BUSINESS SUSTAINABILITY, GOVERNANCEAND

ETHICS
CIA 1: Study on sustainable initiatives of an Indian company.

(A Report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration)

By
Aastha Rajput
Roll no. - 2128032

Submitted to
Prof. Elizabeth Chacko

MBA PROGRAMME
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE
March 2023
 Table of Contents
INTRODUCTION....................................................................................................................................... 3

HISTORY .................................................................................................................................................... 4

ESG SUSTAINABILITY INITIATIVES BY ZOMATO IN INDIA...................................................... 5

SUSTAINABILITY ENABLERS ............................................................................................................11

STAKEHOLDER’S PERSPECTIVE .................................................................................................... 12

CORPORATE SOCIAL RESPONSIBILITY ........................................................................................14

SUGGESTION/CONCLUSION ..............................................................................................................15

REFERENCES…………………………………………………………………………………………. 16
 INTRODUCTION

“Creating happier everyday lives”

Deepinder Goyal and Pankaj Chaddah launched Zomato in 2008 under the moniker Foodiebay. On
April 5, 2021, the firm changed its name to "Zomato Ltd" after becoming a public limited
company. Nehru Place in New Delhi serves as the company's registered office.
To meet a range of needs, its digital platform, which debuted in 2010, connects customers,
restaurant partners, and delivery partners. Consumers use our platform to find and reserve
restaurants, browse and post photos, order food delivery, book a table, read and write reviews from
other customers, and pay for their meals when dining out. Contrarily, we offer our restaurant
partners sector-specific marketing resources that let them interact with and draw clients in order to
expand their business while simultaneously offering a dependable and effective last-mile delivery
service. High-quality food and kitchen supplies are provided to our restaurant partners by
Hyperpure, a one-stop purchasing service. We also offer our delivery partners a variety of open
and flexible compensation options.

Users use the site to look up restaurants, read and post reviews from other diners, browse and submit
photographs, order food delivery, reserve a table, and pay for meals while dining out. On the other hand,
the company offers a dependable and effective last-mile delivery service while also providing restaurant
partners with sector-specific marketing tools that enable them to communicate and attract customers in
order to grow their business. The company's one-stop procurement solution, Hyper Pure, also provides
restaurant partners with high-quality food and kitchen supplies. The company also provides open and
flexible income possibilities to its delivery partners.
 HISTORY

It began when the creators noticed a large group of individuals waiting in line for a long period
just to read the menu card when they were in their New Delhi office. And it was at that point that
the partnership's idea for coming up with a solution germinated, giving rise to the birth of
Zomato, formerly known as "Foodiebay." Zomato will hold a celebration on July 10, 2021, to
mark its 13th birthday. Zomato's VP of Marketing Pramod Rao, who played a crucial role in
building the company's marketing team and growing its operations, sent a comment on his
Linkedin profile on July 10, 2021, praising the brand and including a happy video of the brand.

Launch of Zomato as a Startup

When it was first introduced, it went by the name Foodiebay instead of Zomato. And everything began
in Delhi before finally expanding to Mumbai and Kolkata.
The founders of Foodiebay chose to expand it and go global due to the site's sizable user base and
rapid growth rates. At that point, the company adopted its current name, Zomato. 2010 saw the first
time Zomato replaced Foodiebay as the company's name.
Zomato states that their mission "is to ensure nobody has a bad meal."

Zomato co-founder Pankaj Chaddah had declared that the vision of Zomato "is to be the global

platform when someone is looking for food locally."

The founders changed Foodiebay to 'Zomato' to make it more prominent, simple to memorize, and

primarily to eliminate the confusion with the website eBay.

Zomato's tagline is "Never have a bad meal".

Zomato's Revenue Model and Business Model

Zomato's principal source of revenue is now the advertisement channel that it provides. This
generates the majority of its revenue, followed by commissions charged to restaurants. It runs on a
commission-based business model.

ESG SUSTAINABILITY INITIATIVES BY ZOMATO IN

INDIA
“You are what you eat eats.” – Michael Pollan (In Defense of Food)
Taking up social responsibilities (Feeding Foundation)
The Zomato Feeding Foundation aspires to be the world's largest and most effective non-profit
dedicated to alleviating hunger in poor countries.

Feeding India (the India division of the Zomato Feeding Foundation) jumped into action,
establishing the 'Feed the Daily Wager' campaign to raise cash and provide food to daily wagers
who lost their employment due to the COVID-19 closure. Feed the Daily Wager collected
$3.2 million was used to offer over 65 million meals to the daily betting community.
Today, Zomato is taking a step in the direction of becoming a more sustainable company. We now
support neighbourhood environmental projects to offset the carbon footprint of all our deliveries and
packaging in India. We appreciate the help of the many volunteers and partners that helped us (help
them) distribute thousands of tonnes of food to those in need.

.
If you haven't already been reminded, working with the Feeding Foundation team will confirm
that there are plenty of wonderful people out there who want to improve the world. Even though
it seems like everything is going to hell, there is still a lot of good in the world; it just isn't as
obvious.
Our Feeding Foundation community will grow in size in the future. If we all care enough about it,
we can tackle the enormous problem of hunger.
Currently, we deliver 35% of goods in crowded places like Delhi and 20% of orders on bicycles.
These deliveries leave no carbon footprint and are pollution-free.

We are aware that they are simply little checkpoints along a lengthy and important trip.
On their website, Zomato published: "Plastic is bad for the environment, as we are all aware.
Nonetheless, did you know that it can take a single plastic spoon 200–500 years to decompose? Every
day, millions of these plastic spoons are used, and we're all part of the problem. This ostensibly minor
adjustment on the Zomato app will reduce up to 5,000 kilogrammes of plastic each day, or up to 2
million kilogrammes of plastic annually. Another little step has been taken to lessen our food delivery
company's environmental and carbon imprint."

The online food delivery service Zomato has launched a brand-new environmentally friendly
programme called "Climate Aware Delivery," in which consumers will no longer be able to choose
not to use plastic cutlery but rather must proactively request it. Although users of the app could always
opt out of receiving cutlery with their purchase, few few did. Zomato determined that changing the
default behaviour would necessitate an upgrade to the programme. In an effort to learn more, Zomato
conducted a study of its users, which revealed that more than 90% of them never use plastic cutlery.
Zomato was had to modify its default cutlery setting as a result. Clients who require silverware,
Kleenex, or straws must now specifically request them. Instead of a 'opt-out,' this is now a 'opt-in.'

Zomato encouraged its fleet to employ more mechanical cycles, which was a step towards
sustainability. More riders now have the chance to join Zomato's delivery team thanks to the
adjustment. Delivery partners laud cycling's rapid movement, easy navigation, mobility, and fitness
benefits. In order to expedite orders, cycle delivery partners are also given short-distance deliveries.
After previously advocating the use of mechanical bicycles for a sizable portion of its fleet, Zomato
is taking a significant move to disrupt the food delivery industry by encouraging its delivery partners
to use electric vehicles (EVs). As part of its ongoing efforts, Zomato has promised to become more
ecologically friendly and sustainable in the future.
As they generate no emissions, have a small carbon footprint, and need no maintenance, electric
vehicles (EVs) are among the most environmentally friendly modes of transportation. Also, they
reduce the operating costs of the cars by up to 40%, increasing the effective pay-outs for the delivery
partners who will own the cars and work for Zomato. The business has done this before.
delivered goods utilizing electric vehicles. Last year, Zomato's delivery partners employed e-
rickshaws to carry food in cities like Delhi and Lucknow. Currently, Zomato has a fleet of about
10,000 partners that transport more than 1.5 million orders per month on bicycles throughout 54
cities, with Bangalore and Mumbai having the highest number of riders.
In Tier 2 and Tier 3 cities, 20% of these delivery partners are present.
In addition to providing our restaurant partners with fresh, clean food, Hyperpure was established to
reduce supply chain waste and inefficiencies.
In the past six months, we have successfully processed over 65,000 orders for 2,200 restaurants in Delhi
and Bangalore. The typical number of orders placed by restaurants each month is 5, with a $100 average
order value.
With a strong FY20 estimate, our revenue from Hyperpure for the first half of FY20 is $6.5 million (up
from $0 in the first half of FY19) (10x growth)

In July, zomato started collecting used cooking oil (UCO) from restaurants, processing it there, and
shipping it to businesses that make biodiesel. Instead of using diesel or gasoline, the produced fuel
produces 75% less carbon. In Delhi NCR, we collect 130 tonnes of used cooking oil each month from
more than 1000 kitchens, and in October, we'll expand to five other cities. We anticipate rapid
development, a considerable positive environmental impact, and a large contribution to the biodiesel
production goals set by the Indian government.
Zomato and Feeding India established The Feeding Foundation in January, changing their
relationship from one that was mostly altruistic to one that was entirely collaborative. While Zomato's
consumer tech expertise and in-depth knowledge of the food ecosystem will help the Feeding
Foundation create interventions to end hunger and food waste throughout the world, Feeding India
will continue to be a non-profit organisation that maintains its own funds, data, infrastructure, and
strategy.

Feeding India provided 78,300 monthly meals to the underprivileged in the first month of this year.
This number has increased to more than 1.6 million meals each month as of September 2019. More
than 22,500 volunteers are currently working for Feeding India in 95 locations, up from 8,500 in 54
cities in January 2019.

▪ People

We are proud to have worked on projects that set the standard for the industry during the past few
months, including but not limited to Paathshala.

Our programme started off with a straightforward concept: give the kids of our delivery partners
the chance to imagine and research a better future. By giving them the necessary tools, educating
them, and enabling them, we want each of them to adopt an "I can" mindset.
 ▪ Parental Leave Policy
The first few months of motherhood may be challenging as life changes, financial stress increases,
and sleep disappears. Stress at work shouldn't be considered in the equation. So that they can enjoy
the brand-new gift of life and love, we offer all new parents (men and women) 26 weeks of paid
leave. In order to help new parents start off on the right foot, we also give them a $1,000
endowment.
Abeer, which means "strong," and Tahaan, the couple's newborn twins, are shown with Pradyot (VP
Product) and his wife Himanie (which means "merciful"). He is able to share equally in the
upbringing of his twins without feeling compelled to attend work, while simultaneously making sure
that his team does not make any mistakes at the office.

• Periods of probation and notice

There are no notice or probationary periods at Zomato. We are a group of individuals united by
dependable links. No policy can mend a broken relationship or turn back the inevitable consequences
of a betrayal of trust. Instead than depending on policies, our teams now put more of an emphasis on
cooperating and coming up with practical ways to "sort things out" and build respect for one another.
 SUSTAINABILITY ENABLERS

Unexpectedly, the industry will need more plastic packaging material as more people place larger
food orders, which is a result of our business. Zomato alone processes 16.5 million orders per
month; when all meal delivery aggregators are joined, this number rises to 35–40 million. Each
month, 22,000 metric tonnes of plastic waste are produced in India as a result of these countless
orders. Six times the distance between the Earth and the Moon was covered on Sunday by Zomato's
delivery team as they fulfilled about 600,000 orders over a span of 2.4 million kilometres. We must
work together with eateries and users to "pool" delivery routes in order to reduce fuel consumption
while preserving delivery deadlines.

CHALLENGES

It will be difficult to achieve 100 percent EV adoption, but it is necessary in the long term.
At the moment, we and the two-wheeler industry as a whole have a very low adoption rate. Zomato's
deep discount (Normal + Pro Discount) and high commission take rate are not sustainable for
restaurant partners, although some newly listed restaurants choose Pro restaurant partnership to create
momentum for their company.
During COVID, delivery partner incentives were reduced, however these are not sustainable when
employment markets recover for these delivery partners who accepted lower pay in the lack of
alternatives. The following are the primary impediments to adoption that are now in place:
STAKEHOLDER’S PERSPECTIVE
Since Zomato is a well-known online food delivery and restaurant discovery platform with a
substantial social and environmental impact, its sustainability strategy is essential for its stakeholders.
Customers, staff members, investors, partners, suppliers, and the general public are all stakeholders in
Zomato. The following is a stakeholder's viewpoint on Zomato's sustainability strategy:

Customers: Zomato's customers care about sustainability and anticipate the company will act in an
environmentally conscious manner. They want to place food orders from eateries that employ
sustainable procedures and eco-friendly packaging. Zomato must therefore make sure that the
restaurants it partners with follow environmental principles and make use of biodegradable packaging.
Employees: Zomato employees are probably more committed and devoted to a business that makes a
beneficial contribution to society and the environment. They want to work for a company that values
sustainability and inspires its employees to do the same. As a result, Zomato must offer its staff the
resources and training they need to incorporate sustainable practises into their daily job.

Investors: Investors are drawn to businesses with a long-term perspective on sustainability. They
choose to put their money into businesses that can produce steady returns while reducing their
detrimental effects on the environment and society. Zomato must therefore create and implement a
sustainability strategy that is consistent with its long-term corporate objectives.
Suppliers and Partners: Zomato's suppliers and partners are also stakeholders and are very important
to the company's sustainability initiatives. To make sure that they adhere to sustainable standards,
employ eco-friendly materials, and minimise waste, Zomato must collaborate closely with its partners
and suppliers.

Community: Zomato's operations have the potential to significantly affect the neighbourhood,
particularly in terms of waste management, emissions, and water usage. Zomato must therefore make
sure that its operations are ethical and sustainable, and it must endeavour to lessen its environmental
impact.
Stakeholders in Zomato anticipate the company to conduct business in an ethical and sustainable
manner. Zomato can improve its reputation, attract and keep consumers and staff, please investors,
and contribute to a more sustainable future by implementing sustainable practices.
RISKS
● Lack of awareness
● Intense rivalry from other aggregators
● Lack of funds

INDICATORS

OBJECTIVES: Zomato aims to build a sustainable enterprise by reducing its carbon footprint with
more deliveries by bicycles and change in packaging and to be the preferred food company in India
and we believe we are in a stronger position than ever before.

GOALS: Shifting the entire delivery fleet to 100% adoption of EVs by 2030.

INDICATORS: Climate conscious delivery

METRICS: % of deliveries by Bicycles and EVs in the country, leading to no carbon footprint and
are pollution-free.

OPPORTUNITIES

Because of the quick innovation in this sector and the government's supportive push, the firm
anticipates a far speedier transition to EVs for the two-wheeler industry over time.

The firm intends to actively support the transition to EVs by enabling the ecosystem - EV players,
battery makers, and the government.
The company is already actively collaborating with a few EV players to develop pilots and business
models that might help them.
Zomato has announced 'Zomato Packaging Assist' might be a marketplace for partner restaurants'
food packaging. This online company sells a variety of bespoke delivery containers, including dry
appetizers and nibbles, gravy, carry bags, paper and pizza boxes, andsilverware. The emphasis is on
supplying sustainable, eco-friendly, and food-grade approved materials to partner restaurants. The
marketplace features 30 goods that are leak-proof, durable,stackable, and heat-insulating, to name a
few. Many of these are manufactured from recyclablepaper or aluminium. Cutlery made of wood is
also available. Zomato noted that"packaging material for food delivery is riddled with issues." "We
aim to provide easy accessto excellent, eco-friendly material to the platform's approximately 40,000
eateries."

A FASTER TRANSITION TOWARDS A VIABLE MOBILITY SOLUTION FOR

DELIVERIES.

CORPORATE SOCIAL RESPONSIBILITY

The Company proposes to undertake the CSR activities in the following areas:
1. Eradicating hunger, poverty, and malnutrition, promoting health care including preventive
health care and sanitation including contribution to the Swach Bharat Kosh set-up by the
Central Government for the promotion of sanitation and making available safe drinking
water;
2. Promoting education, including special education and employment enhancing vocation
skills, especially among children, women, elderly, and the differently-abled and livelihood
enhancement projects;
3. Promoting gender equality, empowering women, operating or managing daycare centres
and such other facilities for senior citizens and measures for reducing inequalities faced by
socially and economically backward groups;
4. Ensuring environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare, agroforestry, conservation of natural resources;
5. Contribution to the Prime Minister's National Relief Fund (PMNRF) or any other fund set
 up by the Central Government for socio-economic development and relief and welfare of
the scheduled caste, tribes, other backward classes, minorities, and women;
6. Any other activity as specified under the Act, as amended from time to time.

For the purpose of the CSR Policy, the CSR activities shall exclude activities undertaken in
pursuance of the normal course of business of the Company.

SUGGESTION/CONCLUSION

● Spreading awareness about the sustainable practices what they are doing
1. Equip people with (the right) knowledge.
2. Help people process information.
3. Make actions easy and enjoyable
● Optimizing the navigation with the help of delivery management software

It was once utilized to simplify the delivery process from start to finish. Both drivers (agents) and
end-users can benefit from it. Agents may automate dispatch, pick-up, and delivery processes, as
well as get optimum routes to reach customers quickly. End consumers, on the other hand, can
follow their packages in real time and have all driver information at their fingertips. Customers
can contact the driver to inquire about the status of their cargo.

Real-time vehicle tracking, Route optimization, Control Dashboard, and tracking for End
Customers. Automatic Dispatch Management

● Better Brand positioning - Increasing the application speed by 1/10 of a sec.

References

• Yadav, N., & Goyal, S. (2022). Regaining partner trust in the food delivery business: case of
Zomato. Emerald Emerging Markets Case Studies.

• Raman, P. (2018). Zomato: a shining armour in the foodtech sector. Journal of Information
Technology Case and Application Research, 20(3-4), 130-150.

•
Frederick, D. P., & Parappagoudar, S. K. (2021). SWOC Analysis of Zomato-A Case of Online Food
Delivery Services.

• Upadhyay, A., Rai, S., & Shukla, S. (2022). Sentiment Analysis of Zomato and Swiggy Food Delivery
Management System. In Second International Conference on Sustainable Technologies for
Computational Intelligence: Proceedings of ICTSCI 2021 (pp. 39-46). Springer Singapore.

• Panigrahi, C. M. A. (2020). A case study on Zomato–The online Foodking of India. Journal of

Management Research and Analysis, 7(1), 25-33.

• Frederick, D. P., & Parappagoudar, S. K. (2021). A Descriptive Analysis on Sustainable Business

Strategy of Online Food Service Industry.