Politics

• To grow a business like Zomato, which relies on internet, it is necessary to analyze the
internet spectrum in the target country. Recently launched Digital India Campaign by
the government, had boosted internet penetration in the country.

• Also, recently launched National Optical Fiber Network Campaign has even increased
internet reach till tier 3 and villages.

• Online food delivery systems requires skilled labor for expanding the business,
Pradhan Mantri Kaushal Vikas Yojna program has also given a push to this industry by
increasing the skilled youth in the country.
Economics
• Recently government has stopped the facility of input tax credit (ITC) facility to the
restaurants, which was 18%, this is reducing the profit margin of restaurants due to
which online food delivery systems are getting a cut in commission.

• Growth of Zomato has been recorded as 1399% from 2011 – 2014.

• In the year 2014-15, revenue of Zomato was Rs. 96.7 cr.

• Zomato is attracting various investments from Indian and foreign investors . Recently,
Zomato has raised $200 million from Ant Financial, which has around 18% stake in
Zomato. Earlier, Temasek and Vy Capital invested $60 million in 2015.
Socio-Cultural
• Increase in middle class working population has brought a wide impact on online
food delivery business. People aged between 22-30 (mostly students, working
couples doing 9 to 5 job) are most likely to live away from their family, therefore
getting the highest share in food ordering services i.e 95%.

• Online food delivery sites are very much affected by socially active population.
They help such business to grow by contributing by giving reviews and ratings to
the restaurants and services provided. Around 8% people always leaves reviews
while 46% leaves reviews sometimes. This also makes customers loyal to the site.
Technology
• Due to Digital India Campaign and launch of Reliance Jio, most of the smaller
restaurants have also come under the net of Zomato.

• The User Interface of site and app are very beautifully designed. Even the speed at
which webite and app works is very fast.

• The Search Engine Optimization feature is included in the design of the site so that
it pops up in the google search engine, but since google is promoting its own
restaurant finder, Zomato has to keep updating its technology.
Environmental
Zomato being a service company does not affect the environment much. In the near
future Zomato can try to switch to electric vehicle for delivery, which can help in
reducing cost and attain sustainability.
Legal
The company under Indian law is required to follow all the rules and regulations that are
made by the Indian government to control the technology firms.