Pestel Analysis of Zomato

Analysis on Zomato
Apurba Shakti Boro
Christ University
Pestel Analysis of Zomato

Political
Any business seeking to enter the international market faces significant political risks. A host
country's political decisions are likely to have an impact on organisational productivity and
profitability (Deshpande, 2016). Extreme political actions can be extremely harmful. The
digital India campaign, which was recently launched by the country's Prime Minister
Narendra Modi, is more likely to allow the company to increase internet penetration in India
and provide easy access to everyone from every corner of the market (Deshpande, 2016).
Using the Digital India Campaign, Zomato can take advantage of this opportunity to cover
many restaurants across cities. Because it encourages foreign direct investment, the Indian
government places a greater emphasis on the ease of doing business in the country
(Deshpande, 2016). Zomato can hire skilled people from the Pradhan Mantri Kaushal Vikas
Yojana program that develops skills of the youths.
Economic
Between 2011 and 2014, Zomato experienced a 1399 percent increase. This is due to its
tremendous achievements in 22 countries, which effectively contribute to the economies of
the countries. Furthermore, service prices may rise as a result of the country's announcement
of a service tax increase from 12.36 percent to 14 percent (Deshpande, 2016). This move is
likely to have an impact on Zomato's financial health. Furthermore, the company is launching
cashless transactions in order to create jobs in various countries (Chakraborty, 2016). As of
now, the company employs 2319 people and has managed to solve the country's
unemployment problem (Deshpande, 2016). Finally, the company attracts several
investments as well as funding from the government and foreign investment, all of which
contribute to its success.
Socio-Cultural
Zomato has become the country's favourite online restaurant discovery tool over the last six
years. However, it has influenced the way people choose their favourite restaurants. Zomato
benefits from the changing lifestyle patterns and income levels of the Indian working
population (Wikiwealth, 2017). This is because many young people and new age working
couples enjoy eating out, with this category attracting approximately 30% of the total in
2012. (Deshpande, 2016). As a result, user engagement on its website is critical for customer
participation. Finally, Zomato's customer service has been fantastic, and based on the positive
responses from customers, the company has managed to maintain customer loyalty
(Chakraborty, 2016). Zomato remains a dimension of social engagement with people.

Technological
Zomato has gained an advantage by utilising technology to create a beautiful user interface
that makes it easier for users to browse (Wikiwealth, 2017). One advantage that Zomato
continues to benefit from technological innovation is that the service is much faster, despite
the fact that high resolution menus are required. In essence, technology promotes online
services. For example, incorporating what the restaurant offers into a mobile app allows
customers to choose the restaurant while on the go. According to Deshpande (2016),
Pestel Analysis of Zomato

restaurant information is customised in such a way that the customer can obtain the
information he or she requires without difficulty. Technology also helps the company
maintain a good business model.
Environmental
Business sustainability is determined by how the company addresses environmental concerns
(Deshpande, 2016). Zomato Company has no significant environmental impacts because it is
a service company.
Legal
The company is required by the Indian law to comply with all regulations that control
technology firms in the country (Wikiwealth, 2017). This ensures that it is used effectively
without being subjected to abuse.

Post covid

1 – Finances (FY19 vs FY20, Q1 FY21)

Our revenue increased by 105 percent in FY20 compared to FY19, while costs increased by
only 47 percent in the same year. Moving our firm toward profitability was a top priority for
us in FY20, and we achieved great progress.

2-India food Delivery

FY20 was a watershed moment for food delivery in India. While FY19 saw intense
competition between four well-funded food delivery players, FY20 saw a market structure
with only two players. Zomato's India Food Delivery GMV increased by 108 percent in FY20
compared to FY19.
In January 2020, we acquired the Uber Eats India business, which helped propel us to market
leadership in this hotly contested space. The migration of users and merchants from Uber
Eats India to Zomato was so seamless and well-coordinated by both teams that we were able
to transfer and retain 97 percent of the combined GMV on the Zomato app.

3- Dining Out
Despite headwinds (e.g., a logout campaign against Zomato Gold by restaurants in India), our
dining out business grew steadily in FY20, with significant gains in EBITDA margins across
India and our international markets.
This business is rapidly transitioning to a transaction-led model, with the goal of closing the
loop with restaurants by encouraging users to pay their dining-out bills through the Zomato
app.
Pestel Analysis of Zomato

Our dining out business is the hardest hit, as restaurants remain closed for dining-out,
resulting in almost no revenue from advertising and Zomato Pro. The recovery will be slow
here. Users will be concerned about social distancing and hygiene, and restaurants will need
to reorganize in order to gain user trust on these fronts.

4. Social Responsibility
The Zomato Feeding Foundation aspires to be the largest and most effective non-profit
dedicated to alleviating hunger in the developing world.
The COVID-19 crisis devastated the daily wagering community, resulting in widespread
hunger across the country. Feeding India (the India chapter of Zomato Feeding Foundation)
sprung into action, launching the 'Feed the Daily Wager' campaign to raise funds and provide
food support to daily wagers who lost their livelihood during the COVID-19 lockdown. Feed
the Daily Wager raised $3.2 million, which was used to provide over 65 million meals (in the
form of ration kits, as seen in the photo below) to the daily wager community.
Working with the Feeding Foundation team will make you realize (if you haven't already)
that the world is full of nice people who want to make the world a better place. We
sometimes think the world is going to hell, but there is plenty of good out there – it just isn't
as visible.
In the future, we hope to multiply the size of our Feeding Foundation community. Solving
hunger is a massive problem, but it is solvable if we all cared enough about it.
Pestel Analysis of Zomato

References
1.Deepinder Goyal(Founder & CEO of Zomato)
2.Business Wire