A STUDY ON THE

MANAGEMENT OF
ZOMATO

SUBMITTED BY:
GEETANJALI GOYAL

ROLL NO. : 2239

BCOM HONS SECTION 2

SUBMITTED TO:
DR. MEGHNA MALHOTRA

DEPARTMENT OF COMMERCE

HANSRAJ COLLEGE, UNIVERSITY OF DELHI

INDEX

1. Introduction

2. Planning
2.1 Mission

2.2 Vision

2.3 SWOT Analysis

3. Organising
3.1 Organisational Structure
3.2 How Zomato Works
3.2.1 Business Model
3.2.2 Revenue Distribution

4. Staffing Policies
5. Directing
6. Controlling
7. Conclusion
8. Bibliography
1. INTRODUCTION
Zomato is an Indian restaurant aggregator and food delivery start up founded in July 2008. It
was started by Deepinder Goyal and Pankaj Chaddah. It provides information, menus and
user reviews of restaurants, and also has food delivery options from partner restaurants in
select cities. As of 2016, the service is available in 24 countries. Its headquarters are located
in India. This consumer services industry provides various services like Restaurant research
and discovery, online ordering, table reservations and management, POS systems and
subscription services.

It was originally launched under the name Foodiebay, with a simple foundational idea- an
internet directory for restaurant menus. It started with a team of 6 in number but in a short
span of 9 months, they became the biggest restaurant directory in the Delhi NCR region. With
massively successful business tie-ups like Zomato Gold and online food delivery, it has
established a heavy consumer base, especially in India.

Deepinder Goyal is the founder and CEO of Zomato. He said that the company touches 25 million
customers every week and is all set for 10 times growth in 5 years. Right now, the company is
focussed on expanding the food delivery business. Currently the company touches 25 million
customers every week, generate 0.5 million jobs directly or indirectly and its losses per month have
come down by 50 percent in the last three months. Besides bringing business to restaurants and
‘dark kitchens’, most of which do not have their own delivery service, Zomato is also creating direct
employment through riders.

2. PLANNING
Without proper planning, Zomato would not have been a huge success. It defined some set of
goals, objectives and strategies to overcome the hurdles of competition and threat of
rivalries in the market so as to become a successful organisation and make a name of its
own.

2.1 MISSION
The mission of Zomato is to ensure that nobody has a bad meal. Its mission
statement states “SHAPING THE FUTURE OF FOOD”. It simply states that its goal is to
change what we eat. It covers the following four aspects:-

1. Improving the QUALITY of food.

2. Boosting ACCESSIBILITY for customers.
3. Focussing on AFFORDABILITY.
4. Driving the force of ASSORTMENT.

2.2 VISION
The vision of Zomato is to be the global platform when someone is looking for food
globally. Zomato is used by millions every day to decide where to eat in over 10,000
cities across 23 countries. So it has a vision of being able to point the people a great place
to eat no matter what part of the world , they are in, in a few years.

2.3 SWOT Analysis

STRENGTH

● Users perceive Zomato as ‘Specialty product’ (focussed only on foods and

restaurants).
 ● Global presence- 25 countries-1.5 million listed restaurants.
● Superior technology and a strong workforce of over 1200 people.
● Asset less business model.
● Simple and user friendly interface.

WEAKNESS

● Competition from search engines and other similar apps means limited growth.
● Drastic growth means susceptible to bad content.
● Not customized for each target market.
● Work inefficiency.
● High staff turnover.

OPPORTUNITIES

● Opportunity to expand to further more countries.

● Increasing internet penetration and number of Smartphone users.
● Rapid technology development.

THREATS

● Intense Competition.
● Lack of clear rules and regulations- Changes in Government policies can easily
affect the business model.
● Business model can be easily imitated by other players.

3. ORGANISING

3.1 ORGANISATIONAL STRUCTURE

Zomato has a flat organisational structure.

 A flat organisational structure refers to an organisational structure with few or no levels
of management between the management and staff level employees. The organisational
structure of the employees at different levels is shown below:

The responsibility of the employees at different levels is listed below:

SALES TEAM: 1. pitching to the clients, building networks, contracting and payment
collection.

2. Working in teams, meeting the targets allocated and reporting to the Area Sales Manager.

AREA SALES MANAGER: 1. maintains the overall financial health of the area.

2. Allocates targets and incentives for the sales team and handling client relationships.

3. Formulates area reports (Revenue, Accounts Payable, team performance etc.).

CITY SALES HEAD: 1. Holds the revenue responsibility of a city, creates and monitors
operating plans in coordination with the country head.

2. Ensures complete product and sales training of new sales joinees and represents the
company in B2B events.

SALES MANAGER (BRAND AMBASSADOR): 1. Sells advertising space on Zomato to

restaurants and searches for prospective clients and generate sales lead.
2. Distributes Zomato merchandizes for display at restaurants and formulates result reports
for advertising campaigns and interpret them for clients.

COUNTRY SALES HEAD: 1. Develop new strategies to enter new cities and looks over
the city sales heads as well as the sales managers.

2. Maintains financial levels of performance and records.

3.2 HOW ZOMATO WORKS?

Zomato is a food search engine; it works as a Google search engine. First, one has to register
and list his hotels and restaurant on Zomato and then one can expand his business to higher
level and reach more and more people and can manage all by using a simple app.

3.2.1 BUSINESS MODEL

KEY PARTNERS: Restaurants and delivery personal.

CHANNELS: Mobile application for IOS and Android, and website.

CUSTOMER SEGMENT:

● Users who look for restaurants of various cuisines and prefer home delivery.
● Restaurants who want to advertise their services.
● Market research companies.

COST STRUCTURE:

● Technology setup
● Salaries to employees and delivery guys
● Fuel expenditure

REVENUE STREAMS:

● RESTAURANT ADVERTISING: This is done by placing banner ads for

restaurants on the website. This accounts for 75% of Zomato’s revenue.
 ● EVENT ADVERTISING: This is when specific events promote an event on
Zomato. It comes from restaurant based advertisers and the tickets for these events are
also sold on Zomato. This accounts for 5% of Zomato’s revenue.
● EVENT TICKET SALES: Commission on ticket sales through Zomato; primarily
for restaurant venues; accounts for 15% of Zomato’s revenue.
● CONSULTING SERVICES: Zomato earns money by providing consulting services
to the restaurant chains on where to open their next outlet or branch.

3.2.2 REVENUE DISTRIBUTION

There may not be a fixed percentage of earnings which goes to the delivery boys. Wages may
be paid per delivery which may be between Rs.40 to Rs.100 per delivery depending on the
distance covered. An active delivery boy can make Rs.500-600 per day on weekends net of
petrol expenses on bike. On weekends, it may vary between 300 to 400. It also varies on
number of delivery boys at a centre and orders received.

4. STAFFING POLICIES
Zomato currently has over 5000 employees from 32 nationalities around the world. Its typical
hiring process starts with understanding the job requirements and the criticality from the
hiring managers. Then the creation of respective job descriptions is done and these are gotten
live on Zomato’s careers site through recruitee. Upon receiving the applications either
through referral or through the careers site, the recruitment team would screen them all based
on certain parameters per role mainly on the skill set. After a brief screening process over a
call, the recruitment team schedules the interview with the hiring manager. For most junior
and mid-level roles, there are usually three rounds of interviews. When there are a high
number of positions to fill, the company advertises the job openings on various social media
channels.

Zomato provides a no. of benefits and perks to its employees such as free food credits,
medical insurance, sick leaves, vacations, flexible work timings etc. It is also investing a lot
more in training their executives in soft skills and training their delivery partners on
technology, behavioural skills, personality development, guidelines for safe riding, skill
development through customised simulation and case studies.

5. DIRECTING
Key people of Zomato:

-DEEPINDER GOYAL (Founder and CEO)

-GAURAV GUPTA (Co-Founder and COO)
-MOHIT GUPTA (CEO-Food Delivery Business)
-GUNJAN PATIDAR (Head of Engineering)
-AKRITI CHOPRA (CFO)

The founders of Zomato, Deepinder Goyal and Pankaj Chaddah both have proved to be an
example of a perfect leadership. They have a perfect understanding of all the trends and they
are the master brains behind the success of this great food delivery application ‘Zomato’.
They became the founders and leaders of Zomato in July, 2008 when they came across many
people waiting for a long time just to acquire a flash of menu card. Under their leadership,
Zomato has acquired huge popularity by rendering peculiar services to customers.
Deepinder Goyal, the current CEO of Zomato has been consistently showing some excellent
leadership qualities which contributed in the success of this company. These are:

▪ Honesty and Integrity- He shows utmost honesty and integrity towards his work and
believes,” intellectual honesty is the most important thing when the going gets tough”.
▪ Inspiring others- He always inspires others by saying,”Simple means you’ve to keep
at it; don’t take your eyes off the ball”.
▪ Commitment and passion- He believes that the ups and downs pass with time. His
words are-“Every down gets you up for something bigger but commitment and
discipline is very important; you can’t loose sight of that in everyday business”.
▪ Decision making capabilities- His ability to make right decisions at the right time
has always been beneficial for Zomato.
▪ Creativity and Innovation- He keeps innovating in the ways he hire, and tries his
best to ensure that people fit in well in terms of skill, culture and attitude.
▪ Empathy- He never followed a dictatorial style and succeeded in making a closer
connection with his followers by understanding their problems.

6. CONTROLLING
Zomato always keeps an eye on the target, that is, growth and scale. It keeps a control on
pricing information and other details like menu management, inventory organisation, recipe
arrangement, digital receipts, offline sales, online transactions support, overhead costs,
customer base, revenue generated etc. The engineering team of Zomato is always cranking to
improve their services and make one’s food hunt easier.

Currently, there are some problems arising at Zomato which they are trying to solve:

▪ Solicitation Problem: It is a problem where influential foodies are incentivised or

offer to join hands-in some cases for monetary gains-to write about restaurants. The
company has taken action against the 300+ users after gathering sufficient evidence to
prove their involvement in these unethical and sometimes even illegal activities. As a
core Zomato value, they have worked relentlessly to identify both restaurants and
users who engage in unethical means to influence restaurant ratings and reviews.
▪ Spam Control: A lot of restaurant owners try to plant fake reviews on the platform.
So Zomato is trying to evolve systems to outsmart everyone who tries to game the
system.
▪ Lower server latency for geographically widespread traffic: Zomato is trying to
serve all its traffic from servers that are close to its user’s physical locations. It is
trying to replicate its infrastructure in various locations and keeping everything in
sync.

7. CONCLUSION
Zomato is India’s first ever global application. 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. Both the founders, Mr.
Deepinder Goyal and Pankaj Chaddah, are the master brains behind its success. From
planning and implementing the required strategies to hiring the best people in their
organisation, they left no stone unturned. As leaders, they were committed, passionate, honest
and truthful to the organisation. Though there were many hurdles which came in their way,
they always came up with the solutions. Zomato is currently working on two new initiatives
to boost revenue and profitability and increase visibility. It is planning to pick up fresh
investments to further expand its food ordering, table booking business, along with setting up
a new cloud kitchen service. Zomato is continuously trying to eliminate all the arising
problems in its services and working on new innovations and initiatives in order to expand its
growth, operations and to provide maximum possible satisfaction to its users.

8. BIBLIOGRAPHY
▪ https://www.zomato.com/about
▪ https://futureworktechnologies.com/how-zomato-works-business-revenue-model
▪ https://blog.recruitee.com/hiring-at-zomato/
▪ https://yourstory.com/2018/11/zomatos-deepinder-goyal-solution-problem
▪ https://www.news18.com/news/tech/zomato-realizes-it-has-a-solicitation-problem-
and-has-decided-to-take-action-2049305.html