ECONOMICS CIA 1

Name: Gouri Das M

Reg no.: 2220166
Class: 1 BBA A
Submitting to: Julia Ittiachen Thomas
The companies taken are: Zomato and Flipkart

Zomato
Introduction
Zomato is an Indian multinational restaurant to home service company which was found
by Deepinder Goyal and Pankaj Chadha in 2008. The company takes up the responsibility
to supply food o all parts of the nation according to the consumer demand which is made
available online. It is one of the most reliable food delivery apps for the present
generation.
Zomato is a digital platform combining restaurants and an online food delivery system.
The most influential tool today is social media. Using this tool, the industries promote
themselves using their own strategies. Food delivery services as a company has grown in
prominence along with technical advances. The way the food industry works and does
business has been instrumental in improving it. The foods/ products are delivered with a
discount and this attracts more users. The way this app works for almost 24hours is the most
highlighted feature and this works for many users in the best possible way.

How did it suffer in pandemic

 Due to the pandemic curfew, they could not supply food because of the lockdown
restrictions which impacted the business as their business was all about delivery of food
to the customers.

 As all the restaurants were forced to shut down, they lost their purpose of business which
eventually resulted in loss.

 They had to reduce the workforce due to the dip in their income and this resulted in many
people becoming jobless which created unemployment.

 Orders dipped in a high rate due to the fact that people were unaware o the quality and the
hygiene of the food delivered.

 Due to the population decrease they lost their workforce which resulted in quality of work
being done.

 The people effected with covid could not do their job hence resulting in loosing people to
work.

 They decreased the salary payment of the people to 50%.

Opportunity cost
Opportunity cost means that the profit a company could get by choosing a step but instead it
was foregone to choose another alternative and the available chance to gain profit was
foregone. Most of the times such an initiative is taken to ensure futuristic benefits in the
company.
Zomato had to reduce its workforce in order to not completely drain out of income by
investing more than half in payment of salary. They had to forgo the principle of employee
satisfaction so that they could prevail their business in the market.
Zomato is a digital app and there would be a certain amount of population that used COD or
cash on delivery as their payment option as it being their comfortable way of payment,
disabling COD might have made them to loose their one part of the population and instead
gain another part of the society where safety and health was considered important and hence
online transactions were convenient.
They have strategized each of their decisions during the pandemic in a way that even if they
had to give up some of the element, they assured that it was a long-time investment or a short
time adjustment.

Steps taken by them to overcome and recover the loss

 Contactless delivery: The customers were given the surety of contactless
delivery