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Zomato Case Study: History, Valuation, Product, Services & Growth

Zomato is an Indian restaurant aggregator and food delivery company that was founded in 2008. Initially, the company started as a simple platform to help people discover new restaurants in their area, but over time it has evolved into a major player in the food delivery industry. Today, Zomato operates in more than 25 countries and has a user base of over 90 million.

Background: Zomato was founded by Deepinder Goyal and Pankaj Chaddah in 2008. The idea for the platform came about when Goyal and Chaddah were working as management consultants and found themselves frustrated with the lack of good restaurant options in their area. They decided to create a platform that would allow users to discover new restaurants based on their location, cuisine, and price point.

Initially, Zomato operated as a simple directory of restaurants, but over time it began to add more features such as user reviews, ratings, and menus. In 2011, Zomato launched its mobile app, which allowed users to access its services on-the-go.

Zomato’s Business Model: Zomato’s business model is based on a combination of restaurant discovery and food delivery. The company generates revenue through various means such as advertising, commissions on food orders, and subscription services.

Zomato has a two-sided platform that connects restaurants with customers. Restaurants can list their menus and prices on the platform, and customers can use the platform to discover new restaurants, read reviews, and place orders. When customers place orders through the platform, Zomato takes a commission on the sale.

Zomato also generates revenue through advertising. Restaurants can pay to have their listings promoted on the platform, which can help them reach more customers.

Finally, Zomato has introduced a subscription service called Zomato Gold, which gives users discounts on food and drinks at participating restaurants.

Challenges Faced by Zomato: One of the biggest challenges faced by Zomato is the intense competition in the food delivery industry. Zomato competes with other major players such as Uber Eats, Swiggy, and DoorDash.

Zomato also faced challenges in expanding into new markets. In some countries, such as China and the United States, the company struggled to gain a foothold due to strong local competition.

Another challenge faced by Zomato was managing its operations during the COVID-19 pandemic. The pandemic led to a surge in demand for food delivery services, which put a strain on Zomato’s logistics and delivery infrastructure.

Successes of Zomato: Despite these challenges, Zomato has achieved significant success in the food delivery industry. In 2021, Zomato went public with a valuation of over $9 billion, making it one of the most successful IPOs in Indian history.

Zomato has also expanded its operations to more than 25 countries, making it a truly global player in the food delivery industry.

In addition, Zomato has been successful in diversifying its revenue streams. The company’s subscription service, Zomato Gold, has been particularly successful, with over 1.4 million subscribers in India alone.

Conclusion: Zomato’s success can be attributed to its innovative business model, its focus on customer experience, and its ability to adapt to changing market conditions. As the food delivery industry continues to grow and evolve, Zomato is well-positioned to continue its success and expand its reach into new markets.

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Zomato Business Model Explained [Case Study]

Supti Nandi

Updated on: April 6, 2024

Hungry? Grab your favorite meal through Zomato!

Well, the above line is not just a statement but an emotion of today’s generation. With the evolution of the digital world, having a meal delivered from the restaurant of your choice is a like a cakewalk. Now, you do not need to travel to the restaurant or stand in a long queue anymore to eat delicious food. All thanks to the food delivery apps for making this process super easy for you. One of the popular on-demand food delivery companies is “Zomato.” Do you know that Zomato has expanded a lot within 14 years of its existence?

The Zomato app will not only deliver your favorite food to your doorstep but will also help you to explore the food of new restaurants with honest customer reviews and by offering appealing discounts on various dishes. Have you ever wondered how it earns huge profits despite offering exclusive discounts and food at affordable prices? The secret lies in its business model . This article explains the “ Business Model of Zomato. ”

Zomato’s business model comprises of three essential components, namely-

Working Strategy

Marketing strategy, revenue sources.

The way how the business works determine the success rate of the company. You are already aware of the fact that the major function of Zomato is to recommend and take orders from the neighboring eateries and to deliver them to your doorstep. Before jumping into the core of the working strategy of Zomato, let us quickly sum up the steps involved in this food delivery app-

• Step 1 : Open the Zomato app and browse the meals to order them from whichever restaurant you like. Also, you need to give the location of receiving the food.
• Step 2 : The owner of the restaurant will receive an order request upon which they initiate the preparation of the dish.
• Step 3 : After the dish is prepared, the restaurant owners hand over the food to the deliveryman.
• Step 4 : The deliveryman delivers the meal to your location. In the meantime, you can also track the location of your order (food) on the Zomato app.
• Step 5 : You can make the payment for the food either with COD (Cash-on-delivery) or digital payment channels.
• Step 6 : After having the dish, you can site the ratings and reviews regarding it based on your experience. It will help other customers to decide whether to buy that meal or not.

The working strategy of Zomato involves the partnership with restaurants and retailers, hiring delivery providers, and collecting the data of users (like food choices, restaurant preferences, geographical location, and mode of payment) for smooth delivery of food. The three key players involved in the working model of Zomato-

• Users : The users are the customers like you who purchase meals from restaurants via Zomato and the food is delivered to your preferred location.
• Restaurants : Zomato offers a reliable and effective platform to local restaurants and their owners to attract the target audience (foodies) and market their business.
• Delivery Providers : They provide part-time or full-time delivery services on a contractual basis. This helps them to establish a rational revenue stream.

Zomato launched multiple features and services like Zomato Gold, Dining, Advertising, Hyperpure (Supply fresh ingredients to restaurants), Blinkit (Acquired grocery delivery service) etc.

Do you remember the day when you heard the name or saw the logo of “Zomato” for the first time? Never mind if you don’t! Probably you might have seen the advertisement of Zomato in the banner, youtube ad, or any meme on social media. Well, these are nothing but the marketing strategy. The marketing strategy of Zomato involves a combination of online and offline marketing. These are described in the following points-

• Online Marketing – Online marketing also called “Digital Marketing” involves SEO strategy, social media marketing, email marketing, etc. It effectively hits the target audience and increases conversion rates.
• SEO Strategy – This is the backbone of digital marketing. Here, Zomato creates relevant content that is heavily focused on its users and keenly optimized for search engines like google, bing, etc. They effectively use keywords with high search volumes and relevant URLs. All these things enhance the relevancy of their pages due to which you can access their products easily.
• Social Media Marketing – Zomato has successfully mastered the technique of “ Meme Marketing .” which helps to create a good amount of organic traffic. Zomato also uses paid ads campaigns to reach new users by using taglines related to restaurants and the delivery of food. They run various types of campaigns on social media platforms like Facebook, Instagram, and Twitter that help in the creation of a good amount of organic traffic. 
• Email Marketing – It is one of the most effective digital marketing techniques that directly influence the target audience. It helps to create awareness regarding the products to its customers by directly sending emails to their inboxes.
• Offline Marketing – Offline marketing is effective to target a broad range of audiences. It involves television commercials featuring various celebrities, advertisements in print media, and outdoor advertisements by installing billboards, banners, and hoarding to grab the attention of the public. It also supplements online marketing.

Zomato has produced a considerable number of revenue sources that effectively aided to strengthen its presence in the food delivery market worldwide. The major revenue sources of Zomato are-

• Advertisements : As you know, advertisement plays a significant role in increasing the revenue of a company. Zomato effectively utilizes this strategy. Do you know that Zomato earns more than 70% of its revenue through advertisements? It offers a reliable advertising policy to restaurants in the form of banner ads and small pop-ups. The restaurant owners showcase their banners on Zomato to increase the visibility to the audience.
• Delivery Charges : Zomato charges a commission of 20-35% from the restaurant based on the placement of each order. It earns through the restaurants that pay commissions for each delivery. Then, it splits the earned money among the personnel and delivery partners of the company.
• Subscription Fees : It is the major revenue source of Zomato. Have you ever wondered how you get so many discounts on your favorite food whenever you search for it? The reason behind this is the huge database of Zomato that knows various details of the customer like food preferences, location, and the food you are searching for, etc. It offers analytical tools and consumer data to restaurants by charging a certain amount of fee on monthly basis. This tool is also called “Zomato Order.” Thus, restaurants use this tool to flash their appealing discount offers on your feed.

Latest News: Empowering Zomato’s Delivery Partners with Vital Lifesaving Abilities

Zomato introduced a first-responder training program for its delivery partners in India. The initiative aims to teach delivery partners medical first-aid & CPR through certified training programs under the ‘Serving India’ initiative. Over 5,000 delivery partners across Delhi-NCR, Mumbai, Bangalore, Hyderabad, and Pune have been trained as first-response emergency heroes.

Zomato founder Deepinder Goyal shared a video on the X platform highlighting the initiative, calling Zomato delivery partners ‘India’s Emergency Heroes.’ Rakesh Ranjan, CEO of Food Delivery at Zomato, stated that over the past three months, more than 5,000 delivery partners have received professional first-responder training, including first-aid, BLS, and CPR.

Each trained delivery partner will receive a comprehensive first-aid kit to provide immediate medical support to peers and customers.

After this news, Zomato’s shares increased by 2.25% to ₹122.55 at 1:45 pm on Thursday (4th April, 2024). SoftBank Group divested a 1.1% stake in Zomato for ₹1,128 crore through an open market transaction earlier this month.

After the transaction, Softbank’s shareholding in Zomato decreased to 1.09% from a 2.17% stake.

The business model of Zomato has been proven to be highly effective to reach heights in the food delivery market in a short period. Its key activities include the management of various networks of restaurants and customers, advertisements, and customer care service to increase the brand image by providing the best quality meals at your doorstep within a short time.

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Zomato Case Study: Insights and Business Growth

Have you ever found yourself craving a specific type of cuisine but not knowing where to go? Or maybe you’re tired of eating the same old meals and want to explore new restaurants in your city. I know I have been there, desperately scrolling through endless options on various food delivery apps, hoping to find a place that satisfies both my taste buds and my budget. It can be overwhelming, to say the least.

But then I discovered Zomato, and my entire dining experience transformed. Zomato is not just a food delivery and restaurant discovery platform; it’s a game-changer. With its extensive database, user-friendly interface, and innovative features, Zomato has quickly become the go-to app for food lovers like me, offering a treasure trove of culinary delights at our fingertips.

In this case study, we will delve into the insights and strategies behind Zomato’s incredible success. We will unravel the secrets of their business growth, analyzing their data, exploring their innovative business strategy, and uncovering the results of their case study. From their marketing tactics and growth strategies to their unique business model, we will dissect the factors that have propelled Zomato to the forefront of the food industry.

Are you ready to embark on a gastronomic journey with us? Let’s dig deep into the Zomato case study and discover the ingredients that have made it a roaring success.

Table of Contents

Key Takeaways on Zomato Case Study:

• Zomato’s extensive database and user-friendly interface make it a go-to app for food lovers.
• The success of Zomato can be attributed to their innovative business strategy.
• Marketing tactics and growth strategies have played a crucial role in Zomato’s rise.
• Zomato’s unique business model sets it apart in the food industry.
• Exploring the Zomato case study provides valuable insights for aspiring entrepreneurs.

The Inception and Evolution of Zomato

In this section, we will explore the founding vision and origin story of Zomato. We’ll uncover how Zomato evolved from a simple restaurant search tool to a global food delivery service , showcasing its remarkable journey of growth and adaptability in the industry.

The Founding Vision and Origin Story

Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah in Delhi, India. The two friends envisioned a platform that would help users discover great restaurants and connect with the dining community. With a deep passion for food and technology, they set out to create a powerful tool that would revolutionize the way people search for and explore dining options.

What started as a humble restaurant search platform quickly gained traction and popularity among food enthusiasts. Zomato’s user-friendly interface and comprehensive database of eateries made it a go-to resource for individuals seeking dining recommendations. As Zomato’s user base grew, its founders realized the potential to expand their offering beyond restaurant discovery.

Pivotal Shift: From Restaurant Discovery to Food Delivery

An important milestone in Zomato’s evolution was its strategic decision to enter the food delivery market. Recognizing the increasing demand for convenient and reliable meal delivery options, Zomato leveraged its extensive network of restaurant partners and user base to launch its food delivery service .

This shift allowed Zomato to tap into a new revenue stream and provide greater convenience to its users. By integrating the food delivery service into its platform, Zomato created a seamless experience for users, allowing them to not only discover restaurants but also order food with just a few taps on their smartphones.

Zomato’s Global Expansion Trajectory

Zomato’s success in India paved the way for its global expansion. The company quickly expanded its operations to several countries, including the United States, United Kingdom, Australia, and many more. Through strategic acquisitions and partnerships, Zomato established a strong presence in multiple international markets.

Today, Zomato operates in over 20 countries and continues to expand its services to new regions. Its commitment to providing a reliable and efficient food delivery experience has made it a trusted brand among consumers worldwide.

Throughout its journey, Zomato has stayed true to its founding vision of connecting people with great food and fostering a vibrant dining community. Its evolution from a restaurant search tool to a global food delivery service showcases its ability to adapt and thrive in a rapidly changing industry.

Zomato’s Approach to Market Penetration

In order to achieve market penetration and expand its reach, Zomato employs various strategies and tactics that resonate with its target audience and enable it to effectively cater to their needs and preferences. In this section, we will explore Zomato’s approach to market penetration and how it has contributed to the brand’s growth and success.

Understanding the Audience: Catering to the Tech-Savvy Generation

Zomato recognizes that its primary audience consists of tech-savvy individuals, particularly the younger generation. With this understanding, Zomato has tailored its services and user experience to align with the digital preferences of this demographic. Through user-friendly mobile applications and a seamless online ordering process, Zomato ensures that it remains accessible and convenient for its target audience, thereby establishing strong customer loyalty and engagement.

To further enhance its appeal to the tech-savvy generation, Zomato leverages social media platforms to connect with users, share engaging content, and communicate its brand messaging. With a vibrant online presence, Zomato stays top-of-mind and relevant, effectively capturing the attention and interest of its target audience.

Strategic Demographic Targeting and Service Versatility

Zomato understands the importance of demographic targeting in its market penetration strategy. By analyzing customer data and preferences, Zomato identifies specific demographic segments that align with its brand and services. This allows the company to tailor its marketing efforts and offerings in a way that resonates with these target segments, ultimately driving customer acquisition and loyalty.

Furthermore, Zomato’s versatility in providing a wide range of services contributes to its successful market penetration. By offering not only food delivery but also restaurant recommendations, reviews, and dining experiences, Zomato appeals to a broader customer base. This strategic diversification allows Zomato to reach and retain customers who may have different needs and preferences, thereby maximizing its market penetration.

Collaborations and Crisis Management Strategies

In addition to understanding its audience and catering to their needs, Zomato’s market penetration efforts are reinforced through strategic collaborations and effective crisis management strategies.

Through collaborations with other prominent brands, influencers, and key stakeholders, Zomato expands its reach and attracts new customers. By partnering with popular restaurants and culinary influencers, Zomato leverages their existing audiences and credibility to generate brand awareness and trust. These collaborations not only contribute to Zomato’s market penetration but also enhance its reputation as a reliable and influential platform in the food industry.

Moreover, Zomato’s crisis management strategies play a crucial role in maintaining its market penetration. In the face of challenges or controversies, Zomato takes proactive measures to address customer concerns and protect its brand image. By swiftly and transparently resolving issues, Zomato demonstrates its commitment to customer satisfaction, ultimately sustaining its market presence and preventing potential setbacks.

Through a combination of understanding its audience, strategic demographic targeting, service versatility, collaborations, and crisis management strategies, Zomato has effectively penetrated the market and established itself as a leading food delivery and restaurant discovery platform.

Zomato’s Harnessing of Digital Marketing Channels

In the fiercely competitive world of online food delivery, Zomato has emerged as a trailblazer by effectively utilizing various digital marketing channels. Through targeted strategies, Zomato has successfully reached its intended audience and engaged them through innovative tactics.

One of the key digital marketing channels that Zomato has harnessed is search advertising. By running carefully crafted search ad campaigns, Zomato ensures that it appears prominently in search engine results when users are looking for food delivery options. This boosts brand visibility and increases the likelihood of users choosing Zomato as their preferred platform.

Zomato has also utilized Google Display ads to further expand its reach. These visually appealing ads appear on relevant websites, capturing the attention of potential customers and driving them to the Zomato platform.

In addition to search and display advertising, Zomato recognizes the significance of social media marketing in capturing the attention of its target audience. Leveraging popular platforms such as Facebook, Instagram, and Twitter, Zomato builds brand awareness and engages with users through creative content and interactive campaigns. By maintaining an active presence on social media, Zomato ensures that it remains top of mind for users seeking food delivery services.

An integral part of Zomato’s digital marketing strategy is email marketing . Through personalized and targeted email campaigns, Zomato keeps users informed about new offerings, discounts, and promotions. By leveraging the power of email, Zomato nurtures customer loyalty and encourages repeat orders.

In summary, Zomato’s success in the digital realm can be attributed to its strategic utilization of various marketing channels. By employing search ad campaigns, Google Display ads, social media marketing, and email marketing, Zomato effectively reaches and engages its target audience, establishing itself as a leading player in the online food delivery industry.

Integrating Social Media Engagement in Zomato’s Brand Strategy

In today’s digital age, social media has become a powerful platform for brands to connect with their audience. Zomato recognizes the significance of social media engagement and has successfully integrated it into its brand strategy . By leveraging the power of social media, Zomato has been able to foster meaningful relationships with its customers and create a strong online presence.

Mastering Trend-Jacking and Meme Marketing

Zomato has mastered the art of trend-jacking and meme marketing, allowing the brand to stay relevant and engage with its target audience effectively. By tapping into popular trends and creating humorous and engaging content, Zomato has been able to capture the attention of a younger demographic. This strategy not only helps in attracting new customers but also strengthens the brand’s connection with its existing customer base.

One of Zomato’s successful trend-jacking campaigns was during the release of a popular TV show. The brand cleverly incorporated themes and characters from the show into its social media posts, creating a buzz among fans and driving engagement. This strategy showcases Zomato’s ability to understand its audience’s interests and capitalize on trending topics to increase brand visibility.

Creative Campaigns That Resonate with Young Audiences

Zomato has consistently developed creative campaigns that resonate with young audiences. By understanding the preferences and behavior of its target demographic, Zomato has been able to create content that is entertaining, relatable, and shareable.

For example, during a major cricket tournament, Zomato launched a campaign featuring witty and cricket-themed content. This campaign not only generated excitement among cricket enthusiasts but also increased brand awareness and engagement. By aligning itself with popular events and using creative storytelling, Zomato effectively captures the attention of its young audience and builds a positive brand image.

Leveraging Influencers and User-Generated Content

Zomato understands the power of influencer marketing in today’s social media landscape. The brand has successfully collaborated with influencers in the food and lifestyle space to promote its services and build credibility. By partnering with trusted voices, Zomato has been able to reach a wider audience and tap into new markets.

In addition to influencer marketing, Zomato also leverages user-generated content. By encouraging customers to share their experiences on social media using hashtags and tagging Zomato, the brand creates a sense of community and authenticity. User-generated content provides social proof and acts as a powerful tool to engage with customers and boost brand loyalty.

The integration of social media engagement into Zomato’s brand strategy has been instrumental in building a strong online presence, connecting with the target audience, and driving business growth.

The Art of Email and Content Marketing: Zomato’s Creative Edge

In today’s digital landscape, email and content marketing play a crucial role in engaging and nurturing customers. Zomato, a leading food delivery and restaurant discovery platform, has mastered the art of leveraging these strategies to create a personalized and impactful marketing approach.

Maximizing Impact with Personalized Email Campaigns

Zomato understands the power of personalization in email marketing. By segmenting their audience based on preferences, location, and past behavior, they deliver targeted and relevant content directly to their subscribers’ inboxes. This level of personalization fosters a deeper connection with customers, enhancing brand loyalty and driving engagement.

Through personalized email campaigns, Zomato provides tailored recommendations, discounts, and promotions to cater to individual tastes and preferences. By sending curated content that matches the recipient’s food preferences and dining habits, Zomato ensures that each email delivers meaningful value to the recipient.

Investing in Content Quality over Quantity

Zomato understands that content quality is paramount in capturing and retaining the attention of their audience. Instead of overwhelming subscribers with excessive email volume, Zomato focuses on delivering high-quality and engaging content that adds value to their customers’ lives.

By providing informative articles, restaurant reviews, chef interviews, and culinary tips, Zomato positions itself as a trusted source of food-related information. This content not only enhances the customer experience but also establishes Zomato as an authority in the industry. By investing in content quality, Zomato ensures that their email communications are eagerly anticipated and actively consumed by their subscribers.

Innovative Call-To-Actions and Themed Campaigns

Zomato takes a creative approach to call-to-actions (CTAs) in their email campaigns. Instead of using generic phrases, they employ innovative CTAs that capture the attention and curiosity of recipients. By using compelling language and attractive design elements, Zomato encourages users to take action, whether it’s exploring new restaurants, placing an order, or participating in exclusive promotions.

Zomato also utilizes themed campaigns to engage their audience. By aligning their email content with current events, holidays, or seasons, Zomato taps into the interests and sentiments of subscribers, making their emails more relevant and timely. Themed campaigns provide a unique opportunity to create excitement and foster engagement, ultimately driving conversions and customer loyalty.

Overall, Zomato’s email and content marketing strategies demonstrate their commitment to delivering personalized and valuable experiences to their customers. Through targeted and relevant email campaigns, high-quality content, and innovative CTAs and themed campaigns, Zomato sets themselves apart in the competitive food delivery industry.

Zomato’s Business Model: A Diverse Revenue Ecosystem

In this section, we will analyze Zomato’s business model, which encompasses a diverse revenue ecosystem. Zomato has successfully implemented various monetization strategies to generate revenue and ensure its sustainability in the competitive food delivery industry.

Restaurant Listings and Advertising: Zomato offers restaurants the opportunity to list their businesses on its platform and advertise their services to a wide audience. This allows restaurants to increase their visibility and attract more customers.

Subscription Programs: Zomato offers subscription programs, such as Zomato Gold, which provide exclusive benefits to subscribers, including discounts on dining and delivery. This not only generates additional revenue but also fosters customer loyalty.

Food Delivery Commissions: Zomato earns revenue by charging a commission fee on food deliveries facilitated through its platform. This fee is typically a percentage of the order value and ensures that Zomato benefits from the growing demand for food delivery services.

Infrastructure Services: Zomato provides restaurants with infrastructure services, such as Zomato Kitchen, which allows them to expand their delivery capabilities without setting up their own kitchen facilities. By offering these services, Zomato generates revenue while supporting restaurant growth.

Live Events: Zomato organizes live events, such as food festivals and restaurant collaborations, which not only generate revenue through ticket sales but also drive customer engagement and promote the Zomato brand.

By exploring these revenue streams, we gain insights into Zomato’s diverse business model and its ability to adapt to the evolving needs of the food service industry.

The Significance of Influencer Partnerships in Zomato’s Growth

In today’s digital age, influencer marketing has become a powerful tool for brands to reach their target audience and build a strong online presence. Zomato, the leading food delivery and restaurant discovery platform, understands the value of influencer partnerships in driving growth and expanding its market reach.

By collaborating with influencers, both macro and micro, Zomato has been able to tap into new markets and engage with its target audience more effectively. These influencers, with their strong online presence and credibility, have the ability to influence consumer behavior and shape opinions. By leveraging their reach and influence, Zomato has been able to increase brand visibility, gain new customers, and drive user engagement.

One of the key advantages of influencer partnerships for Zomato is the ability to build trust and credibility among its user base. Influencers act as brand advocates, sharing their positive experiences and promoting Zomato’s services to their followers. This not only increases brand trust but also generates word-of-mouth recommendations, which are highly valuable in the food delivery industry.

In addition to trust-building, influencer partnerships help Zomato to target specific niche markets and demographics effectively. By collaborating with influencers who have a strong presence in specific regions or amongst certain communities, Zomato can tailor its marketing messages and offerings to suit the preferences and needs of those target audiences.

Zomato’s influencer partnerships have also played a crucial role in driving user engagement and fostering brand loyalty. Through contests, giveaways, and exclusive promotions, Zomato incentivizes its audience to engage with the brand and take action. By partnering with influencers to promote these campaigns, Zomato is able to amplify its reach and encourage users to participate, resulting in higher user engagement and increased brand loyalty.

In conclusion, influencer partnerships have been instrumental in Zomato’s growth and success. By collaborating with influential individuals, Zomato has expanded its reach, built trust and credibility, targeted niche markets effectively, and fostered user engagement and loyalty. As influencer marketing continues to evolve, we can expect Zomato to further leverage these partnerships to drive its future growth.

Learning from Zomato’s Strategic Alliances and Acquisitions

In this section, we will explore the valuable lessons we can learn from Zomato’s strategic alliances and acquisitions. Zomato has effectively utilized these business moves to expand its reach, services, and overall market presence. By analyzing these strategic endeavors, we can gain insights that are relevant and applicable to aspiring entrepreneurs.

Strategic Business Moves Through Mergers and Acquisitions

Zomato has strategically executed mergers and acquisitions as part of its growth strategy. By joining forces with complementary businesses, Zomato has been able to enhance its offerings, broaden its customer base, and strengthen its competitive position. These strategic partnerships have allowed Zomato to tap into new markets, acquire new technologies and expertise, and consolidate its market share.

Expansion via Zomato Kitchens and White Label Solutions

Zomato has also expanded its services through the introduction of Zomato Kitchens and white label solutions. Zomato Kitchens are dedicated spaces where restaurants can operate solely for food delivery, leveraging Zomato’s platform. This expansion strategy has enabled Zomato to enhance its food delivery capabilities and provide a more seamless experience for customers.

Additionally, Zomato offers white label solutions, allowing restaurants to leverage Zomato’s technology and infrastructure to launch their own delivery services. This strategic move has not only empowered restaurants but also increased Zomato’s reach and revenue streams.

Collaboration with Governments and Local Enterprises

Zomato’s collaboration with governments and local enterprises has played a crucial role in its growth and expansion. By partnering with governments, Zomato gains access to regulatory support and resources that facilitate its operations, particularly in new markets. Collaborations with local enterprises have also allowed Zomato to penetrate localized markets, leveraging existing networks and customer bases.

These strategic alliances and collaborations have enabled Zomato to navigate regulatory challenges, overcome barriers to entry, and establish a strong market presence. By partnering with key stakeholders, Zomato has been able to position itself as a trusted and reliable partner for governments and local businesses.

By studying Zomato’s strategic alliances and acquisitions, aspiring entrepreneurs can gain valuable insights into effective growth strategies, market penetration tactics, and the importance of strategic partnerships. Zomato’s success in expanding its reach, enhancing its services, and achieving market dominance serves as inspiration for entrepreneurs looking to make impactful moves in the competitive food delivery industry.

Conclusion: What we learnt from Zomato Case Study

Assessing zomato’s overall business growth and success.

In conclusion, Zomato has experienced remarkable business growth and achieved great success in the food delivery industry. Through its innovative strategies and adaptation to market trends, Zomato has transformed from a restaurant search tool into a global food delivery service. By catering to the tech-savvy generation, strategically targeting specific demographics, and implementing crisis management strategies, Zomato has successfully penetrated the market and gained a strong foothold.

Furthermore, Zomato’s effective utilization of digital marketing channels, integration of social media engagement, and creative email and content marketing have established it as a frontrunner in the industry. By harnessing the power of influencer partnerships and building a diverse revenue ecosystem, Zomato has further accelerated its growth and expanded its reach.

Key Takeaways from Zomato’s Journey for Aspiring Entrepreneurs

Aspiring entrepreneurs can draw several key takeaways from Zomato’s journey. Firstly, understanding and targeting the right audience is crucial for sustained success. By remaining agile and adapting to market trends, entrepreneurs can stay ahead of the competition. Additionally, investing in digital marketing strategies, social media engagement, and personalized email and content campaigns can effectively engage and retain customers.

Collaborations, strategic alliances, and acquisitions can also play a vital role in expanding business operations and reaching new markets. Finally, cultivating a strong brand image through influencer partnerships and user-generated content can boost credibility and generate brand loyalty.

Future Projections: Zomato as a Case Study for Industry Best Practices

Looking ahead, Zomato’s future appears promising. As a case study for industry best practices, Zomato’s success serves as a benchmark for aspiring entrepreneurs in the food service landscape. With its strong market presence, diversified business model, and continuous innovation, Zomato is well-positioned to drive further industry growth and shape the future of food delivery in India and beyond.

In conclusion, Zomato’s journey highlights the importance of adaptability, digital marketing prowess, strategic alliances, and strong branding. By applying these insights and emulating Zomato’s success strategies, aspiring entrepreneurs have the potential to thrive in the competitive food delivery industry.

Q: What is Zomato?

A: Zomato is a well-known food delivery and restaurant discovery platform.

Q: How did Zomato evolve over the years?

A: Zomato started as a restaurant search tool and has since evolved into a global food delivery service.

Q: In how many countries is Zomato available?

A: Zomato has expanded into multiple countries worldwide.

Q: How has Zomato approached market penetration?

A: Zomato caters to the tech-savvy audience and strategically targets different demographics. They have also collaborated with partners and implemented crisis management strategies.

Q: What digital marketing channels does Zomato utilize?

A: Zomato harnesses various channels, including search ad campaigns, Google Display ads, social media marketing, and email marketing.

Q: How does Zomato integrate social media engagement in its brand strategy?

A: Zomato excels in trend-jacking and meme marketing, creating creative campaigns that resonate with young audiences. They also collaborate with influencers and foster user-generated content.

Q: What is Zomato’s approach to email and content marketing?

A: Zomato sends personalized email campaigns, invests in quality content, and utilizes innovative call-to-actions and themed campaigns to engage users.

Q: How does Zomato generate revenue?

A: Zomato has a diverse revenue ecosystem, including restaurant listings and advertising, subscription programs, food delivery commissions, infrastructure services, and live events.

Q: What is the significance of influencer partnerships for Zomato?

A: Influencer partnerships help Zomato expand its reach, gain credibility, and engage its target audience.

Q: How has Zomato utilized strategic alliances and acquisitions?

A: Zomato has made strategic business moves through mergers and acquisitions, expanding its reach and services. They also collaborate with governments and local enterprises.

Q: What can we learn from Zomato’s overall business growth and success?

A: Zomato’s journey provides key takeaways for aspiring entrepreneurs, and it serves as a case study for industry best practices.

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Zomato Case Study | Business Model [Success Story]

Indians adore their cuisine. They exist solely to eat. But it is the food-tech unicorn Zomato that has changed the way Indians think about food. Zomato has turned food into a profitable business by addressing the concerns of ‘where to dine,’ home delivery of food with the added bonus of huge discounts, and great ‘live’ tracking features.

It started its operations in Delhi-NCR in 2010. Who knew that a simple rebranding of the food directory website, Foodebay would become India’s first food tech unicorn?

To differentiate itself from its competitors, Zomato focused on adding approx. 18,000 new places to eat. At the same time they also decorated many special features, such as special dishes or opening hours”.

In order to be the largest resource in the food supply market, Zomato bought Urbanspoon , a leading restaurant service, to leverage local insights and experience, and to expand its business overseas, looking to the future. Provides a portal to enter Canada and Australia for $52 million. and purpose.

Zomato Case Study Inspire Every Indian Startup

Deepinder Goyal and Pankaj Chadha, both IIT graduates, founded the restaurant aggregator and food delivery company, which now serves over 10,000 cities in 24 countries. Zomato expanded into Sri Lanka, the United Arab Emirates, Qatar, the United Kingdom, the Philippines, Brazil, Turkey, New Zealand, and South Africa.

Zomato has received a lot of support and has raised a lot of money. It has a reputable investor portfolio that includes Singapore-based firms Temasek, Sequoia, Info Edge India, and V Capital. The startup raised $200 billion from Alibaba’s Ant Financial, which has a $1 billion valuation.

Achievements:

• Many listed restaurants: In 2008 it was 4000 restaurants which increased to 94000 in 2013 and currently there are 384,100 in the first quarter of 2015.
• Zomato’s monthly visitors increased to 35 million in 2014 from 11 million in 2013 and 0.015 million in 2008.
• In 2008, Zomato’s annual revenue was 0.06 crores, which increased to 113 crores in 2013.
• Spread over 21 countries around the world.

Zomato Marketing Strategy

The success of Unicorn would be incomplete without mentioning its digital marketing strategy, which increased its popularity and helped it become a household name.

This case study examines Zomato’s growth through digital marketing initiatives. What motivates customers to use the app and place an order? How does the startup keep its customers happy, address their concerns on social media, manage the restaurant, and monitor ratings?

Target Audience:

Zomato’s primary customer demographic is between the ages of 18 and 35. This customer group owns a smartphone, prefers to eat out, and is lazy.

Organic Results in Google SERP

Here is a screenshot of the Zomato search traffic case study in comparison to other restaurants. While real restaurants like Domino’s and Pizza Hut account for less than 1% of search traffic, Zomato accounts for more than 40% of voice traffic and about 2% of top keyword traffic.

Zomato Over Social Platforms

The company also enjoys experimenting with Sprout Social because it allows multiple users to manage a single social media account and handles email and in-app chat queries more effectively. Tasks for follow-up can be assigned quickly and easily.

Monitoring and listening to performance on social media is also easier than ever. Sprout Social’s metrics are also very useful for performance analysis.

The brand emphasises connecting with customers and does an excellent job of it. Check it out for yourself.

One of the most appealing aspects of Zomato’s social media strategy is that it is not just the handlers who provide feedback and attempt to connect with customers. However, the brand does not adhere to any set pattern or strategy. A young team continues to experiment and collaborates in order to maintain a creative edge.

The in-house team works closely with various employees and heads of departments to deliver a correct version and appropriately answer specific questions. That’s not it. Zomato’s social media posts are always in the news. Recently, it gave its social media to delivery boy Sonu after his TikTok video went viral.

pic.twitter.com/YVCiOLrEjK — बडवे महाराज (@utkkut1) February 28, 2020

Business Model – How Zomato Make Money?

In the early days of the company, Zomato used to scan the menus of restaurants and put them on the site and the menu was received by the people. It still follows the same formula but has added other services to its operation. Zomato’s business model is quite different from other food delivery companies such as Swiggy and Foodpanda. Zomato’s key partners are Uber and London & Partners who may launch Zomato in the UK within the expected time frame.

While the company’s main resource is a large database of restaurants in 10,000 cities across 24 countries. The business model is based on providing local restaurant search services, as well as collecting data on food menus, contacts, and providing relevant information to customers. Zomato’s primary channels are its mobile applications and its online website. The company’s target audience consists of users who are looking for local restaurants of various cuisines and restaurants that want their name to reach a large number of people.

Customers who prefer home delivery, as well as database and market research firms, are also served by Zomato. The online service, on the other hand, includes a mandatory rating system. Zomato’s business model has transformed the food industry by incorporating various restaurants and making it simple for people to find restaurants, provide feedback, and check listings and availability based on their preferred cuisines.

Key to success:

• first-mover advantage
• strong content platform
• skilled workers
• Good rating mechanism and social platform
• A grant from an Experienced Source

Also check, Top 12 Food Tech Startups in India

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Shareholders

Info Edge India owns the largest share in Zomato. This company is a media and internet firm and owns a 23.9% stake in the company. 

Some of the major shareholders in Zomato include:

Did you know?

Deepinder Goyal, the co-founder and CEO of Zomato, owns a 4.3% stake in the company. 

Business Model

Zomato provides a treasure trove of information, including restaurant names, addresses, contact details, and user-generated reviews and ratings. This helps the audience discover new and unique restaurants.

Zomato utilises the power of the restaurant depository and delivers food orders from these restaurants. Since almost every major restaurant is listed on Zomato, the users’ ability to switch to different apps is drastically reduced. They deliver food quickly to the address of the customer and charge a small fee in exchange for this service.

Zomato is earning money from a total of 5 segments, they are:

• Food Delivery
• Hyperpure (B2B Supplies)
• Quick Commerce (Blinkit)
• Going-out (Events platform)

Major Competitors

Swiggy is a powerful rival of Zomato, forcing the company to innovate regularly due to the extremely low customer switching cost. As one of Zomato’s primary rivals, Swiggy has cemented its position in the Indian market, posing a strong threat to Zomato’s market share. 

Uber Eats is a company that falls under Uber Technologies and serves 60 countries; it is one of the leading food delivery platforms in the world. Zomato has acquired Uber Eats’ India operations, but Uber Eats still stands as a formidable competitor to Zomato in foreign markets.

DoorDash mainly serves in the United States and Canada. The company has built a reputation for its extensive restaurant partnerships and robust delivery network. 

EatClub operates in 5 metro cities and has eight brands, such as Box8 and Mojo Pizza. They come across as a very strong contender for Zomato. 

Here is some important market data of Zomato.

Financial Highlights

Income statement, profitability ratios, shareholding pattern.

SWOT Analysis

• Globally available: Zomato expanded its services to various countries and made a global footprint, encouraging international reach and providing access to diverse markets. 
• Leading food delivering services : Zomato has become a leader in the food delivery industry. Its food ordering and delivery services cover more than 1,000 cities and have 14.7 million monthly average transacting customers.
• High Competition – Zomato operates in a highly competitive market, with various food delivery giants like Swiggy, Uber Eats, and EatClub competing for the same customer base.
• Operational challenges – The company faces several operational challenges as a food delivery company, such as delivery delays, food quality issues, and logistical problems. These issues can result in negative customer feedback and reduced customer loyalty, ultimately hurting the company’s profitability.

Opportunities

• Expansion through sustainable practices : The company is capitalizing on the growing demand for sustainable practices by expanding its eco-friendly initiatives.
• Revenue streams: The company diversifies revenue streams and enhances user engagement. Zomato must expand faster than others to stay ahead of the curve.
• New Users: Nowadays, smartphones and internet users have increased tremendously. This will help Zomato gain new users and audiences. 
• Fragile Business model: Economic factors can affect consumer dining and food delivery spending, potentially impacting revenue.
• Loss turning segments: The company loses a significant chunk of money in the Quick Commerce segment and thus has to return lower profits at a consolidated level. 

Zomato is building brand recognition, global reach, and user-generated content to contribute to its success in the food delivery industry. Zomato faces lots of challenges, constantly innovating and improving its services to stay ahead of the competition. They must maintain their position and take more initiatives to grow and expand their business. 

Frequently Asked Questions (FAQs)

• Who is the CEO of Zomato?

Ans. Deepinder Goyal heads the company as the CEO.

• Is Zomato profitable?

Ans. Zomato turned profitable for the first time in the quarter ending June 23. The company produced a profit of INR 2 Crores

• What is the former name of Zomato?

Ans. Zomato was founded as FoodieBay in 2008 by Deepinder Goyal and Pankaj Chaddah.

• How many segments does Zomato report?

Ans. Zomato has 5 segments, namely – Food Delivery, Hyperpure, Quick Commerce, Going-out, and Others

• Is Zomato used outside India?

Ans. The company is operational in Indonesia, Sri Lanka, and UAE.

Disclaimer: The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

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Zomato Case Study and Marketing Strategies | Success Story

Zomato’s case study, success story, marketing strategies and the overall journey will serve as an inspiring business model for Indian entrepreneurs for many years to come. Just like a typical startup, Zomato too has had its fair share of ups and downs. Because of this reason, many aspiring entrepreneurs can learn a lot by delving deep into what Zoma to has done to reach at the pinnacle of success in the food delivery industry.

In this post, we will take a good look at the entire journey of Zomato, its marketing strategies and the way it shaped the online food-ordering-and-delivery system in India.

Table of Contents

Quick t rivia

Did you know that Zomato has some sort of presence in as many as 24 countries and 10,000 cities? Zomato doesn’t provide food delivery in all these countries, but lists a plethora of information in terms of menu and user reviews.

T he f ounders of Zomato

Two IIT graduates named Deepinder Goyal and Pankaj Chaddah co-founded Zomato in July 2008. Before launching Zomato, they were employed with a managem ent consulting firm named Bain & Co. (Delhi office).

The idea behind Zomato – A brief history

The idea of an online food menu struck the duo when they saw people standing in a queue at lunchtime in office and waiting for their chance to order. So t hey took pictures of the food court menu and uploaded them on their company’s private network. Everybody at the com pany started using the website, and Deepinder and Pankaj noted the huge traffic the network got in a few days’ time.

This gave them the idea of starting a portal called “Foodiebay”, where users could browse through the menu of eating joints and restaurants and see their reviews and ratings right from their computer. Foodiebay began listing restaurants from Delhi-NCR on their website and quickly expan ded to other cities like Mumbai and Kolkata . The first professional restaurant that found its spot on Foodiebay was from Hauz Khas in Delhi.

Soon the website was covering thousands of restaurants from metropolitan cities and the founders thought that they would rebrand it with an appealing name that would attract customers in abroad too, if they expand to such a level. As a result,

Foodiebay was rebranded as Zomato in November 2010.

By 2016, Zomato had a full-fledged app up and running, which was providing food deliveries from registered restaurants, through their thousands of valets.

Zomato Business Model

Zomato runs on a commission business model. It generates most of its revenue from the commission that it charges the restaurants for every order placed through their app. Furthermore, it also makes decent revenue from advertisements – the “promoted” restaurants that you see at the top of your search results.

Zomato Funding

Zomato has undergone multiple rou nds of funding since 2010. Here are the funding rounds in chronological order:

• Zomato raised $1 billion through Sanjeev Bikhchandani led Info Edge India in December 2010
• In 2013, Zomato again received $13 million from Info Edge India, making the firm a 50% stakeholder in Zomato
• Post the 2013 funding, a number of investors such as VY capital, Sequoia Capital and Temasek provided an undisclosed amount of funds to Zomato
• It is believed that by the end of 2018, Zomato had received funding of more than $300 million. Thanks to these funds, Zomato was able to expand its business into more cities
• Zomato raised $660 Million in the f unding of Series J round led by Tiger Global Management and Kora. With this, Zomato’s funding rose to $3.9 b illion.

Zomato filed draft documents with SEBI in April 2021, with the objective of raising INR 8,250 crore. The Zomato IPO opened up on July 14, 2021 and closed on July 16, 2021.

The price band for the issue was fixed at INR 72-76 per share with a face value of INR 1 each. Investors could bid for a minimum of 195 equity shares.

Zomato’s IPO was among the first from the list of unicorn start-ups in India and the first of an online food ordering business .

Zomato Hyperpure

Zomato Hyperpure is the company’s B2B vertical through which it s upplies highest-quality ingredients and kitchen products to restaurants. You can buy the following items with Zomato Hyperpure:

• Fruits and vegetables
• Dairy products
• Gourmet and packaged foods
• Packaging and Kitchen Consumables
• Meats and seafood

Zomato Acquisitions

Zomato has acquired many companies in its journey so far. Given below are all the acquisitions that Zomato has made, earning itself the tag of ‘Acquisition King’:

Acquired menu-mania in July 2014

The company acquired Czech Republic’s restaurant guide- Lunchtime and Slovakia’s restaurant guide- Obedovat for a combined sum of $3.30 million

It acquired Italian restaurant search service, Cibando

Then, the company bought Poland’s restaur ant search service, Gastronauci

The following year, in 2015, Zomato acquired Urbanspoon for $60 million

The same year Zomato made a few more notable acquisitions in the form of US-based NexTable and Delhi-based startup MapleGraph

The company then acquired a logistics-technology startup named Sparse Labs

Acquired Runnr, a food-delivery startup, in 2017.

The year 2018 was good in terms of acquisitions as the company acquired two more businesses , namely Bangalore-based TongueStun Food and Lucknow-based TechEagle Innovations

Zomato acquired Uber Eats in January 2020 for a whopping $206 million – Perhaps one of the most notable acquisitions of the lot

Zomato has come up with its own food and entertainment carnival named Zomaland. Its debut edition in 2018 was held in 3 metropolitan cities, viz. Mumbai, Bengaluru and Delhi.

This flagship event brings together a number of cuisines and entertainment methods together – be i t music, dance, comedy acts, carnival games, etc. Zomato has partnered with many notable companies for the organization of its event in as many as 10 cities.

Zomato Marketing Strategies

Zomato markets itself very well, in a way that appeals to people. Here are a few marketing strategies followed by Zomato

Social Media Zomato doesn’t use social media in the conventional corporate way. It believes in making humorous, playful and sometimes sarcastic posts that appeal to the youth. Because of this reason, most of the posts by Zomato on Twitter often go viral with many other companies and netizens joining the banter. For instance, this infectious smile by a Zomato delivery guy garnered a huge meme fest on social media.

Then, they often come up with some witty lines as well , such as:

Then they also capitalize on many sport events such as the IPL by launching their own cashback leagues such as Zomato Premier League.

2) Pay-per-click (PPC) ads

Zomato invests heavily in its PPC ads on search engines and social media portals such as Facebook, Twitter and Instagram. If you have ever seen their ad s on any social media network, you’d know how mouth-watering their pictures and banners look. Zomato, as a result, acquires many of its new customers from social media.

3) YouTube Marketing

Zomato knows the importance of videos. That’s why you’d often see many advertisements of Zomato while you are watching videos on YouTube. Despite aggressive promotion on YouTube, the company isn’t too active on its YouTube Channel as you would expect.

Zomato Competitors

In India, Zomato faces direct competition from rival Swiggy . Until 2020, it also had a strong competitor in the form of Uber Eats, which it acquired in a $206 million deal. Zomato enjoys a monopoly in the food delivery business in many smaller cities like Chandigarh, Mohali and Panchkula.

Introduced Contactl ess Delivery during COVID-19 pandemic

The online food aggregator made many enhancements to its delivery protocol during the unpr ecedented pandemic. Temperatures of all delivery valets were checked multiple times a day and they had to sanitize their hands before picking up any order.

The company stopped accepting Cash on Delivery (COD) and encouraged people to use any kind of digital payment method. At the time of the delivery, the executive dropped customers’ packages outside their doors and left quickly to avoid the risk of transmitting or contracting the virus. Wearing a mask and a pair of gloves was, of course, mandatory for all valets. If they failed to do so, customers could report them through the delivery rating from the app.

Top reasons behind Zomato’s continued success

There are many reasons behind the successful launch and growth of Zomato. Here we present to you the most notable ones:

1) First-mover advantage

India wasn’ t familiar with the terms “online food ordering” until Zomato came along. Thus , Zomato has always had the first-mover advantage to capitalize on. And it did so quite effectively too.

2) Continuous flow of investment

Zomato has never been shot of funds. If you take a close look at the funding timeline mentioned above in this blog post, you will see that Zomato has been very successful in convincing investors about its long-term vision and growth objectives.

3) A strong network of restaurants and delivery valets

Zomato has managed to bring most of the restaurants and hotels on its app, with much ease, despite the hefty commission and promotion fee that it charges. A handful of eating joints that are not listed on the platform are missing out on some really good revenue opportunities.

The online food ordering and delivery company also has a strong workforce of delivery agents. As a result, Zomato has provided employment to lakhs of youth in the country.

4) Aggressiv e Marketing

In today’s time of such intense competition, you have to put a lot of funds in taking the word out. Be it traditional marketing methods such as TV and newspapers, or the modern-day techniques involving search engines and social media, Zomato has left no stone unturned in making itself a household name.

The Bottom Line

We hope that this post has given you some great information in terms of the case study, marketing strategies, success story, funding and acquisitions of Zomato. Th e journey of this food delivery company will serve as an inspiration for many aspiring entrepreneurs for decades to come.

The market of online food ordering was witnessing huge growth until COVID-19 struck. However, the landscape is slowly coming back to its pre-COVID shape. Zomato is also working to strengthen its grocery delivery system, in case another variant hits their core business hard, yet again.

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Popular reads, lessons from zomato-fighting competition.

• Introduction

The food delivery space is as competitive as it gets! And riding the tides like a Titan is Zomato , a multinational restaurant aggregator and food delivery company founded in 2008.

The company has been a force to reckon with, with stellar marketing campaigns and compelling efforts towards customer acquisition. However, the journey has not been easy.

Competitors have been trying to strengthen their position in their market, eyeing the immense potential of the food delivery industry. Zomato has not been sitting idle either.

We breakdown and analyze an important tactic employed by Zomato to fight competition.

Problem Statement- Why was Zomato worried? 

The solution- targeting smaller cities, analysis- why it worked.

The competition among food delivery applications has been on an all-time high. The companies in the industry are burning their funds for attracting and acquiring new customers. One of the most often used method has been attracting users by giving heavy discounts.

Despite the short-term results, this approach is not sustainable in the long run. Companies are discovering that burning cash for customer acquisition cannot be the only method of fighting competition. Companies cannot operate in negative revenue forever. 

Another huge problem with this method is that it brews disloyalty among the users. With companies competing purely by offering discounts, users became more prone to switch to the application that is giving better discounts at that moment.

Zomato needed to find a way out of this problem.

While the competitors were busy burning their funds to provide discounts for customer retention, Zomato decided to take a different route.

Expanding to Tier 3 and Tier 4 cities in India.

Zomato started to expand its operations in rural and suburban area. Meanwhile their operations in metro cities continued at the same pace.

The move to Tier 3 and Tier 4 cities increased the overall sales by an unexpectedly high value and also increased the user strength in metro cities. 

This tactic has worked wonders for the company. In a recent interview , the CEO of Zomato said:

“While the growth in the top 15 cities has tripled in the last 12 months, our emerging cities now contribute 40 per cent to our business,” Zomato CEO.

But why did Zomato see such results?

The strategy worked as a dual force for the company:

Firstly , the company was able to onboard rural and suburban users to their application. Zomato was able to tap into a user base that happens to be the highest contributor in terms of population.

Secondly , in India majority of the urban population consists of migrants from Tier 3 and Tier 4 cities. By focusing on smaller cities before its competitors, Zomato was able onboarded people who would get accustomed to using their application in Tier 3 and Tier 4 cities. When these people migrate to bigger metro cities, guess who they turn to when they want to order food.

Zomato, obviously !

The application that they have been using in their hometowns.

This move also gave them the upper hand of being the only one to deliver food in a lot of small cities, increasing the user count substantially.

This even had an effect in the opposite direction. It increased the loyalty and retention of its metro city users. Since majority of metro city users are also migrants from smaller cities, they became recurrent and loyal users of Zomato-not just in metro cities, but also when they were back home.

Zomato was providing the unique value of being available at every place they would visit. 

And that’s one of the ways Zomato has been fighting competition successfully.

Freebies will only get you so far. At the end of the day, value takes the cake and wins over.

Value may be in terms of quality or ease of accessibility.

Noticed any unusual moves taken by businesses lately?

Let us know in the comments below and we’ll provide our insights into their business decisions.

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A case study on Zomato – The online Foodking of India

2020, IP innovative publication pvt ltd

Zomato started in 2008 underneath the name, ‘Foodiebay’ to begin with. Later in 2010, it had been renamed to ‘Zomato’. Constantly 2011, Zomato extended to increasingly urban regions the country over in Mumbai, Delhi NCR, Chennai, Bangalore, Kolkata and Pune. After that in the year 2012, the corporate extended working all around in various countries like the UAE, Qatar, Sri Lanka, UK, South Africa and Philippines. In the year 2013, Zomato had moved their organizations in Brazil, New Zealand, Turkey and Indonesia, with its applications and site open in various lingos isolated from English. After that in April 2014, Zomato impelled its organizations in Portugal Republic, trailed by Canada, Lebanon and Ireland around a similar time. The acquiring of Settled - based sustenance zone ‘Urban spoon’ signified the organization’s passageway into the United States, Canada and Australia, and conveyed it into direct test with ‘Wail’, ‘Zagat' and ‘Open Table’. With the introduction of .xxx zones in 2011, Zomato also impelled ‘zomato.xxx’, a site dedicated to finding spot to eat near to your territory. It later moved a print adjustment of the site substance named, ‘Citibank Zomato Restaurant Guide’, got together with Citibank in May 2012, at any rate later it was halted.

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With digitization, the food industry has very efficiently utilized the e-commerce platform in the online food review and food ordering business. Through a vertical system of food delivery apps, the entire system has brought almost every restaurant in India under a single roof in the hands of the consumer. Now, finding a great place to eat, ordering food, reserving tables, and giving positive or negative feedback for a restaurant has become very easy and accessible for the consumer. This vertical has shown tremendous growth over the last 10 years signifying the untapped potential. The pioneer and leader of this segment in India has been Zomato. Zomato is a brand, which every consumer would relate to when s/he thinks of an e-food platform. This paper aims at critically examining the marketing and positioning aspect of the company by drawing on the works published in the form of surveys, journals, articles and reports by independent authors as well. This paper covers certain figures me...

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Our Heritage

Dr. Suresh Kumar S

The country's GDP grew at a modest 4.5 per cent in the September quarter 2019, and the official data released showed a sixth straight fall in quarterly GDP growth and also the first time fall below the psychologically important 5 per cent mark in almost seven years. It is in this context that the festive sales hosted by the e-commerce sector ended first week of October 2019 where the e-tailers in India, mainly Amazon and Flipkart, achieved a record $3 billion (about Rs 19,000 crore) of Gross M erchandise Value (GM V) during the period as per a report by consulting firm RedSeer has to be evaluated. The success of business models, whether it be in e-tailing (amazon, flip-kart etc.), transportation (Uber, Ola Cabs etc..) or online ordering from eatery apps (Ubereats, Swiggy, Zomato etc.) despite the reverse trend in GDP growth and sustained recession, needs to be evaluated in the context of innovation applied and technology adoption. It is in the backdrop of above said upsurge of business model innovations that can combat the challenges in downfalls of an economy and/ or ever-increasing competition on a global platform, the effectiveness of business models assumes significance. A laggard manager clinging on to his age-old business model is now forced to look forward to articulate their existing business model, since the core enabler of a firm's performance is an effective business model. Understanding the possibilities for innovating through theoretical insight and practical guidelines needs identification of types and the development of a typology of business model innovations. The online eatery business of restaurants, with key partners such as payment processors, mapping data providers and delivery bike drivers through channels such as mobile apps and telephone ensures customer relations by providing convenience in the form of wide choice of sourcing and menu as well as easy payments has found its own way into urban and semi-urban centres of almost all the

IAEME PUBLICATION

Technology innovation has changed all the everyday exercises we do. Online food ordering service is among them. Online food ordering service was first begun by Zomato in the year 2018 pursued by Swiggy, Food Panda and Uber eats. Even though the physical sustenance administrations given by different Restaurants and lodging is as yet ruling the time at present, the online structure which has risen as of late is going to command the physical form. This pattern is very unmistakable in created developed cities in India. Subsequently, this article endeavors to discover the pattern in creating city like Bhubaneswar and different elements influencing that. This article talks about the inclinations of online food preferences that measurably and confirms the outcomes with statistics tools and techniques. Besides, it talks about the fate of offline food services in near future.

Rupkatha Journal on Interdisciplinary Studies in Humanities

Gitanjali Roy

Food habit articulates the local culture of a region. Tripura, a land-locked state of varied communities (the tribes and Bengalis of the soil) negotiates the countercultural exchange of cuisines. Traditional ethnic foods are markers of shared cultural values and identity. Preparation of traditional food involves the role of memory which involves passing down culinary skills, techniques, and ingredients from one generation to the next. The marketing industry and the restaurant culture have changed the taste of the consumers but again the ‘losses’ and the ‘need’ to preserve the traditional cuisines are archived in digital platforms. With the rise in YouTube food channels, Facebook pages, food delivery companies like Swiggy and Zomato; the local food met with the global consumer culture. On one hand, lost ethnic food habits are preserved by documenting the procedures of cooking traditional dishes. On the other, restaurants and bloggers are experimenting to prepare local food using glob...

Publisher ijmra.us UGC Approved

Online food delivery portals and applications have changed the way people select and order their food. The advancements in technology and easy availability of the internet and smartphones paved the way for online food ordering services. It was a concept unheard of in India, when the founders of Zomato decided to create a platform where people could conveniently browse through food menus of different restaurants, order online and get the orders delivered at their doorsteps. It was on a random afternoon when Mr Pankaj Chaddha and Mr Deepender Goyal noticed a long queue of people to glance through the menu card and order their lunch. This got them thinking and eventually resulted in the inception of Zomatothat time called Foodiebay. Since its inception in the year 2008, Zomato has grown exponentially. It started as a food directory which instantly gained popularity in Delhi NCR. And within 9 months the website gained popularity in other cities like Mumbai, Kolkata, Chennai, Bengaluru. In 2012, Zomato went international with its presence in many countries like UAE, UK, Sri Lanka, Philippines etc. Zomato steadily kept increasing its customer database and also ventured into online table reservation, finding nearby restaurants. However, Zomato has also undergone its share of crises. But be it because of its unconventional communication or other practices, Zomato does not shy away from communicating with different stakeholders. Zomato"s communication has never held back from responding and reaching out to their customers and community. Today Zomato has over 119 thousand restaurants against 43 thousand restaurants in 2019. Zomato has all the necessary elements that makes it a successful case to be explored. Apart from crisis management, it also has been able to strike the right chord with the sentiments of Indian customers by connecting with them at an emotional level. This case study delineates the journey of brand Zomatoan Indian entrepreneurial ventureand analyses the communication strategy adopted by the brand especially while managing any crisis situation. The paper also studies the measures adopted by Zomato to emerge as a stronger brand as the country grappled with lockdowns and other restrictions during the Pandemic. Based on the broad framework provided by the Situational Crisis Communication theory, the researchers have undertaken the evaluation using SWOT analysis to cover all aspects of the journey of Zomato so far.

International Journal for Research in Applied Science & Engineering Technology (IJRASET)

IJRASET Publication

Online food delivering system is the process where various restaurants and food outlets deliver their foods and drinks according to the demand of the customer and give the maximum customer satisfaction and quality service. Although, there are various factors that depends on demand and supply and what goes in the customer's mind. What motivates the customers, what benefits they will be having by ordering food online and what are the issues they face while adoption online food and ordering it. This paper will provide information of such factors. It is discussed what are the biggest reasons for same, how people achieve the benefits. How and where people face the issues and how can we solve it. In times of outbreak of Covid-19, technology helped in different ways. One of them was to deliver food to people in those tough times when people were sick, could not go out of their houses and protecting themselves and others as well. Hassle-free online payment made the things easier and still doing the same.

The Cornell Hotel and Restaurant Administration Quarterly

Edward Forrest

International Journal of English Language, Literature and Translation Studies

fahima faigee

In recent years, social media usage and growth in India have been equally significant. It has developed into a potent instrument for social networking, information exchange, and communication among India's vast population. Digital food culture has recently gained popularity and significantly altered India's culinary culture. Therefore, the purpose of this paper is to investigate the pervasive phenomena of digital food culture in Indian society today. The study also emphasizes on the transformation of capitalism into media capitalism. Furthermore, this paper also looks at how media capitalism makes customers into spectators and turns them into sheeple for monetary gain. Netizens, however, act in a sycophantic manner while denying the influence of media capitalism. Thus, the study intends to investigate how media capitalism affects customers and viewers in India through the lens of digital food culture and food bloggers. Therefore, the theory of media capitalism and spectacle is used to analyze these issues.

European Proceedings of Social and Behavioural Sciences

Syahlan Syahlan

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