INDUSTRY: Consumer services
ORIGIN OF THIS INDUSTRY:
 Consumer services are the variety of services provided to
consumers of a product by the field that creates, markets, or
provides the product.
 Consumer services began to boom when division of labor became
commonplace. Being the assigning of different parts of a
manufacturing procedure or tasks to different people in order to
improve efficiency and productivity
 Division of labor limited the breadth of people's knowledge,
which in turn caused the need for services.
Some of the major history highlights of this industry :
 1876: Alexander Graham Bell patents the electric telephone. Customer service takes a
leap forward as customers can avoid having to travel long distances for product
information or to arrange for repairs.
 1980s: Database software, which would evolve into Customer Relationship
Management (CRM) software, evolves to be used in customer service.
 Early 1990s: People begin to use the Internet. You may have heard of it.
 1998: Live Person, now the largest live chat company, launches their service.
 Mid-2000s The rise of the online help desk.
 2009: OLARK creates the first live chat that stays on-page, eliminating the need for the
annoying "pop-out." Live chat brings back the immediacy of human interaction to the
internet.
 2017: The chat world becomes differentiated by Live messaging and Live chat and we
could finally order food online.
PESTEL ANALYSIS:
CONSUMER SERVICES INDUSTRY
ZOMATO ORIGIN AND EVOLUTION
BRAND PORTFOLIO
PESTEL ANALYSIS: ZOMATO
BUSINESS STRATEGY
 Financial strategy: To increase their fund and revenue
 Marketing strategy: To tap their customers from across the globe
 Growth strategy: To grow continuously and increase their
customers and page traffic
 Globalization strategy: To expand themselves across the whole
globe as a leading service provider
BUSINESS AFFILIATION
GROWTH (PAST 3 YEARS)
• India’s online food business segment reached as high as USD 750
million in 2017 to USD 1580 million in 2019
• Registered a YOY revenue growth of 150% (2018 and 2019) and
growing at an exceptional CAGR of approximately 140% since 2014.
• Zomato is the leader with sales revenue of approximately INR 3.33
billion, followed by Swiggy at INR 1.33 billion and Foodpanda at INR
0.62 billion as of 2018.
• With being present only in metropolitan cities in 2016 to currently
being set up in more than 500 cities and towns
• 15 million customers, 640 million annual orders, and $2-billion gross
merchandise value
PROFITABILITY(PAST 3 YEARS)
 Though there is huge potential for growth, large number of players are in
losses due to high maintenance costs, logistics, low commissions by
restaurants
 Zomato reported a loss of Rs 1,001 crore where as swiggy has a loss of 2363
crore till FY 2018
 On an average the losses mounted to a maximum of 5 times from the starting
the operations to till date.
 But investors has shown huge interest in investing in food delivery apps with
almost investing over USD 500 million .
 Many players are reducing discounts in order to become profitable
 Zomato and Swiggy are try to becoming more profitable by investing in cloud
kitchens and also reducing the burn rates.
PERFORMANCE
 Number of listed restaurants: in 2008 it was 4000 restaurants
which increase to 94000 in 2013, 384,100 in Q1 of 2015, and
currently 1.5 million in Q1 2020.
 Monthly visitors of Zomato increases to 24.65 million in 2019
which was 11 million in 2013 and 0.015 million in 2008.
 Yearly revenue of Zomato for FY19 was $206 mn compared to
$68 mn in 2018 ( ~ 3x growth)
 Spread in 24 countries across 10000+ cities worldwide.
COMPETITOR ANALYSIS AND BUSINESS MODEL
PORTER’S FIVE FORCES MODEL
REFERENCES
https://www.zomato.com/blog/annual-report-19
https://www.zomato.com/ncr
https://www.similarweb.com/website/zomato.com#overview
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/zomato-
logs-225-surge-in-revenue-in-first-half-of-
2019/articleshow/71398016.cms?from=mdr
https://en.wikipedia.org/wiki/Zomato#Acquisitions
https://craft.co/compare?companies=grubhub%2Cdunzo%2Cdeliveroo%2Cfoodp
anda-india%2Cswiggy%2Czomato
https://www.zomato.com/about
https://study.com/academy/lesson/service-industries-origin-and-
types.html#lesson
https://blog.olark.com/the-history-of-customer-service
THANK
YOU

ZOMATO