PROJECT REPORT ON

MARKETING MANAGEMENT
(Session 2021-23)

Submitted To Submitted By

Mr. SURYENDU MISHRA DHARMADEEP XALXO

ASST. PROFESSOR OF MARKETING MBA III SEMESTER

Roll No.- 2106369010

ACADEMY OF MANAGEMENT AND INFORMATION

TECHNOLOGY

RECOGNIZED BY GOVT OF ODISHA & AFFLIATED TO BPUT.

BIDYA VIHAR, PLOT NO.67/68 IID CENTER, KHORDHA

 CERTIFICATE FROM THE PROJECT GUIDE

This is to certify that the Project Report titled “Market

analysis of Zomato” isa bonafide work of Dharmadeep Xalxo enrolment
number undertaken for the partial fulfillment of Master In Business
Administration of Biju Pattnaik University of Technology under my
guidance. This project work is original and has not been submitted earlier
for the award of any degree or diploma of any other University or
Institution.

Signature of the

GuideMr.

Suryendu

Mishra
Department of
MBA,AMIT,
KHORDA
 I Dharmadeep Xalxo Son of Late Deonis Xalxo certify that the project
report entitled on “Digital Marketing”, Market analysis report on Zomato,
prepared by me is my personal and is authentic work under the guidance
of Mr. Suryendu Mishra, Department of MBA

Place: Khordha Signature of the Student

Date: 08/04/2023 Name: Dharmadeep
XalxoClass- MBA
Roll No. - 2106369010
1. Introduction 3

2. Objectives of analysis 8

3. Problems faced by the company 8

4. Analysis 10

 Zomato in Indian market 10

 Zomato business model 11

 Marketing strategies 12

22
 Zomato vs Swiggy

5. Suggestions for improvement 27

6. Conclusion 28
 ZOMATO

ZOMATO : AN INDIAN STARTUP GROWING STRONGER

ANDSUCCESSFUL
INTRODUCTION:-

Zomato is an Indian multinational

restaurant aggregator and fooddelivery
company founded by Pankaj Chaddah
and Deepinder Goyal in 2008. Zomato
provides
informat
ion,
menus and user-reviews of restaurants
as well as food delivery options from
partner restaurants in select cities.

Type of Company : Public, Unlisted

Industry : Online food
ordering
Founded : July 2008; 12 years ago
Founder : Deepinder Goyal and Pankaj
ChaddahHeadquarters : Gurgaon, Haryana, India
Area served : Worldwide
Key people : Deepinder Goyal (Founder&CEO), Pankaj Chaddah(Co-
Founder),Gaurav Gupta (COO)
Services : Food delivery
Revenue : Increase ₹2,486 crore (US$350 million) (2020)
Net income : Negative increase ₹−2,451 crore (US$−340 million)
(2020)Owner Info : Edge(18.6%), Uber(9.1%), Alipay Singapore(8.3%),
Antfin
Singapore(8.2%)
Number of
employees : 5,000+
Website : https://www.zomato.com/bhubaneswar

How was Zomato started?

The story of Zomato started in the office of Bain & Company in Delhi. Deepinder and
Pankaj worked at this company when they thought of this idea. They saw people standing
in a queue at lunchtime and give the order for their food when their turn came. From there
they got an idea of “Foodiebay” which became a prologue to Zomato.
At first, they started scanning all the menu items of the restaurant and listed them on their
intranet website Foodiebay.com. Later on, after seeing a huge surge in their traffic, they
decidedto launch their website open to the public.

They began listing restaurants from Deli NCR on their portal and quickly expanded to other
cities like Kolkata and Mumbai. In November 2010 they changed the name Foodiebay to
Zomato.

Their idea germinated in the form of Foodiebay.com they put up scanned copies of the food
court menu onto their company’s private network. Everyone at the company soon started
using this service and there was a sudden surge in the website traffic.

By now this wasn’t just confined to the walls of their office. Everyone else around their
vicinity also started using these scanned copies. The first professional restaurant menu that
Deepinder and Pankaj uploaded onto their site was that of Hauz Khas in Delhi. After this,
they started expanding this idea into other metropolitan cities of the country including
Kolkata, Mumbai, and Bangalore.

And once a word was around, thousands of people started using their website to get to know
about the best restaurants around. It was this interest from people around that encourage
both Pankaj and Deepinder to think of going PAN India with this idea. This is when the idea
of renaming the site came into their minds. They wanted something with more of a punch
and something easier to remember and hence came the word ZOMATO in November
2010.

The founders then wanted to make life a little easier for their users and hence came the idea
of building a mobile application. With this growth in their business and their ideas arose a
needfor funding.

The story behind the name Zomato

One of the reasons why they decided to change the name in late 2010 from
Foodiebay to Zomato was that they wanted a powerful brand name. After endless debate
over several cups of coffee, they came up with the name Zomato. Decided to keep the idea
of food at the center and choose a name that is short, easy to remember and makes people
think of food. Zomato’s got a zing to it and is originally a play on the word ‘tomato’. They
also wanted to avoid any confusion with “ebay”, they wanted to be sure that they weren’t
taking any chances when creating a brand they’d want to take international. Focusing on
brand recall and communicating what they stood for is of primary importance to any
consumer internet company and to think they have got most of it right.

Zomato - Startup Launch

When the founders launched this website, it wasn’t called Zomato back then, it was called
Foodiebay. And it initially started out in Delhi, then the services were extended to cities like
Mumbai and Kolkata. With the tremendous user base and growth rates that Foodiebay
brought
in to the founders, they decided to modify it and take it international. And that’s when this
venture started being called Zomato, as we know of it today. It was in 2010 when Foodiebay
was officially rechristened as Zomato.

Zomato - Name, Tagline, and Logo

The founders changed Foodiebay to 'Zomato' to make it more prominent, simple to
memorize and primarily to eliminate the confusion with the website eBay. Zomato's tagline
is"Never have a bad meal".

Zomato - Business Model and Revenue Model

The main source of revenue for Zomato now is the advertisements channel that the portal
offers to display. This accounts for most of its revenue followed by the commissions that
it charges to the restaurants. It works on a commission business model.

Zomato - Hyperpure
Hyperpure by Zomato is changing the way restaurants work. It is Zomato’s B2B foodtech
vertical. Hyperpure allows restaurants to buy everything online from vegetables, fruits,
poultry, groceries, meats, seafood to dairy and beverages. It claims to be working directly
withfarmers, mills, producers, and processors to source these products thus ensuring quality
and consistency.

It is an initiative by Zomato to provide fresh, hygienic, high quality ingredients and supplies.

Zomato at a glance
Currently, there are over 100 million Zomato users worldwide and people use the
application to get in touch with other foodies around the globe so that they can get the best
of food in whatever place possible. This being an added advantage, big restaurants from
around the globe post their advertisements on the Zomato app and this is basically how
Zomato makes its money.

As of 2018, Zomato clocks 3 million orders on a monthly basis with 1.4 million restaurants
listed on its platform. It is available in 10,000 cities and 23 countries worldwide.

Another form of income for them is the sale of tickets for food festivals that they partner
with or sponsor. Not to forget the hardships that Deepinder Goyal and Pankaj have had to
face in their quest to the top of the mountain. Since the whole plan from the start of this
business was to be able to reach out to each street in every city to provide the best services
to its users, there have been multiple ups and downs. Zomato’s services in the cities of
Kochi, Coimbatore,
Lucknow and Indore are currently suspended because their markets weren’t ready for this
level of business

These small downfalls have however never disheartened either Deepinder or Pankaj.
Zomato proudly boasts over 1.5 million restaurants on its database and they don’t seem
like they want to stop at this and one day hope to be at power with global players present
across the world. Zomato is also India’s first-ever global application.

Both Deepinder and Pankaj are leaving no stone unturned and this is the main reason as to
why Zomato continues to climb up the ladder of success.

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The biggest challenge faced while setting Zomato up and while taking it
overseas.

One of the biggest challenges faced by any fast-growing company is finding the right talent
to fuel growth. Today they have a team of about 650 people globally and are looking at
tripling that number in the near future. They keep innovating in the ways they hire and try
to ensure that people fit in well in terms of skill, culture and attitude. However, the
challenge continues to be finding the right people for the right job. Another major challenge
has been to make sure that they have covered each and every street in the cities they’re
launching in. The information needs to be relevant and comprehensive for users to keep
coming back to use our product. Data collection teams in each city hit the streets on a
daily basis and collect data first hand. One thing learned while going international is that
there is no alternative to doing own market research or data collection. They send out teams
to scout a market before decide to launch there and have their own teams working on
gathering data to ensure accuracy and exhaustiveness. In fact, it was encouraging for the
team to see Pankaj, Zomato’s Co-Founder and COO, sweating it out on the streets
collecting data in the Dubai summer to launch Zomato UAE two weeks after Ramadan.

Fundings raised by Zomato

This idea of Deepinder’s and Pankaj’s impressed Sanjeev Bikhchandani, the founder of
Naukri.com. In December of 2010, Sanjeev Bikhchandani provided Zomato with a
funding of1 million USD through his company Info Edge India and from here on, there was
no looking back.

The next round of funding that they got was again from Info Edge India and this time it was
3.5 million USD and again in the year 2013, Zomato received a staggering 10 million
USDfrom Info Edge India which made Info Edge India a holder of nearly 50% of the shares
in the start-up. Other investors for Zomato include Sequoia Capital, VY Capital, and
Temasek. The funds just kept coming in after this. By the end of 2018, it is estimated that
Zomato would’ve
received a funding of more than 300 million USD. This funding then gave Zomato the idea
of expanding into more cities across India apart from Delhi, Bangalore, Kolkata, and
Mumbai. So, they moved into Hyderabad, Ahmedabad, Pune, Chennai, etc. In September
2012, Zomato launched its services in Dubai, Sri Lanka, United Kingdom, South Africa,
Turkey, and New Zealand.

Investments by Zomato

Between 2010 and 2013, Zomato raised approximately US$16.7 million from Info Edge
India, giving Info Edge India a 57.9% stake in Zomato. In November 2013, it raised an
additional US$37 million from Sequoia Capital and Info Edge India.
In November 2014, Zomato completed another round of funding of US$60 million at a post-
money valuation of ~US$660 million. This round of funding was being led jointly by Info
EdgeIndia and Vy Capital, with participation from Sequoia Capital.
While in April 2015, Info Edge India, Vy Capital and Sequoia Capital led another round of
funding for US$50 million. This was followed by another US$60 million funding ledby
Temasek, a Singapore government-owned investment company, along with 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 company as part of
the round, which valued Zomato at around $2 billion. Zomato had also raised an additional
$150 million also from Ant Financial earlier in 2018.
In September 2020, Zomato raised $62 million from Temasek, after previously committed
capitol from Ant Financial never came through.
In October 2020, as part of a Series J round of funding, Zomato raised $52 million from
Kora,a US-based Investment firm.
In February 2021, Zomato raised US$250 million from five investors, including Tiger
Global Management, at a valuation of US$5.4 billion.

Expansion of Zomato in India – 2023

With the launch in 17 new cities, Zomato has expanded its online ordering and food
delivery services to 225 cities in India, the online restaurant guide and food ordering firm
said Monday.

The newly launched cities include Bulandshahr, Shahjahanpur, Solan, Palwal, Rewari,
Machilipatnam, Nandyal, Bhimavaram, Ongole, Srikakulam, Kadapa, Kottayam, Kollam,
Khanna, Gurdaspur, Ambur and Deoghar.

"Emerging cities are a major growth avenue for us and we expect them to constitute more
than 50 per cent of our total order volume by the end of the year," Zomato Founder and
CEO Deepinder Goyal said.
As the company grows, it is also trying to create value for everyone in the ecosystem, he added.

"With 1.8 lakh delivery partners, we are creating jobs and skill-building opportunities for
many in India. We are developing Zomato Kitchen hubs in smaller cities in India to drive
growth for our restaurant partners," Goyal said.

How Does Zomato Work?

The main work of Zomato is to suggest local and nearby restaurants to users and receive
orders from them. Users can place orders from their favorite restaurant based on ratings and
reviews shared by previous customers.Perhaps this is why more and more startup owners
are interested in developing an app similar to Zomato. It offers comfort to the users and
helps business owners reach their local food business to new heights.Zomato’s working
flow is simple,

Step 1: From the desiccated app solution or website, users can explore various restaurants
and order meals.

Step 2: Particular restaurant owners receive an order request and start preparing a

meal. Step 3: Once the food is ready to dispatch, it will be handed over to delivery

providers. Step 4: Delivery providers deliver the meal to the customer’s preferred

location.

Step 5: From the given payment options, customers can make payments and share reviews
based on their experience.

OBJECTIVES OF ANALYSIS
Zomato started as a Foodiebay.com startup, a service provider app which was supposed to
be a restaurant directory which started in Delhi. Slowly Zomato expanded to other
countries as well as cities in India. Launching a food delivery app in a country where people
were not very used to takeouts, back then the culture of eating out was not popular in India.
But an app which gave the service of ordering food and delivering it to our door step
became popular and became a success.

The main objective behind this analysis is finding out how Zomato managed to survive
in the Indian market and how founders made it a huge success? What were their
strategies? How the company handled the pandemic covid-19? And comparing
Zomato with one of the top food delivery company Swiggy.
SUCCESS DOESN’T COMES WITH STEP 1.
PROBLEMS AND TOUGH TIMES ZOMATO FACED.

The most significant hurdle they faced was to find a way to cover all the areas in all the
pivotal cities so the people who hinge on them do not fail to miss the finest restaurants. This
complication was present in the initial stages and endures to be a hurdle.

The graph of Zomato, that looks excellent this far, did not stay the same post 2014. The year
2015 brought with it hardships of all kinds and it was then that the company had to make
some harsh decisions. After acquiring Urban spoon and rebranding it as its own, the venture
failed miserably, so much, that the company was forced to lay off 300 employees to curb its
losses, 10% of which were from the US.

By 2016, things went out of hand to an extent that Zomato had to roll back its operations in
various countries like the US, UK, Brazil, Chile, Sri Lanka, Canada, Italy, Slovakia, and
Ireland. And when it finally resumed its operations in the said countries, Zomato had to
work with remote services.

There’s more lined up in their story. Zomato faced a major setback in the year 2017 when
its existence was put at stake with a cyber-attack. A hacker had breached into the records of
17 million users from the database of the company. Soon after, Zomato understood that the
data could only be accessed by the hacker and the breach was resolved after
communicating with the hacker. As it later turned out, the hacker was only trying to prove a
point that there existed security loopholes in the system.

Consequently, in the year 2019, a campaign called #logout surfaced where restaurants
listed on the platform called the company out for eating their profit margins via its features
like Infinity Dining and Zomato Gold, which provided heavy discounts to customers.

Covid-19 Impact

Online restaurant guide and food ordering platform Zomato, In year 2020 may laid off
around 13% of its workforce on account of the impact of covid-19 pandemic. The company
had around 4,000 employees in different roles. Founder and CEO Deepinder Goyal said
multiple aspects of the company’s business have changed dramatically over the last couple
of months and many of these changes are expected to be permanent.
“While we continue to build a more focussed Zomato, we do not foresee having enough
work for all our employees. We owe all our colleagues a challenging work environment,
but we won’t be able to offer that to around 13 per cent of our workforce going forward,”
he added.
Zomato faced several hurdles across cities while trying to deliver food. Online food delivery
orders dropped up to 70% during 1st wave of covid, as customers step back to place orders
and top restaurants were shut amid a lockdown.
Zomato being a food delivery company faced problems post lockdown too as customers
were afraid to order food because it could have been a potential carrier of virus. Even after
restaurants opened orders were less in number. Now that restaurants and Zomato is using
protective measures still if Zomato doesn’t innovates and markets properly it will
facedownturn because of tough rivals like Swiggy which is getting popular.

Pankaj Chaddah and Deepinder Goyal are the master brains behind this great food delivery
application 'Zomato'. Zomato has been and is the most widely used ordering application that
attracted many customers with its innovatory strategies.

In the early 2000s, we weren’t accustomed to using our phones for purposes other than
calling and text messaging. In fact, most of us were oblivious to the opportunities that this
magic box could present! The end of the first decade of the century brought with it a
revolution like no other. And it was during those crucial years of transformation when the
foundation of Zomato was laid in India.

Zomato in India Market

Initially ‘Foodiebay’ only offered menu of the restaurants and review the properties online
but later Chaddah and Goyal introduced food ordering. After that it started becoming
popular. People working private jobs, bachelors, students, teenagers were the first target of
the company as there were many reasons people could use food delivery. Working
people had to wait in lines at restaurants during lunch which wasted time, people wanted to
explore dishes and cuisines fancy restaurants offered and Zomato gave them this service.
Enjoying food without actually visiting the restaurants. People no longer had to wait in lines
or visit the place. Zomato made food one tap away which was new to Indian market and
attracted my people.

The Success Story of Zomato

Food is the prime mover for anyone across the globe. Of course, there are many people
whoyearn for food and to taste a variety of cuisines that are available. The furtherance in
the
technology has paved a way for the creation of many innovations and it is no less to
mentionthat food delivery app development is one among them.
In this extravagantly ornate system, it has become hard for every person to disburse time on
everything. Besides, cooking food after a busy day entails a lot of time and that is what that has
gained huge rage about these food delivering applications, where food will be delivered directly
at your doorsteps.

For all these ingenious thoughts, there are those unusual people who have a perfect
understanding of all the trends and so are these people Pankaj Chaddah and Deepinder Goyal.
They are the master brains behind this great food delivery application 'Zomato'. Zomato has
been and is the most widely used ordering application that attracted many customers with its
innovatory strategies.

The formula of Zomato’s Success

The founders of Zomato, Deepinder Goyal and Pankaj Chaddah consider that hiring the correct
persons is the primary reason for their company's startling growth and moreover, it was also
the greatest hurdle encountered by them while building Zomato. Now, they have a squad who
are vital in bricking their dream project.

Zomato’s business model in detail

 Restaurant Listings / Advertising

In its first avatar, Zomato was just a listing platform and a restaurant directory. This
brought in advertising revenues from restaurants who joined the platform.
Extending this further after the launch of food delivery and restaurant reservations,
Zomato now charges commissions from restaurants to be placed prominently on the
feed. Restaurants can pay to have their events or offers promoted as well as their
overall banner, which brings improved visibility and conversions from Zomato
users.

 Food Delivery

To begin with, through its food delivery business, Zomato charges a commission to
the restaurants on the basis of orders. While users pay a delivery fee, Zomato earns
through restaurants who pay a commission for each delivery, which is then split
among the delivery partner and the company. Commissions from restaurants vary
based onwhether Zomato is fulfilling the delivery or whether the restaurant uses
its own riders.This is said to contribute in a small way to the company’s total
income due to huge competitionand need for deep discounts etc.
  Subscription Programmes

With Zomato Gold for consumers and users, and subscription solutions for
restaurants, Zomato opened up a steady stream of revenue. While users pay a
subscription fee to access the Zomato Gold loyalty programme which brings
exclusive offers, restaurants also pay a monthly fee to be part of Zomato’s bouquet
of offers. Restaurants also pay Zomato a monthly fee for miscellaneous services
such as live tracking, Zomato-brandedtamper-proof packaging and more.

 Live Events

With Zomaland, Zomato entered the branded live events market last year. Zomato
charges users an entry fee to attend Zomaland, where besides food, they can
witness live musical performances and other acts. In 2018, it had organised the
entertainment carnival in Delhi, Pune, and Bengaluru, where Zomato claimed over
100K people showed up. This year, Zomaland is going to Pune, Delhi, Bangalore,
Hyderabad, Mumbai, Jaipur, Pune, Chandigarh, and Kolkata.

 White Label Access

Zomato also enables services such as Zomato White label under which they give
offers to the restaurants to develop a customized food delivery app. It also works
with cloud kitchens and restaurants for consultancy services. Zomato works with
select restaurant operators to help in identifying locations for expansions at a
minimal fixed cost, but with increased options for the user. It provides the requisite
licenses and operational enablement for such restaurant partners.

 Zomato Kitchens

In order to be able to provide kitchen infrastructure services to select restaurant

operators, Zomato works with entrepreneurs to set up and operate Zomato Kitchens
under different labels. This helps entrepreneurs fund restaurants in the right location
with an investment of INR 35 Lakh and more. Zomato claims it offers returns in the
range of INR 2 Lakh to INR 4 Lakh per month to the investors, with 180+ affiliate
kitchens already up and running.

As it has grown in size and scale, Zomato has tried to reduce the reliance on cash-burn
reliant models and streamlined to enter enablement and other user-generated streams of
revenue. Zomato’s cash burn is mostly in retaining users against its rival Swiggy. However,
being in the line of fire for deep discounting practices, Zomato may soon be able to earn
fromother parts of its business model.

Marketing strategies
What makes Zomato the best
Target Audience

Zomato targets people of the age group of 18-35 years who are comfortable using
smartphones. The people of this age group are tech-savvy and can use mobile applications.
The target audience of Zomato is of 2 categories.

Customers who want to dine out

The customers in the “dine out” category use the Zomato app to check the ratings and
reviews of various restaurants and cafes they are interested in. These are the kind of
customers who want to make sure that they get a good experience in terms of food and
ambiance and check the restaurant listings on Zomato before visiting. This category also
gets incentives like Zomato Gold Program, where they get extra benefits if they have a
membership.

Customers who are ordering food online

The customers of the “order food online” category likes to have food delivered at their
home or workplace. These customers do not prefer to go out. The customers of this category
are mostly professionals who order food for the office, students who live in a hostel or flat,
and people who just don’t wish to cook.

Zomato has a mixed marketing strategy. It gets traffic from various channels and sources.
Theseare the various sources of traffic that come to Zomato.com.

31.36% Traffic from Directly

1.02% Traffic from referrals
66.41% Traffic from Searches
0.73% traffic from social media
0.47% traffic from mail and display ads

SEO Strategy

Zomato has a strong SEO

strategy. We have already
discussed that Zomato gets
approx 66% of its traffic from
searches made online. With
their SEO efforts, they manage
to get 99.44% of organic traffic
from its search ratiowhereas
their paid searches are just
0.56%. This explains why they
have a strong SEO strategy.
Such an uprising metrics is
because of the SEO strategy of
Zomato.
Target Keywords

Zomato targets over 900K keywords to rank high in search results. That’s why it is has a
dominant position in search results. The keywords include restaurant names, dish names,
and some phrases that relate to the user’s search query like “cafes near me” or “order online
food,” etc.

Pages on website

Zomato allows restaurants to create and maintain their pages on its website. There areover
6500 registered restaurants on Zomato. That is why Zomato has over 54 million pages onits
website. We know that the more pages a website creates, the higher it ranks on search
engines, and that’s how it ranks at the top.

URL linking

We have heard of the SEO strategy to put keywords in URLs. It helps the search engine to
understand your pages better and show it in the search result pages.

Zomato understands this practice well and takes their top keywords to create URLs. It uses
keywords like coffee near me, bars near me, and food near me.

Internal Linking

Zomato increases its domain authority by getting backlinks from 12,274,172 domains. It
also gets high authority backlinks from gov and edu domains. By getting quality links,
Zomato makes its SEO game stronger.
Social Media Strategy

An app that targets the customers of

the 18-35 age group, cannot miss
social media marketing. Zomato
understands that most of its target
groups are active social media users.
So, it focuses on creating social media
ads and creates engaging posts to
connect with the audience.
0.73% of Zomato’s traffic comes from
social media.

Zomato followers on different social

media platforms are:

Facebook- 1.8 million

Instagram- 430K
Twitter- 1.4
million Zomato understands
what kind of postswill engage the
users, hence it followsthememe
marketing strategy for their social
media. Even Zomato’s Instagram bio
says “Meme page…occasionally
posting brand posts due to business team pressure.”
 Zomato creates ads for its existing to get more orders from them. For instance, look at
thisFacebook ad:
Zomato’s Paid Advertisement

Zomato runs Google ads to target specific customers. When a user searches for something
Google displays organic search results along with paid ads. These are Google ads. Zomato
targets both branded and non-branded keywords for Google ads. Furthermore, it targets
keywords that are related to various dishes, online orders, restaurant names, etc.

When a user searches for online food orders on Google, then Google displays paid ads from
Zomato.
Zomato gets approx 0.56% of its traffic from paid search ads.

Zomato’s Email Marketing Strategy

Zomato knows well how to utilize the Email Marketing tool optimally. Zomato’s Email
marketing is one of the wittiest and compelling strategy. With compelling subject lines and
a call to action, Zomato maintains its brand loyalty.

In its recent email marketing campaign, Zomato created emails with the theme of Amazon
Prime Video’s famous series Mirzapur season -2. Zomato included subject lines related to
Mirzapur characters.

“Munna Bhaiya invited you to a weekend” and “enjoy a weekend to guddu to be true” are
some examples.
Also, one of its best email marketing strategies was when it created a resume for Biryani.
Zomato included phrases related to food like “curryculum Vitae of Biryani,” Also it used
the CTA “hire now” instead of using “order now.” That’s how Zomato does a phenomenal
job with
its Email Marketing Strategy.

Zomato’s Visual Advertising

Zomato comes up with some of the best visual adverts to connect the audience with their
platform. Be it their video adverts or billboards, Zomato comes up with great content.

Zomato post Covid-19

Zomato has recovered 75-80% of its pre-Covid sales. However, dining-in at restaurants is
still at just 8-10%. Restaurants in Delhi NCR and Chennai are worst hit, with 88% and 91%
respectively still closed for dining-in business, with the outlook for the industry looking
bleaker.

Out of the 83% restaurants that are not open for business, 10% restaurants have already shut
down permanently and we anticipate an additional 30% restaurants to not reopen at all.
Remaining 43% are closed right now but likely to open, as the situation becomes better.
Zomato, which has 180,000 restaurants listed on the platform and nearly 27 million monthly
active users. It has delivered 70 million orders and estimated that the overall food delivery
industry would have done 200 million orders. Restaurants in residential areas were found to
be doing 50% better than those in commercial areas and consumers are moving their spends
from eating out to home delivery. The report also said that 1 in 5 customers in metros have
now opened the Zomato app in smaller towns, underlining migration as most companies
are expected to continue work-from-home policies for the coming months. Zomato has
recently entered a strategic partnership with In Cred, where the latter will extend credit
facilities to the former’s restaurant partners.

The food delivery industry was one of the worst-affected segments during the pandemic
with its Gross Merchandize Value (GMV) falling short of the pre-COVID levels. However,
we can now see a revival trend in the industry. The food delivery business has crossed pre –
covid run rate and is expected to grow further in the months to come. The InCred-Zomato
tie-up will extend financial assistance to cash-strapped businesses for meeting their business
growth and working capital needs. Saurabh Jhalaria, CEO (SME Business), InCred said in
a statement, “The COVID-19 outbreak has led to a sharp decrease in footfall, order volume,
and bucket size within the food services segment. In this context, platforms such as Zomato
have enabled physical businesses to recover seamlessly. We are happy to join hands with
Zomato.”
Co-founder Pankaj Chaddah has started a new venture with former Zomato executive Pooja
Khanna called Mindhouse, a mental wellness startup that offers users guided meditation
sessions and techniques. Mindhouse started in December 2019 by offering guided
meditation sessions at three physical studios in Gurugram. The company, however, shifted
focus to an online model due to lockdown curbs last year. The mobile app provides
meditation and yoga content through a mixture of live classes and an on-demand library of
audio and video content. It also recommends content based on various goals chosen by the
user like sleep, relaxed mind, patience, and focus among others along with their past
experience in meditation. The company offers this service through various plans starting
with Rs 499 for a monthly plan and going up to Rs 999 for a three-month plan and Rs
1,999 for a yearly plan. It also offers a free tier with access to limited features and content.
Corporates will be one of the key focus areas for the startup, having already partnered with
500 companies in the past few months amid lockdown, Mindhouse co-founder Pooja
Khanna told ET. Chaddah added that international expansion is also in the works, with the
startup expecting to roll out its product to the rest of the world by the end of July 2020.
The company currently employs 25 people in the country.
For our restaurant partners and restaurant workers

 Zomato Gold Support Fund – with the goal of helping out the restaurants that are
finding it difficult to support their workers, we have launched the Zomato Gold
Support Fund. Individual users can contribute to this cause by purchasing or
renewing an annual gold membership. All proceeds from the Zomato Gold
subscriptions in the month of April 2020 will go towards supporting restaurant
workers in need and the users will get an additional year of Gold free, as a token
of our gratitude. This has already been launched in India and UAE, and will be
live in other markets over the next few days.

 Takeaway – we are launching takeaway in Australia and Portugal, to support

restaurants in the current situation and also help our users, with what is a need of
thehour in thesetimes.

Our underprivileged community – India’s daily wage workers

 Food Security – Zomato’s mission is ‘better food for more people’. And for some
underserved segments of our country, ‘better food’ simply means being able to
put some food on the table.

 Feeding Foundation – Zomato runs a not-for-profit called the Feeding Foundation

(in India, known as Feeding India). The purpose of Feeding Foundation is to
leverage our relationship with the food industry, and our users to be able to
provide food security to millions of people who run the risk of dying from
hunger. In the middle of this chapter, we also started the Philippines chapter of
the Feeding Foundation, called Feeding Philippines.

 Feed the Daily Wager – about 450 million Indians depend on daily wages to run
their household and have lost their livelihoods due to the lockdown. All these
people are going hungry and they desperately need someone’s support. To help
with the situation, we started the “Feed the Daily Wager” initiative in India,
wherein we are distributing ration kits to daily wager communities. These ration
kits provide 100 meals to a family (three meals a day for a family of five, for a
week).
 This initiative is powered by people like you – we have been able to raise ₹25
crores for this from individuals and corporates, and are aiming to double the
amount. If you haven’t already done so, please donate towards feeding our daily
wagersat http://www.feedingindia.org/donate; countless drops fill an ocean –
please add yours.
 We have already distributed more than 100,000 ration kits (to the same number of
daily wager families) in more than 20 cities as of now. Apart from our mega
cities, we have now also started distributing these ration kits in other cities like
Patna, Jhansi, Guwahati, Dehradun etc.
 We plan to distribute 1M ration kits as part of this initiative, and have already
secured supplies to do that.
  Working for Feeding India is incredibly humbling. Here are some images and
conversations that will move you.

For people who are directly affected by COVID-19

 Food for quarantine facilities – as an essential service provider, it is important we

find more than just a few ways to help our community fight against this
pandemic. We have teamed up with Apollo Hospitals to deliver food to those who
are in isolation wards, in their quarantine facilities. We are currently doing this in
Bangalore and Hyderabad, and are expanding this support to hospitals/quarantine
facilities across major cities.

Zomato vs Swiggy

Why do some people only choose Zomato or Swiggy over another?

About Swiggy

Swiggy is a food ordering and delivery platform in India. The foodtech unicorn started
operations in 2014 in Bengaluru, and acts as a bridge between customers and
restaurants. Itutilised a technology platform that allows customers to order food from
nearby restaurants and get it delivered to their doorstep. It was founded by Sriharsha
Majety, Nandan Reddy (Co-founder) and Rahul Jamini (Co-founder) with a business
model B2C and B2B. It is
known as India’s fastest unicorn. From being late entrant in the online food ordering space
in 2014, Swiggy has galloped its way to billion-dollar valuation in four years forcing other
food tech companies to play catch up.

How Swiggy app works and earns

 Users sign up for Swiggy mobile app and become customers

 Customers open the app, select the restaurant, and order the food
 The app confirms the delivery location
 The restaurant receives the order and confirms it
 Local delivery boy confirms the pick-up and drop location of the order
 Customers receive the notification showcasing the confirmation of the order and the
person who will deliver the order
 Customers track the entire journey from mobile app starting from the order
confirmation to the moment order gets delivered. They can also track the delivery
boy’s location.
 Swiggy marks your ordered completed, once delivered

After the order completion, Swiggy app asks customer’s reviews and ratings on food, taste,
and delivery service.

Swiggy’s idea to connect local foodies with local restaurants gave the brand advantage of an
early mover. But the brand relies on restaurants and local delivery personnel to grow the
business. And the company has to pay incentives to local delivery boys to keep the business
going. So Swiggy’s revenue stream comes from different, multiple sources.

Here they are:

Commissions

Swiggy charges 15-25% commission on total order bill (inclusive of Goods and Service
Tax) from restaurants. The percentage of the commission depends on various factors like
the number of orders, location of the restaurant, the commission charged by competitors,
etc.

Delivery Charges

Swiggy doesn’t follow any minimum order model. It can deliver food for even less than
Rs.100/- only. Instead of being a hurdle, it’s the most significant advantage for Swiggy as
the app often receives an order value of less than Rs. 100/- for which Swiggy applies
delivery charges.

Delivery charges rotate around Rs.10-20/- for orders less than Rs.250/-. Swiggy increases
its delivery charges in times of high demand, rains, special occasions, or midnight
delivery. If
customers need emergency food at midnight, they have to pay a little bit higher, or
customers prefer to order on time to avoid paying high. Either way, Swiggy wins.

Advertising

Swiggy follows two advertising revenue models simultaneously: Banner Promotions and
Priority Restaurant listing.

Swiggy started displaying and promoting banners of available restaurants based on regions
and rates. Swiggy charges premium from restaurants in exchange for displaying their
banners in its app.

Affiliate Income

Swiggy offers credit cards as well from where it generates income as an affiliate. The food-
service brand has partnered financial biggies, including American Express, Citibank, ICICI
Bank, HSBC, etc.

Other Income Sources

Swiggy keeps expanding its revenue sources along with its growth. It has started Swiggy
Access allowing restaurants to set up kitchens at locations where they can’t reach. For this,
restaurants pay higher than average commissions.

Swiggy added another source via Swiggy Super, a membership program for regular
customers. It offers unlimited free delivery for orders above Rs. 99/-.

Zomato and Swiggy

The comparison between two top most food delivery companies in India.

Zomato’s business point is unique and different in relation to Swiggy.

If we take a gander at Zomato, it centres around food alone. Whether we want to know
whatis a decent food restaurant to visit or want to order food online, or review food, we
go to Zomato.

Where on the other side, Swiggy centres around their delivery ecosystem. They’re
currentlyexploring new fields into delivering groceries, medicines, anything etc.
Login page

Swiggy - Before even joining and signing in customers are indicated offers and coupons,
with the goal that it produces interest and individuals, regardless of whether weren’t
anticipating exploring the application, Sign In. It also has a feedback option below Offers.
Swiggy givesyou an option to give feedback, before the login.

Zomato - Zomato goes for simplicity, provides options for login, i.e., via Facebook, Google
or Email.

Account

Both Swiggy and Zomato’s account page serves almost the same thing. The account page
lets you manage your address, check how much balance do you have in your wallet, etc.

Swiggy - Swiggy has designed its account page to be less intuitive. On the account page,
when you scroll you don’t see any important factor, there’s insights on your past orders, and
as opposed to looking over additional, you want to go to different pages and all things
considered check food instead.

Zomato - Zomato’s account page is very engaging. It even has a profile of the user. People
can maintain their profile page, where they can write reviews about restaurants, add
photographs. One can follow fellow foodie companions. Eating and updating reviews adds
up to the stats, where one review can get you 25 points and from just being a foodie, you
can upgrade yourself to become connoisseur, sharing it with your community.

Home screen

Swiggy - As you scroll down on the Swiggy’s home screen page, there are many repetitive
features and categories, even old promo cards, which hinders the food search process.

Zomato - Zomato’s home screen has more contrast and is exceptionally captivating.
ZomatoPro advertisements and promotions, are all over the places

Food display

Swiggy - Food restaurants displayed are simple and easy to work with. At one point the
scrolling stops and ends up with 'LIVE FOR FOOD' quote.

Zomato – It advertises and takes up a lot of space to display the food places available. The
users at one point will get tired of scrolling and may or may not settle with any restaurant.
Zomato has endless scrolling.
Search

Swiggy - There is a separate page just for the search, which makes the process of searching
for any item easier and clutter free. They’ve put smart use of restaurants, users probably
might reorder from. The recent search option is helpful.

Zomato - The search bar is available on top of the home screen. By placing images and few
options does have a clickbait which would want the users to click on a type of cuisine, even
if they aren’t looking for anything specific.

Cart/Payment

Swiggy - It’s Go to Cart is simple and snappy as there’s a different cart page for the users to
visit. At the point when customers order something they get notified below with a green
popup of what they’ve recently added so that they can check out quickly. But for payment
there’sa process.

Zomato - It doesn’t have a cart page or any alternate. When one orders something there’s no
visible pop message below for the order. People can be puzzled while searching for the
cart. It is that there, when you have to double click to reach to the cart page. But the
payment system is easy and quick.

Location & Delivery

Swiggy and Zomato both auto detects your location. You can anyhow separately add the
location yourself. Swiggy’s delivery system is faster by 5 minutes. But Zomato gives
amazing offers and discounts. Their marketing strategies, no doubt stands out.

Conclusion of comparison

The food delivery industry has emerged as one of the biggest online platforms specially in
lockdown. The shape of the market is changing with a breakneck speed with food tech
companies like Swiggy, Zomato and many more. As the decade draws to a close we have
started to see some signs of consolidation in a market which has undergone several shifts in
terms of strategies and operating procedures. The decade certainly belonged to the two top
start-ups in the space Swiggy and Zomato. They are both great in their own specific manner.
Where Zomato’s speciality is marketing and offers concocting these insane ideas online
competitions, promo ads and games for their users to be involved in and win amazing cash
back prices, Swiggy doesn’t hold back either with their efficient user experience. Both the
companies keep on updating their apps and never fail to amaze the customers.

The answer to How people choose Zomato or Swiggy is simple.

Preference.

Some people prefer fast service and hate to wait they usually go for Swiggy not minding the
pries.

But people who want to try different options, want discounts and cashbacks go for Zomato.

Some people use both the apps. Whichever is suitable. They switch app if can’t find a
restaurantor a good offer in one.

SUGGESTIONS FOR IMPROVEMENT

How Zomato fails and what can the company do to

improve.Customer satisfaction

Customer service is satisfactory but from the start till now few customers face problems which
aren’t heard or solved by the company. Zomato should focus a little more on customer
serviceas this problem can lead to bad reputation and company can go downhill.

Application

As much as the app is user friendly it creates problems too which isn’t being solved even
after many complaints. The app usually fails to detect the customers exact location also
sometimes give wrong or long routes to the delivery guys which creates problem and delays
the order. Company updates the app on discounts and offers and invests too much in
marketing but is ignoring such important problems. They should fix this problem so that it
becomes easy for delivery guys to find and reach the location easy and early.

False rating

There have been reports of false rating. Reports being true or not even if a rumour its
definitely hurting the image of the company. Zomato should take some action to solve this
problem as building a goodwill takes years but it takes no time to ruin.
Packaging

Well, the packaging is mostly done by the restaurants but if anything goes wrong with the
packaging the blame straight goes on Zomato. To avoid that company should take extra
measures with packaging as no customer would want to eat a carelessly packaged food.

Employees

When I say Zomato needs to improve employee wise everyone starting from executives to
the delivery men all need to be more customer friendly and better at their job. Executives
are rude to the customers and some delivery guys are too unaware of the locations and need
to be directed by customers many times. It makes inconvenient for customers and they
would rather choose different app rather than taking all the pain.

CONCLUSION:-
If we go by numbers, Zomato witnessed a record rise of 225% in its revenue in the very
first half of FY2023. The company’s biannual report revealed that it had registered $205 Mn
in revenue as compared to $63 Mn (in the first half) of last year.

Zomato’s journey thus far has witnessed crests and troughs of its own. But it wouldn’t be
wrong to say that ups and downs are faced by almost all startup companies in their initial
years. What really matters, in the end, is their resilience, their will to stand by the
organization and its valuesand the decisions they make in difficult situations.

As for the founders, Deepindar and Pankaj, they’ve done a phenomenal job of keeping
Zomato afloat even in times of crisis. Where in early 2018, Pankaj announced that he’d like
to quit Zomato and take some time off before he turned “professionally active” again,
he continuesto hold a stake of 3.11% in the organization.

Today, the company is looking forward to raising more funds with a vision to expand its
service portfolio. It aims to reach newer markets and explore other related domains of
growth. As Zomato battles it out with Swiggy - its biggest competitor, it will be interesting
to see what lies ahead for this organization especially in a time when bigger players are
entering the market.
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