MB183210 Bharath M Gaddikeri - A Study On Opportunities and Challenges of Online Food Order Receiving and Delivery of Food With Special Reference To Zomato in Bengaluru

A STUDY ON OPPORTUNITIES AND CHALLENGES OF
ONLINE FOOD ORDER RECEIVING AND DELIVERY OF

FOOD WITH SPECIAL REFERENCE TO ZOMATO IN
BENGALURU
Submitted to
BENGALURU CENTRAL UNIVERSITY

For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
BHARATH MAHESHAPPA GADDIKERI

(MB183210)
Under The Guidance of
Prof. LAXMAN KULAGOD
GOVERNMENT RAMNARAYAN CHELLARAM COLLEGE OF
COMMERCE AND MANAGEMENT
Basaveshwara Circle, Palace Road
BENGALURU – 560001
2018-2020
ACKNOWLEDGEMENT
This project is an outcome of my practical analysis of “A study on opportunities and

challenges of online food order receiving and delivery of food with special reference to
Zomato in Bengaluru”
I am using this opportunity to express my gratitude to everyone and also supported me to

truthful for completion of the dissertation report.
The principal, Dr. SYED YOUSUFF Government Ramnarayan Chelleram College of

Commerce and Management, Bangalore for supported me to fulfill the requirement of MBA
degree of Bangalore central university.
First of all thank the Almighty God for his grace he stowed on us throughout this project.
My special thank to my internal guide Prof. LAXMAN KULAGOD for his constant
guidance, assistance and the enormous confidence to me during Dissertation report.
I thank my coordinator Dr. AJAZ AHMED KHAN inspiration provided in the process of
completion of this project.
Lastly I would like to thank my parents and all my friends has been supported me for this
project report.
DECLARATION BY THE STUDENT
I hereby declare that “A study on opportunities and challenges of online food order
receiving and delivery of food with special reference to Zomato in Bengaluru” is the
result of the project work carried out by me under the guidance of Prof. LAXMAN
KULAGOD and in partial fulfillment for the award of Master’s Degree in Business
Administration by Bengaluru Central University.
I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or Diploma or
Certificate.
Place: Name: BHARATH MAHESHAPPA GADDIKERI
Date: 22-11-2019 Register Number: MB183210

GUIDE CERTIFICATE
This is to certify that the Project Report title Submitted by BHARATH MAHESHAPPA
GADDIKERI MB183210 to Bengaluru Central University, Bangalore for the award of
Degree of MASTER OF BUSINESS ADMINISTRATION is a record of work carried out
by he/her under my guidance.
Place: Bangalore
Date: 22-11-2019 Signature
Prof. LAXMAN KULAGOD
CERTIFICATE OF ORIGINALITY
Date: 22-11-2019
This is to certify that the Project report entitled “A Study on opportunities and challenges
of online food order receiving and delivery of food with special reference to Zomato in
Bengaluru” is an original work of Mr. BHARATH MAHESHAPPA GADDIKERI
bearing University Register Number MB183210 and is being submitted in partial fulfillment
for the award of the Master’s Degree in Business Administration of Bengaluru Central
University. The report has not been submitted earlier either to this University for the
fulfillment of the requirement of any course of study. Mr. BHARATH MAHESHAPPA
GADDIKERI is guided by Prof. LAXMAN KULAGOD who is the Faculty Guide as per
the regulations of Bengaluru Central University.
SIGNATURE AND SEAL OF DIRECTOR / PRINCIPAL /HOD

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Table of content
Chapter No PARTICULARS PAGE NO
1 INTRODUCTION 3-11
1.1 History of online food ordering 3
1.2 Introduction to project 4
1.3 Meaning and definition 5
1.4 Problem of the statement 6
1.5 Objectives of study 9
1.6 Need of study 9
1.7 Scope of the study 11
1.8 Pros and cons 11
2 COMPANY PROFILE 12-23
2.1 About company /application 15
2.2 History of zomato 17
2.3 Investment 18
2.4 Difference between other apps 19
2.5 The various food apps available in 20

india
2.6 PESTEL Analysis 21
3 METHODOLOGY 24-26
4 SWOC Analysis 27-28
5 EXPERIENCES, LEARNINGS AND 29-33

CONCLUSION
A STUDY ON OPPORTUNITIES AND CHALLENGES OF ONLINE FOOD ORDER RECEIVING AND
DELIVERY OF FOOD WITH SPECIAL REFERENCE TO ZOMATO IN BENGALURU
Chapter-1
Introduction
1.1 History of online food ordering
The first online meals orders become a pizza from Pizza Hut in 1994.
This is a photograph from a 2018 Pizza Hut pizza container, which describes the
primary on-line meals sale.
The first on line food ordering provider, World Wide Waiter (now known as
Waiter.Com), became based in 1995. The web page firstly serviced most
effective northern California, later increasing to several extra cities within the
United States.
GrubHub turned into based in 2004.
By the late 2000s, most important pizza chains had created their own cellular
programs and started out doing 20-30 percent of their enterprise on-line. With
elevated telephone penetration, and the increase of both Uber Eats and the
sharing economic system, food delivery start-ups started to get hold of extra
interest. In 2010, Snap finger, which is a multi-eating place ordering internet
site, had a growth in their cellular meals orders through 17 percent in 365 days.
Instacart became founded in 2012. In 2013, Seamless and Grubhub merged.

Uber Eats launched in Los Angeles, California in 2014. By 2015, on line
ordering started overtaking telephone ordering.
In 2015, China's online meals ordering and delivery marketplace grew from
zero.15 billion Yuan to 44.25 billion Yuan.
As of September 2016, on-line shipping accounted for approximately three

percentage of the 61 billion U.S. Restaurant transactions.
GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 1

1.2 Introduction of project
The online food ordering system is one of the latest servicers most fast food
restaurants in the western world are adopting. With this method, food is ordered
online and delivered to the customer. This is made possible through the use of
electronic payment system. Customers pay with their credit cards, although
credit card customers can be served even before they make payment either
through cash or cheque. So, the system designed in this project will enable
customers go online and place order for their food.
Due to the great increase in the awareness of internet and the technologies
associated with it, several opportunities are coming up on the web. So many
businesses and companies now venture into their business with ease because of
the internet. One of such business that the internet introduced is an online food
ordering system. In today‘s age of fast food and take out, many restaurants have
chosen to focus on quick
The popularity of online food ordering and delivering services is steadily

growing, expectations of the users are also increasing. This research paper is
aimed to investigate consumers ―views about the services they receive from
different portals. This paper will help the service providers to understand the
consumers‖ perception, needs and views on the basis of the result of a survey.
A look at the relevant literature, particularly in relation to the online food

ordering and delivering services has been described below. The survey and its
results, followed by findings and conclusion on how the consumers perceive the
services can be used by the online food delivery service businesses to develop
better strategies to market their mobile applications successfully.

1.3 Meaning and Definition
An online meal ordering is the manner of ordering food thru the restaurant's
own internet site or cellular app, or via a multi-eating place's website or app. A
customer can pick to have the meals brought or for pick-up. The manner
consists of a client choosing the restaurant in their desire, scanning the menu
items, choosing an item, and in the end selecting for pick-up or transport.
Payment is then administered by way of paying with a credit score card or debit
card via the app or website or in cash at the restaurant whilst going to pick up.
The internet site and app tell the patron of the meals high-quality, length of food
training, and when the meals is prepared for choose-up or the amount of time
it's going to take for transport.
The online food ordering market has extended inside the U.S with forty percent
of U.S adults having ordered their food on-line once. The on-line meals
ordering market consists of ingredients organized with the aid of restaurants,
prepared by means of independent people, and groceries being ordered on-line
and then picked up or brought.
Definition
An online food ordering machine can be described as software program that

allows restaurant groups to just accept and manage orders located over the
internet.
An online ordering system commonly includes 2 important additives. First is an

internet site or mobile app for hungry clients to view the eating place's dishes
and location a web order. Second is an admin control interface for the
restaurants to obtain and manipulate the consumer's orders.

1.4 Statement of the problem
The basic hassle inside the meals provider enterprise aren't realizing efficiencies
that could end result from better programs of generation in their daily
operations. Every eating place has counter in which you may area your order
and then make the payment. So each restaurants desires an worker for taking the
order and processing the price food eating place might be ready with a person-
pleasant touch display screen, a credit score/debit card reader, and software
program for completing the manner at the backend. For this system there can be
a device administrator who may have the rights to go into the menu with their
present day winning expenses. He/she will input whenever within the system by
way of a secured machine password to alternate the menu contents via including
or deleting an item or changing its price.
Now whilst the patron enters the restaurant, he's going to region his order with
the help of the contact screen the usage of the intuitive graphical person
interface, proper from the selection of language until the payment confirmation.
He will choose from the meals alternatives in line with his choice and the
machine will display the price quantity he has to make as soon as he has
finished with his order. He can have the choice of paying the invoice by coins,
debit card or a credit card. The consumer will slide his card and the device will
take a look at for the validity of the card and the fee can be made. A receipt may
be published containing the order number and the order could be sent in the
kitchen for processing.
 Confusing Menu
When hungry customers want to order online, they don‘t want to spend their
time navigating a complicated menu that doesn‘t allow them to easily modify or
add to their food selection. For example, online pizza ordering sites should have
separate sections for the crust and all of its options, like seasoning, thick or thin,

stuffed, a section for the sauce, a section for the cheese, and a section for all of
the other toppings.
If customers try to order online and find that the menu is confusing or
complicated, they will more than likely click away from the site and abandon
their cart, if they were able to put anything inside. If you find in your analytics
that there is a larger number of people visiting your online ordering page and
the numbers exceed the numbers of people who are, in fact, ordering online,
checking your online ordering process might point toward a complicated menu
and ordering system.
Troubleshooting Tip:
Go through your online ordering process yourself, and as a few others who are
unbiased to do the same. If anyone experiences any difficulties, consider re-
designing your ordering layout.
 Timeliness
Once an order has been placed online, it needs to pass through several landing
spots. The order needs to get to the restaurant, into the kitchen, and into the
point-of-sale program. Once that‘s been done, the food needs to be made and
then prepared for delivery, which includes bagging the food, including any
utensils or condiments, and checking to make sure all of the components have
been placed in the bag. The employee responsible for deliveries usually has
several deliveries at once, so all of the bags and orders need to be placed in
warming bags to keep hot foods hot, and then delivered to the customer who
ordered.
If a hungry customer finds that the wait time is longer than expected or
predicted, there is less of a chance of returning to purchase again, and a greater
probability that the customer will call to locate the order. If you‘re receiving

these calls, you might find that there is a gap in the system that is causing a
glitch or hang-up in the order processing system.
Troubleshooting Tip: Observe each part of the online ordering system, from
start to finish, to audit the various steps involved. Consider adding a ticker that
tracks the process and allows customers to see the status of their order.
 Server Capabilities
It‘s vital for restaurants taking online orders to ensure they have the
infrastructure in place to handle large volumes of online orders. A high-profile
marketing campaign, as well as increased exposure, can lead to a large number
of online orders being placed, which can tax a system not designed to handle
such capacity. As a result, customers will be left with re-direct pages, timed-out
messages, and blank web pages, and you‘ll probably be getting phone calls that
hint of frustration while trying to order.
Troubleshooting Tip:
Talk with your IT team about the capabilities in place with your system. It‘s
important that your program can handle not only your current customers, but
also the growth you are projecting for your online sales.
 Accessibility
With such a sharp increase in the number of customers ordering from apps and
smartphones, having an online ordering system that isn‘t mobile-friendly could
cause a problem in your overall sales. Monitor your analytics to see how
customers are accessing your Web page and online ordering system.
Troubleshooting Tip: Consider creating an easy-to-use app to take orders.

Having a mobile-optimized Website is also valuable, as some customers might
use their device‘s browser to order, instead of an app.

1.5 Objectives of the study
o To enable customers to order custom meals that aren‘t in the menu

o To enable customers to have a visual confirmation that the order was
placed correctly
o To enable customers to know food ingredients before ordering
o To reduce restaurant‘s food wastage
o To ensure correct placement of orders through visual confirmation
o Improve efficiency of restaurant‘s staff
o Eliminate paper work and increase level of accuracy
o Increase speed of service, sales volume and customer satisfaction
o To develop a system that will surely satisfied the customer service
o To design a system able to accommodate huge amount of orders at a time
o To evaluate its performance and acceptability in term of security user
friendliness, accuracy, and reliability.
1.6 Need of the study
Owing to the changing Indian demography, there's want for constructing up of

infrastructure for processing and advertising of the rural yield. As more and
more humans within the developing countries are shifting closer to the towns,
city food and vitamins problems are becoming increasingly more applicable and
urgent. There exists wide disparities between those towns in terms in their
geography, history and way of life which make connection with a median urban
purchaser as a man or woman deceptive and the identification of purchaser
corporations having specific cultural backgrounds, socioeconomic reputation,
life and therefore exceptional customer behaviour and desires is desired.

Consequently the meals and weight loss plan styles of the numerous strata of
urban populace deserves extra interest than they were given thus far, now not
simplest for his or her implications on food and agriculture making plans
however also for figuring out remedial movements and preventive measures.
Consumers have unique wishes and expectancies with admire to their food.
With intensive urbanisation, large volumes of meals circulate via the structures
and the food systems themselves have become an increasing number of
complex. With those adjustments within the Indian population greater people
live in different cities for the purpose of studies and employment and the busy
schedules of each the husband and spouse in the own family, the call for on-line
meals ordering have evolved and going up steadily.
As proposed inside the historical past have a look at, fantastic customer service
is critical in client delight and is the prerequisite for beginning and growing
lengthy Term courting. The eating place industry in India is at a getting to know
curve and plenty of full service eating places aren't capable of turning in great
services and therefore does not make a contribution to purchaser satisfaction
and lose to opposition. Hence it's miles crucial to perceive criteria for first rate
service in full provider eating place that may be used to function a bench mark
to permit restaurant to initiate and broaden client‘s relationships differentiated
imparting and retention and so on., resulting because of consumer pleasure.
The reason of this observes is to degree the perceptions of clients concerning

electronic meals ordering most of the clients of Bangalore metropolis.

1.7 Scope of the study
Enter on-line food ordering web sites. These websites were evolved extra for
customer comfort than anything else. But they do open a plethora of
opportunities for small establishments to grow their business similarly. An
online meal ordering has been a global phenomenon for some time now. There
had been many variations in India as nicely that have taken off at one of a kind
duration of time, but fullfillment has been difficult to return by. One of those
early ventures became HungryZone.Com which started out in 2006 in
Bangalore with greater than 650 eating places within the city.
1.8 Pros and cons
Pros:-
1. Efficient Food transport process
Ordering on-line is useful for both the client and the restaurant. The eating place
employees can growth their efficiency by using making ready the ordered meals
beforehand. Whereas whilst ordering meals without delay from the venue or
restaurant the chefs would should rush in making ready meals and this is
probably because unwanted errors. For the customers, alternatively, a number of
valuable times are stored and they are able to make use of this time to do
something efficient. In a restaurant or at the shop they may should do a real
reservation or come to be waiting within the queue. Either way patron‘s
precious time is lost.

2. Revamped revenue version
If your online transport gadget is talented, it could lead to extra sales which in
turn should lead to boom in earnings because greater customers might decide
upon putting orders online instead of visiting to the eating place. This device is
mainly useful at some stage in weekends or height hours when reservation fails.
3. Access to a wider market
Having a strong on line presence assist you to revitalize your commercial

enterprise technique and you will be capable of get admission to a bigger client
base, this entails powerful promoting of your offerings, your menu and if you
are providing any discounts or gives on positive merchandise. Even if the eating
place isn't open 24/7, its services and products are to be had to customers 24/7
thereby gaining access to an extensive range of clients.
4. Breaking the weather barrier
Implementing an online transport device will assist you in maintaining the

enterprise sail consistent even if the climatic situations are negative. During
durations of intense rain and summer season, restaurants have recorded a dip in
total number guests and in sales. With the help of on-line ordering and transport
system, customers can dine within the comfort of their personal domestic.
Although you‘re eating place will look empty in the course of these intense
climatic conditions, you‘re on line delivery system will make sure that your
order consistent with sales doesn‘t drop down.

5. Connecting with Customers Digitally
Through an internet ordering and delivery gadget, you may create a complete
database of the customers. This will help you in identifying recurring clients,
their choices and repeated orders. Most of the meals ordering apps consisting of
Just consume clone, Food panda clone shop your records, therefore ordering
your favourite cuisines might be a good deal easier. Customer engagement
sports will help you get treasured feedback and enhance the satisfactory of your
service. You can also intimate the consumer about certain offers through
sending notifications in the shape of push messages.
Cons:-
1. Potential Delays
Ordering on-line isn't always a time-saving method. Coincidentally, there will

be other clients who would have ordered online, consequently there might be
delays. Other external elements which could put off the meals shipping process
are a scarcity of shipping personnel, visitors fluctuations mainly areas. Delays
can harm the logo reputation and might make contribution poor remarks.
2. Additional Labour Costs
Home shipping services would require greater manpower and extra supervision
that is cumulative of the overall labour charges. If you aren't dependent on a 3rd
party delivery carrier dealers like Swiggy, you will require vehicles and ought
to undergo with the incurring costs of maintenance.

3. Food first-class can be compromised
Due to the regular in no way ending requirement of on line orders questions of

food quality constantly exists. Despite cautious packing, one cannot see the
exceptional of the meals packed interior. To make matters complex some
restaurants don‘t provide the equal best meals noted in their menus.
4. Expensive Delivery Charges
Most of the restaurants desire differential pricing due to the additional expenses
incurred because of the transport of meals to the doorstep. Certain eating places
have set a minimum fee order for home deliveries which may also or won't be
favourable with the purchaser‘s finances.
5. Final Words
With the development in technology, the food and the restaurant industries are
also getting a major facelift. The on-line meals ordering and transport system
continues to be a growing idea and has lots capability for increase and growth.
If you are missing thoughts or have time constraints you can try clone scripts of
numerous different portals such as the Just Eat Clone or the swiggy clone that
are to be had inside the market. Clone scripts will facilitate customization and
will let you maintain your logo image. Having an internet food delivery device
is a must in these days customer pushed financial system and if you are looking
at long-term profitability it‘s higher you growing your presence online.

Chapter – 2
Company profile
2.1 About company / application:-
Type of enterprise: - Private
Available in: - English, Turkish, Portuguese, Indonesian, Spanish, Czech,

Slovak, Polish, Italian, Vietnamese
Founded:-July 2008
Headquarters:-India
Area served:- 24 nations: Australia, Brazil, Canada, Chile, Czech Republic,

India, Indonesia, Ireland, Italy, Lebanon, Malaysia, New Zealand, Philippines,
Poland, Portugal, Qatar, Singapore, Slovakia, South Africa, Sri Lanka, Turkey,
UAE, United Kingdom, United States

Founder(s):- Deepinder Goyal, Pankaj Chaddah
Key people
Deepinder Goyal (Founder and CEO)
Gaurav Gupta (Co-Founder & COO)
Mohit Gupta (CEO-Food Delivery enterprise)
Gunjan Patidar (Head of Engineering)
Akriti Chopra (CFO)
Industry: - Consumer Services
Services: - Restaurant Search & Discovery, Online Ordering, Table

Reservations & Management, POS Systems, Subscription Services
Employees: - 5,000+
Website: - Zomato
Alexa rank:-963
Advertising: - Yes
Registration: - Optional
Users: - 8 crore (80 million) monthly lively customers
Current fame: - Active
Native consumer(s) on: - Windows Phone, iOS, Android, Universal Windows

Platform (Windows 10 Mobile, Windows 10)

2.2 History of Zomato:-
Zomato started out below the call, Foodiebay to start with. Later In November
2010, it turned into renamed Zomato. By 2011, Zomato expanded to different
cities throughout the USA in Delhi NCR, Mumbai, Bangalore, Chennai, Pune
and Kolkata. Subsequently in 2012, the corporation extended operations the
world over in several nations just like the United Arab Emirates, Sri Lanka,
Qatar, the United Kingdom, the Philippines, and South Africa. In 2013, Zomato
become released in New Zealand, Turkey, Brazil and Indonesia, with its internet
site and apps to be had in Turkish, Brazilian Portuguese, Indonesian and English
languages. Further in April 2014, Zomato released its offerings in Portugal,
observed by way of launches in Canada, Lebanon and Ireland within the
identical year.
The acquisition of Seattle-based meals portal Urban spoon marked the firm's
entry into the US, Canada and Australia, and taken it into direct opposition with
Yelp, Zagat and Open Table.
With the advent of .Xxx domains in 2011, Zomato additionally released zomato
Xxx, a domain dedicated to meals porn. It later released a print model of the
internet site content material named "Citibank Zomato Restaurant Guide" in
collaboration with Citibank in May 2012, however it has on the grounds that
been discontinued.
With its cloud kitchen, the company aimed to help eating places to make bigger
their presence without incurring any constant expenses. Later in September
2017, Zomato claimed that the organisation had "became profitable" within the
24 nations operated in and introduced that the "0 fee model" to be delivered for
accomplice eating places. Towards the quit of 2017 Zomato stopped accepting
updates from its active users by now not utilising moderators to verify and make

updates. Restaurant data turned into no longer up to date. Users of the app
suggested troubles with new features to pay for orders.
Zomato narrowed down its losses with the aid of 34% to ₹389 Cr [clarification
needed] for the economic year 2016–17, from ₹590.1 Cr crore [clarification
needed] inside the preceding year 2015-sixteen.
In September 2019, Zomato fired the highest quantity (541 people) of

employees nearly 10% of workforce running on lower back end activities like
customer service, merchant and delivery associate aid capabilities.
2.3 Investment:-
Between 2010-13, Zomato raised about US$16.7 million from Info Edge India,
giving them a 57.Nine% stake in Zomato. In November 2013, it raised an
additional US$37 million from Sequoia Capital and Info Edge India.
In November 2014, Zomato finished some other spherical of investment of

US$60 million at a submit-money valuation of ~US$660 million. This spherical
of funding turned into being led collectively via Info Edge India and Vy Capital,
with participation from Sequoia Capital.
While in April 2015, Info Edge India, Vy Capital and Sequoia Capital led some
other round of funding for US$50 million. This turned into accompanied with
the aid of some other US$60 million funding led by way of Temasek, a
Singapore government-owned investment organization, at the side of Vy Capital
in September.
In October 2018, Zomato raised $210 million from Alibaba's payment affiliate
Ant Financial. Ant Financial received an ownership stake of over 10% of the
enterprise as a part of the spherical, which valued Zomato at round $2 billion.

Zomato had also raised a further $a hundred and fifty million additionally from
Ant Financial in advance in 2018.
2.4 Difference between other application:-
Swiggy Zomato
1. Hyper-local shipping provider 1. Derivative of its figure eating place-

finder service; Huge head start with huge
2. Operates own transport fleet (~2700
purchaser base
delivery personnel as of 2016) 3. No
transport fee above minimum order 2. Third celebration logistics for
quantity shipping
4. Almost 20% commission on every 3. 10-15% percentage commission plus

order five. Implementing ‗Surge transport charge charged to restaurant
Pricing‘ and ‗Cloud Kitchen‘ models
4. Phasing into version in which eating
Current reputation: Expanding and places manually affirm orders before
elevating capital they may be processed 5. Planning
differential fee
Current popularity: Good function with

sales growing at 210% a yrs. and orders
increasing exponential

Foodpanda TinyOwl
1.Aggregates restaurants on platform 1. Aggregator provider with 1/3 party

and offers shipping carrier (similar to logistics coping with shipping
Swiggy however on an awful lot larger
2.High cash burn on patron acquisition
scale)
2.Commission of 8-11% from 3. Revenue from 10-20% fee charged to

restaurants eating places
3. Upto forty% of the revenue can be

from delivery offerings (wherein partner
eating places do not have shipping
facilities.
4.Moving to different revenue resources,

Current fame: Struggling to stay
along with backed links
improve capital; scaled down operations
Current status: Forced to reduce cash- to two cities; mass layoffs
burn on discounts and commercials;
mass layoffs
2.5 The various food apps available in India
Services provided
Apps Originated Delivery Online Expanded Delivery

Menu Charges
Food Panda Singapore Yes Yes 12000 Restaurants Yes
Zomato Portugal Yes Yes 10000 Restaurants No
Beer Café India No Yes 33 Restaurants No

Box8 India Yes Yes 60 Stores Yes
Fasoos India Yes Yes 125 Centers No
Domino's India Yes Yes 800 stores No
Just Eat Denmark Yes Yes 2000 Restaurants No
Swiggy India Yes Yes 5000 Restaurants Yes
Pizza Hut Delivery US Yes Yes 1300 Outlets No
Fasoos India Yes Yes 200 Stores No
2.6 PESTEL Analysis of Zomato:-
Political: Any commercial enterprise firm wishing to enter the overseas

marketplace is tremendously prone to political dangers. The political selections
made by means of a bunch united states of America are likely to affect the
organisational productiveness and profitability (Deshpande, 2016). Extreme
political moves can very unfavorable. The virtual India campaign that become
recently released with the aid of the us of a‘s Prime Minister Narendra Modi is
more likely to allow the organisation to get extra net penetration in India and
absolutely everyone can effortlessly get right of entry to from every corner of
the marketplace (Deshpande, 2016). Zomato can make the most this opportunity
to cowl many eating places of towns the use of the Digital India Campaign. The
Indian authorities put more consciousness on ease of doing enterprise within the
U.S.A. As it encourages foreign direct funding (Deshpande, 2016). In this
regard, Zomato can be a beneficiary with such styles of investment. The
authorities‘ places emphasis on talent development a number of the youths who
will eventually help many human beings with skills and understanding. Zomato
calls for skilled human beings to permit it to penetrate and set up itself within

the marketplace (Wikiwealth, 2017). In this example, Zomato can lease

professional human beings from the Pradhan Mantri Kaushal Vikas Yojana
application that develops skills of the youths.
Economic: Between the periods of 2011 and 2014, Zomato executed an

awesome increase by means of 1399%. This comes due to its wonderful
achievements in 22 international locations, for this reason, contributing
efficiently to economies of the countries. Besides, there's a capability upward
thrust in provider charges after the country announced a carrier tax from
12.36% to fourteen% (Deshpande, 2016). This move is probably to affect the
financial nicely-being of Zomato. Furthermore, the employer is initiating
cashless transaction geared toward creating jobs in extraordinary nations
(Chakraborty, 2016). As it stands, the organization has 2319 personnel, and it
has one way or the other controlled to remedy the unemployment issues inside
the USA (Deshpande, 2016). Lastly, the company draws several investments as
well as investment from the government and overseas funding, all of which can
be appropriate for the United States economic system.
Socio-cultural: In the remaining six years, Zomato has grown to become out to
be the USA.‘s preferred online eating place discovery tool. However, it has
motivated the manner wherein people pick out their favoured eating places. The
converting life-style styles and income tiers of the Indian working population,
and this is nice to Zomato (Wikiwealth, 2017). This is due to the fact; many
younger people and new age working couples like eat out, with this class
attracting about 30% in 2012 (Deshpande, 2016). For this cause, user
engagement in its internet site is therefore important for customer participation.
Finally, customer service Zomato has been first rate and going through the
pleasant replies from the clients, the organization has managed to keep client
loyalty (Chakraborty, 2016). As a size of social engagement with people,
Zomato remains ahead over its competitors.
Technological: Zomato has enjoyed a more advantage with the aid of the usage
of generation in designing a stunning person interface that makes it less
complicated for the users to browse (Wikiwealth, 2017). One advantage that
Zomato continues to revel in out of this sort of technological innovation is that
the service is much faster in spite of the truth that the high resolution is wanted
for the menus. In essence, the era encourages on line offerings. For example,
incorporating what the restaurant into mobile app facilitates the customers to
select the eating place on the pass. According to Deshpande (2016), the eating
place records is customised in a manner that the patron to obtain the statistics he
or she desires without always creating a problem. Technology additionally
makes the business enterprise have an excellent business version that continues
the clients‘ statistics (Wikiwealth, 2017). The best issue a consumer is required
to do is to log and use the carrier. This circulate exposes the employer to a
competitive environment with the likes Google. However, since the product is
purely made to for Indian restaurants, it cannot serve the demands of the
worldwide marketplace. Therefore, Zomato has used generation correctly to
gain aggressive gain (Deshpande, 2016).
Environmental: Achieving enterprise sustainability is dependent on how the

organisation addresses the ecological requirements (Deshpande, 2016). Being a
provider company, there aren't any big environmental influences from Zomato
Company.
Legal: The business enterprise is needed with the aid of the Indian law to
conform to all policies that manage era corporations in the U. S. (Wikiwealth,
2017). This ensures that its miles used correctly without being subjected to
abuse.

Chapter- 3
Methodology
3.1 Introduction to Research Design
Research layout is a logical and systematic plan organized for steering a

research observe. It specifies the objectives of the observe and strategies to be
adopted to gain the said goals. It is a specification of strategies and methods for
acquiring the facts wanted for solving the hassle. It includes arrangement of
circumstance for series and evaluation of data in a way that ambitions to mix
relevance to the research cause with economy in system. So a research layout is
the conceptual structure with which research is conducted.
In the existing bankruptcy it offers with the methodology of the worried look at
in terms of declaration of the hassle, operational definitions sampling strategies,
length of the sample and outline of the device were explained.
Research design is a logical and systematic plan organized for guiding studies
observe. It is quest for information. Research can be defined as a process of
understanding new records and verifying vintage ones via utility of clinical
strategies to a natural or social phenomenon.
Meaning: Research layout or methodology is truly a plan for observe. It is

called a blue print to carry out the observe. It is like plan made by using an
architect to build the house, if research is carried out without a blue print, the
result is likely to be special from that what's predicted on the begin. It specifies
the objectives of the take a look at and strategies to be adopted to gain the said
targets. It is a specification of strategies and methods for obtaining the
information needed for solving the hassle. It entails arrangement of condition

for series and evaluation of information in a manner that ambitions to combine

relevance to the studies reason with financial system in technique. So a studies
layout is the conceptual shape with which research is carried out.
These are 2 Data series methods:
The achievement of any mission or market survey relies upon closely on the
facts series and analysis. It is important that the record gathered is a dependable
record so that it will reap the research targets. All statistics assets may be
categorised into two:
Primary facts: - primary information is amassed from direct observation or

facts in my view accumulated. It refers to that statistics that's collected for a
selected purpose from the sphere of enquiry and are unique in nature. For the
venture primary statistics were accrued particularly thru survey technique, the
usage of the device questionnaire.
Secondary statistics: - are those that have been already collected via others for
a particular motive and are finally used for utility in distinct situations. It is the
second one hand records about an occasion that has now not been personally
witnessed by means of the researchers. The use of secondary facts saves money
and time. The motive is to increase the accuracy of analysis.
Sample Procedure
Sampling is a miniature picture or the cross sectional of the entire institution
from which the sample is taken. The most critical factor in figuring out the
overall potential of studies consequences is the choice of sample utilized in
amassing the studies information, so after finalizing the variables the complete
population is to be made the concern for information series or a selected group
is to be decided on as consultant of the entire populace.

Sample layout:
Non probability sampling is used. Random clients who use electronic food
ordering mainly who are within the location of Bangalore metropolis were
selected for number one records.
Sample:
A Sample of a hundred customers each male and lady drawn from Bangalore
district has given returned the duly crammed up questionnaire. Out of the entire
population of customers in Bangalore one hundred respondents were taken
because the sample size.
Tools for gathering information:

A studies tool plays a major position in any worthwhile research as it's far the
only thing in figuring out the sound facts and in arriving at perfect conclusions
about the trouble or take a look at accessible, which in the end, enables in
providing appropriate remedial measures to the troubles involved.
Questionnaire:
For this mission work, data is accrued from respondents using the questionnaire.
In a statistical enquiry the requisite facts is frequently accumulated via a
supplied 1Performa in the form of a questionnaire. The investigator intends to
use a tool and a guide to degree the client‘s notion the various customers of
Bangalore city. It consists of four alternatives of summated score scale. This
sheet consists of a chain of questions, which the investigators are presupposed
to ask the information and the respondents are imagined to tick the choice in
opposition to every individual query.

CHAPTER 4 STRENGTH, WEAKNESS, OPPORTUNITIES

AND CHALLENGES (SWOC) OF THE RESEARCH
STRENGTHS:
1. Ability to adjust UI primarily based on converting consumer requirements.
2. Service is transport centric; therefore can always guarantee minimum
transport time plus added offerings like GPS, and so forth.
3. Ability to provide more than one cuisines at one forestall- hence gratifying
the client‘s inherent wants for desire.
4. Ability to devise their own shipping radius- consequently upping margins,
even as decreasing variant because of outside situations (eg. Traffic).
5. Gradual removal of market barriers and trade restrictions.
6. Partnership with multinational company have allowed for rapid development.
7. Low operational cost.
8. Increasing interest for online products.
9. Growing E-commerce sector.
10. Low legal complexity.
WEAKNESS:
1. Operational difficulties of publish order customer service- hassles of phoning
name centers to have problems addressed.
2. Margins consistent with order received extraordinarily skinny.
3. Big rent and fire lifestyle, teams now not loyal enough
4. Excessive prices into advertising and marketing and bargain coupons-
ensuing in bad margins for first few years.
5. Taste and fine of food now not of their fingers.
6. Highly dependent on restaurants to deliver to execute an easy transport
experience for the purchaser.
7. Consumer perspectives enjoy pushed a small mistake should force the
consumer away.

8. Inadequate infrastructure facilities.

9. High upfront capital investment.
10. Lack of adequate quality control and testing protocols.
11. Lack of proper technology.
12. Lack of skilled expertise
OPPORTUNITIES:
1. Thousands of restaurants in every city, and hundreds of towns to make bigger
in. The growth can be exponential.
2. Use of fee forums like Pay TM, and different convenient modes of charge
which will provide further incentives to the customer.
3. Representation of diverse small scale restaurants without delivering centers,
or those that could not take orders online.
4. Convenience being the need of the hour for the existing consumer.
5. Development in IT sector.
6. Rising income valve.
7. Large potencial market.
8. Increased in IT skilled manpower.
9. High consumer goods spending.
10. Untapped rural market.
CHALLENGES:
1. Logistics dilemma.
2. Wavering customer loyalty.
3. Unpredictable pricing.
4. Managing delivery and logistics.
5. Maintaining food quality.
6. Coping with volume.
7. Need to fight with bigwigs.

Chapter 5
Experiences, Learnings and conclusion
Learnings and experiences:-
When food-tech employer Zomato allow pass of around 540 of its help team of
workers closing week, it stated development in its after-sales era pressured its
hand. The automation made up for nearly 10% of the body of workers in certain
assist roles throughout Zomato‘s client, service provider, and transport
companion groups, redundant.
While habitual jobs will retain to give way to automation, meals-tech agencies
along with Swiggy and Zomato are increasingly more turning to machine
getting to know (ML) and automation to power their groups, using years of
information collected from food orders and user-level intake styles.
Both Swiggy and Zomato boast of handling over one million orders an
afternoon across more than 300 towns. And each patron order is now being
motivated via the client‘s own previous records of order choices.
Swiggy boasts of greater than 1.Three lakh eating place partners on its platform,
even as Zomato claims to have brought round 1.5 lakh eating places. With any
such massive supply base in vicinity, each food-tech apps at the moment are
ordinarily the use of statistics to faucet demand.
Swiggy, as an instance, banks on its records of order-stage information and real-

time ft statistics to reduce patron wait times and for maintaining customers.
―We are processing round forty billion messages (or records points) per day,
which can be specific statistics factors purged from both clients ordering from
our app and from drivers turning in orders. And if I study that, scale, will

possibly contact one hundred billion messages within a yrs.," said Dale Vaz,
head of Swiggy‘s engineering and statistics sciences branch in an interview.
According to Vaz, Swiggy is the usage of data analytics to for my part curate
the customer landing web page—list of restaurants—to each consumer‘s taste
alternatives instead of simply curating on the premise on the client‘s region.
According to him, a meal is a private preference, and cannot be generalized on
the premise of the area of the patron on my own. The organisation stated that
it‘s building an idea referred to as ―food graph" which breaks down a food dish
by way of recipe, cooking fashion, elements used, calorie price, and variations
of the dish.
By combining the meals graph with a client‘s preceding food choices, Swiggy is
capable of derive a personalized restaurant feed at the app homepage itself. ―For
instance, a user might also decide on an Andhra fashion biryani over a
Lucknowi style biryani… so we're looking to get to that stage of precision in
our know-how of the consumer," added Vaz.
Unlike, e-trade, wherein information units are derived from patron purchases in
the hyperlocal phase, the shipping fleet, restaurants, and clients together
generate massive amounts of statistics points. This additionally way that
restaurant can make feel out of the order-stage data and beyond records of
consumer alternatives.
Zomato presently offers a business dashboard for eating places at the web in
addition to the app, consistent with a company spokesperson. ―We also assist
restaurants apprehend patron behaviour through teaching them on purchase
funnels inclusive of focus (metrics) like the quantity of traffic on the page to
Intent (building a cart) to purchases (putting an order). We have now started out
monitoring dish-level rankings and are working closer to including extra

features to the dashboard," the Zomato spokesperson introduced in a written

reaction.
According to Ankur Pahwa, accomplice at consulting firm, Ernst & Young, e-

trade organizations ―also are seeking to increase retention of the same
consumer, in order that the lifetime value of the consumer increases. The
identical component is playing in the foodtech section".
However, some professionals agree with meals delivery structures nonetheless

have a long way ahead. According to Manish Singhal, founding associate of pi
Ventures, India remains a charge-touchy economy where most customers will
only order a dish from the cheapest platform available to them.
According to Singhal, it is very tough to version human nature accurately in

terms of food. He concluded, ―Artificial Intelligence (AI) might be able to do a
very good job in predicting and bringing returned the customer to the platform
but it will simplest make an incremental difference-it'll not change the sector for
those corporations. But this isn't always due to the fact the AI fashions aren't
mature sufficient--it‘s more due to human nature.
Suggestions:-
10 ideas to Zomato
1. Travel tips: A partnership with the tour phase ought to serve your customers
well. Think MakeMyTrip, Expedia, Ibibo, Yatra and extra. As a vacationer am
eager to find out new locations to devour, am seeking out tips. It might be
fantastic to get that facts right up. Book a bundle and with it get endorsed
locations. Perhaps even throw some deals into the package deal itself. Help me
find out.

2. Location based totally promotions: Don‘t all of us love discounts? How we

discover them desires to be less difficult. Currently one zeroes down at the
restaurant after which one is aware of the promotions running. Why no longer
have promotions and reductions indexed one at a time? Everyone cares for a
higher ROI. Your users included.
3. Events: Yes, suppose class. Shouldn‘t the entirety meals be there at Zomato.
Now I don‘t suggest be everything to all of us, but listing meals occasions &
walks is not too off. Book My Show and or different event structures may be
amazing companions. Cross app site visitor‘s integration. Win-Win.
4. Mobile wallet: Home shipping or eating-in, mobile is my pockets. Click to

pay. Seamless and convenient for users. Rich person records for Zomato. Need I
say extra?
5. Split the invoice: Now assuming you're going the mobile wallet direction
why no longer solve for a not unusual problem that of splitting an invoice. Pay
for what you order. Place the order at the app and get your bill. No terrible
debts.
6. In App Orders: Give me a check container menu, permit me vicinity my

order, generate an estimated invoice, save my deal with and credit card info,
track my order. Serve it warm. No dialing in for orders reduces manpower
dependency and turnaround time for the eating places, simply green.
7. Home cooked food: You endorse eating places but then there's a marketplace
for home cooked food, no longer pretty organized agreed but ought to do with
the right consumer base. There are lots begin uS.However do they've scale?
Food for idea?

8. Rude food: There are electricity customers and reviewers but I pass over a
Vir Sanhgvi like content on Zomato. More instructional interest, yes. But that‘s
how one explores, learns and engages. Please excuse the paid bloggers. They
don‘t yield the type of credibility anymore.
9. Personalized hints: Inundated with social; more feeds, more check-ins, extra
point of perspectives on evaluations, to what cease? You realize what I
bookmark, what I browse classes I study, where I pass and probable in case you
blanketed some my tips what I devour and what kind of I spend. I deserve a few
personalized hints don‘t you observed?
10. Loyalty: Now you are not into a loyalty program but in this point in time of
lowering interest span a few shape of praise is right. Don‘t read this as
screaming a reduction, How approximately Gourmet Club invite for electricity
users? Occasions I am in all likelihood to dine out, Birthdays & Anniversary
aren't any brainers? Make my date special, make group take a look at-in count
number. Take a leaf out of American Express.
Conclusion:-
The feature that attracts consumers the most is doorstep delivery at any place at
any time. Consumers are mostly motivated when they receive any rewards and
cashbacks followed by loyalty points or benefits.
The factors that block customers to try the online food delivery apps are bad
past experience, reviews, and word of mouth. By giving consistent and effective
services this concept with innovation can be successfully grow; in future
companies can target tier 2 cities for expansion of business as these cities are
also having numbers of working youngsters.


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A STUDY ON OPPORTUNITIES AND CHALLENGES OF

ONLINE FOOD ORDER RECEIVING AND DELIVERY OF

BENGALURU CENTRAL UNIVERSITY

MASTER OF BUSINESS ADMINISTRATION

BHARATH MAHESHAPPA GADDIKERI

Under The Guidance of

Prof. LAXMAN KULAGOD

GOVERNMENT RAMNARAYAN CHELLARAM COLLEGE OF

COMMERCE AND MANAGEMENT

Basaveshwara Circle, Palace Road

This project is an outcome of my practical analysis of “A study on opportunities and

I am using this opportunity to express my gratitude to everyone and also supported me to

The principal, Dr. SYED YOUSUFF Government Ramnarayan Chelleram College of

Place: Name: BHARATH MAHESHAPPA GADDIKERI

Date: 22-11-2019 Register Number: MB183210

SIGNATURE AND SEAL OF DIRECTOR / PRINCIPAL /HOD

Sl.No LOCATION MATCHED SOURCES %

6 3 Seshadripuram College, Bangalore University By

1.1 History of online food ordering 3

1.2 Introduction to project 4

1.3 Meaning and definition 5

1.4 Problem of the statement 6

1.5 Objectives of study 9

1.6 Need of study 9

1.7 Scope of the study 11

1.8 Pros and cons 11

2 COMPANY PROFILE 12-23

2.1 About company /application 15

2.2 History of zomato 17

2.4 Difference between other apps 19

2.5 The various food apps available in 20

2.6 PESTEL Analysis 21

4 SWOC Analysis 27-28

5 EXPERIENCES, LEARNINGS AND 29-33

GrubHub turned into based in 2004.

Instacart became founded in 2012. In 2013, Seamless and Grubhub merged.

As of September 2016, on-line shipping accounted for approximately three

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 1

1.2 Introduction of project

The popularity of online food ordering and delivering services is steadily

A look at the relevant literature, particularly in relation to the online food

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 2

1.3 Meaning and Definition

An online food ordering machine can be described as software program that

An online ordering system commonly includes 2 important additives. First is an

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 3

1.4 Statement of the problem

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 4

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 5

Troubleshooting Tip: Consider creating an easy-to-use app to take orders.

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 6

1.5 Objectives of the study

o To enable customers to order custom meals that aren‘t in the menu

1.6 Need of the study

Owing to the changing Indian demography, there's want for constructing up of

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 7

The reason of this observes is to degree the perceptions of clients concerning

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 8

1.7 Scope of the study

1.8 Pros and cons

1. Efficient Food transport process

GOVT R C COLLEGE OF COMMERCE AND MANAGEMENT Page 9