Group 11

SUBMITTED
BY
•KUNAL SAINI •19209
•KARAN SETH •19204
•ESHANT BHATIA •19196
•ISHITA CHOWDHARY •19202
•DEEKSHA MAHAJAN •19373
•DEEPALI MALLICK •19374

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INTRODUCTION
• Zomato is an Indian restaurant
aggregator and food delivery start up
founded by Deepinder Goyal and
Pankaj Chaddah.
•  Started In- July 2008
• Zomato was founded as Foodiebay in
2008
• Renamed as Zomato in 2010
•  Zomato provides information, menus
and user-reviews of restaurants, and
also has food delivery options from
partner restaurants in select cities.
• Zomato is also entering into grocery
delivery amid the Covid-19 outbreak. Group 11 2
INTRODUCTION

• Operates in 23+ countries including India, Dubai, UK,

Brazil, Canada, Australia, Turkey, Poland and New
Zealand.
• However, with on paper companies, Zomato's presence
has crossed to over 40 countries in the world.
• In 2011, Zomato started its operations in various cities
like Hyderabad, Pune, Chennai, etc. and also launched
applications for cellular devices.
• Mission is to ensure nobody has a bad meal They do
this by –
• Helping people discover great places around them
• Building amazing experiences around dining
• Enabling restaurants to create amazing experiences
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Uber Sold Indian Food Delivery Business To Zomato For $206 Million

• On 1 March 2018, raised $150 million from Ant

Financial, Alibaba’s payment affiliate
• On 20 Jan ,2020 Zomato raised Rs.353 crore
from Antfin Singapore
• On 21 Jan, 2020 Zomato buy Uber eats it will
discontinue its Indian operation
• Uber will get 9.9% stake in Zomato
• Zomato has valued $3.55 billion in Jan 2020

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 Amazon comes in
food delivery

• Jeff Bezos and Narayana Murthy team up to

take on Swiggy and Zomato
• Amazon food delivery service would
starting in march but it has to stop due to
covid 19
• Amazon’s Prime Now or Amazon Fresh
platform,
• Test Marketing is already started
• Bezos Announcement
• Right Time to Enter

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Technology Flavours The Click
And Bait Game At Zomato And
Swiggy

• In today’s world service sector

contributes 64.80% in GDP. Zomato is
one of the most popular applications
that provide services to the user to
discover restaurants.
• Expected Growth of online and
offline industry
• The recent innovation in global market
1. Mobile ordering
2. Facebook ordering
3. Digital menu+ Smartphones
4. Online coupons
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India Food App
Scenario

• The market size of food in India is

expected to reach Rs. 42 lakh crore by
2020, reports BCG.
• Presently, the Indian food market is
around $350 billion.
• Food tech is a vast market and food
delivery startups are just a part of it

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New Trends in Food Delivery Industry

Ordering by Tweet Order via a virtual Order from smart watch

Assistance

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SIGNIFICANCE OF
FOOD SERVICE
AGGREGATORS
❏ Disrupted the traditional hospitality model
❏ Online delivery
❏ Ratings and Reviews

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Issue

❏ Logging out of discount programme

❏ Deep Discounts
❏ Not transparent with ratings and reviews

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Win-win situation • Address demand
• Filling gaps in supply

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 Leverage

❏ Demand discount
❏ Stringent time limits
❏ Ratings and Reviews

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 1. Aggregation and sorting
2. Logistics
What is needed ? 3. Information
4. Secure processing

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Indians’ love for food
Some interesting trends were noticed in Swiggy’s yearly
report on India’s food ordering habits

• India is the third largest market for online food delivery

with a market volume of over 9200 mn US Dollars

• Indians order 95 biryanis per minute which means

around 1.6 biryani per second

• Over 35000 varieties & combos of Biryanis ranging from

Rs19 to Rs 1500 are available for ordering on various
food delivery platforms

• Apart from this, desserts and comfort foods are also

quite popular on these platforms
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 Introduction of
Swiggy GO
• In September 2019, Swiggy launched an online Pick ‘n’ drop
service named as Swiggy GO

• Swiggy Go can be used to pick up and drop off laundry, get

forgotten keys, send lunch boxes from one place to another

• It can even be used to deliver documents or parcels to

clients

• This was done to elevate the quality of life of urban

consumers by offering unparalleled convenience

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 Differentiation Strategies
• Zomaland – The food festival
launched by Zomato in 7 Cities
• Zomato collects used cooking oil
from restaurants, process it and
deliver it to biodiesel
manufacturing facilities to
ensure that it is not circulated
back into the food chain
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• Swiggy Stores – It picks up
anything customers want from
any store in the city
• Swiggy Access kitchen, which is
the ready-to-occupy kitchen
which is offered to restaurant
partners rent-free access with all
required amenities
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Swiggy's Expansion

• Swiggy to invest rupees 75 crore into years for

cloud kitchen
• Cloud kitchen is primary restaurant kitchen that
accept incoming order only through online
ordering system and offer no dine - in facility
• Swiggy husband about rupees 175 crore to watch
opening 1000 cloud kitchens in over a million
square feet of space, across 14 cities

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Food is religion
controversy
•  Zomato snubbed a customer who refused an
order from a non-Hindu rider
• The official twitter handle of Zomato tweeted
"Food doesn't have a religion, food is a religion"
• While several Twitter users came out in support
of Zomato, others pulled out examples of
complaints where Zomato did not take a similar
stand
• By the next day, hashtags like #boycottzomato
trended on Wednesday, #ZomatoUninstalled
gathered steam

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 Eateries Say No To Revised
Plan Of Zomato Gold, Want
Deep Discounts To End.

 Reason For The Revised Plan Of Zomato

Gold:
• Unlimited foods and drinks
• Offers like, 1+1 starters and 2+2 drinks
• On August 21, Zomato announced it will revise
terms and conditions
• Customers avail benefits and deep discounts
were
hurting profits of eateries.

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“The gold has lost its sheen”

• The National Restaurant Association of India

(NRAI) has refused to accept a modified version
of Zomato’s Gold membership plan.
• Number of restaurants left Gold as part of
#Logout.
• On August 19, NRAI has made it clear that it
wants deep discounting to end.
• They Chalked out 10 points of improvement in
the email being sent by the founder Mr.
Deepinder Goyal, and asked for changes in them.
• Though Zomato Gold has 1 million subscribers,
but for investors it's not a feast.
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• High Advertisement charges. 20
Key changes
in revised
plan.

• Limit Gold usage by a single user to one unlock per day.

• Restrict the number of unlocks to two per table.
• Restrict a user’s login ID to a single mobile device at a time.
• It also said the gold membership will now be sold to diners at an
annual subscription
Group 11 of over Rs. 1,800. 21
 FHRAI View Points:

• It must be a win-win situation

for both.
• On August 20, they also said
to make changes in the
discounting structure.
• They also mentioned that
though orders been doubled
for many but yet it has forced
many restaurants to shut
down their business

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              Zomato Increases

    Engagement With Users By

      Serving Original Videos

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 • In October, Zomato will go live with 12
new originals

• Six originals already went online in mid-

September  
     -Banake Dikha
     -Food & You with Sanjeev Kapoor
     -Starry Meals with Janice
     -Race against the App
     -Grandmasterchef with Sahil Shah
     -Dude where's the Food   

• After October there will be 18 originals 

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 • There are shows it has licensed
and Sneak Peek, a series on
restaurant

• Put it all together and soon there

will be more than 2,000 videos
on offer

• Originals will be available only in

India, rest of the videos can be in
all 24 countries

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 Successful Online Video Market of
India

• YouTube (with 265 million reach)

• Hotstar
• Voot
• Netflix 

Amazon is the only exception which

doing well without being a media firm

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 What then is driving
Zomato's thinking?
Objective
• Get people to spend more time on Zomato
• Increase loyalty and repeat visits

Reason to enter the video market

• People search, research, read, and watch a lot (result 125% increase in
food viewership on YouTube in last 2 years)
• People want to learn from chefs
• They don't want to be like YouTube or Netflix
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 About the original video and
revenue

• Length of the video will be 3 (for food mths), 8 (for reality shows), 13 (for
guests) minutes
• Type of video will be fiction or non-fiction
• Some revenue is important, whether direct or indirect
• Senior VP Durga Raghunath says they will not talk about revenue till they
see people using it
• 75% revenue of Zomato comes from commisions on deliveries and the
rest is from advertising
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 Zomato Subscriptions
Zomato Gold
 Members get exclusive deal at restaurants, bars
and pubs
 There are kinds of subscriptions in India: Gold
for dining out and Gold for Nightlife

Infinity Dining
 Introduced in July, 2019 in 3 Indian Cities (Delhi,
Bengaluru and Mumbai)
 Allowed gold subscribers to order unlimited
food and drinks at a set price
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 The Controversy

• #Logout campaign started by restaurants on 15 August 2019

• On 17 August 2019, more than 1,200 restaurants logged off from Zomato
•  In Pune alone, more than 450 restaurants stopped serving to Zomato Gold
• 2500 Restaurants decides to exit Zomato Gold
• The National Restaurant Association of India started the movement asking
restaurateurs to #Logout from all these discounting apps
• Premium food joints and 5 stars also supported
Group 11 this movement 30
Tweet from NRAI on August 14, 2019
 Reasons

 Deep Discounting
 Predatory Pricing
 Introduction of Infinity Dining
 Did not offer to resolve the issues at first
 A fat re-joining fee of Rs. 75,000
 Multiple number of Gold unlocks per table

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 Response of Zomato

 Mr. Goyal Says Zomato is willing to

make modifications to Zomato Gold
which will result in a win-win situation
for restaurants and consumers.

 Restricted Gold membership

 Login ID limitations

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 A Way Out ?

• Technology
• Aggregation and sorting
• Logistics
• Information
• Secure processing

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