Company Based Research On

On

Submitted by:
Nishant Soni
Roll: 20459 (Theta)
In Partial Fulfilment for the award of degree
Postgraduate Diploma in Management
Batch: 2020 – 2022
Specialization: _______________ and ________________

New Delhi Institute of Management

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 50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: placement@ndimdelhi.org Website: www.ndimdelhi.org

Introduction
Zomato is an Indian restaurant aggregator and food delivery initiative initiated by Deepinder
Goyal and Pankaj Chaddah in 2008. Zomato provides details, menus and user reviews of
restaurants and food delivery options from partner restaurants in selected cities. Zomato also
started the delivery of food with the advent of COVID-19. As of 2019, the service is available
in 24 countries and more than 10,000 other cities. Zomato was formed as Foodiebay in year
2008, and fixed as Zomato on January 18, 2010 as Zomato Media Pvt. Ltd. In 2011, Zomato
spread across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata. Business
expanded in United Arab Emirates, Sri Lanka, Qatar the United Kingdom, the Philippines
and South Africa in year 2012. And in New Zealand, Turkey, Brazil and Indonesia, with its
website and applications available in Turkish, Portuguese, Indonesian and English in the year
2013. In April 2014, again expanded its operation in Portugal, followed by launches in
Canada, Lebanon and Ireland in 2015. In 2019, Zomato acquired a spoonful of food based in
Seattle, which led to the company's entry into the United States and Australia. With the
launch of. xxx domains in 2011, Zomato also launched zomato.xxx, a site dedicated to food
porn. In May 2012, it launched a printed version of the website called "Citibank Zomato
Restaurant Guide," in partnership with Citibank, but it has been phased out. Zomato has also
made a name for itself with its digital marketing expertise. In February 2017, Zomato
announced plans to launch the services of Zomato Infrastructure, a service to help restaurants
increase their presence without incurring certain costs. In September 2017, Zomato said the
company had "turned to making a profit" in all 24 countries where it operated and introduced
a "zero-commission model" of partner restaurants. Towards the end of 2017, Zomato stopped
receiving updates from its non-presidential users to verify and update them. App users have
reported problems with new order payment features. Zomato reduced its losses by 34% to 9
389 crore in the 2016-17 financial year, from ₹ 590.1 crore last year 2015-16. In September
2019, Zomato fired about 10% of its staff (540 people) who are responsible for performing
back-end operations such as customer service, vendor and delivery support services. In April
2020, due to an increase in demand for online food during the COVID-19 epidemic, Zomato
launched its Zomato Market food delivery services in 80+ cities across India. In April 2020,
Zomato introduced Contactless Dining to prepare for land closure. In this step, the company
aims to reduce customer contact and anything else that someone else may have touched on,
by eliminating the use of more sensitive items such as menus, ordering, and billing through
bar codes or an app while employees wear masks. In May 2020, Zomato retrenched 520
workers as a result of the COVID-19 epidemic. Apart from the fact that the demand for food
delivery services in restaurants and bars has increased, Zomato's reason for deciding that he
needs to cut short is that coronavirus will be followed by economic downturns, which could
affect orders. In August 2020, Zomato recommended the introduction of a temporary leave
policy, allowing female employees to take up to 10 days a year if they are unable to work due
to the health effects of the menstrual cycle. The policy also applies to transgender employees.

Investments
Zomato's Food Delivery App saved about US $ 16.7 million in Info Edge India, giving Info
Edge India a 57.9% stake in Zomato between 2010 and 2013. In 2013, Zomato withdrew
another US $ 37 million from Sequoia Capital and Info Edge India. In November 2014,
Zomato completed another US $ 60 million grant with a backlog of US $ 660 million. . While

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in April 2015, Info Edge India, Vy Capital and Sequoia Capital earned another US $ 50
million. Another $ 60 million was taken from Temasek, a Singaporean state-owned
investment company, and Vy Capital in September. In October 2018, Zomato raised $ 210
million in Alibaba's company that paid to Ant Financial. 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 September 2020, Zomato raised $
62 million at Temasek, after a capitol that had previously committed to Ant Financial never
materialized. In October 2020, as part of a grant for Series J, Zomato raised $ 52 million from
Kora, a US-based investment company.

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 Overview
Zomato comes under the Online Order Retail business. Online food ordering is the
process of ordering food from a website or other application. The product can be either ready-
to-eat food (e.g., direct from a home-kitchen, restaurant, or a ghost kitchen) or food that has
not been specially prepared for direction consumption (e.g. vegetables direct from a
farm/garden, frozen meats. etc.)

Competitors of Zomato
1. Just Eat: Just Eat is an online food order and delivery service. It acts as
an intermediary between independent takeaway food outlets and customers.
According to their website, it is headquartered in London, England and operates in 13
countries in Europe, Asia, Oceania, and the Americas. Founded in Kolding, Denmark,
the platform enables customers to search for local takeaway restaurants, place orders
and pay online, and to choose from pick-up or delivery options.
It was listed on the London Stock Exchange until it was acquired by Takeaway.com in
February 2020, the two companies were merged into Just Eat's parent company, Just
Eat Takeaway.com, which replaced Just Eat's listing on the London Stock Exchange.
2. Swiggy: Swiggy is India's largest and highest-valued online food ordering and
delivery platform founded in 2014. Swiggy is based in Bangalore, India, and as of
March 2019, was operating in 100 Indian cities. In early 2019, Swiggy expanded into
general product deliveries under the name Swiggy Stores.
In September 2019, Swiggy launched instant pickup and drop service Swiggy Go. The
service is used for a diverse array of items, including laundry and document or parcel
deliveries to business clients and retail customers.
3. Lime Tray: Lime tray takes restaurants online. It is a young product focused start-up
which provides web-presence and online marketing solutions to F&B businesses. All
thanks to Lime Tray the restaurants don’t need a middleman app to get orders because
we make a personalised app and website for them to function smoothly. We not only
make the road the easier for them but also make their presence felt around. From
handling the backend to marketing the business we do everything. LimeTray is
defined by our insistence on providing an unparalleled customer experience. All of
our team members are charged with bringing creativity, honesty, and intellectual rigor
to their responsibilities in a never-ending quest to delight our customers. We have
high expectations of each other and work as a team to build things we are all proud of.
That mind-set, along with our execution, has allowed LimeTray to have about 1200+
clients in a short span of time.
4. Dunzo: Dunzo is an Indian company that provides delivery services
in Bengaluru, Delhi, Gurugram, Pune, Chennai, Jaipur, Mumbai and Hyderabad. The
company also operates a Bike Taxi service in Gurugram. It is headquartered in
Bengaluru, India. In 2017, it was funded by Google. It was founded by Kabeer

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 Biswas, along with Co-founders Ankur Agarwal, Dalvir Suri, and Mukund Jha, in
2014.
5. Fassos: Fassos is an Indian "food on demand" service that was incorporated in 2011. It is
one of the brands owned by the online restaurant company, Rebel Foods.Faasos operates
in Dubai and 34 of the largest cities in India and takes customer orders via its mobile app and
website. It is the only vertically integrated food business in India and operates all three stages
of a "food on demand" business: ordering, distribution and order fulfillment.Faasos receives
10,000 orders a day across India and has recorded a growth rate of 20-25 per cent month-on-
month.

Scope & Impact of the Industry on Indian Economy

Online food delivery has emerged as one of the fastest advances in the e-commerce space.
The industry has changed the whole attitude towards the food industry as consumers now
have the right to choose from a wide variety of kitchens, anywhere, anytime at the various
restaurants listed online. In addition, customer
flexibility in a way that does not have a low
order amount and various payment options such
as online banking, digital wallets and cash
delivery delivery has improved the usability of
all customer categories. The proliferation of
cities with easy access to smartphones has
accelerated the growth of the online food
delivery system. The share of India's online
food business reached as high as USD 750
million in 2017, registered YOY revenue
growth of 150% (2016 and 2017) and growth in a separate CAGR of about 140% from the
year -2014. The online food delivery model was generally banned in restaurants, enabling
customers to order food online through their websites. This has changed with the emergence
of the concept of a'regregator model 'model, in which a business player offers a' single 'online
window, enabling customers to order food online from a variety of restaurants registered on
the portal. The aggregator collects a fixed
line of paid orders for a restaurant and, in
turn, handles the actual delivery of the
food itself. However, the business model
of the food delivery industry then quickly
changed to a stage, where aggregators
brought food delivery, thus causing
disruption to the market. The focus has
shifted only from technology to imports,
which serve as major drivers of sector
costs. Let’s take a look at a few online
food delivery aggregators leading the
Indian market. Zomato leads the online food delivery business with sales of nearly INR 3.33

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billion, followed by Swiggy at INR 1.33 billion and Foodpanda at INR 0.62 billion, since
2017. The main reason for the high price of Zomato is the number of restaurants listed, ~
50,000. This is followed by Swiggy at ~ 35,000, Foodpanda and Uber Eats at ~ 15,000 and ~
12,000 respectively. Although, Uber Eats has just set foot in the country a few years ago, it is
moving at a growth rate of about 50% per month and has seen its orders almost double in the
last 3 months. The future of the online food delivery industry in India can be compared to the
high investment that affects big players Zomato and Swiggy, who have received huge
investments from foreign investors. Zomato's estimate reached $ 1.1 billion with an
investment of $ 200 million from Ant Financial. Investment is expected to improve its
technology and expand its global presence. On the other hand, a competition close to Zomato
Swiggy is not far behind in terms of revenue from Chinese e-commerce company Meituan-
Dianping and its existing investors Naspers worth $ 100 million. This will strengthen its
market position, new services and product offerings. In addition, food delivery company
Foodpanda has entered into a $ 200 million agreements with Ola, who acquired India's
Foodpanda projects to help it grow internally.
Currently, monetization is focused on a few
major cities. According to RedSeer's analysis,
the top 5 cities across India have contributed
more than 85% of the total food orders
(2017), with Bangalore leading with 32%
shares, followed by Delhi NCR with a 20%
share. The graph below shows the allocation
of the top 5 cities for online food orders in
India. Bangalore, Delhi NCR, Mumbai, Pune
and Hyderabad have contributed about 40% of the total purchase price of India's e-tailing
industry as a whole. If one continues to analyze the trend in the top 5 cities leading the online
food delivery business in India that reveals that Mumbai has the largest number of sites sold
to online delivery partners, followed by Delhi NCR. In terms of online orders per internet
user per month, Bangalore has the highest percentage at 37%, Pune trailing by 23%. In
addition, Delhi NCR has the highest number of online delivery players at 60, followed by
Bangalore and Mumbai at 50 and 38 respectively. The mass collection of high-waste working
people and easily accessible internet centers in these major cities has helped to boost the
growth of the online food industry in India. In addition, the increasing number of women
employed in large companies in these areas has led to an increase in online orders. These are
the main reasons for food security being concentrated in these cities. However, this also
means that there is great potential for further expansion in other cities over time. Although
the online delivery business in India has seen rapid growth and the industry as a whole is
expected to reach $ 100 billion by 2020, the rate of entry compared to other major world
economies is still small. India is in the process of expanding with only 2% of the share
(online orders as% of complete delivery orders) in the global online delivery business, while
the United Kingdom has reached a maturity level with approximately 32% share in the entry
rate of the world. The United States and China fly at about 13% and 11% respectively
(figures are represented in the graph above). The high rate of entry into major developed
countries is due to high disposal costs leading to planned consumer spending, cheaper and
faster delivery, improved delivery, etc. Another reason for low entry rates in India is low
access to internet services standing at only 26% of the more than 1.3 billion people.

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Moreover, as the online delivery market in India is still in its early stages, companies are
struggling to maintain the market by offering competitive prices, discounts and service
delivery reductions

Company Background

Board of Directors

Deepinder Goyal is the Founder & CEO of Zomato. He leads

product development along with overseeing strategy and
leading business expansion.

Gaurav Gupta is the Founder and COO. He has been with

Zomato for four years now and is a part of the core leadership
team driving growth and transformation in Zomato.

Mohit Gupta is the CEO – Food Delivery Business at Zomato.

He has recently joined in Zomato’s long-term vision – ‘better
food more people’ – and is leading the overall business
endeavours for food delivery segment at Zomato

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Gunjan Patidar is the Head of Engineering at Zomato. He
has been a part of the company’s journey since 2008 and
has been building Zomato’s Technology since day 1.

Akriti Chopra is the CFO at Zomato and has been with

the organisation for close to eight years. She started her
journey with Zomato in the Finance team where she was
responsible for setting up and scaling finance processes
for Zomato’s global operations.

Daminee Sawhney is the Vice President, Human

Resources at Zomato. She has been with Zomato for over
seven years now and has played a key role in building
Zomato’s workforce.

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Organisation Structure

CEO - Deepinder Goyal

HR & Operations
CFO - Akriti COO - Gunjan Food Delivery -
- Damini
Chopra Patidar Mohit Gupta
Sawhney

COO - Food
Delivery - Mohit
Sardana

Hyperpure - Himanshu Kalra

Event Head - Chaitanya Mathur

New Products Head - Rahul Ganjo

Development - Nipun Sachdeva

Product & Mgt - Rahul Ganjo

Product & Partnership - Pradyot Ghate

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Products & Services
The company has strengthened its presence in Tier 2/3/4 markets over the past year with its
expansion, but at the same time it is embroiled in a long-standing battle with restaurants to
change its discount-happy ways. Whether this has a deep impact on Zomato’s overall
business is yet to be seen, but the fact is Zomato has opened up many more channels for
revenue through its business model diversification.

Restauran
Zomato t Listings /
Kitchens Advertisin
g

White
Food
Label
Delivery
Access

Live Subscription
Programmes
Events
So
how does Zomato earn its money and what is the company’s business model? Simply put,
Zomato has avoided putting all its eggs in one basket and has divided its resources among
many parts of the business.

International Presence of Zomato

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11 | CBR Marketing
 Identification of product
portfolio
Today, Zomato has multiple revenue channels besides online ordering, which most
consumers would be familiar with.

 Restaurant Listings / Advertising

For its first avatar, Zomato was the only listing platform with restaurant labels. This
brought in advertising revenue from the restaurants that joined the stadium. Adding to
this further after the introduction of food delivery and restaurant reservations, Zomato
now charges commissions from restaurants for the transparency of the feed.
Restaurants can pay to have their events or offers promoted along with its general
banner, which brings improved visibility and flexibility from Zomato users.

 Food Delivery

Firstly, through its food delivery business, Zomato charges a commission on

restaurants as directed. While users pay a delivery fee, Zomato finds out about
restaurants that pay a commission for each delivery, which is then split between the
delivery partner and the company. Commissions from restaurants vary depending on
whether Zomato fulfills delivery or whether the restaurant uses its passengers. This is
said to contribute in a small way to the overall salary of the company due to high
competition and the need for deep discounts etc.

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  Subscription Programmes

With Zomato Gold for consumers and users, and restaurant subscription solutions,
Zomato has opened up a steady income. While users pay a subscription fee to access
the Zomato Gold loyalty program which offers special offers, restaurants also pay a
monthly fee to be part of Zomato’s offerings. Restaurants also charge Zomato a
monthly fee for mixed services such as live tracking, packaging with the Zomato
name and more.

 Live Events

Through Zomaland, Zomato entered the branded live events market last year. Zomato
charges users access to Zomaland, where without food, they can see live music songs
and more. In 2018, it organized an entertainment event in Delhi, Pune and Bangalore,
where Zomato said more than 100K people. This year, Zomaland travels to Pune,
Delhi, Bangalore, Hyderabad, Mumbai, Jaipur, Pune, Chandigarh and Kolkata.

 White Label Access

Zomato also enables services such as the Zomato White label where they offer
specials at restaurants to create a customized 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 user options. Provides the necessary licenses and operational
requirements of those restaurant partners.

 Zomato Kitchens

In order to provide kitchen infrastructure services to select restaurant operators,

Zomato works with entrepreneurs to establish and operate Zomato Kitchens under
different labels. This helps entrepreneurs to fund restaurants in the right place with
INR 35 Lakh investments and more. Zomato claims to provide funds from INR 2
Lakh to INR 4 Lakh per month to investors, with 180+ interactive kitchens already in
place.

Growing in size and size, Zomato has tried to reduce reliance on cash-generating confidence
models and is planning to invest in other consumer revenue streams. Zomato's money
laundering in particular keeps users against its rival Swiggy. However, as it is in the fire line
of deep downward processes, Zomato will soon be able to raise money for other parts of its
business.

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 Launch year of the products

Restaurant Food Subscription

Listings / Delivery Programmes Live White Label Zomato
Events Access Kitchens
Advertising 2 2 2
2 2 2
0 0 0
0 0 0
0 0 1
1 1 1
8 8 7
8 8 5

Profitable Product/ Product

lines
Advertisement (62%)
Zomato had started out as an online restaurant aggregator, and is still earning most of its
revenue from its first business - advertising. Zomato allows restaurants to advertise their
platforms on a sponsored list, and earn more than half of the revenue generated by this
channel. Last year, Zomato had claimed to have made $ 38 million in advertising; this year, it

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said it had increased advertising sales by 20%. That would bring Zomato's advertising
revenue to almost $ 46 million. This represents 62% of the total revenue share in FY18.

Zomato advertising is very specific, when people search for specific words, restaurant ads are
displayed with that keyword. This makes it very focused. This is also hyper local.

When you advertise on Zomato, your ad will appear as an ad on the Zomato app and on the
website. Also, the visibility of your restaurant is enhanced by collections where your
restaurant already appears. Zomato offers promotional ads when customers in your area
search on Zomato. Zomato, as mentioned earlier, provides you with state-of-the-art analytics
tools for you so that you can analyse how your ads work for Zomato.

Food Delivery (30%): Zomato launched its vertical food delivery in 2015. In
its first year of operation, food delivery was only 2% of revenue. Zomato brutally expanded
its food delivery operations since - in FY17, food delivery accounted for 18% of revenue. At
FY18, food delivery contributed 30% of Zomato's total revenue, becoming the second largest
source of revenue for the company.

Zomato Gold (12%): Zomato says Zomato Gold, its loyalty program that
offers users discounts when they visit selected restaurants, has now donated 12% of its
monthly revenue. Given that Zomato Gold was only launched in November last year, its
contribution to the overall earnings of FY18 is likely to fall. But the current income
contribution of 12% means that going forward, Zomato Gold is likely to be a major sponsor
of the company's revenue. Zomato says Gold currently has ~ 160k subscribers, with a list of
waiting people of 500k.

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Competitors Of Zomato

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 Products in which Zomato is not doing
well

Zomato, on its way to a

cloud-based kitchen, is
now committed to
investing $ 15 Mn in
Bengaluru-based Loyal
Hospitality, reports ET.
The first $ 5 Mn has
already been invested in
Loyal Hospitality which
will help its team expand
its operations with stores
by continuing with a
dignified kitchen model.Launched in 2015, Loyal Hospitality aims to close the gap between
formal and informal sectors in the Indian food industry. Provides a platform to reunite
partners in a planned set-up without any investment. The Shadow Kitchen Model is based on
the idea of bringing all the best products of the world to come together to serve customers
through Home Delivery and TakeawayAs stated on the company's website, "It will be under
one umbrella all the themes and kitchens will be available. The main purpose of the Shadow
kitchen is to maximize the quality of products in untouched cities and areas. A significant
increase in Resto is possible under the shadowy kitchen concept."Zomato has confirmed
investment in ET and has continued to close its cloud kitchen operations under Zomato
Infrastructure Services (ZIS). “The purpose of the ZIS was to close service delivery and to
seek vacancies in various small areas across the country. We had one pilot kitchen in Dwarka
and are in the process of completing it, ”said Naina Sahni, VP-Public Relations at
Zomato.Deepinder Goyal, founder and CEO of Zomato laid the foundation for ZIS in
November 2016, when he launched the driver's kitchen in Dwarka, Delhi.

Under the ZIS, each delivery point is said to have four or more types of restaurants placed
together, resulting in shared costs (and, thus, lower); and each restaurant product is reported
to have its own space of 300 sq ft.

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Online restaurant guide and food
ordering firm Zomato Friday said it has
delisted over 5,000 restaurants in
February for non-compliance with
the hygiene standards set by food
regulator FSSAI. Zomato, along with the
Food Safety and Standards Authority
of India (FSSAI), is conducting audit of
all restaurants listed on the platform,
across 150 cities in the country, where it
has presence, said a statement.

According to the company, "it has delisted over 5,000 restaurants found non-compliant with the
standards set by the FSSAI for hygiene".

How can a company identify the

segments that make up a market?

Market Division
Companies that want to gain more than their competitors need to understand their customers
and their unique needs. By serving their customers at a higher level than their customers,
businesses are able to maintain competitive profitability and target new customers. Market
segregation is the identification of different market segments. Separation gives the company
greater power to better meet the needs of its customers. However, not all customers are the
same and each has different characteristics and needs that are not available to any other
customer.

Market Separation Requirements

Some companies ignore market segregation and treat customers equally. When advertising to
their customers, these companies do not refer to specific groups or market segments, but have
one message.
In order for companies to target their marketing, they must identify different components.
Partial identification of components should determine what constitutes a market segment.
There are certain terms that can be used such as accessibility, similarity, classification and
measurement. A good market division will lead to a stage where customers are as similar as
possible within the category, and as diverse as possible between segments.

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Partition of the World
Businesses can build a market share based on geography. Spatial allocation is very helpful for
any business. It helps the company identify and classify the market into categories based on
language, demographics, climate, and lifestyle.

Separation of People
Population segregation consists of market segregation by classification such as age, gender
size, income, occupation, education, religion, race and ethnicity.

Psychographic classification
Psychological divisions divide the market into groups based on social class, lifestyle and
personality traits. Based on the assumption that the types of products and brands of individual
purchases will reflect that person's characteristics and lifestyle patterns. Jobs, interests, and
research ideas are one tool for measuring lifestyle.

Moral isolation
Behavioral classification is based on actual customer knowledge of a particular product, its
use of products, and their responses to specific products. This has the advantage of using a
variable that is very close to the product itself.

Industrial Market Classification

Unlike retail buyers, industrial buyers can be categorized according to a few factors.
Industrial markets can be categorized by factors such as location, type of company and
purchase factors.
When segregating industrial customers, customer location can be used to define a component.
This can be important for shipping and shipping. Customers within a particular region may
have similar needs.
Customers can be categorized by company type. For example, parts can be built based on the
size of the company, the type of industry or the purchase process.
Customer purchase features can define a component. Features such as purchase volume or
purchase history.

Zomato responding to the new challenges

posed by COVID?
None of us could have imagined or planned the world we live in today. The world has
stopped, unfortunately the food industry we are in, is one of the worst. It is at times like this

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that we need to come out of this event and support each other to the best of our ability. At
Zomato, we do everything we can to support our community - our customers, service
partners, restaurant partners, and day-to-day employees who are most affected by these times.
those who need help. Your love and support keep us going.

Here is a summary of everything we do to support our community, and our business at the
moment –

For our customers

Contactless Delivery – amidst the current state of closure in India, ensuring the safe and
clean delivery of food to our customers is of paramount importance to us. To ensure this, we
have introduced wireless delivery. Customers can choose to allow the delivery partner to
leave the package outside their home, ensuring that there is no personal contact and thus
reduces the risk of transmission.

Face masks – we believe that people should wear a mask for the sake of others, otherwise
they do it for themselves. In that spirit, we have distributed and continue to distribute face
masks to delivery partners to keep them, and our customers, safe from the spread of the
unexpected disease. We continue to teach our partners to provide hygienic habits (not to
touch their face, nose, sneeze, etc.) to ensure their own and environmental safety.

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Disabling COD – for safety reasons, to avoid contact between our users and delivery
partners, we’ve temporarily disabled the CoD (cash-on-delivery) option on our app.

• Strict restaurant hygiene standards - we make a concerted effort to ensure that health
standards are followed by restaurants and pass on that information to users so that they can
make informed decisions and be assured of food safety and hygiene standards.
• Restaurants may issue a declaration of compliance with WHO's best practices on their
premises, to take steps to prevent the spread of Coronavirus.
• Restaurants have set up hand washing and cleaning stations and ensure that restaurant staff
and delivery partners use them regularly.
• Restaurants are encouraged to practice the practice of cleaning their clubs and utensils in the
kitchen from time to time.
• Restaurants also check the body temperature of restaurant staff and our food service
partners to ensure that food is not delivered by a person with a normal body temperature.
• Delivery partners are asked to share a daily announcement about their hygiene and health -
normal body temperature, washed masks and bags. We also enforce policies to ensure
hygiene and health standards.

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Food Delivery - We have started delivering food to 80+ cities across India to help provide
basic services. Our country delivery network is only second to the India Post, and we do our
best to ensure that we use it effectively to serve the community. We would like to thank the
government officials, grocery stores, FMCG companies and others who have started working
with us and supporting the community in this work.
• Zomato Gold Extensions - as a small step from our last resort, we have decided to extend
all paid Zomato Gold membership by two months at full cost. This will apply to all of India,
UAE, Australia, Indonesia, the Philippines, Lebanon, Turkey, New Zealand, Portugal and
Qatar.
For our dedicated partners
• Rider Relief Fund - donate money and raise money from the Zomato Rider Relief Fund
community. The fund supports all partners in the delivery of their lowest wages during a
reduced demand for food delivery.
• COVID insurance - we have reassured our service partners that they do not have to force
themselves to work for financial reasons if they are exposed to COVID-19. Zomato’s
Delivery Partner Insurance Plan, which used to include hospitalization only, will now
reimburse for lost expenses, in the event that the presenter is infected with COVID-19.

For our restaurant partners and restaurant staff

• Zomato Gold Support Fund - to assist restaurants that are finding it difficult to support
their employees, we have introduced the Zomato Gold Support Fund. Individual users may
contribute to this cause by purchasing or renewing annual gold membership. All proceeds
from the payment of Zomato Gold in April 2020 will go to support needy restaurant staff and
users will receive an additional year of Gold for free, as a token of our gratitude. This has

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already been introduced in India and the UAE, and will be live on other markets in the next
few days.
• Takeaway - we introduce takeaway in Australia and Portugal, to support state-of-the-art
restaurants and to assist our users, with an hour-long need at these times.
Our needy community - the daily wage workers of India
• Food security - Zomato's goal is 'better food for more people'. And in some unprotected
parts of our country, 'better food' simply means being able to put food on the table.
• Feeding Foundation - Zomato is doing a non-profit thing called the Feeding Foundation
(India, known as Feeding India). The purpose of the Feeding Foundation is to harness our
relationships with the food industry, and for our users to be able to provide food security to
the millions of people at risk of starvation. In the middle of this chapter, we start with the
Philippine Feeding Foundation chapter, called Feeding Philippines.
• Feed the Daily Wager - about 450 million Indians rely on daily wages to support their
families and lose their lives due to unemployment. All these people are hungry and
desperately need someone's support. To help with this, we have launched the “Feed the Daily
Wager” program in India, where we distribute distribution kits to betting communities on a
daily basis. These allotment kits provide 100 meals per family (three meals a day for a family
of five, all week).
• This program is sponsored by people like you - we have been able to increase ₹ 25 crores
for people and companies, and we aim to double the value. If you have not already done so,
please donate to our daily wager supply at http://www.feedingindia.org/donate; many drops
fill the sea - please add your own.
• We have distributed more than 100,000 distribution kits (in the same number of daily
betting families) in more than 20 cities at present. Apart from our major cities, we have now
started distributing these food items to other cities such as Patna, Jhansi, Guwahati, Dehradun
etc.
• We plan to distribute 1M budget kits as part of this program, and we have already secured
the resources to do so.
• Working to feed India is surprisingly humiliating. Here are some pictures and interviews
that will take you there.\\

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 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 citie

How Zomato retain its customers?

A three-pronged product solution to maximize retention

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 1. Promoting customer actions through gamification
2. Group Order (Collaborative Use)
3. Creating a subscription model
The exact strategy to increase retention will depend on the company and the target audience,
the type of problems faced by existing customers (check app funnels, customer support
tickets) dealing with a small amount of transactions and fraud.
I take the example of the Freshmenu app for using techniques.
Guessing
The average price of food is INR 200
In all major cities Freshmenu operates in Bangalore, Mumbai and Delhi (+ Gurgaon), only 30
percent of the population is the highest paid group (local income> 6 LPA) and are able to
order from Freshmenu
This 30 percent is made up of individuals and families (immigrants + migrants) where there
are single people containing 10%
The most targeted Freshmenu team is this one-person team, which works 7-9 hours daily, is
tech-savvy, cooks at home due to time constraints and regularly orders from online sources
daily
70% of total orders come from individuals
The Freshmenu app invites 20% more orders than the web or mobile site.
Strategy 1: Promote customer action with prizes and game design
A game-changer is introduced where the actions of the returning customer are encouraged in
the form of reward points. Only a fixed percentage of salary points can be redeemed as cash
discounts on future orders. Reward points are given to the customer in performing the actions
below.
Downloading the app
Updating profile information (food preferences, age etc.)
Place orders on the Freshmenu app, web or mobile site
How does it help? Hypothesis…
Offering reward points helps build customer loyalty. The customer may be offered to
encourage any action that will aid customer engagement or increase the frequency of repeated
purchases or double the purchase price per customer.Considering where more recurring
orders are placed through the Freshmenu app than a mobile phone or website, the action of
downloading a mobile app can be encouraged.Also, as profile information such as food /
cuisine preferences helps targeted notifications directly and creates the customer experience
itself, the act of updating profile information can be encouraged and reward rewards given.
Elements of the reward points system

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  Post photo
 Different actions will create points for different prizes
 Reward points can be redeemed as a cash discount on future orders.
 However, the discount applicable to one future purchase may be the total amount
available (due to previous actions) or the INR 50 or any less.
 Reward points are valid for a period of one year only.
 Depending on the missing pay points, a different status like Ninja Turtle, Ninja star
and Ninja Daredevil can be assigned to the customer.
 Ninja Turtle: Reward points up to 20000
 Ninja Star: Reward points up to 50000
 Ninja Daredevil: Reward points of up to 100000
Why are reward points better than giving FreshMoney to repeat customers?
 Reward points revive a sense of competition
 Making a game with points will lead to participation and participation
 In all cases, the pay points given are much higher than the actual cash discount. If this
discount is seen directly in the form of FreshMoney, it will not appear significant to
the customer.
Impact measurement metrics
 No customers use reward points
 No for customers who make recurring orders per week
 No customers place recurring orders per month
 Repeat frequency (weekly, monthly)
Strategy 2: Group order - benefits of collaborative use
This feature works by combining orders from people who work or live together (in one place)
with one large order. They all have different food preferences and pay individually but the
order is handled and delivered as one large order.An existing Freshmenu customer should be
able to invite people around him or her by ordering a group. In the event of a successful order
for all invited members (donors), the customer begins to receive a discount and free delivery
to their order.Contributors may or may not have the Freshmenu app and can still go ahead,
select from the menu and pay for it.
How does this work?
 The customer after choosing a meal starts and invites others with a group order in the
app. All donors will be sent links to the inbox of their phone numbers to pay for their
orders.
 All donors receive a link to select their favorite food, pay for it and follow the
incoming order on the Freshmenu mobile website.
Strategy 3: Creating a subscription model
The goal is to enable customers to sign up for their breakfast, lunch, snacks and dinner needs
at affordable prices.

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Why the Subscription will work for the target group?
As mentioned in my last article, the subscription economy is rising worldwide and helping to
build long-term relationships with the customer. Examples are Amazon Prime, Netflix
etc.Allowing a customer to sign up for a week or a month is the easiest way to organize their
daily food needs as they no longer have to order each food separately. Also, the customer gets
a discount for each meal by subscription at zero delivery costs. They can also make changes
to the delivery schedule, pause and restart your subscription at any time.This model is ideal
for customers who regularly order imported food for a week - people working in big cities
who do not have time to prepare a special meal of the day and who want to get freshly
prepared food delivered to their homes or office several times a day.The customer gets a
discount and other benefits by subscribing because there is a higher chance of renewing the
subscription later. Regular renewal of subscriptions binds customers to the app to convert
them into reliable and longer

Distrubution Channel Of
Zomato
Zomato revealed that about 40% of the total sales were referral driven. According to Zomato,
almost 30% of the subscribers are coming through referrals and more than $2 Million orders
have been made using Z coins. Zomato cross-sells its several offerings to a customer which
has brought huge success as Zomato is able to capture the customers are any phase.

According to Zomato, customer acquisition cost is very low. Zomato claims that of the 1.4
million listings it gets, 150,000 are from India and sees 22 million users come on board every
month. Zomato Gold is another program that is referral driven, where on sharing their referral
code, a customer gets a month of the Zomato Gold services extended.

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