Table of Contents

Introduction

Industry Profile

Review of Literature

Problem Formulation, Methodology

Project/Training Descriptio

Conclusions

Major Finding

Learning

Recommendation Future Scop

References

Appendices
 Introduction
C-500 was an initiative of Zomato, which targeted launch of Zomato in 500 cities throughout
India. With the motive of providing food at doorstep, various interns and regular employees were
hired and asked to get on this mission.

Industry
Launched in Delhi 11 years ago, Zomato has grown from a home project to one of the largest
food aggregators in the world. We are present in 24 countries and 10000+ cities globally,
enabling our vision of better food for more people. We not only connect people to food in every
context but work closely with restaurants to enable a sustainable ecosystem.

Why this project is important

Our goal is to change what you eat. How you eat is just a means to an end.

 Improving quality of food

 Boosting accessibility for customers
 Focusing on affordability
 Driving the force of assortment
 Define training Objectives
 Resilience
We push ourselves beyond our abilities when faced with tough times. When we foresee
uncertainty, we address it only with flexibility.
 Ownership
People here don’t work ‘for’ Zomato, they work ‘with’ Zomato. We treat every problem as our
own, take accountability and drive the change. Resilience
 Acceptance
Feedback is never taken personally; we break it into positive pieces and strive to work on each
and every element even more effectively.
 REVIEW OF LITERATURE
Part of the secret of success in life is to eat what you like and let the food fight it out.       -Mark
Twain
Methodology
The Online Food Delivery market builds on Statista primary research (Statista Global Consumer Survey),
bottom-up modeling, market data from independent databases and third-party sources, analysis of various
key market and macroeconomic indicators, historical developments, current trends, and reported
performance indicators from the key market players. All monetary figures refer to the Gross Merchandise
Value (GMV) and represent what consumers are paying for these products and services. The user metrics
shows the number of customers who have made at least one online purchase within the last 12 months.
 The Business Approach 
The two-step approach that Swiggy is expected to follow
includes collaborating with restaurants and training them at
first, after which it focuses on increasing the reach of the
restaurant. Extensive training of the restaurant staff would be
required to fill the status gap between metropolitan and
tier-II/tier-III cities. 
“In smaller towns, the biggest issue is that there are limited
restaurants which mean lesser supply,” said the founder of
a restaurant partner, requesting anonymity. “So, what platforms
like Swiggy do in small towns and cities is that they partner
with local brands, exclusively through Swiggy Access, which
provides 10-12 kitchens a cooking space under one roof.
“Collaborating with different restaurant kitchens and providing
them co-working spaces actually cuts down on rental costs and
food delivery costs to a marginal level. Zomato, on the other
hand, is quite hopeful about generating new orders in newer
cities. 
Given the pace of growth, “we expect these (new) cities to
constitute more than half of the order volume by the end of the
year”, said Mohit Gupta, chief executive of food delivery at
Zomato. The loyalty programs of Swiggy, called Super Swiggy
is still intact in tier-II and tier III cities, focusing on attracting
newer people onboard. The kind of discounts offered by
Swiggy and Zomato in these smaller cities are also likely to go
down, as the average order is already lesser than it is in
metropolitan cities. It would be interesting to see how they cope
up with the issue. “Discounts are merely a mechanism to
encourage user participation and cannot explain the phenomenal demand we have witnessed in
these cities,” added Zomato’s Gupta.
 INDUSTRY PROFILE
Objective of the Industry:
 To analyze and forecast India online food ordering and delivery market size.
 To forecast India online food ordering and delivery market based on operation type,
source, payment and regional distribution.
 To identify drivers and challenges for India online food ordering and delivery market.
 To examine competitive developments such as expansions, new product launches,
mergers & acquisitions, etc. in India online food ordering and delivery market.
 To conduct the pricing analysis for India online food ordering and delivery market.
 To identify and analyze the profile of leading players operating in India online food
ordering and delivery market

Online food-delivery platforms are expanding choice and convenience, allowing

customers to order from a wide array of restaurants with a single tap of their mobile
phone.

The business of delivering restaurant meals to the home is undergoing rapid change as

new online platforms race to capture markets and customers across the Americas, Asia,
Europe, and the Middle East. Although these new Internet platforms are attracting
considerable investment and high valuations—already, five are valued at more than $1
billion—little real knowledge about market dynamics, growth potential, or customer
behavior exists. Research from McKinsey, based on a six-month study covering 16
countries around the globe, provides insight into this fast-changing market.

The shape of the market today

Worldwide, the market for food delivery stands at €83 billion, or 1 percent of the total
food market and 4 percent of food sold through restaurants and fast-food chains. It has
already matured in most countries, with an overall annual growth rate estimated at just
3.5 percent for the next five years.
By far, the most common form of delivery is the traditional model, in which the
consumer places an order with the local pizza parlor or Chinese restaurant (although
many other kinds of restaurants, particularly in urban areas, now offer delivery) and waits
for the restaurant to bring the food to the door. This traditional category has a 90 percent
market share, and most of those orders—almost three-quarters—are still placed by phone.
However, as in so many other sectors, the rise of digital technology is reshaping the
market. Consumers accustomed to shopping online through apps or websites, with
maximum convenience and transparency, increasingly expect the same experience when
it comes to ordering dinner.
 Two tiers for online food delivery

Two types of online platforms have risen to fill that void. The first type is the
“aggregators,” which emerged roughly 15 years ago; the second is the “new delivery”
players, which appeared in 2013. Both allow consumers to compare menus, scan and post
reviews, and place orders from a variety of restaurants with a single click. The
aggregators, which are part of the traditional-delivery category, simply take orders from
customers and route them to restaurants, which handle the delivery themselves. In
contrast, the new-delivery players build their own logistics networks, providing delivery
for restaurants that don’t have their own drivers.

Aggregators New Delivery

Aggregators build on the traditional model for

food delivery, offering access to multiple
restaurants through a single online portal. By
logging in to the site or the app, consumers can
quickly compare menus, prices, and reviews from
peers. The aggregators collect a fixed margin of
the order, which is paid by the restaurant, and the
restaurant handles the actual delivery. There is no
additional cost to the consumer. With their asset-
light model, aggregators post earnings before
interest, taxes, depreciation, and amortization
(EBITDA) margins of 40 to 50 percent. Although
investment continues to pour in (Delivery Hero
and Food panda, for example, both attracted €100
million in new investment in 2015), most of the
consolidation in this subcategory has already
occurred. Four players—Delivery Hero, Food
panda, GrubHub, and Just Eat—have achieved
global scale. These four players tend to focus on
different regions. On a national level, there are
typically two or three competitors that dominate,
mostly driven by their ability to build a large user
base. Consolidation is advanced in most markets
and will likely continue we expect this share to
increase rapidly.
Just like the aggregators, new-delivery players
allow consumers to compare offerings and order
meals from a group of restaurants through a single
website or app. Crucially, the players in this
category also provide the logistics for the
restaurant. This allows them to open a new
segment of the restaurant market to home
delivery: higher-end restaurants that traditionally
did not deliver. The new-delivery players are
compensated by the restaurant with a fixed margin
of the order, as well as with a small flat fee from
the customer. Despite the higher costs of
maintaining delivery vehicles and drivers, the
new-delivery players achieve EBITDA margins of
more than 30 percent. Players include brands that
operate globally such as Deliveroo and Foodora,
which are continuing to capture new regions. We
believe the addressable market for new delivery
will reach more than €20 billion by 2025.
 Porter’s Five Forces Model

HIGH

LOW HIGH

HIGH

LOW

COMPETITIORS
To be sure, India’s top two food aggregators, Zomato and Swiggy, currently also offer a cloud-
kitchen model as one of their services to help their partner restaurants with back-end supply.
Zomato Infrastructure Services (ZIS), launched in March last year, provides real estate and
kitchen equipment support to restaurant brands to scale their order volumes in new localities
without having to invest in setting up restaurant branches.
While the first cloud-kitchen was launched in Dwarka with the target to increase its penetration
 to 100 kitchens by the end of 2018, industry sources say Zomato’s success rate with expanding
the model has been rather slow with only 2-3 locations being served even after a year of the
model’s launch.
ZIS is not the same scalable model as the delivery platform and the organic way of growing it
is very arduous and a tediously long process. The problem will be locking the customer in a
market that unfortunately is not a very loyal one,” said the founder of a food startup that was
acquired last year.
Swiggy, which launched a similar business called Swiggy Access in November, has also found
expansion of the model to vicinities within Bengaluru itself a rather slow process. For Swiggy,
its new supply business--which includes its private label The Bowl Company has also its
cloud-kitchen model Access--will garner significant focus in 2018, a strategy for which it also
acquired the leadership team of 48East in December.
Beyond highly frequent volumes driven by low-priced meals in such a model, attractive
margins on the cloud or invisible kitchen model pegged at 35-45% makes the proposition
rather enticing for delivery firms as the timeline to grow their topline gets squeezed further.
Customer behavior
Customers drawn to the new online food-delivery platforms have a different set of needs and
expectations from the traditional pizza customer. Our study uncovered the following important
traits:
 Platforms are sticky. New-delivery
platforms, which, personalize the
 Orders spike on weekends. The ordering experience by storing
highest-volume days for the relevant customer data, are sticky
online platforms were Friday, (Exhibit 1). Once customers sign up,
Saturday, and Sunday, when 74 80 percent never or rarely leave for
percent of orders were placed. another platform, creating a strong
winner-take-all dynamic, in which the
 Meals are for home. Most orders— reward goes to the player who can
82 percent—were from home, while sign up the most customers in the
only 16 percent were placed from shortest amount of time.
the workplace.

 Time is critical. Speed of delivery is

satisfaction, with an average 60
percent of consumers across
markets citing it as a key factor. The
optimal wait time is no more than 60
minutes from the workplace.
 Problem Formulation

 The enthusiasm from the restaurant industry and users from the lesser-known cities have been
nothing less than an enormous boost to our strategy of reaching out with our vision of ‘better
food for more people’
 Zomato CEO Mohit Gupta said that one of the company’s key learning remains that every Indian
city, whether big or small, possesses excellent exploration for business because of mobile
penetration in households.
 It works on a commission model and it charges restaurants for food delivery, advertisement and
visibility on Zomato Platform. Right now, by the end of August 2019, Zomato is targeting to be
operational in 500 cities of India and this initiative known as “C-500.
 The end of the company initially had set this 500-city target for August or even September.
 Meanwhile, Jeff Bezos’ Amazon is also eyeing Indian food-delivery market and is planning to
launch its own services this year, news agency Reuters reported. This move is expected to raise
competition for the current market dominators such as Zomato, Swiggy and Uber Eats. Amazon
has already started roping in staff for its ambitious plan, the news agency cited sources as saying.
Food delivery business has been on a northward trend of late and the phenomenon is not exclusive
to India. The industry is expected to see a steady 3.7% CAGR in 2020, according to a McKinsey report.
 Methodology
Zomato is now in 500 cities: An opportunity in every region thanks to mobile phones

By: Prachi Gupta | 
Published: July 31, 2019 4:58:47 PM
Zomato has grown at a rate of 4 new cities every day in the last month and is tapping tier 3 and
tier 4 regions to establish a strong foothold in the domestic food-delivery market.
As the food-aggregator app Zomato establishes its presence in 500 cities, Zomato CEO Mohit
Gupta said that one of the company’s key learning remains that every Indian city, whether big or
small, possesses excellent exploration for business because of mobile penetration in
households. The food aggregator application Zomato now serves in 500 cities and has expanded
its presence from 25 towns in July 2018 to 20 folds at present. While the company has witnessed
three times growth in the top 15 cities, 40% of Zomato’s business comes from emerging regions,
Zomato announced.
Zomato has grown at a rate of 4 new cities every day in the last month and is tapping tier 3 and
tier 4 regions to establish a strong foothold in the domestic food-delivery market, the Deepinder
Goyal founded company said. With this, Zomato has also extended its services to three north-
eastern states – Meghalaya, Assam and Tripura. The company deploys a data-driven strategy to
choose potential cities for serving. The food-aggregator takes factors like overall population,
student population and restaurants into account, Mohit Gupta, CEO- Food Delivery, Zomato
said.
In its latest addition, Zomato has connected several new Indian cities to its service network.
Some of them are Pushkar (Rajasthan), Ankleshwar and Mehsana (Gujarat), Fazilka and
Nawanshahr (Punjab), Vrindavan and Azamgarh (Uttar Pradesh), Silvassa (Daman), Chittoor
(Andhra Pradesh), Pataudi (Gurgaon), and Shillong (Meghalaya) Kanyakumari, Kodaikanal.
. “We believe [online] penetration rates will grow further as the market matures,
eventually reaching 65 per cent per year,” the report said.
Here are our 4 key learnings so far: 

Far and wide is possible: Every city in India, big or small, thanks to the advent of mobile penetration, is
an opportunity worth exploring. We are yet to go wrong on any geographic conjecture of launch. We
relish the rush of being super-quick operationally but are also humbled by our collective efforts of making
things happen in the not-so-inhabited regions. All our metrics (orders per thousand, value per order) have
proven the commonly held belief that India’s economy is driven by Tier 1 and II cities only, wrong. The
top 15 cities contributed 100% of our Delivery business 12 months ago. While the growth in those cities
has tripled in the last 12 months, other cities now contribute 40 per cent of our business.

Two wheels, one ecosystem: Staying true to the belief system behind our Delivery Universe, we are
mobilizing people towards better employment. With every single launch, we are observing a spike in the
number of delivery partners who are willing to work with us – not just those who own motorcycles but
also those with bicycles at their disposal.

The beauty of brand recall: One of the most interesting and repetitive events has been the way people
(both users and restaurants partners) have shown a desire to have our food delivery services made
available in their respective cities and towns. We didn’t have to sell our brand hard as people are already
aware of how synonymous we are with food.

Challenges don’t last long: With a dedicated team and a singular focus, we have set out realistic goals
across varied geographies. It goes without saying that we’ve faced operational challenges — for instance,
despite their overwhelming drive to join us, we had to educate some of our restaurant partners about our
concerns for food safety — but none of them has made us regret our initial call to go ahead. And we
firmly believe that this won’t change in our next milestone either.

We hope to keep going until there are no new places left to explore.

Lastly, our ongoing journey has made us acutely aware of the India’s rich diversity and I am particularly
proud of my team for making it possible to bridge the gap between our users and their favorite food items.

PROJECT TRAINING/DESCRIPTION

Highlighting the areas of challenge

 Working in different geographic locations

 Market Recce

 Identification of restaurants in the city

 Extensive approach towards the business

 Time Management

 Marketing and Advertising in the areas

 Merchants pushbacks

 Discounts

 Training deployments

 Food License

 Collaboration with operations team

 Launch date

 Transportation and living expenses

Working in different geographic locations

 It gave me an immense exposure of travelling to the different locations of the India.
 Thinking big, how can we explore business opportunities int e smaller regions were the
people are not expose to the trends of the metropolitan cities.
 Given the scenario, to exploit the Tier III cities of the India i.e., Nangal, Kangra, Paonta
Sahib, I grabbed this golden opportunity to conquer Zomato as a delivery brand.
 For any business opportunity it is decided on the identification of any region by its
population, market size, different colleges, hospitals.
 Zomato as a brand thought of expanding its operations for the people in different cities to
access the food delivery for the people. It is easy for the establish brand name to expand
in the cities.

Learning outcomes are achieved

 Culture and Diversity-India is a rich country of verities of cultures and diversities. It
made my horizon of thoughts thinking way beyond the limits. It landed me out of comfort
zone to work for an organization.
 Empathy-We have to be in the state of putting others people emotion into ours shoes so
that we could listen them better. After then we can create our opportunity in their
business.
 Communicating skills-People from different regions have language as a barrier. In that
case local language comes into play and becomes the most difficult task in talking and
pitching. The art of connecting is very vital. Talking to merchants and local people for
assistance.
 Motivator-When there are multiple hurdles in achieving the target, one has to be keep
moving forward and keep himself motivated, looking out for opportunities in order to
achieve.
 Ownership-In different locations when one has to apply his critical and problem thinking
for the solutions to make it faster and better operational way to get the things done.

Market Recce
 It displays the generic view of the market considering different parameters i.e., no of
restaurants in the location, different locations of the city, high customer centric points,
key attention areas.
 We have to identify the location into sub locations for the delivery areas.
 Target the no of restaurants in the area for making it a sub location.
  Get well versed with list of the res base i.e., no of restaurants and eating points in the
location.

Learning outcomes are achieved

Market Research- Did market research through internet and past data.
Market Survey-Talking to the merchants and the local people to get more information on the
consumer behavior.
Buying power of the customers-Identification of people on the basis of age, residents.
Transportation and living problems-Manage to resolve these high priorities in order to be
operational and effective every day.

Marketing and Advertising

 The major role in launching any product or business model is t way to communicate to
the mass market.
  Marketing involves promotion of the product through building customer relationships and
alliance with the localities.
 I used to wear Zomato t-shirt so that before launching date everyone can have that
thought of Zomato as the brand in their city. This is how I came up with my smart
thinking.
 I as an individual worked in BTL deployments in the city.
 Awareness through merchants and localities in the city.
 Distributed standees and danglers to the restaurants.

Learning outcomes are achieved

4Ps
Place-Get along with the working conditions of the place.
Price-Set the pricing of the model according to the place.
Promotion-Extensively approach on the promotional activities i.e., marketing and advertising of
Zomato.
People-Awareness and communicating to the people well before the launch. Tell them to avail discounts
on food.

Merchants pushbacks
 One of the common problems in client interaction is pushback from the idea.
 Awareness play major role in establishing a brand name in city minds of people.
 Disagreements and a lot of queries put them on backstep.
  Why this brand is introducing in this market and what benefit as clients we are going to
get.
 Discounting conditions, benefits to the business.
 Procedure of action, difficult, traditional way of working.
 Documentation

Learning outcomes are achieved

Convincing Power-Power to convince restaurants owners and small vendors to get use of
Zomato platform.
Awareness-Targeting the right set of audience for the awareness i.e., students
Ideology transformation-Canin the traditional approach was the biggest challenge.
Patience-Dealing with everyone, building relationships, distribution channels.

Collaboration with the Operations team

 We were always ready before the launch date.
 Our motto was to sign up the maximum food joints and restaurants in the city to deliver
food through our platform.
  Operations play a very crucial role in delivery and maintain delivery partners in the field
to fulfill the orders.
 High demand of orders creates a huge buzz in the market on the first date of launch.
 On time delivery gives the boost and satisfaction to both delivery partners and customers.

Learning outcomes are achieved

Teamwork-Everyone on the D-day has to work as a team to operate better and effectively.
Patience-Working together gives a lifeline to one another in the process. Some technical glitches
may occur in to order to fulfill orders on time int the area.

CONCLUSION
In the end I would like to congratulation Team ZOMATO for providing a privilege opportunity
to be a part of remarkable mission in India. A lot of interns were hired across the nation from the
renowned Colleges and B schools in the Sales and Operations teams which have successfully
contributed to the organization goal.
A special thanks to my Team Leader who supported and motivated in every hurdle, through
which I became more ferocious and versatile in takin care of the responsibleness and duties
which were given.

MAJOR FINDINGS
A corporate world, everyone dreams. Working with the best organization and contributing to
their success is a lot more an achievement for an individual. I would really say that working for
Zomato made me the happiest person after completion this mission C500.If in future given an
opportunity, I would really want to start my career in that organization.

 Business Opportunity
 Strategy
 Brand
 Build Relations
 Marketing and Advertising

LEARNINGS
Abundant of learnings with full of challenges around every corner. A sphere of exposure, which
created full of opportunities in smaller cities is one of the great learning from the business point
of view.
Communication Skills and Empathy
-Communicate effectively and build relations.
- Pay attention to emotions.

Convincing Power and Patience

-Convince people.
-Be patient and handle objections carefully.

Ownership and Teamwork

-Responsible for individual tasks.
-Collaborate with other teams to deliver results.

Adaptability and Time Management

-Open to opportunities and challenges.
-Deliver results on time basis.
 References

https://www.theweek.in/theweek/business/2019/04/26/how-food-
aggregator-apps-like-swiggy-zomato-are-trying-innovative-business-
methods.html
https://www.statista.com/outlook/374/119/online-food-delivery/
india
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz
/why-are-food-aggregators-leveraging-the-delivery-only-model/
articleshow/69178702.cms
https://www.zomato.com/about
https://retail.economictimes.indiatimes.com/news/food-
entertainment/food-services/zomato-expands-food-delivery-
service-to-500-cities-in-india/70482572