STRATEGIC PARTNERSHIP STRATEGY FOR

ZOMATO
BY
SAKSHAM MISHRA
ROLL NO.-K086

ZOMATO
Zomato, which started as Foodiebay in the year 2008, is a restaurant search and finder
platform and has entered in the food delivery space with presence in 24 countries across the
world. Founded by Deepinder Goyal, Zomato has seen a 3x jump in revenue in the year FY19
and has reported a revenue of $206m for the year and has a monthly run rate of 30 to 35
million orders per month across the country. It currently has expanded its operations in 400
cities in India, has 70 million overall users and 11 million app downloads across per month
across all platforms. As a restaurant search and finder platform Zomato is a market leader
however there is a stiff competition when it comes to the online food delivery business.

The food industry in the past few years has seen a drastic change due to rapid adoption in
terms of evolving technology. Zomato and Uber eats are global leaders in terms of the food
delivery business and India is an emerging market with a recorded growth of 900% in terms
of downloads for the food delivery apps. The burgeoning adoption of smart-phones in India
coupled with falling data prices have enabled an accelerated adoption of online food ordering
in India.

STRATEGIC PARTNERSHIP
A strategic partnership is a mutually beneficial arrangement between two separate companies
that do not directly compete with one another. Companies have long been engaging in
strategic partnerships to enhance their offers and offset costs. The general idea is that two are
better than one, and by combining resources, partner companies add advantages for both
companies through the alliance.

In a strategic partnership, two businesses intertwine their efforts in a certain area, such as
marketing, supply chain, integration, technology, finance, or a combination of these.
Following are the different types of strategic partnership agreements:

1. Strategic marketing partnerships

This type of strategic partnership agreement is most beneficial to small businesses with a
limited selection of products and services to offer customers.

2. Strategic supply chain partnerships

Companies usually enter into supply chain partnerships to cut costs, streamline processes, or
improve quality.

3. Strategic integration partnerships

Strategic integration partnerships are extremely common in the digital age since it’s always
great to have different applications work together or at least communicate with one another.

Both sides get to offer a more streamlined service to our customers. Strategic integration
partnerships can encompass agreements between hardware and software manufacturers or
agreements between two software developers who partner to have their respective
technologies work together in an integral (and not always exclusive) way.

4. Strategic technology partnerships

This type of strategic partnership involves working with IT companies to keep your business
afloat. Basically, any kind of technological expertise that is necessary for your business that
you cannot provide in-house can be relegated to a strategic technology partnership.

5. Strategic financial partnerships

Many modern companies wholly outsource their accounting to strategic partners.Strategic
financial partnerships are helpful because when you use a dedicated company for accounting,
for example, they can monitor your revenue with greater focus than you can do in-house.
PARTNERSHIPS FOR ZOMATO

CLOUD KITCHENS
A cloud kitchen is a takeaway outlet that provides no dine-in facility. They function as a
production unit with a space for the preparation of food. The food can be ordered online,
hence, the name cloud kitchen.

With Zomato Infrastructure Services (ZIS), they can set up kitchen infrastructure services.
The aim would be to work with select restaurant operators to help them expand their business
to more locations, while incurring minimal fixed costs.These include overheads, real estate
and help in expansion oppurtunities.

DRONE DELIVERY
A delivery drone is an autonomous vehicle, often an unmanned aerial vehicle (UAV), used to
transport packages, food or other goods.

Currently, the average time to deliver food on a bike is 30.5 minutes. In an attempt to reduce
this time to 15 minutes, and also increase accessibility and efficiency of the operations,
Zomato is experimenting with aerial drone delivery options. For this, they have also acquired
a drone delivery start-up called TechEagle Innovations.

EVENT ORGANISATION

Zomato believes in cross selling of its offerings to the customers to increase their success in
capturing a larger customer base at different points in the value chain.
Thus, they should also enter into the event organisation space, particularly for food festivals
like the Grub Fest to increase their reach.

INFINITY DINING AND ZOMATO GOLD EXPANSION

Zomato is also coming up with new, innovative deals like Infinity Dining or “eat all you
can” and new schemes for Zomato Gold to ensure higher growth and an expanded user base.
This would help in increasing reach and thereby improve market penetration.
HYPERPURE

Hyperpure is a big step in the future of the food industry. Zomato is now looking at the
quality of ingredients that go into the food we order and is setting up a cleaner food supply
chain for their partner restaurants to buy fresh and high quality ingredients directly sourced
from the farmers. Within 10 years, they are also planning to deliver raw materials to
customers, directly at their homes