Professional Documents
Culture Documents
By
RITHIN G R
19YUCMD157
Bangalore University
2021
DECLARATION BY THE STUDENT
I also declare that this project is the outcome of my own efforts and
that it has not been submitted to any other university or Institute for
the award of any other degree or Diploma or Certificate.
Project ID number(s) in :
Software (Attach first page of the originality report as ANNEXURE) and found within limits as per
plagiarism Policy and instructions issued by the UNIVERSITY/CBSMS.
We have verified the contents of the project report, as summarized above and certified that the
statements made above are true to the best of our knowledge and belief.
Date:
DATE: DATE:
ACKNOWLEDGEMENT
I take this opportunity to convey my sincere thanks and gratitude to all those who
have directly or indirectly helped and contributed towards the completion of this
project.
The success of any project study depends upon a number of factors among which
the proper guidance received from the experts in the industry and teachers play an
important role.
I take here a great opportunity to express my sincere and deep sense of gratitude to
my guide Dr. DEVARAJANAYAKA and also Dr. SYED KAZIM for giving me
an opportunity to work on this project. The support and guidance from sir were of
great help and it was extremely valuable. I would like to express my gratitude to
sir for his constant support and encouragement. I would like to express my sincere
gratitude and thanks to Dr. H.R VENKATESHA, Director of MBA department
of Acharya Bangalore B School, for his constant support and encouragement
without his outright and energetic motivation, support and prompt response. It
would not have been possible to do any justice as well as bring authenticity to the
project.
Finally, I want to thank everyone for their constant support and encouragement.
v
ABSTRACT
With the advent of the e-commerce boom in India, Indian consumers are to be
seen their life being touched by e-commerce in almost every vertical from online
shopping to ticket bookings, healthcare, etc. One of such verticals is Zomato,
which has very efficiently utilized the e-commerce platform in the online food
review and food ordering business. This is vertical, which has brought almost
every restaurant in India under a single roof in the hands of the consumer.
In this project, I examined the growth of the food aggregator industry. I also have
examined the business model Zomato follow and its effect on the conventional
restaurant business in India. This study aims at the behaviour of customers
towards online food delivery platforms that are fast changing the food retailing
landscape across India. Hence, the study focuses on exploring the drivers of
consumer behaviour towards online food delivery app Zomato.
.
TABLE OF CONTENTS
Description Page no.
Declaration by the student ii
Plagiarism certificate iii
Certificate of originality iv
Acknowledgement v
Abstract vi
List of tables viii-ix
List of figures x-xi
Chapter 1.Introduction 1-8
Chapter 2. Research design 9-16
Chapter 3. Profile of the company/organization 17-37
Chapter 4. Data analysis and Interpretation 38-64
Chapter 5. Summary of findings, conclusion and suggestions 65-67
Bibliography
Appendix (questionnaire)
LIST OF TABLES
Table no. Description Page no.
1.2.1 History of online food industry 4
1.5.1 Projected global food delivery app value 7
2.6.1 Methodology 14
3.1.1 History of the company 18
3.1.2 Team of Zomato 19
3.3.1 Funding 21
3.4.1 Acquisitions 24
3.8.1 Zomato’s STP 28
3.9.1 Revenue of Zomato 31
4.1.1 Analysis of Gender 38
4.1.2 Analysis of age group 39
The customer will search for a favourite restaurant, which is usually sorted by type
of food and selected from the available items, and then choose delivery or
delivery. Payment can be done by credit card, debit card, online payment apps
which are using UPI like Phonepe /Paytm/ Google Pay, or by cash, where the
restaurant returns a percentage to an online food company.
Revenue includes the Gross Merchandise Value (GMV) that is defined as the total
value of the sales in dollars / food sales in the online food delivery market.
1
Online food
delivery
Online food delivery consists of services that deliver ready-to-eat meals and
online- ordered meals for direct use. The restaurant-to-consumer delivery system
includes food delivery directly by restaurants. Orders can be placed on platforms
or directly through a restaurant website.
The first order of food online was pizza from Pizza Hut in 1994. The first online
food order service provider was World Wide Waiter (Waiter.com), which was
launched in 1995. The site was originally operated only in northern California and
later expanded to more cities in the United States.
By the end of the 2000s, large pizza chains had developed their own mobile apps
and began making their businesses 20-30% online. With expanded smartphone
penetration and the rise of both Uber and the shared economy, the introduction of
food delivery began to gain more attention. In 2015, online orders began to
outperform phone orders. The rise in alternatives for some simple home-cooked
food and visiting restaurant has caused worldwide revenues in the online food
delivery segment to nearly double since 2017. This figure is expected to reach
about 97 US billion dollars worldwide by the year 2024.
Month Organizat
Year Event type Details
and date ion type
Restaurant
Zomato was founded in India.
search and
2008 July Launch Now it is a leading and popular
discovery
restaurant discovery service.
service
Food
delivery Hello Curry was launched
2014 January Launch
and in India.
restaurant
Online
Indian company Dunzo was
2014 July Launch food
launched.
ordering
Zomato
Swiggy
Foodpanda
Domino's
KFC
Faasos
i. Revenue in the online food delivery industry was 94.385 billion US dollars
in 2019. It is estimated that the CAGR from 2019 to 2023 of 9.3 %,
resulting in a market volume of 164.49 billion US dollars by 2023.
ii. The market’s largest segment is restaurant-to-consumer delivery, which
figures to $58 billion in 2019.
iii. The global food delivery mobile app market is expected to hit $16.6 billion
by 2023, a compound annual growth rate of 27.9 percent according to a
report by Allied Market Research,
iv. Clearly, the segment is growing and as per a report by wealth management
and equity research firm UBS, it’s estimated that global online food
ordering will expand to $365 billion by 2030.
1.5.1 Global Food Delivery App Funding
There have been peaks and mishaps over the past five years, which is reflected in
how investors feel about the industry in general. In 2016, profit margins have
reduced investment to the lowest level since 2011.Market integration in the US
and Europe and market maturity will lead to a reduction in Western spending,
although South America, Africa and Asia are still ready for investment.
India’s food supply market is projected to hit $12.53 billion by 2023 following a
high growth rate, according to a recent Data Labs report by Inc42. Compared with
the global growth rate of 9.01%, the online food delivery market is growing by
15%, the report said.
A total of $ 5.24 billion was earmarked for Indian start-ups between 2014 and H1
2019, 56% of which were the start of food technology, the report said. The
implementation of food technology provided 42% of the total number of consumer
services between 2014 and 2018.
Swiggy and Zomato-sponsored Naspers with deep pockets and Ant Financial,
respectively, are leading the Indian food delivery market. While Swiggy has so far
raised nearly $ 1.5 billion, Zomato has raised nearly $ 800 million so far.
Earlier this month, Zomato said revenue increased by about 225% to $ 205 million
a year in the six months to September 2019. Delivery of most food-generating
food
- about 75% (according to Zomato's FY19 annual report) saw about -290% jump
respectively to H1FY20 compared to last season.
The cloud kitchen market has the potential to reach 1.05 billion dollars by 2023.
Rebel Foods which operates online kitchen product Faasos has seen a 67.34%
increase in annual earnings up to March 2018 from FY17. It now has 1,100 online
restaurants in 15 cities across India from 250 renovations over the past two years.
The total revenue generated in FY18 stood at Rs 149.04 crore compared to the
revenue of Rs 89.06 crore reported in FY17, according to documents obtained
from the Tofler intelligence forum. The company currently has 176 cloud kitchens
in 15 cities and also owns brands, such as Behrouz Biryani and Oven Story.
2. RESEARCH DESIGN
2.1 Literature Review
2. Raina, Ashish, and Rana, Varinder and Thakur, Arun. (2019). “Famous
foodservice and delivery services - A comparative study between Zomato,
Swiggy, and Uber Eats in Ludhiana”. This paper aims to study the opinion of
customers ordering food through online food delivery apps. Zomato, Swiggy, and
Uber Eats in Ludhiana. The study focused on people already using the above-
mentioned food delivery applications. A study was conducted with the aim of
analysing the various characteristics of all three applications to conclude that
among the three applications there is the most complete satisfaction with
customers ordering online food in Ludhiana.
6. Selvan S.C.B, Samuel & Anita, Susan. (2019). “Emerging Trends towards
Online Food Delivery Apps in India”. The paper states that as the demand for
application delivery services grows in the major cities of India, a growing trend is
also evident in smaller cities. It has therefore become a necessity for online food
delivery service providers to find options and ideas for consumers to enable them
to meet expectations. Through this research, it analyses the history, current
situation, and potential future developments to help online food delivery services
create better strategies to improve sales and increase customer base.
7. Saad, Ahmed Tausif. (2020). “Factors affecting online food delivery service
in Bangladesh: an empirical study”. The main idea of this paper was to
dynamically evaluate factors that affect consumer preferences while ordering food
online. The aim was to assess consumer behaviour in the emerging business of the
online food delivery business in Bangladesh. Results show delivery time, service
quality, price, and status of food delivered as factors make it the first thing that is
considered to have a direct impact on the success of online food delivery. The
variety and number of restaurants, menu, delivery tracking service, and attitude of
the person delivering are found to be secondary and are considered indirect
factors.
8. Panse, Chetan & Rastogi, Shailesh & Sharma, Arpita & Dorji, Namgay.
(2019). “Understanding consumer behaviour towards utilization of online
food delivery platforms”. The main purpose of this study is to provide a broader
relationship between consumer conditions in relation to online food ordering. This
study has received extensive research on key data collected in a questionnaire with
online food delivery platforms and customers based on their knowledge, attitudes,
opinions, and needs for online food delivery services. In this research paper,
researchers examined the growth of the food integration sector. Investigators also
examined the business model followed by these companies and their impact on the
typical restaurant business in India. This study aims to target consumer behaviour
towards online food delivery platforms that are rapidly changing the food market
in India. Therefore, the study focused on testing drivers for consumer behaviour in
relation to online food delivery apps.
10. Li, Charlene & Mirosa, Miranda & Bremer, Phil. (2020). “Review of
Online Food Delivery Platforms and their Impacts on Sustainability”. This
review presents the most recent research in the field, revealing the potential for
positive and negative impacts. From an economic point, while online FD provides
job & market opportunities, it has been criticized by the high commission for
charging restaurants and questionable working conditions for delivery. From a
social point of view, online FD affects the relationship between consumers and
their diet, as well as influencing the effects on public health and road systems.
Environmental impacts include significant waste generation and its high carbon
footprint. Going forward, participants need to look at how to reduce the best and
develop the positive effects of online FD to ensure it is maintained in every way.
11. Prajapati, Bhavna & Goswami, Arijit & Agrawal, Archa. (2020). “A
Study on social media as a promotional tool for food ordering companies and
its impact on customers”. This paper studies the impact of personal profiles on
online food delivery services and how these companies use social media as a
promotional tool. This paper also finds the impact of social media on promoting
food delivery companies. 179 selected food app users were selected. It has been
found that most respondents know and use these apps, derive the benefits of these
apps, order regular meals, some items they consider to be the most important in
the app, this study will help the marketer understand Instagram, YouTube, and
Pinterest.
An online food ordering system like Zomato enables a consumer to order their
food requirements from any preferred restaurant located locally through some
mobile applications using the internet. It provides consumers with a varied choice
of different food varieties made available by the different types of restaurants
operating locally. This system is enabled by the Internet, where customers visit the
restaurant's website or app, of browser.
Delicious food can be served with an online food ordering system that helps the
company to acquire new customers. With several dishes having regional foods on
the menu will enable it to get the traditional customers even. All these features
have attracted many customers to the system which in turn has made many new
companies offering online food ordering services to enter into the business.
Hence, the present study is to understand the customer’s perception, needs, and
views and to take adequate measures to improvise the same in Zomato's services.
Costumers have specific needs and expectations with respect to their food. The
changes in the Indian population more individuals stay in different cities for the
purpose of studies and employment and the busy schedules of both the husband
and wife in the family, the demand for online food ordering has developed and
gone up steadily, so to match the demand, many food delivery service providers
are there in the market.
The study is basically conducted to know how consumers perceive Zomato. The
perception of consumers may vary under different circumstances. From this study,
we may have a better understanding of the online food delivery process of Zomato
and will get to know the variables affecting the customer's perception. Therefore,
these findings may help the service providers to work upon these variables to fill
up the gaps in the mind-set of consumers.
2.6 Methodology
2.7 Data
Collection
The primary data will be collected from the people who are the customers of
Zomato. Data will be collected by taking the answers for the prepared
questionnaire related to the project through Google forms and it will be analysed
later through various analytical tools.
2.7.1 Sources of Data
a. Close-ended questions
b. Likert scale questions.
2. Secondary data: The secondary data will be collected by various sources like
Research instruments are the measurement tools used to obtain information on the
topic of the research. The questionnaire is taken as the research instrument in this
study. The questionnaire is a set of questions that have been prepared to ask a
number of questions and collect answers from respondents relating to the research
topic. Here a structured non – disguised questionnaire is used as a research
instrument for the collection of primary data. These questions would help in
carrying out a detailed study on the proposed topic. The type of questions used is
close-ended.
2.8 Sampling
2.8.1 Population
The population is a set of all the units that include all the research interests of the
researcher. Here in this study, the population is the people who are the users of
Zomato for food ordering.
The data collected from primary sources through questionnaires and secondary
data through various sources like newspapers, magazines, the internet, etc. will be
analysed by using Microsoft-Excel. Percentage analysis will be done and represent
in the form of graphs and charts.
Zomato is a restaurant search and finding app and website, which provides in-
depth information about restaurants. Zomato is used by consumers around the
world to find, rate, and review restaurants, and to create their own network of
foodies with reliable recommendations. In addition to searching and finding
restaurants, it has expanded its offering to include online ordering, table booking,
the White label platform, and the Point-of-Sale program, enabling technology to
connect restaurant businesses and customers.
3.1.1 History
Deepinder Goyal & Pankaj Chaddah are the founders of online food delivery
company Zomato. They are both IIT graduates and worked with Bain & Co
Company in Delhi before coming together to launch Zomato. It all started when
the founders, Deepinder Goyal and Pankaj Chaddah were in their office in New
Delhi and came across many people who had been waiting a long time just to get
some light card menu. And at that very moment, the idea of finding a solution was
planted in the minds of the duo and that led to the formation of Zomato in July
2008, formerly known as 'Foodiebay'.
They uploaded the soft copies of menu cards to the website. Following this,
everyone in the office started using this which resulted in saving a lot of time for
them. After that, this increased their website traffic and quickly expanded their
website to be available to everyone in the city. When the founders introduced this
website, it was called Foodiebay. And it first started in Delhi, then services were
extended to cities like Mumbai and Kolkata.
With the huge user rate and growth rates that Foodiebay has brought to its
founders, they decided to turn it around and take over the world. And that is where
the business came to be called Zomato, as we know it today. It was in 2010 that
Foodiebay was officially re-launched as Zomato.
People Role
1. Vision-
“Our goal is to change what you eat- Changing how you eat is just a means to an
end”
a. Improving the quality of food
b. Boosting the accessibility for customers
c. Focusing on the affordability
d. Driving the force of assortment
2. Mission-
3. Tagline-
4. Company’s Values-
a. Resilience
The company push themselves beyond their abilities when faced with tough times.
When they foresee uncertainty, they address it only with flexibility.
b. Acceptance
Feedback is never taken personally, they break it into positive pieces and strive to
work on each and every element even more effectively.
c. Ownership
People here don’t work ‘for’ Zomato, they work ‘with’ Zomato. Company treat
every problem as their own, take accountability and drive the change.
d. Humility
It’s always ‘us’ over ‘me’. Zomato don’t lose themselves in pride or confidence
during individual successes, but focus on being simple in every which way.
e. Spark
Zomato believe in, stand for and are evangelists of our culture - both, within Zomato
and externally with all the stakeholders.
f. Judgement
It’s not our abilities that show who we truly are - it’s our choices. In the same way
Zomato aim to get these right, at least in the majority of the cases.
3.3 Funding
While in April 2015, Info Edge India, VY Capital, and Sequoia Capital earned
another US $ 50 million. Then in September 2015, Zomato got US $60 million led
by Temasek, a Singapore -based investment company, and VY Capital.
In October 2018, Zomato raised $ 210 million from Alibaba's paying company
Ant Financial acquired a 10% stake in the company as part of the round, costing
Zomato about $ 2 billion. Zomato also raised an additional $ 150 million to Ant
Financial in early 2018.
In October 2020, as part of a grant for Series J, Zomato raised $ 52 million from
Kora, a US-based investment company.
3.4 Acquisitions
In its 12 years of existence, Zomato has acquired nearly 14 companies. Their latest
acquisition was Uber Eats - India on January 21, 2020. They acquired Uber Eats -
India for US $ 206 million.
The logo has been a source of ownership, identity and over time, it has evolved in
line with the company’s ongoing belief system. The above picture shows the
various logos of the company from beginning i.e. from 2010 (after changed from
Foodiebay to Zomato) to till now with red as a basic colour as their design team
believes that it will attract the customers.
3.6 Competitors
1. Swiggy
Swiggy is one of the top-rated food delivery apps in India. The prospect of
providing all the food on request and delivery arrangements from the nearest hotel
to customers has been raised.
Swiggy is one of the leading food delivery apps for Bangalore and other top cities
in India. This service offers customers who offer from any restaurant that does not
have a small order method and get the price at all the nearby hotels they work
with.
2. Foodpanda
Foodpanda is also a leading online food ordering website and mobile app which is
operating in almost 43 nations across the world as of 2017.The company is
headquartered in Berlin, Germany, and started the service in 2012. The firm has
tied up with almost 40000 restaurants in numerous cities to provide the delivery on
time.
3. Faasos
Faasos is an Indian food ordering app start-up that started in 2011. The app owns
huge customers in top cities of India like Mumbai, Bangalore, and Hyderabad.
Faasos app comfortable runs with Android, iOS, Windows operating systems. The
app provides easy navigation for customers to choose the best available menu for
the order.
4. TastyKhana
TastyKhana is an Indian based Food Delivery mobile app founded by Sheldon
D’souza and Sachin Bhardwaj. It empowers Customers to get moment access to its
database of more than 7,000 eateries crosswise over India. It gives a couple of
choices to give customers a chance to make profiles, spare eatery areas, and their
past requests. Founded in 2007, TastyKhana available for Android and iOS
platforms.
5. Dunzo
Dunzo is also one of the Zomato's biggest rivals. Dunzo was launched in 2014 by
Kabeer Biswas, Ankur Agarwal, Dalvir Suri, Mukund Jha in Bengaluru,
Karnataka. Dunzo is a 24x7 delivery app that delivers anything to your doorstep in
30 minutes. Dunzo also competes in the application software sector. Dunzo
generates US $
393.9 million less revenue than Zomato. The company also operates a Bike Taxi
service in Gurugram.
3.7 Corporate Social Responsibility
Zomato based in Delhi NCR has won Feeding India, a non-profit organization
working to eradicate hunger, malnutrition, and food wastage. Currently, Feeding
India is distributing 1.1 million monthly food, which is a significant increase
compared to the 78.3K monthly food that is said to be distributed in December
2018. The number of fed India-supported cities has also increased from 65 to 82,
while its voluntary numbers (Hunger Heroes) has grown from 8.5K
to 21.5K.
After crossing the $ 1 billion GMV target in October 2018, Zomato now claims to
have a current fare of $ 350 million. The company has reported a threefold
increase in its revenue in 2019, and its costs have tripled in FY19. Zomato was
recently priced at $ 2.6 billion.
Zomato has announced its expansion into 300 cities, serving more than 250
million users in these cities. The company has unveiled these numbers with the
launch of the Zomato Lite app, aimed at urban users of Tier 2, 3, and rural India.
Strength Weakness
SWOT
Opportunity Threat
1. Strengths
Great app design - Zomato has always won awards for its app design and user-
friendliness. The design of the app is great and helps you find restaurants near and
in the area you will visit.
Multiple users - Zomato has a large number of users using their app. At one time,
the site had about 90 million visitors a month. With more users following the app
and the site, there are more updates and as a result more opportunities to find
better restaurants.
Focused approach - The brand has a much focused approach and is always trying
to bring more to its unique offering. It is well connected to restaurants and always
receives feedback from customers and restaurants. This focused approach has also
helped the brand image and reputation of the company.
Good funding is available - Zomato has chosen a lot of money over the years and
because it is now well-established in many countries, there is a lot of funding
available for the app.
2. Weakness
Application security issues - The big issue of Zomato in the past has been some
security issues because the app has been hacked and at least 17 million user data
has been copied. Such security issues are a problem for online companies.
3. Opportunity
Further expansion - The number one opportunity for Zomato to expand to more
countries and establish its base soon. The service industry has a big problem that
services can be copied too quickly and too easily. Because of this, it is important
for Zomato to establish and grow very quickly.
More acquisitions - There are many smaller players in this area. Zomato can find
several of its rivals and at the same time, it has to look at the technology industry
and find any new technologies that can hold its hands to keep growing.
Cloud Restaurants - Zomato comes up with the idea of Cloud restaurants where
restaurants will not need to find a visible place to sell their food products. Instead,
they can sell from Zomato.
Creating a community - Zomato has a great following but users don’t get along.
Building a platform and community from users who are already following Zomato
can be a huge benefit to this product.
4. Threat
Google's blueprint module - One of the significant dangers Zomato faces right
presently is the Schema module of Google wherein google areas itself is getting in
café counsel. Indeed, even the google landing page demonstrates the google maps
page where you can chase for eateries inside your territory. Google being such a
major association, Zomato faces enormous challenges from them.
Zomato in itself does not offer the products to customers but the revenue is huge.
Zomato is not just a food business, as it also an advertising business. Zomato
business has 2 parts, one is the delivery business and second is that they are in the
advertising business. Today, Zomato has various revenue channels besides online
ordering, which most consumers would be familiar with.
Zomato started out as a search for restaurants and rating services. This has brought
in advertising revenue from restaurants that have joined the platform. They also
extend this feature to food delivery and restaurant reservations, as this Zomato
charges commissions from restaurants that require the inclusion of feed.
Advertising is a major source of income for Zomato. Restaurants can promote
their ads on the site to make them look better and attract a larger audience with
Zomato.
2. Food delivery
3. Subscription Programs
The next major source of revenue for Zomato is a subscription fee. Restaurants
pay a certain amount of fee monthly and in return, Zomato offers them the
analytical tools. Zomato has a huge amount of databases that know what a
customer wants to eat, where he/she wants to eat, what the consumers are
searching for, and knows all this information through the cookies. It has a tool
called Zomato order and is given to restaurants, which helps them know about the
consumer's interest. The restaurants then use this tool to flash their discount offers
on food.
Zomato has moved on to the event space in partnership with restaurants and
building limited events. So they sell for the price of tickets. Zomato recently
launched Zomaland, and entered the live event market in 2019. Zomato charges
users access to Zomaland where without food, they can see live music songs, and
more. Zomato also organized a 2018 entertainment festival, in Delhi, Pune, and
Bangalore, where more than 100,000 people showed up.
The next source of funding is app development. Zomato has launched a service
called Zomato Whitelabel under which it offers a specialty in restaurants to
improve the food delivery system. It also works with cloud kitchens and
restaurants for consulting services.
Zomato works with selected restaurant operator staff to assist in identifying the
expansion sites at a limited cost, but with additional useful options. Provides the
necessary licenses and operational requirements of those restaurant partners.
Zomato Pro members will also receive Zomato delivery. It means that any order
placed by a Pro member will jump ahead of the real-time line when you want
Zomato Valet to deliver an order. It will result in orders being shipped at a rate of
15-20% (on average) at peak dinner times. Zomato Pro registration will also come
with a system to ensure a refund. Zomato has claimed that if the subscriber does
not save 2x the Zomato Pro subscription fee during the subscription period,
Zomato will automatically refund the subscription fee by the end of the year.
7. Hyperpure
8. Zomato Kitchens
Zomato firmly believes that their focus on finding a restaurant and simplifying the
full dining experience puts them on the edge of the competition. As Deepinder
Goyal, founder, Zomato, points out, Zomato is driven to constantly improve our
product in space with minimal error. Zomato sees it as a winner-taking everything
and is therefore focused on dominating the competition in its place.
Google Maps
The latest release of Google Maps for desktops includes a list of local restaurants.
It also facilitates restaurant searches and provides photos, reviews, ratings, and
even the floor where the business is located. The advantage of Zomato over Maps
is that Maps have not yet started a menu list.
Local Competition
Global Competition
Yelp- The difference between Yelp and Zomato is that while Yelp publishes
crowd- based updates, organizes community events, and provides basic business
information, Zomato provides information (photos, menus, and local links) and
allows users to create their network of foodies recommendations made
personalized. The total number of unique monthly visitors to Yelp is 139 million,
equivalent to four times the current 35 million Zomato vehicles. In terms of
revenue, Zomato earned $ 6 million compared to Yelp's $ 232 million in 2014.
2. Competitive/Industry rivalry
Foodpanda– Foodpanda who has also acquired TastyKhana and JustEat is a
competitor to Zomato in this market space. But, as per one of the interviews with
Mr. Deepinder Goyal, Zomato doesn’t consider it as a threat because Foodpanda
in spite of being present in the market for 3 years has clocked only 10,000 orders a
day whereas people visiting Zomato has 1, 00,000 searches a day. Zomato’s large
sales team gives an added advantage to Zomato.
Swiggy- Swiggy is a food ordering and delivery company based out of Bangalore,
India. Swiggy was inspired by the thought of providing a complete food ordering
and delivery solution from the best neighbourhood restaurants to the urban foodie.
A single window for ordering from a wide range of restaurants, they have our own
exclusive fleet of delivery personnel to pick up orders from restaurants and deliver
them to customers.
The presence of various competitor apps in the market means that it is easy for the
buyers to switch to other apps like Foodpanda, Swiggy. With improving features,
and upgrades such as food ordering, people may switch to other apps offering
better features. Since it is an easy-to-use online platform, constraints related to
distribution is eliminated. This removes a potential factor for the bargaining of
buyers.
For Zomato the suppliers are the restaurants with which the company makes
collaboration and delivers the food of that particular restaurant to the end
customer. These days there are many online food delivery businesses available in
the market thus, restaurants have the ability to partner with any of the major food
delivery services with fairly low switching costs hence it makes the bargaining
power of suppliers strong.
5. The threat of new
entrants Advanced
technologies
This is another area where Zomato has taken huge strides. As mentioned earlier in
the technical analysis, the app and website are aesthetically beautiful and the
whole experience is enriching! Thus new entrants will have to come up with an
overhaul of the whole strategy as far as application and technological
advancements are concerned. Innovation in technology positively affects Zomato.
Economies of scale positively affect large producers by lowering the cost of the
next unit of output at a lower cost. Thus it is relatively easier and economical for
Zomato to expand at a faster pace. Any new entrant will have to pump in a lot of
investment to challenge Zomato because they will have smaller economies of
scale. However, this is one area where if the new entrant can generate enough
capital they can challenge Zomato on the ground level even though economies of
scale are tilted towards Zomato.
A brand name is a must to survive in the industry. Zomato has been very effective
in the past few years. However, they have been late in entering the ordering
segment and Food Panda has taken effective strides in the same. Thus this threat is
low for Zomato however they need to constantly innovate in different verticals to
ensure that they build on the advantage that they have created.
Food Panda is present in 200 Indian cities and has made huge strides in the recent
past however it is still considerably lagging Zomato in terms of territory covered
as Zomato has a presence not only in a huge number of Indian cities but also in
different countries and they are taking strides very fast. Tying up with restaurants
and getting the information organized in the way Zomato has done is a huge
challenge for any new entrant. However, seeing the pace at which Zomato has
reached out and expanded it seems possible and thus Zomato will have to
constantly maintain that advantage and keep coming out with new and innovative
models.
4. DATA ANALYSIS AND INTERPRETATION
4.1 Demographic Analysis
1. Gender
Male 83 69%
Female 37 31%
Interpretation
The analysis shows that the majority of the population i.e. 69% of the respondents
are male and the rest i.e. 31% of the respondents are female out of 120 total
respondents.
2. Age group
Below 18 0 0%
18-25 82 68%
26-30 23 19%
31-35 9 8%
36-40 3 2.5%
Above 40 3 2.5%
Interpretation
The analysis shows that majority of the population are between 18 and 25 age group
i.e. 68% of the respondents are in that age group. Only 2.5% of the population are
in 36-40 and above 40 respectively.
3. State
Interpretation
From the analysis I come to know that 60.8% of the respondents are from
Karnataka and the next majority of people are from Andhra Pradesh and Kerala
respectively. Only few of the respondents are from the rest of states.
4. Occupation
Student 73 60.8%
Housewife 2 1.7%
Unemployed/Retired 2 1.7%
Married 27 22.50%
Unmarried 93 77.50%
Interpretation
From the analysis I come to know that majority of the respondents are unmarried
i.e. 77.50% of 120 respondents are unmarried and only 27 of 120 people are married
which constitutes only 22.50%.
6. Personal Monthly Income
Monthly Income No. of respondents Percentage
<15000 50 41.7%
16000-30000 17 14.2%
31000-50000 26 21.7%
51000-70000 16 13.3%
71000-100000 7 5.8%
>100000 4 3.3%
Interpretation
From the analysis I come to know that 41.7% of the total respondents
are having personal income of below 15000. 21.7% of 120 people are
having personal income of 31000-50000. Only 4 respondents are
having income more than 100000.
4.2 Analysis of customer behaviour towards Zomato
1. Do you use Zomato for ordering the food?
Yes 98 81.7%
No 22 18.3%
Table 4.2.2 Analysis of from how long the people are using Zomato
Fig 4.2.2 Analysis of from how long the people are using Zomato
Interpretation
From the survey, I come to know that 42 people out of 120 respondents are using
Zomato from last 1-2 years for ordering the food which makes 35% of the total
population.40 respondents are using Zomato from 3-5 years. Only 7 people are
using Zomato for more than 5 years.
3. Why do you use Zomato?
No. of
Options Percentage
respondents
Chinese 24 20.0%
Desserts/Pastries 16 13.3%
Beverages 5 4.2%
Others 3 2.5%
Table 4.2.4 Analysing what type of food people buy from Zomato
Zomato Interpretation
The respondents who involved in the survey states that majority of them i.e. 37.5%
of the population are buying South Indian food. 22.5% of population i.e. 27
respondents out of 120 are buying North Indian food. Only few of the respondents
are preferring beverages.
5. Days you prefer to order food online through Zomato
Weekdays 25 20.80%
Weekend 45 37.50%
Anytime 67 55.80%
Holidays 31 25.80%
Table 4.2.5 Analysing the days which people prefer to order food from
Zomato
Fig 4.2.5 Analysing the days which people prefer to order food from Zomato
Interpretation
From the survey, I got to know that majority of the respondents are always ready
to order food from Zomato i.e. 55.8% of 120 respondents will not prefer the exact
day/occasion to order food. Some of them prefers weekend to order food. Only
20.8% of respondents prefer weekdays to order food from Zomato.
6. Preferred mode of payment in Zomato
3 2.5%
Credit card
16.7%
Debit card 20
5 4.2%
Net banking
24.2%
Cash on delivery 29
63 52.5%
UPI apps
100.0%
Total 120
respondents Interpretation
Majority of the respondents are preferring digital mode of payments in Zomato. It
may be through UPI apps (Paytm, Phonepe, Googlepe, etc.) or from debit cards. It
accounts 52.5% and 16.7% respectively. Only 29 respondents out of 120
respondents prefers Cash on delivery (COD).
7. Zomato can deliver the food at any location
Disagree 48 40.0%
Neutral 22 18.3%
Agree 27 22.5%
Table 4.2.7 Analysing that can Zomato deliver food at any location
location Interpretation
It is clear from analysis that people disagree for the statement “Zomato can deliver
food at any location”. 40% of the respondents disagreeing the statement and only
2.5% of the total population are strongly agreeing that Zomato can deliver food at
any location.
8. The food that we ordered from Zomato was fresh, tasty, safe,
and hygienic in a temper proof packing
Disagree 5 4.2%
Neutral 17 14.2%
Agree 82 68.3%
Disagree 35 29.2%
Neutral 34 28.3%
Agree 43 35.8%
Disagree 11 9.2%
Neutral 55 45.8%
Agree 51 42.5%
Table 4.2.10 Analysing that the Zomato was value for money
money Interpretation
From the survey, I come to know that 55 out of 120 respondents and
51 out of 120 respondents are neutral and agreeing that the food
ordered from Zomato was value for money respectively, which
constitutes 45.8% and 42.5% of the total population.
11. Rate the delivery speed of food from Zomato
2(slow) 24 20.0%
3(medium) 53 44.2%
4(fast) 24 20.0%
Delivery speed
60
50
40
30
20
10
0
1(very slow) 2(slow) 3(medium) 4(fast) 5(very fast)
2(low) 5 4.2%
3(medium) 32 26.7%
4(high) 54 45.0%
Delivery charge
60
50
40
30
20
10
0
1(very low) 2(low) 3(medium) 4(high) 5(very high)
Interpretation
From the analysis, I come to know that the delivery charge of Zomato is high.
45% of the total population are telling that delivery rate is high and 46.7% of the
respondents are telling that the delivery charge is medium.
13. Rate the design of the app/website
2(poor) 6 5.0%
3(medium) 21 17.5%
4(good) 54 45.0%
Design of app/website
60
50
40
30
20
10
0
1(very poor) 2(poor) 3(medium) 4(good) 5(very good)
Yes 13 10.8%
No 77 64.2%
Maybe 30 25.0%
Table 4.2.14 Analysing the risk of sharing debit/credit card details with
Zomato
Fig 4.2.14 Analysing the risk of sharing debit/credit card details with
Zomato Interpretation
From the analysis, I come to know that the majority of the respondents i.e. 64.2%
of the population feels that there is no risk of sharing bank details and debit/credit
card details with Zomato. Only few i.e. 10.8% of the population feels there is risk
of sharing details with Zomato.
15. Compare to others, Zomato has a good choice of restaurants
Options No. of respondents Percentage
Disagree 3 2.5%
Neutral 21 17.5%
Agree 68 56.7%
Table 4.2.15 Analysing that Zomato has good choice of restaurants than
others
Fig 4.2.15 Analysing that Zomato has good choice of restaurants than
others Interpretation
Out of 120 respondents, 68 of them are agreeing that Zomato has good choice of
restaurants than others, who compute 56.7% of total population. 17.5% of
population are neutral about the statement. Only 2.5% of the population are
disagreeing the statement.
16. Rate the marketing techniques and advertisements used by
Zomato to attract and retain the customers
2(poor) 4 3.3%
3(medium) 24 20.0%
4(good) 52 43.3%
Marketing techniques
60
50
40
30
20
10
0
1(very poor) 2(poor) 3(medium) 4(good) 5(very good)
Zomato Interpretation
The analysis shows that the people or respondents are satisfied with the marketing
techniques and ads to attract and retain the customers. 43.3% of the population
says that the marketing techniques are good and 31.7% of them are saying
marketing is very good. Only 1.7% of them say that the ads are very poor.
17. Why do you prefer Zomato over others?
Others 3 2.5%
others Interpretation
From thee analysis, I come to know that majority of the people i.e. 46.7% of the
population prefer Zomato because it has more choice of restaurants. Also, 17.5%
of the population prefer Zomato because there is ease of convenience.
18. Problem(s) faced by you when using Zomato
Options No. of respondents Percentage
Table 4.2.18 Analysing what are the issues faced when using Zomato
Fig 4.2.18 Analysing what are the issues faced when using
Zomato Interpretation
As per the analysis, I come to know that late delivery, payment issues, food
quantity are the major issues/problems faced by 45%, 37.5%, 40% of the
population respectively.
19. What are the factors that are restraining you from using
Zomato?
Unaffordable 26 21.7%
Table 4.2.19 Analysing the factors that are restraining to use Zomato
Fig 4.2.19 Analysing the factors that are restraining to use Zomato
Interpretation
People who are cooking themselves or who prefer homely food prefer not to use
Zomato. Also the people with health concern will avoid using Zomato.
20. Will you stop using Zomato if a similar online app gives more
discount/offers on food?
Yes 52 43.3%
No 29 24.2%
Maybe 39 32.5%
Interpretation
From the analysis, I feel that there is no brand value for Zomato among the
respondents. Because, 43.3% of the respondents said that they will stop using
Zomato if a similar online food delivery application gives more discounts or
offers on food.
21. Which online food delivery app(s) will you prefer other than
Zomato?
Swiggy 90 75.0%
Dunzo 18 15.0%
TastyKhana 22 18.3%
FoodPanda 33 27.5%
JustEat 26 21.7%
Interpretation
From analysing the responses from population of 120, 90 of them prefer Swiggy as
the alternative for Zomato.
5. SUMMARY OF FINDINGS, CONCLUSIONS
AND SUGGESTIONS.
5.1 Findings
81.7% of population i.e. 98 out of 120 respondents are using Zomato for ordering
the food and left 22 people do not use Zomato for ordering the food which
accounts 18.3% of the total population.
Majority are using Zomato only for ordering food and some are using it for
comparing prices in different restaurants. Only few know about event called
Zomaland. 37.5% of the population are buying South Indian food. 22.5% of
population i.e. 27 respondents out of 120 are buying North Indian food.
Above 68.3% of the total sample population are agreeing that food that they are
ordered from Zomato was fresh, tasty, safe and hygienic in a temper proof
packing. Only a few of them are disagreeing for the statememt.
There is a mixed opinion from the respondents regarding the statement “The food
in the parcel was in good quantity and equal to the same as in the restaurants”.
35.8% are agreeing, 29.2% are disagreeing and 28.3% of the population are
neutral about the statement. 55 out of 120 respondents and 51 out of 120
respondents are neutral and agreeing that the food ordered from Zomato was value
for money respectively, which constitutes 45.8% and 42.5% of the total
population.
44.2% of the population are saying that the delivery speed is neither fast nor slow.
20% of the population are saying that the delivery speed is slow and same
percentage telling that it is fast. 45% of the total population are telling that
delivery
rate is high and 46.7% of the respondents are telling that the delivery charge is
medium.
45% of the population telling that the design is good and 31.7% of the population
even saying that the design is very good. 64.2% of the population feels that there is
no risk of sharing bank details and debit/credit card details with Zomato. Only few
i.e. 10.8% of the population feels there is risk of sharing details with Zomato.
Out of 120 respondents, 68 of them are agreeing that Zomato has good choice of
restaurants than others, who compute 56.7% of total population. 17.5% of
population are neutral about the statement. Only 2.5% of the population are
disagreeing the statement.
43.3% of the population says that the marketing techniques are good and 31.7% of
them are saying marketing is very good. Only 1.7% of them say that the ads are
very poor. 46.7% of the population prefer Zomato because it has more choice of
restaurants. Also, 17.5% of the population prefer Zomato because there is ease of
convenience.
Late delivery, payment issues, food quantity are the major issues/problems faced
by 45%, 37.5%, 40% of the population respectively. 43.3% of the respondents
said that they will stop using Zomato if a similar online food delivery application
gives more discounts or offers on food.
5.2 Suggestions
As people using Zomato only for ordering food online. It should increase number
of food blogs and food reviews. Also, they should market their event Zomaland
even in a better way to attract customers.
The company should focus on the days on which people do not buy the food and
make sure that they bring the customers to their website for ordering the food by
giving them some coupons/offers.
They should also focus on improving and avoiding the glitches when using the
website and apps maybe in terms of sever or ease of convenience. Also they
should make sure that there is minimum steps involved when ordering the food
online.
It should make sure that the company can deliver the food anywhere in the city, so
that it can reach more and more customers. Also the quantity should be same as
provided in the restaurant. The delivery speed can be increased by increasing in
their number of staff. Also, they should decrease their delivery charge. Also they
should tie up with more food places so that the customer should feel that he has
nearby food places and restaurants.
5.3 Conclusion
With the advent of the e-commerce boom in India, Indian consumers are to be
seen their life being touched by e-commerce in almost every vertical from online
shopping to ticket bookings, healthcare, etc. One of such verticals is the e-food
industry, which has very efficiently utilized the e-commerce platform in the online
food review and food ordering business. This is vertical, which has brought almost
every restaurant in India under a single roof in the hands of the consumer.
As per the study the consumer’s perception and decision making variables
regarding ordering food from Zomato vary from individual to individual and the
perception is limited to a certain extent with the quality of services, choices of
restaurant, quality of food delivered, help services, quality and easiness of website
and application.
The results of this study provide good support for the relationships between
consumer perceptions of service, product quality, product freshness, easiness of
site, and their continued loyalty to the brand Zomato.
Efficiency, security, and processing of website and application are the factors with
which the consumers are satisfied and these factors make a positive impact on
consumer decision making while purchasing food online via Zomato.
The study reveals that mostly the youngsters who are students are attached to the
online food ordering through Zomato and the majority of them found the delivery
charges medium. As analysis, trustworthiness, delivery, design of website and
application, quality of the information provided in the website and application is
found to exert a significant positive influence on service quality of Zomato.
Bibliography
Books
Websites
1. www.zomato.com
2. https://www.researchgate.net
3. https://en.wikipedia.org/wiki/Zomato
APPENDIX
A study on consumer perception towards Zomato
*Required
1. Name *
2. Gender *
Female
Male
3. Age *
Below 18
18-25
26-30
31-35
36-40
Above 40
4. State *
5. Occupation *
Student
Business/Self Employed
Private Employee
Government Employee
Housewife
Unemployed/Retired
6. Marital Status *
Married
Unmarried
7. Monthly income *
< 15000
16000 - 30000
31000 - 50000
51000 - 70000
70000 - 100000
> 100000
Untitled section
Yes
No
1 - 2 years
3 - 5 years
North Indian
South Indian
Chinese
Desserts/Pastries
Beverages
Other:
12. Days you prefer to order food online through Zomato *
Week days
Weekends
Anytime
Holidays
Festivals/During offers
Credit card
Debit card
Net banking
Cash on delivery
UPI apps
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
15. The food that we ordered from Zomato was fresh, tasty, safe, and hygienic in a temper proof packing *
Strongly disagree
Disagree
Neutral
Agree
16. The food in the parcel was in good quantity equal which is equal to the same as in the restaurant serving *
Disagree
Neutral
Agree
Strongly agree
Strongly agree
16. The food in the parcel was in good quantity equal which is equal to the same as in the restaurant serving *
Disagree
Neutral
Agree
Strongly agree
17. The food that we are ordered from Zomato was value for money *
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
21. In case if you have an issue with ordered food, whom do you call? *
Restaurant
22. Customer care of Zomato can easily solve your issues by quick responses *
Disagree
Neutral
Agree
Strongly agree
23. It is risky to share bank debit/credit card details with Zomato *
Yes
No
Maybe
Strongly disagree
Disagree
Neutral
Agree
Strongly agree
25. Rate the marketing techniques and advertisements used by Zomato to attract and retain the customers *
1 2 3 4 5
Ease of convinience
Cost efectiveness
Previous experience
Other:
Late delivery
Payment issues
Food quality and quantity
No nearby food places or restaurants
More formalities/steps involved
Server/App/Network related issues
No problems faced
28. What are the factors that are restraining you from using Zomato? *
Quality/Hygiene issues
Health concern
Unaffordable/High prices
29. Will you stop using Zomato if a similar online app gives more discount/offers on food? *
Yes
No
Maybe
30. Which online food delivery app(s) will you prefer other than Zomato? *
Swiggy
Dunzo
TastyKhana
FoodPanda
Just Eat
Other:
1 2 3 4 5
Forms