the convenience of the merchant.
A good sales pitch starts with a great first impression. During your initial contact, be sure to ask
the right questions so you can tailor your message to address that business’ specific needs and ease
the deal to the next step Small talks should be used to know more about the performance of the
restaurant and other relevant information. A pitch should actively include the buyer in the
discussion.
The salesman needs a presentation that holds the client’s attention -the longer you're able to keep
that attention, the higher your chances of winning them over. As simple as it sounds, effective
sales pitches require upfront work and a conscious effort to stray from the script.
Prior to presenting pitch to the buyer, you should conduct thorough research on their restaurant,
unique visits and competitors.
Every sales pitch should end with a call to action that makes sense. Even if the client isn’t ready
to complete the sale yet, be sure to keep the prospect on the journey and move forward with a
follow-up meeting or a trial period.
Never wait for the customer to make the call to action. This is solely the salesperson’s
responsibility, and failing to be proactive could result in the meeting or relationship ending.
Referrals are more likely to complete a sale than any other method, and generally a customer who
is happy with your service will be happy to spread the word.
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3.3 Mandatory Checks
There were a few mandatory checks for getting the restaurant on-board:
Minimum Order Quantity should ideally not be more than Rs. 99.
Delivery sub-zones should be correctly mapped in order to avoid rejections. The restaurant
should only deliver to those places where it has the capability to deliver.
Should facilitate an attractive menu to appeal customers.
Online payment option adds to the convenience quotient for O2. To come on board with
Zomato O2, online payment option is a must for the restaurant.
Commission amount charged by Zomato:
For restaurants signed up
exclusively with Zomato
6%
For restaurant signed up with
Zomato and only 1 other online
food delivery business
8%
For other restaurants 12%
And 18% GST on the commission amount + 1.6% payment gateway charges (debit/credit
card, wallets) on total order value (post-tax). For logistics in select cities, INR 60 per order.
Device is needed for the merchants to accept O2 orders. The device is charged at INR 4000.
Documents needed to sign up with Zomato O2:
Merchant Enrolment Form (MEF) - Legal Contract for O2
Permanent Account Number (PAN) - Has to be of the legal entity or the owner ONLY if
it’s a sole proprietorship & Cancelled Cheque
Delivery Bill Copy
Latest Delivery Menu
Food Safety and Standards Authority of India (FSSAI) Certificate
Goods and Services Tax Identification Number (GSTIN)
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3.4 Major Competition
In personal selling, it is important to have a check on your strongest competitors in the area.
Swiggy Foodpanda
Has its own fleet of delivery boys who are
equipped with smartphones and the Swiggy
app.
Has a major global presence. Present in 43
countries.
Does not have a minimum order policy. The company has partnered with over 40,000
restaurants.
Delivery charges from customers &
Commission from clients.
Foodpanda was acquired by Delivery Hero
start of December 2016.
Swiggy Express, a new initiative, which is in
the pilot stage currently aims to deliver food
within 15-20 minutes.
Acquired Tastykhana & Justeat who had their
delivery logistics setup as well.
Swiggy recently started Swiggy Select, an
On-Time Delivery service with guaranteed
cashback in case you didn’t get order on given
time.
Major Funding from global players.
Swiggy is also looking at partnering a few
beverage chains to deliver coffee and tea.
Provide heavy discounts.
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3.5 Zomato Exclusive Program
Benefits
Access to preferential order growth
program - Be among the select few who
have access to merchant programs that give
your business manifold growth.
Access to digital marketing tools and
Zomato app based promotions.
Access to multiple offline marketing tools
and growth levers.
Access to advance business analytics –
helps you understand your business better
and change according to market trends.
Restaurant signed up for the Zomato exclusive program
Impact
Large numbers of customer
see your restaurant - High
Traffic.
The Zomato exclusive status
and special visibility.
Higher growth for your
restaurant.
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3.6 Benefits of Online Ordering
This is a report of Pizza Hut Vasant Vihar (Thane West) from 15th
May 2017 to 5th
July 2017. It
shows how the restaurant Online Ordering performed with and without Zomato Banner
Advertisement.
Pizza Hut Thane West Vasant Vihar got 3294 total unique visitors from May 15th
to July 5th
2017.
As we can see in the above figure, the blue region shows the visits restaurant page received through
ad clicks alone.
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This is the analytics provided to the merchant who comes onboard with Zomato Online Ordering.
Tracked Revenue from Zomato due to delivered orders and answered calls for time period 15th
May 2017 to 5th Jul 2017, with a comparison to the previous period 24th Mar 2017 to 14th May
2017.
Non campaign dates March 24th
to May 14th
2017 is the period when the Pizza Hut Vasant Vihar
was not using Zomato Banner Advertisements. After opting advertisements, it gave boost to the
visibility of the page and increased revenue.
Rs. 433,661 in the selected time period.
Tracked Revenue increased by 96% compared to Rs. 221,784 in the previous time period.
Revenue through online orders is more or less equal to the revenue obtained through phone calls.
By providing more options for ordering food, the merchant is earning extra income from phone
calls as well as online ordering.
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Lost Revenue from Zomato due to undelivered orders and missed calls for time period 15th May
2017 to 5th Jul 2017, with a comparison to the previous period 24th Mar 2017 to 14th May 2017.
Rs. 119,755 in the selected time period
Lost Revenue increased by +100% compared to Rs. 40,211 in the previous time period.
Undelivered online orders maybe due to shortage of delivery boys, cancellation of orders, lack of
food supply, high demand, etc.
The estimated loss from missed calls is much more than online ordering. As merchants sometimes
are busy managing the customers in the restaurants, they miss a lot of food delivery orders. But
with Zomato Customer Support, the merchant doesn’t need to worry about it as a call will be given
from Zomato to the merchant confirming the order if the merchant is unresponsive.
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3.7 Benefits of Banner Advertising
With the help of Zomato’s Ad Performance, merchants can keep a complete track of their ad
performance. They can do access all this information by logging in their Zomato for Business App
or through desktop using their merchant log in and password.
1. Return on investment (ROI)
It is a measure of estimated revenue earned from customers who clicked on your ads compared to
the amount of money you invested in ads.
ROI > 1x means you got a higher estimated revenue from ads than your investment amount.
ROI = 1x means that you got estimated revenue from ads equal to your investment amount.
ROI < 1x means you got a lower estimated revenue from your ads than your investment
amount.
Pizza Hut Thane West Vasant Vihar received a total of 1094 clicks from May 15th to July 5th,
2017. Typically 1 in 4 clicks usually converts to business on Zomato. The cost for two listed on
Zomato is ₹750.
Estimated revenue = (Number of clicks) * (% clicks converting to a customer) * (average ticket
size) = ₹205,125
ROI = (Estimated revenue from ads) ÷ (Investment into ads)
ROI = ₹205,125 / ₹12,210 = 16.8x
Therefore, the merchant gets a higher estimated revenue from ads than the investment amount.
2. Unique ad clicks
The number of unique people who clicked on your ad within a day (between 00:00 and 23:59).
Even if a person clicked on your ad multiple times within the same day, it is still counted as one
unique ad click. Unique ad clicks indicate the number of unique people who showed intent to visit
or order from your restaurant.
Cost per unique ad click = (Ad spend in selected time period) ÷ (Number of unique ad clicks)
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Weekday: 19 average unique ad clicks per day & Weekend: 29 average unique ad clicks per day
3. Click through rate:
Measures the effectiveness of your ad. Of the unique people who viewed your ad, this is the
percentage of the unique people who clicked on your ad.
CTR = [(Unique ad clicks) / (Unique ad views)] * 100
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4. Unique ad views:
The number of unique people who viewed your ad within a day (between 00:00 and 23:59). Even
if a person viewed your ad multiple times within the same day, it is still counted as one unique ad
view. Unique ad views indicate the number of unique people who saw your ad and got to know
about your restaurant.
Cost per unique ad view = (Ad spend in selected time period) / (Number of unique ad views).
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3.8 Managing the Content
Accurate content on the website builds credibility and reliability among users and restaurant
owners. Rich content on the website builds traffic. Even the smallest mistakes in our data can have
huge repercussions.
Zomato has over 1 million listings, and each listing has at least 20 data points to be maintained
(for e.g. Menu, food shots, cuisines, timings, etc.). Close to 80 million people come on Zomato
every month to consume content. Therefore, restaurant data is refreshed on a daily basis. Missing
information is collected by meeting the restaurant owners or managers physically or on call.
The content on Zomato is:
Clean: Removing abusive/ hateful language and threats
Fair and Objective: Reducing false reviews and deceptive content
Relevant: Keeping content related to food, service, and ambience
Free of Plagiarism: Verifying that reviews and photos aren’t copied
In the above figure, the number of reviews uploaded by the users from May 15th
2017 to July 5th
2017 is given. These reviews have to be managed to make sure it is clean, fair and objective. There
are many times competitors hire people to post fake and abusive reviews by using other accounts.
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These reviewed are managed physically by the content team as well as the spam filter. The above
figure shows Delhi NCR and Mumbai had the most reviews deleted by the spam filter.
The objective behind this is to make sure the users get fresh and accurate data. If irrelevant reviews
are left on the website, it may cause customer to not order from Zomato and go on other platforms.
Managing the content plays an important role for websites like Zomato where the revenues are
based on customer experience and satisfaction.
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Chapter 3: Methodology
Every location in Mumbai & Navi Mumbai was divided into a sub location. For e.g. Andheri West
was divided into Lokhandwala, Oshiwara, 4 Bungalows, 7 Bungalows, Versova and Juhu. These
sub locations had a number of restaurants under them which had to be signed up for Zomato Online
Ordering.
The restaurants was picked by the system based on several factors such as their ratings, no. of
reviews, whether they are doing business with other online food delivery platforms, cost for two,
unique visitors per day, unique visitors per month, no. of calls made by the customers, home
delivery, mode of payments, food shots, etc.
Every restaurant has been given a unique id called as RES_ID which is used to search and make
changes to the restaurant page setting rapidly. CFT is the cost for two which is calculated on the
basis of the food items prices charged by the restaurant. Delivery or Non-delivery tells about the
restaurant which have their own delivery or the one’s which don’t. Every sub-zone has a unique
id and categorized as tiers. Tier 1 is the sub-zone where Zomato don’t have enough market share
and these sub-zones needs to be targeted first. ULV is the unique live visitors a particular page
receives in a month. For remote places, the numbers would be relatively low compared to fast
moving cities like Mumbai.
The zone assigned to me was Borivali West in Mumbai and Airoli in Navi Mumbai. There were
50 restaurants in Borivali West and 50 restaurants in Airoli. Meetings were conducted with the
restaurant owners in these sub-zones to convince them to work with Zomato Online ordering
platform.
This shows a comparative study on how the restaurant owners of Borivali West and Airoli perceive
online ordering and the way they do business; their pushbacks, technology used and whether they
were eventually convinced to work with Zomato Online Ordering. The responses given by the
merchants during the meetings were recorded. Through these responses the data was analyzed.
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Chapter 4: Data Analysis
Is your restaurant listed on Zomato website?
Which Zomato products have you worked with earlier?
47
32
3
18
0
10
20
30
40
50
Borivali West Airoli
Listed vs Non-Listed Restarant
Listed Non-Listed
15
4
14
5
21
41
0
10
20
30
40
50
Borivali West Airoli
Zomato Products
Zomato Online Ordering Zomato Banner Ad Both None
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Are you presently working with any other Online Food Business?
If yes, which other Online Food Business?
46
32
4 35
0
10
20
30
40
50
Borivali West Airoli
Competition
With Other Platforms Not With Other Platforms
25
40
16 15
10
0
5 5
0
10
20
30
40
50
Borivali West Airoli
Competition
Swiggy Foodpanda UberEats Others
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Do you have your own delivery service?
Will you be needing Zomato Logistics Support?
50
40
0
10
0
10
20
30
40
50
Borivali West Airoli
Delivery Service
Delivery Non-Delivery
20
40
30
10
0
10
20
30
40
50
Borivali West Airoli
Zomato Logistic Support
Logistics Support Non-Logistics Support
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Do you have Desktop/Laptop with internet facility at your restaurant?
Are you willing to buy Zomato Device for Online Ordering?
8
37
42
10
0
10
20
30
40
50
Borivali West Airoli
Technology
Non-technology Technology
20
40
30
10
0
10
20
30
40
50
Borivali West Airoli
Device
Non-device Device
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Are you registered under GST (Goods & Service Tax Act)?
Are you willing to work with Zomato Online Ordering?
10
0
37
15
3
35
0
10
20
30
40
50
Borivali West Airoli
GST
Yes Not yet, but will register Not willing to register
15
28
23
10
2
0
10
12
0
10
20
30
40
50
Borivali West Airoli
Sign -up
Exclusively Preferred Regular None
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If no, the reason behind the decision?
2
00
10
6
10
0
10
0
3
6
9
12
15
Borivali West Airoli
High Commission Rates & Charges No Zomato Logistics Support in the Area
Merchant App not available Not willing to register under GST
Documents not available Other
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Chapter 5: Results
Borivali West Airoli
Out of 50 restaurants, 47 were listed on
Zomato and 3 were not.
Out of 50 restaurants, 32 were listed and 18
were not.
There were 15 merchants who had previously
worked with Zomato Online Ordering and 14
previously were banner ad clients.
Merchants were not working with online
ordering along with banner advertisements.
21 merchants never tried any of the products
before.
The number of merchants on online ordering
and banner ads were considerably low, 4 & 5.
41 merchants never came on board with either
of Zomato’s products.
46 were working with other online food
platforms.
Out of which 25 for Swiggy, 16 for
Foodpanda, 10 for UberEats and 5 for other
delivery platforms like Tinyowl, Tastykhana.
In some cases, the merchants who were with
Swiggy were also doing business with
Foodpanda and other platforms.
40 merchants were with Swiggy, 15 with
Foodpanda, 0 for UberEats and 5 were with
no delivery platform.
In some cases, the merchants who were with
Swiggy were also doing business with
Foodpanda and other platforms.
Every merchant had their own delivery
service.
Only 23 had delivery service available and
rest 27 were takeaway restaurants or outlets.
20 merchants needed help Zomato Logistics
Support rest could manage on their own
delivery services.
Majority of the restaurants needed Zomato
Logistics Support, 40 out of 50.
Majorly all restaurants were equipped with
latest technology such as laptop/desktop,
mobile devices, printers etc. 42 out of 50.
Only 13 restaurants had these technologies.
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20 restaurants in Borivali needed Zomato
devices to ease their Zomato Online orders
and 30 restaurants used their own technology.
40 restaurants declined for the Zomato
devices as they found it expensive.
10 were already under Goods & Service Tax
Act; 37 were willing to register and 3 didn’t
intent to.
15 merchants were willing to register but 35
declined as they had a small business.
Only 10 merchants didn’t wish to work with
Zomato Online Ordering. Largely merchants
took Preferred and Exclusive offers as their
commission rates were low.
Only 12 merchants didn’t wish to work with
Zomato Online Ordering. Largely, merchants
took Exclusive offer as their commission rate
was only 6%.
Non availability of merchant app was the
major reason, 10 merchants said no for the
online ordering platform. As the device cost
itself was Rs. 4000.
Restaurant owners didn’t want to register for
GST, device cost was too high and logistics
support wasn’t available in the area.
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Chapter 7: Conclusions
Zomato has covered a wide range of restaurants in Mumbai and plans to spread out their reach in
more places like Navi Mumbai. Zomato uses Personal Selling as their major method of acquiring
clients and to renew the broken relationships.
Zomato’s online ordering was started in 2015, in that period of time Zomato had lack of resources
due to which many client dropped out from the online ordering platform causing rift in the client
– company relationship. These clients also dropped out from the Banner Advertisements due to
the conflicts caused in other platforms.
Since Navi Mumbai has not been targeted yet, the number of merchants signed up with Zomato is
very low till date. But still, competitors like Swiggy which provide the feature of home delivery
on every orders are able to sign up these areas at a faster rate; as the distance to be covered by the
restaurant staff is higher than the city areas like Mumbai.
In city like Mumbai, having a delivery service is a must as the distance is small and can be easily
coverable. But in city like Navi Mumbai, distance is too high for the restaurant staff to cover as a
result to save up cost, they only keep take-away as an option.
Zomato’s limitation is that they don’t have their own Logistics Support. Zomato partner with
Grabb and Delhivery for Logistics Support and they charge Rs. 60 per order which the restaurant
owners find very expensive as their profit margins is too narrowed.
Majority of the places in Navi Mumbai do not have Logistics Support which is a major setback in
signing these clients as they are majorly in need of this feature.
In city like Mumbai, all restaurant are equipped with bill printing machines, computers/laptops,
cctv and smart phones to run their business’ with convenience and hassle-free. But there are few
local restaurants which don’t see the need of having these technologies, the main criteria for the
restaurant to get online orders is to have a device enabled with internet facility to receive orders.
But due to lack of such technology, restaurants owners are not able to sign up with the online food
delivery platform.
Zomato provided devices but it has been kept at a price tag of Rs. 4000 which the restaurant owners
find difficult to recover.
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The Goods & Service Tax Act launched by the Government on July 1st
2017, according to this,
the service tax and vat have been eliminated by introducing a single tax system all over India.
With new tax rules for e-commerce firms set to come in under the Goods and Services Tax regime,
small restaurants and vendors are pulling away from online delivery start-ups. As even the
businesses under the threshold limit for GST will be forced to register for the GST network simply
for using e-commerce services.
The Exclusive program launched by Zomato worked as more restaurants agreed to have Zomato
as their exclusive online ordering platform. The rates were low compared to other platforms like
Foodpanda and Swiggy who charged 10% and 30% respectively.
But there were other merchants who declined from working with Zomato Online Ordering due to
their reluctance towards new technology, non-availability of Zomato Logistics Support in the area.
The restaurants were forced to buy devices or set up new devices just to start with online ordering
as there was no Merchant App as other platforms had their own which was again a major drawback
in signing up the merchants.
With the help of Personal Selling this conclusion can be derived as it gives a direct face to face
interaction with the clients and know about their problems and to solve all pushbacks.
37. Page | 36
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Annexure
1. Is your Restaurant listed on Zomato website?
o Yes
o No
2. Which Zomato products have you worked with earlier?
o Zomato Online Ordering
o Zomato Banner Advertisements
o Both A & B
o None
3. Are you presently working with any other Online Food Business?
o Yes
o No
If yes, which Online Food Business?
o Swiggy
o Foodpanda
o UberEats
o Others _____________________________________________________________
4. Do you have your own delivery service?
o Yes
o No
5. Will you be needing Zomato Logistics Support?
o Yes
o No
6. Do you have Desktop/Laptop with internet facility at your restaurant?
o Yes
o No
7. Are you willing to buy Zomato Device for Online Ordering?
o Yes
o No
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8. Are you registered under GST (Goods & Service Tax Act)?
o Yes
o Not yet, but will register
o Not willing to register
9. Are you willing to work with Zomato Online Ordering?
o Exclusively (6%)
o Preferred (8%)
o Regular (12%)
o None
If none, the reason behind the decision?
o High commission rates & charges
o No Zomato logistics support in your area
o Merchant app not available
o Not willing to register under GST
o Documents not available (PAN, FSSAI)
o Other _____________________________________________________________
Additional comments/feedbacks?
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