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Zomato's Growth and Challenges

The document provides details about the history, growth and operations of Zomato. It discusses how Zomato started in 2008 as a restaurant listing portal in India and has now expanded across several countries. It also outlines some of the key challenges faced by Zomato like increased competition and issues with delivery partners, and how it overcame these challenges through strategies like improved pay structures and incentives.

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Himanshu Patil
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0% found this document useful (0 votes)
83 views39 pages

Zomato's Growth and Challenges

The document provides details about the history, growth and operations of Zomato. It discusses how Zomato started in 2008 as a restaurant listing portal in India and has now expanded across several countries. It also outlines some of the key challenges faced by Zomato like increased competition and issues with delivery partners, and how it overcame these challenges through strategies like improved pay structures and incentives.

Uploaded by

Himanshu Patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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A PRESENTATION ON

PRANAY PAREPALLI - 2022200089


HARSH PANDEY - 2022200086
HIMANSHU PATIL - 202220091
INTRODUCTION
Started In-July 2008 at Delhi NCR. as FoodieBay
Founded By: DeepinderGoyal, Pankaj Chaddah

Initial Aim - Restaurant listing


Recomendation portal
Deepinder Goyal
In November 2010 it was renamed as “ZOMATO” due
Pankaj Chaddah
two main reasons
1. Uncertainity about sticking to food
2. To avoid conflict with Ebay

2
EXPANSION ACROSS INDIA
In 2011 , Zomato started expanding in various cities of India
:
1.Delhi NCR
2.Mumbai
3.Banglore
4.Chennai
5.Pune
6.Ahmedabad
7.Hyderabad
EXPANSION ACROSS ABROAD
Zomato started expanding internationally

2012 : United Arab Emirates, Sri Lanka,


Qatar, United Kingdom, Philippines, and
South Africa

2013 : New Zealand, Turkey, Brazil


and Indonesia:
2014 : Portugal,Canada,Lebanon and
Ireland
2015 : Zomato acquired Urbanspoon, which led to
the firm's entry into the United States and Australia.
TURNING POINT
Expansion to USA proved to be a key point for
zomato’s growth
As it brought Zomato into direct competition with
similar models such as Yelp and Foursquare.
Now, Zomato shifted it’s core aspects from
restaurant listing to food delivery

HERE
ITITT
BEGINS...
ZOMATO AND IT’S PARTNER’S
Now zomato started partnering with various companies to provide the facilities of delivery

At first, it partnered with Delhivery to provide


food delievery across india
In 2015, Zomato acquired the American online
table reservation platform NexTable
However, Nexttable was further renamed as
Zomato Book

In January 2016, it launched Zomato


Book's table reservation feature on its
application in India
TECHNICAL GROWTH OF ZOMATO
From April 2015 onwards, Zomato worked a lot
on Developing it's Website
Zomato acquired Sparse Labs (renamed
It acquired cloud-based point of sale (PoS)
Zomato Trace) and integrated the latter's
company MapleGraph Solutions
real-time delivery location tracking
It Launched its own version of PoS for
technology on its food delivery platform.
restaurant owners called Zomato Base

Zomato Base contained menu and inventory In 2017, the firm announced plans to launch Zomato
management, payment system and analytics Infrastructure Services, a cloud kitchen
infrastructure service to help partner restaurants
expand their presence
MAJOR
CHALLENGES
CHALLENGE 1
1. Increased competition from other food delivery apps
offering festive season promotions and discounts

Could be resolved by offering competitive promotions and marketing strategies.


Here, it can be seen that Zomato has properly worked on it and has used
numerous great marketing techniques to solve the Problem

By Using Method’s Like Gold Membership, Zomato has almost maked it’s
customer’s to choose
CHALLENGE 2
Higher prices or changes to the menu, resulting in a decrease in customer loyalty or overall
demand for Zomato
BUSINESS STRATEGY
• Cost Leadership-Zomato charges restaurants 7% of each order size, compared to 15-20%.

•Capital Investment-Info Edge has a stake of 27.6%.


Ant Financial invested $210 million in 2018, has a stake of 20-22%.

•Marketing Strategy-exquisite marketing through -


bill boards
-social media
-print media

4
CHALLENGE 3
Dissatisfaction of Riders

Solution
Problems
New Salary and
Inconsistency
Incentive Plans
Withdrawal Weekly Salary
Salary Structure Log in
Duration
Consumer Customer reviews
Engagement
Salary and Incentive Plan

Permanent Rider (Pay Roll) : 10 Hrs Log in per week irrespective of order
received or not ……………………..Rs. 2,500

Incentive Rs. 20 per order + Rs. 5 on rating basis by


consumer

No. of Delivery Incentives = ex. Target of 18 delivery in a day

If 11 delivery …………….. Rs. 100 extra incentive

12 delivery ………..Rs. 250 extra incentive

18 Delivery ………Rs. 500 extra incentive


Result

In cities like Mumbai, Zomato earns approximately Rs 4,500 per 60-


hour week.

The number of orders delivered per executive has decreased


from 18-20 to 12-15 per day.

According to Ujjwal Chaudhry, engagement, the switching costs for delivery


personnel in the food delivery industry are relatively low in comparison to ride-
hailing. As Zomato competes for dominance in various markets, the current high
salaries could become sustainable as utilization increases with penetration.
The salary of a Zomato delivery
boy varies depending on a
number of factors like the
location, experience, and
number of deliveries made.
However, in general, Zomato
delivery boys earn between
₹10,000 and ₹25,000 per
month.Many food delivery
‘executives’ now earn between
Rs 40,000 and Rs 50,000 per
month, compared with Rs
18,000 to Rs 20,000
previously.
SOME CREATIVE IDEAS USED BY
ZOMATO
Making The website and App • Search’ gets a separate tab at the
bottom for it to be uncomplicated &
as best as Possible effortless.
• Human brain can process images up
to 60,000 times faster than words.
The latest app has more images .

• Challenge of new app-maintaining


high quality engineering standards
while still moving at near light speed.

• ‘SOLID’ principles provides a set of


idioms for decision making and fast
paced development with quality.
10
Making The
website and App
as best as Possible

Order tab provides two options • Full screen map view now gives a clearer
route
•Whether they wish to get their food
delivered • Users can also search using the often
•Want to pick up food on their own. used navigation filters
11
MAKING PROCESS EASIER

3
BEING EMOTIONAL TO THE
CUSTOMERS
•Zomato knows it very well that Customers will only
care for product if you do

Changed product tagline from “India’s #1 online restaurant


guide” to “Discover more places to eat around you”.
WORK WITH TRANSPARENCY
India receives 200,000
online orders daily.

The Restaurant Experience:


A Frustrating Encounter for Show a disclaimer
All Involved over on
Restaurants often leave
customers feeling the customer app.
dissatisfied and frustrated,
resulting in a poor Item out of stock
experience for all parties
involved. Increased delivery
Hungry customers not only time disclaimer on
miss out on a meal but also customer app
waste valuable time,
leaving them feeling
disgruntled.
In turn, the restaurant and
Zomato suffer the loss of
business and customer
trust.
Instead of showing false information being
honest with customers when items marked out
of stock….
For every disciplined effort
there is a multiple reward
DISTINCTIVE ADVANTAGE/ TECHNOLOGY INPUTS
Fantastic design of the app.

Regular collection of customer feedback.

restaurants and customers.


Cloud restaurants.
Its connectivity with customers and
restaurants.
Up to date technology and strong interface.

32 cities across India, UAE, Qatar and Lebanon.

Hygiene Ratings available to merchants in

9
Story is not completed
yet ….
5
MARKET POSITION AND ANALYSIS
Zomato targets the young population who enjoy ordering food rather than cooking it. It has
positioned itself in this segment through various campaigns and active social media
presence through memes and trolls.

This is for Twitteratiswho tweak others This campaign was for December 2018. It
tweets rather than something new offered 50% discount on every order all
month.
7
SUCCESS TIMELINE

2008: Foodiebay was founded.


2010: Seed round of funding & Rebranding as ZOMATO.
2012: Developed International space.
2015: Launched Food Delivery service.
2017: Launched Zomato Gold.
2018: Launched Hyperpure.
2019: Launched Zomaland.
2020: Acquired UberEats.
FEW SUGGESTIONS BY US
CONCEPT OF MACHINE LEARNING
Improving Customer Engagement Using ML

Use social media and targeted ads to engage with customers and promote
Zomato’s festive offerings.
Launch a referral program to encourage existing customers to invite new
customers.
Offer personalized recommendations based on customer preferences
and history.
15

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