A

Comprehensive Project Report

On
“A Comparative study on online food delivery service of Zomato and Swiggy”

Submitted to:
Institute Code: 832
Institute name: Oakbrook Business School

Under the Guidance of

Dr. Ankita Srivastava
(IC Director)
Oakbrook Business School

In partial Fulfillment of the Requirement of the award of the degree of

Master of Business Administration (MBA)
Offered By

Gujarat Technological University

Ahmedabad

Submitted by (Batch 2018-20):

Hiren Panchal: 188320592038
Vishal Leuva: 188320592053

MBA (Semester – IV)

March, 2020

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 OAKBROOK BUSINESS SCHOOL
Plot No. 225, Opp. Maharaj Hotel Lane, Jamiyatpura Road, Sarkhej
Gandhinagar Highway PO: Jamiyatpura, Gandhinagar-382423
Gujarat-, INDIA

Student’s Declaration

We, Mr. Hiren Panchal (188320592038) & Mr. Vishal Leuva (188320592053) hereby declare
that the Comprehensive Project Report entitled “A Comparative study on online food delivery
service of Zomato and Swiggy” is a result of our own work and our indebtedness to other work
publications, references, if any, has been duly acknowledged.

Enrollment No. Name Signature

188320592038 Hiren Panchal

188320592053 Vishal Leuva

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 OAKBROOK BUSINESS SCHOOL
Plot No. 225, Opp. Maharaj Hotel Lane, Jamiyatpura Road, Sarkhej
Gandhinagar Highway PO: Jamiyatpura, Gandhinagar-382423
Gujarat-, INDIA

Institute Certificate

“This is to certify that this Comprehensive Project Report Titled “A Comparative study on online
food delivery service of Zomato and Swiggy” is the work of Mr. Hiren Panchal (188320592038)
& Mr. Vishal Leuva (188320592053) who has/have carried out his / her / their project under my
supervision. I also certify further, that to the best of my knowledge the work reported herein does
not form part of any other project report or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other candidate.

Rating of Project Report [A/B/C/D/E]: ______

(A=Excellent; B=Good; C=Average; D=Poor; E=Worst)

(By Faculty Guide)

Dr. Ankita Srivastava

Faculty Guide (Assi. Professor)

Oakbrook Business School

Dr. Darshan Ranpura

(I/C) Director

Oakbrook Business School

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 Preface

Without practical training, management education is meaningless so long with the theory, practical
training is provided to management student’s to expose them to the actual working environment
of any organization. Such training provides a frame work of knowledge relating to the concepts
and practices of the assigned topics in the organization.

The Comprehensive project is an integral part of the course curriculum of Master of Business
Administration (MBA 4th SEM). In this the students is in the position to analyses the integral
working of an organization with mature eyes and understand the dynamics in a much better
manner.

This particular project has been conducted at Gujarat (Ahmedabad). In the first phase of the
research project, there is an introduction of online food delivery service inclusion. After that a
market research is performed with a sample size of 100 people. Here in my survey, I have contacted
the respondents through personal interviews with the help of questionnaires.

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 Acknowledgement

Every project big or small is successful largely due to the effort of number of wonderful people
who have always given their valuable advice or lent a helping hand. We sincerely appreciate the
inspiration; support and guidance of all those people who have been instrumental in making this
project success.

The path to success is never so smooth and simple to achieve. However, our learning’s and
motivation by our close ones and our mentor “Dr. Ankita Srivastava” helps us to reach beyond
our potential. Our project would remain partial without acknowledging people who encourage us
to achieve a milestone. We are equally grateful to all our other teachers (Dr. Darshan Ranpura or
other) for their complete support.

It would be unfair on our part if we do not thank our college for their continuous help without
which this work could have been accomplished. We are grateful to our parents for supporting and
thankful to god for our inspiration. We are grateful to all of them standing with us and supporting
with us and supporting in this project.

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 Table of Content

Sr. No. Particular Page No.

1 Industry overview 7-10

2 Company overview 11-20

3 Literature review 21-23

4 Background of the study 24

4 Problem of statement 25

5 Objectives 26

6 Research methodology 27

7 Data Analysis and Interpretation 28-35

8 Findings 36

9 Conclusion 37

10 Bibliography & References 38

11 Annexure 39-42

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 Industry overview

Online Food Delivery Industry

The Food delivery market in India is worth over 12.5 billion and online food delivery is
contributing over more than 7% to the Indian market and is growing at 15% every quarter. Food
delivery services in the recent years have become one of the most widely growing markets in the
world and are considered to be one of the booming markets. Most of the people have set their
fingers on online ordering of food and this is the at most preferred ways of ordering food from any
place, anytime and anywhere which is very convenient and time saving. This indicates a high
budding in a relatively untouched market service and most of the restaurants are tying up with
these online food delivery aggregators where in, people can order food online via apps with the
help of internet wherein they have access to number of restaurants and different food option which
they can select based on their taste and preferences.
Online food ordering is that the process of ordering food through the restaurant's own website or
mobile app, or through a multi-restaurant's website or app. A customer can prefer to have the food
delivered or for pick-up. The process consists of a customer choosing the restaurant of their choice,
scanning the menu items, choosing an item, and eventually choosing for pick-up or delivery.
Payment is then administered by paying with a credit card or debit card through the app or website
or in cash at the restaurant when going to pick up. The website and app inform the customer of the
food quality, duration of food preparation, and when the food is prepared for pick-up or the
quantity of your time it will take for delivery.
The online food ordering market has increased within the U.S with 40 percent of U.S adults having
ordered their food online once. The online food ordering market includes foods prepared by
restaurants, prepared by independent people, and groceries being ordered online then picked up or
delivered.

The first online food order was a pizza from Pizza Hut in 1994.

The first online food ordering service, World Wide Waiter (now known as Waiter.com), was
founded in 1995.[8] The site originally serviced only northern California, later expanding to
several additional cities in the United States.

Grub Hub was founded in 2004.

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By the late 2000s, major pizza chains had created their own mobile applications and started doing
20-30 percent of their business online. With increased smartphone penetration, and the growth of
both Uber and the sharing economy, food delivery startups started to receive more attention. In
2010, Snap finger, who is a multi-restaurant ordering website, had a growth in their mobile food
orders by 17 percent in one year.

Instacart was founded in 2012. In 2013, Seamless and Grub hub merged. Uber Eats launched in
Los Angeles, California in 2014. By 2015, online ordering began overtaking phone ordering.

In 2015, China's online food ordering and delivery market grew from 0.15 billion Yuan to 44.25
billion Yuan. As of September 2016, online delivery accounted for about 3 percent of the 61 billion
U.S. restaurant transactions.

Top most popular food delivery services in India are:

• Swiggy
• Zomato
• Food Panda
• Uber Eats
• Pizza Hut
• Domino's Pizza
• Just Eat
• Faaso’s

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Key growth factors of online food delivery industry:
✓ High rate of throwaway income and deeper internet diffusion of customers.
✓ Most of the restaurants tying up with online food delivery platforms are sure on making a
profit margin of more than 2 - 3% than diners.
✓ Most of the restaurants are trying to maximize their business by offering food delivery
through these online aggregators.
✓ Increasing rate of literacy and increasing number of internet and smart-phone users are also
one of the reasons.
✓ The cost of starting an online delivery business is much cheaper compared to that of starting
up a restaurant.
✓ The changing life style of the people and also the changes in the standard of living of the
people.
✓ An increase in the number of working women and they have no time to cook where they
adopt to order food online.
✓ The convenience of ordering food online.
✓ Marketing strategies used by these service providers.
✓ The rising consumption levels of individuals mostly the ones in the IT sectors.

❖ The reason behind the popularity of online food delivery service is because of various
benefits it provides like:

Food delivery to the door step of the customer.

Easy accessibility and convenient.
Various payment options.
Attractive offer, discounts, rewards and cash backs.

In the recent days most of the people have started placing food orders online and having a look out
on this fashion a lot of restaurants are maximizing their sales and are earning very good returns
just by registering themselves into online ordering sites like Zomato, Swiggy etc.

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The online food delivery services sector which has had its foothold in the recent years is rising out
to be the most growing and popular markets all over the globe and in recent times the demand for
this industry has taken a huge increase in the market. We can witness a lot of new food delivery
startups and many restaurants which are keen about getting into this market where in they are able
to a huge growth compared to other markets.

The online food delivery industry saw a growth of 150% in 2016. It has also helped many
restaurants by increasing/maximizing both their sales and revenues. Online food delivery services
not only have an agreement with the local cafes and restaurants, but it also has a contract with a
lot of fine dining restaurants. It has helped them in amplify their reach and this further enhanced
their resource utilization.

The E-Services market section of Online Food Delivery contains the user and revenue
development of two diverse delivery service solutions for ready meals:

• Restaurant-Consumer Delivery.
• Platform-Consumer Delivery.

Revenue includes the gross produce value which is defined as the total sales dollar price for food
sold through the Online Food Delivery market.

Online Food Delivery provides services that deliver prepared meals and food that is ordered online
for direct consumption.

The Restaurant-to-Consumer Delivery platform includes the delivery of food directly by the
restaurants to the consumer. The customer can place his/her order via different platforms (e.g.: Just
Eat) or they can directly place the order through the restaurant website (e.g. Domino's).

The Platform-to-Consumer Delivery platform concentrates on online delivery services that provide
customers with a variety of food options from a wide range of restaurants; in this case the
restaurants need not necessarily have to offer food delivery themselves. In this case, the platform
handles the delivery process.

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 Company Overview
About Zomato

Zomato is an Indian restaurant aggregator and food delivery start up founded by Deepinder Goyal
in 2008. Zomato provides information, menus and user-reviews of restaurants, and also has food
delivery options from partner restaurants in select cities. As of 2019, the service is available in 24
countries and in more than 10,000 cities.

Type of business: Private

Available in: English, Turkish, Portuguese, Indonesian, Spanish, Czech, Slovak, Polish, Italian,
and Vietnamese

Founded: July 2008

Headquarters: DLF Phase V, Gurugram, Haryana, India

Area served:24 countries: Australia, Brazil, Canada, Chile, Czech Republic, India, Indonesia,
Ireland, Italy, Lebanon, Malaysia, New Zealand, Philippines, Poland, Portugal, Qatar, Singapore,
Slovakia, South Africa, Sri Lanka, Turkey, UAE, United Kingdom, United States

Founder(s): Deepinder Goyal

Key people: Deepinder Goyal (Founder and CEO), Gaurav Gupta (Co-Founder & COO), Mohit
Gupta (CEO-Food Delivery business), Gunjan Patidar (Head of Engineering), Akriti Chopra
(CFO)

Industry: Consumer Services

Services: Restaurant Search & Discovery, Online Ordering, Table Reservations & Management,
POS Systems, Subscription Services

Employees: 5,000+

Website: Zomato

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History
Zomato was founded as Foodie bay in 2008. It was renamed Zomato in 2010. In 2011, Zomato
expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.
Subsequently, in 2012, the company expanded operations internationally in several countries like
the United Arab Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South
Africa. In 2013, Zomato was launched in New Zealand, Turkey, Brazil and Indonesia, with its
website and apps available in Turkish, Brazilian Portuguese, Indonesian and English languages.
Further in April 2014, Zomato launched its services in Portugal, followed by launches in Canada,
Lebanon and Ireland in the same year.

Values followed by Zomato:

• Possession
• Judgment
• Communication
• Interest
• Valour
• Teamwork, Initiative, Leadership.

Starting off with providing information about over 1 million restaurants worldwide to its users,
they are now making dining much convenient and more pleasing with services like online ordering
of food and table reservations

HIGHLIGHTS OF THE ZOMATO DELIVERY SERVICE

• Their main aim is to maximize their business potential by targeting the hungry customers.
• They provide a user friendly app base which is easy to use and place an order.
• Online payments are made more easily, simpler, convenient which provides ease of
payment with secured transactions and no extra service charge to banks.
• They provide a lot of promotions and offers to attract a lot of customers.
• They conduct Loyalty programs where in the loyal customers are rewarded and given
additional benefits.
• It provides exceptional customer care service which handles the queries, complaints,
refunds and technical issues.

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Zomato Marketing Mix
Zomato is an online restaurant search & discovery service provider that was founded by Pankaj
Chaddah and his accomplice Deepinder Goyal in the year 2008. The firm has grown within a short
time to become present in about 23 countries by now. Formerly known as Foodie bay, the company
was renamed to Zomato in 2010 after which Smartphone applications were introduced in 2011.

Competitors

• JustEat
• Food panda
• Burrp

Product in the Marketing Mix of Zomato:

Zomato provides its users with restaurant search information and reviews that will enable one to
make an informed decision in regard to the choice of restaurant. Menu images are offered to
customers, especially for those restaurants that aren’t running their own websites.

Their slogan “Never have a bad meal” has truly been proven right by the company’s ability to help
its users secure the right restaurants for their needs. In general, their services include POS Systems,
Restaurant Search & Discovery, White label Apps, Table Reservations & Management and online
ordering services. The company lists at least 1.5 million restaurants across the almost 25 countries
where it is present

Price in the Marketing Mix of Zomato:

Zomato doesn’t charge restaurants for putting their restaurant information on the Zomato page.
However, it doesn’t mean that the restaurants won’t ultimately pay anything. There are three basic
revenue generation avenues or sources namely: advertisements (sponsor ads & banner ads),
restaurant booking and event ticketing.

Event ticketing is where tickets for special events are sold through the site basically for large scale
events or parties. Restaurant booking or online ordering is charged at between 7.5% and 15% of
the sales depending on the priority category of the restaurant.

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Place in the Marketing Mix of Zomato:

Zomato is an online search site that can be accessed by native users of Windows Phones, Universal
Windows Platform i.e. Windows 10 and Windows 10 Mobile, Android users, iOS, and watchOS.
It is currently available for use in about 23 countries including India, Canada, Chile, Malaysia,
United Arab Emirates, New Zealand, Lebanon, the United Kingdom, Ireland, Czech Republic,
Italy, Sri Lanka, Poland, Turkey, Slovakia, Portugal, Qatar, South Africa, the USA as well as
Australia among others.

Today, the site receives a flooded traffic of about 90 million visits every month. Products are
available in about ten languages namely: English, Italian, Slovak, Spanish, Portuguese, Turkish,
Polish, Indonesian and Slovak.

Promotions in the Marketing Mix of Zomato:

Zomato is credited for being one of the few brands to have become successful in content
marketing. One of their content marketing strategy, in fact, the main strategy, is the vast use of
images to promote their products.

Such products have been credited for offering pure entertainment. In other words, images are
important promotion features. However, one is not just to pick any image but the right one. On
Zomato, you will not come across one image that doesn’t make you smile. It is because of this that
I will keep waiting for them to post something new.

The company has invested vastly on SEO and SME’s. The use of the social media to promote
Zomato has also played an important role in making the company popular. Their posts on social
media are always just some simple industry jargons that help attract the different audience
segments. All their posts and promotions prove that the company always sticks to the niche and
also understands exactly who it is catering to.

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SWOT ANALYSIS OF ZOMATO

STRENGTHS

➢ It has a fast expanding and growing market.

➢ It is the first delivery service in most of the nations.
➢ The app is user friendly compared to its competitors and also has won many awards for its
design.
➢ Zomato has a huge customer base which is an added advantage.
➢ It has a large number of investors and has a enough funding.
➢ Zomato has made a lot of profits since the time it was launched.
➢ It has a very good marketing strategy which has helped in acquiring a lot of customers.

WEAKNESS

➢ The major concern was related to the privacy and security issues for the app – A recent
incident where in the app was hacked and almost 17 million users data was leaked.
➢ Zomato still requires a lot of expansion.
➢ Word of mouth and Facebook check-ins have lessened the number of people using Zomato.

OPPORTUNITIES

➢ Further expansion.
➢ More acquisitions.
➢ The concept of Cloud restaurant where the restaurants need not have a physical existence
to sell their food, instead they can sell their food through Zomato.
➢ Zomato does have a huge following but the users do not interact with each other. Creating
a forum and a community out of the users already following Zomato can be a huge benefit
for the brand.

THREATS

➢ The major threat would be from the new entrants, many new food delivery startups have
been emerging in the recent years.
➢ Not all the customers will be loyal towards one aggregator, if there is a better one providing
offers and discounts the existing customers may move on.
➢ Uncertain Research and Development outcomes, sometimes if the predictions of the R&D
may not work as thought it might lead to failure.

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 About Swiggy

Swiggy is India's largest and most valuable online food ordering and delivery platform. Founded
in 2014, Swiggy is based out of Bengaluru, India and, as of March 2019, was operating out of 100
Indian cities. In early 2019, Swiggy expanded into general product deliveries, under the brand
name Swiggy Stores.

In September 2019, Swiggy launched instant pick up and drop service Swiggy Go. The service is
used to pick up and drop off a diverse array of items, including laundry and document or parcel
deliveries to business clients and retail customers.

Type of business: Private

Available in: English

Founded: 2014; 6 years ago

Headquarters: Bangalore, India

Area served: 300+ cities across India

Founders: Nandan Reddy, Sriharsha Majety, Rahul Jaimini

Key people: Sriharsha Majety (CEO), Vivek Sunder (COO), Rahul Bothra (CFO)

Industry: Online food delivery

Products: Consumer service

Services: Restaurant search, online ordering.

Employees: 218,000

Website: www.swiggy.com

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History
In 2013 two founders, Sriharsha Majety and Nandan Reddy, designed an e-commerce website
called "Bundl" to facilitate courier service and ship goods within India. Bundl was quickly paused,
and they moved into the food delivery market. At the time, the food delivery sector was in turmoil
as several notable startups, such as Food panda (later acquired by Ola Cabs), TinyOwl (later
acquired by Zomato) and Ola Cafe (later closed) were struggling. Majety and Reddy approached
Rahul Jaimini, formerly with Myntra, and founded Swiggy and parent holding company Bundl
Technologies in 2014. The company built out a dedicated delivery network and grew rapidly,
primarily driven by the focus on logistics and locking in key resources.

Values followed by the Swiggy:

• Customers come first.

• Striving for excellence.
• To be sincere and display highest levels of reliability.
• Exhibit prejudice for action.
• Being polite and humble towards its customers.

BENEFITS SWIGGY EMPLOYEES RECEIVE

• Swiggy provides personal accident insurance.

• It provides group medical insurance for all its employees/delivery boys.
• Pre-loaded food cart.
• Mobile allowance is given to all the delivery boys.
• Maternity and implementation leave policy.
• Provides free support on tax and investment planning.

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Swiggy Marketing Mix
Swiggy is a delivery company associated with food and beverage industry. It is an Indian company
that was launched with the purpose of offering a complete solution to the urban foodie in terms of
food ordering and delivery from best restaurants located in the vicinity. It is a partnership-based
company and was founded in the year 2014, August by its co-founders Nandan Reddy, Sriharsha
Majesty and Rahul Jasmine. It faces competition from following

• Food panda
• Tiny owl
• Zomato
• Spoon Joy
• BOX8
• Deliver

Product in the Marketing Mix of Swiggy:

Swiggy is one of the popular delivery companies that supplies ordered food and beverage items to
its customers. It has created a single window and included a wide range of food parlours and
restaurants under its umbrella.

A customer now can make a choice from visual menus of restaurants in neighborhood and order
online. Ordering food and getting a swift delivery has become a hassle-free option from a customer
viewpoint because of Swiggy. The company has estimated seven hundred and fifty restaurants on
its platform and receives nearly seventy thousand orders on monthly basis. Swiggy is not
accountable for the quality of food as it only delivers from one hand to another.

The company encourages promotions and ratings of restaurants for online delivery. Swiggy has
launched an On-Time-Delivery service titled Swiggy Select that guarantees cashback if the order
does not reach a customer in stipulated time-frame.

Place in the Marketing Mix of Swiggy:

Swiggy has spread its presence to few cities in India like Bengaluru, Gurgaon, Pune, Chennai,
Delhi, Hyderabad, Kolkata and Mumbai. It has its headquarters base at Bengaluru in Karnataka
and has established its corporate offices at Hyderabad in Telangana and Gurgaon in Haryana. It is
a popular app that takes order for food delivery from listed restaurants on its portal. Swiggy has
set up a strong and widespread distribution network to offer prompt and best results.

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It has an exclusive fleet of personnel that includes services of nearly eight hundred
delivery people working on-field. They are involved in picking up orders from selected restaurant
and delivering it to customers. Delivery boys are equipped with Swiggy App and smartphones that
make tracking of a delivery throughout routing algorithms easy. Swiggy has hired Shadow fax
Technologies, a third-party delivery company, for part-time distribution in Delhi and Bengaluru.

Price in the Marketing Mix of Swiggy:

Swiggy has an extensive workforce and this flexibility prompts it to allow its customer a policy of
no minimum order. This has increased its customer base to a great deal. Swiggy was able to raise
2 million dollars in Series A funding from Accel Partners and SAIF Partners. During Series B it
raised 16.5 million dollars funding from an undisclosed investment firm and Norwest Venture
Partners. Swiggy has tie-ups with restaurants that offer a minimum of 15% to 25% commission
and this has helped it in increasing its distributive channel and garnering better revenues. It also
charges a minimum delivery fee from its customer irrespective of a small or high amount order.

Promotion in the Marketing Mix of Swiggy:

Swiggy realizes the importance of a good marketing strategy and has adopted several plans to
create further brand awareness. It relies heavily on mouth publicity and satisfied customers is its
greatest advertising tools as they recommend the brand to friends and family. Swiggy has
adopted online marketing strategy and has taken help of social media platforms
like Twitter, Facebook, Instagram, YouTube and Pinterest via innovative and interesting ad
campaigns like #SingWithSwiggy and #DiiwaliGhayAayi.

Its Facebook page is very popular and active as it offers regular updates and encourages active
participation. Swiggy has launched innovative videos that have become very popular amongst
masses like Swiggy Goes International. The company runs contests to encourage direct
participation by customers through #SwiggyTuesdays and offers to munch bag and coupons as
rewards. Ahead of its launch in Mumbai city, it partnered with popular Dabbawallas of Mumbai
to get a better grasp of the situation and later used it as a promotional strategy to gain brand
exposure.

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SWOT ANALYSIS OF SWIGGY

STRENGTH

• Swiggy is always known for its speedy delivery.

• It has created recognition among people.
• They have well trained team which offer exceptional service.
• It offers a wide selection of restaurants to choose from.
• They maintain clean and neat quality packaging.
• It offers free delivery services without imposing any delivery charges from the customer.

WEAKNESS

• Orders are only from the restaurants within the particular area or province.
• People in few cities are not aware about the brand.

OPPORTUNITIES

• Leader in online food delivery business.

• Growing market for potential customers.
• Re-branding can help them grow up in the market.
• Need to increase and concentrate on their zonal restaurant base.

THREATS

• Increase in the number of new competitors.

• Neglecting the potential competitors.
• The customer base of Swiggy is decreasing.

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 LITERATURE REVIEW

Ansar Z. & Jain S. (2016)

Specified the growth in the ecommerce industry as prime factor for the success of online food
ordering and delivery services. Research has mentioned that more than 400 food delivery apps are
nurturing in India with a funding of about $120 million from venture capital firms and other such
investors. Considering the fact that a minimum 3 meals are consumed by each individual in a day
the food industry is called as a repetitive business industry which attracts the interest of investors
and entrepreneurs towards this growing business segment.

H.S. Sethu & Bhavya Saini (2016)

Have wonderfully investigated the perception, behavior and satisfaction of students towards online
food ordering and delivery services. The study emphasized the online food ordering and delivery
services helping students in time management and having their favourite food at any time of the
day. Researchers have also revealed that easy access to internet as one of the supporting factor to
the use of such services by the students.

Varsha Chavan et al. (2015)

In their studies aimed to gauge the impact smart device based interface on business management
and service delivery have concluded them as a supporting factor for restaurants in taking orders
and delivering foods with more convenience. Authors have stated online services as more
convenient, user friendly and most effective tools for food businesses.

Leong Wai Hong (2016)

In his studies has published the online food ordering and delivery services as an efficient system
to improve productivity and profitability of restaurants through online marketing and business
strategies.

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According to Sheryl E. Kimes (2011), his study found that perceived control and perceived
convenience associated with the online food ordering services were important for both users and
non-users. Non-users need more personal interaction and also had higher technology anxiety to
use the services.

According to Leong Wai Hong (2016), the technological advancement in many industries have
changed the business model to grow. Efficient systems can help improve the productivity and
profitability of a restaurant. The use of online food delivery system is believed that it can lead the
restaurant’s business grow from time to time and will help the restaurants to facilitate major
business online.

According to Hong Lan, et al, (2016), online food delivery market is immature yet; there are some
obvious problems that can be seen from consumers‟ negative comments. In order to solve these
problems, we can neither rely merely on the self-discipline of online food delivery restaurants nor
the supervision and management of online food delivery platforms. Only bb taking laws as the
criterion, with the joined efforts of the online food delivery platforms and restaurants, the
government departments concerned, consumers and all parties in the society, can these problems
be solved and a good online take away environment can be created.

A research on the changing market for food delivery (Carsten Hirschberg et al 2016) indicates that
on line’s penetration of the total food-delivery market broke 30 percent in 2016. We believe
penetration rates will grow further as the market matures, eventually reaching 65 percent per year.

According to Gloria food the advantage of online ordering and the reasons for the growth of food
delivery app industry are Convenience, Simpler menu to manage, significant savings, no
Hasselsetc.

Food Panda is an introduction to the newest food sensation that’s here to stay (Shiyin Chan, 2015)
Food panda is a global online food delivery marketplace headquartered in Berlin, Germany. Fun
fact - they’re also known as hello food in other places in the world.

Bhavna Singh (2015) said that Food panda has been present in the Indian market since May 2012.
Food panda first major move was acquisition of TastyKhana, which was launched in the city of
Pune in 2007. Together with TastyKhana and JUST EAT, it is now present in over 200 cities and
partners with over 12,000 restaurants.

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She also talked about JUST EAT was launched in Denmark in 2001 and was traded publicly on
the London Stock Exchange. Their Indian business was launched as Hungry Bangalore in 2006. It
was renamed in 2011 when JUST EAT acquired a majority share in the business. Today, the
company partners with over 2,000 restaurants.

According to Deepinder Goyal, Zomato CEO and co-founder told TechCrunch that he expects to
reach 10,000 restaurants in India in a few months. “We have a sales team of around 300 in India
and 5,000-odd advertisers… these partners know the volume we bring to them so it is quite easy
for us to launch this new service.”

According to a January 28 report in The Times of India, Rocket Internet backed Food panda has
not found a buyer even with a rock bottom price tag of $10-15 million. The company laid off 300
people December 2015, about 15% of its workforce. In September 2015, TinyOwl had fired 100
employees in its Mumbai and Pune offices. And in October, Zomato sacked 300 workers. UK
based Just Eat entered and exited the market faster than you would order and receive pizza.

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Background of the Study
Online food ordering system is a system to manage the business. The main point of developing
this system is to help the customers to manage the business and help customers through online
ordering and lunch reservation. The project is being developed because of the long queues that
will be in the restaurant during lunch or dinner hours, one for purchasing tickets and one for
collecting food.

With the new system, the customers would be able to order their food from the comfort of their
offices, classrooms, hostels and anywhere outside the school campus without queuing. The system
will cater for the disadvantages of the traditional method which is currently in place.

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 Problem statement

A lot of food delivery companies have been engaged in the marketing of online delivery food. So
the customers have many options to choose different services. Customers are not able to ask about
quality of food or ask for any specialized diet foods. It is more difficult to ask for gluten free or
allergy free foods with online. Most of the people still prefer take away and visiting the restaurants
instead of going for online delivery services. Apart from which restaurants have their own delivery
services which might act as a barrier to these online food delivery services. In market research we
provide information by people requirements and needs. But as a market research there is also
problem to take people surveys, and to get reviews or data collection from them. There are few
people who don’t know or not aware about the online food service. Sometimes it’s difficult to
know requirements of customers. We found problem that customer’s taste, satisfaction and
acceptance level are change rapidly. Still there is people who are not aware or sure about this
online food service.

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 Research objectives

• To find out the comparative analysis of Zomato & Swiggy.

• To study of relationship between income and mode of payment.
• To know the relationship between age and meals which they order.
• To study of relationship between income and spend money on online food delivery each
time.
• To know that how people are aware about online food ordering and find out the customer
satisfaction level of both companies.
• To understand the acceptance level of customer.
• To know what customer prefer most from both companies. & how often they order.
• To study that which service provider gives more offers & promotions.
• To study of relationship between all various categories in both companies, like there
customer service, menu selection, restaurants option, ordering process, delivery service
and quality of food delivered.

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 Research Methodology

What is Research Methodology?

The process used to collect information and data for the purpose of making business decision.
Research Methodology is the essential part of any report in research methodology. The field study
was conducted to analyze the satisfaction level, understand the awareness and service provides by
online food industry.

Research design
Since my study is descriptive type, so research design will also be descriptive.

Method or sources of data collection

Primary data was collected by the questionnaire based online survey.

Secondary data was obtained from internet websites of company/Industry.

It includes questionnaire filling through Google forms by different people. This is use to collect
the primary data, this was done with the help of online survey filled by respondents. The
questionnaire used for primary research is attached to this report in annexure.

Need for Study

The basic idea of taking up this study is to analyze the awareness, acceptance level and which
online food delivery service is more preferred by people.

Sample Deign
The sample design used in this study random sampling is used who use online food ordering
services for primary data.

Sample Size – 100

Samples of 100 Respondent were surveyed through online Google form.

Data Collection Instrument

We are used Questionnaire method for research. One method which can be used to ask questions
is to use a questionnaire. This is a set of written questions on a sheet with spaces provided for
respondents to reply to the questions. Questionnaires are frequently self-administered or they may
be used during an interview. A questionnaire is most useful when we want to collect a small
amount of clearly defined facts from a large number of people.

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 Data Analysis & Interpretation

Gender

Male Female
1.

Out of 100 people 52% are male and 48% are female. So there is more number of male
rather than female.

age

18-20 20-25 25-30 30 or more

2.

Here, 84% people are in the age of 20-25 and 9% are in the age of 25-30. So the rest
people age is below 20 or more than 30. So there are more number of youngsters who
are using online food service.

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 Occupation

student profession other

3.

Here, most of people are students and rest are in their own profession or in job and all.
There are 71% of people are students and 26% are in profession.

Income

less than 20000 20000 - 30000 30000-40000 40000-50000 more than 50000
4.

In this 9% are having income of more than 30000 and 31% are having income of more
than 20000. There more number of people are having income of less than 20000. There
are 55% of people.

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 Do you oder food online?

yes no
5.

From above chart we identified that majority of people are order food online. There are
92% people who order food online.

If yes, which of these online food delivery service you

prefer?

Zomato Swiggy other

6.

By above chart we find out that out of 100 people 54% are use Zomato & 43% use
Swiggy for online food delivery service. So the majority of people are using Zomato
for online food delivery service.

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 How often do you order food online?

daily weekly fortnight monthly

7.

We identified that majority of people used to order food online monthly. So there is
45% who used to order in monthly, 32% weekly, 9% fortnight and rest are as above
mentioned.

which meal do you typically order online?

dinner

snacks

lunch

breakfast

0 10 20 30 40 50 60 70

which meal do you typically order online?

8.

From above parameters we can see that people used to order mostly snacks & lunch
meal. And rest will be order dinner & breakfast meal. There is 66% of people who order
snack meals, 42% order lunch meal and other by 37%, 8% dinner or breakfast meal.

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 Which mode of payment do you prefer most?

cash on delivery credit/debit card E-wallet other

9.

Here, majority of people are used to cash on delivery payment mode and other are used
to credit / debit card or other mode of payments. As compare to other mode of payment
there is more number of people who use cash on delivery by 65%.

What is approximate money you spend or ordering

food each time?

less than 150 150-300 300-500 more than 500

10.

Here, 56% of people are spend money in range of 150-300 for order each time food
than 19% are in range of 300-500, 16% are in range of less than 150 and 9% are in
range of more than 500. So the majority of people are used to spend money in range of
150-300.

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 According to you which service provider gives more
offers & promotions?

Zomato Swiggy other

11.

According to respondents we find out that Zomato is gives more offers and promotions
in comparison of Swiggy. There is 61% of people who thinks that Zomato is giving
more offers and promotions.

12. Please rate various aspects of Zomato in terms of:

70
60
50
40
30
20
10 Agree
0 Neutral
Disagree

From this chart we identified that most of people are agree with the above parameters
in aspects of Zomato.

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 13. Please rate various aspects of Swiggy in terms of:

70
60
50
40
30
20
10 Agree
0 Neutral
Disagree

From this chart we identified that most of people are agree with the above parameters
in aspects of Swiggy.

How long does it usually take for the order to be

delivered?

15-20 min. 20-25 min. 25-30 min. more than 30 min.

14.

Here we identified that 35% & 33% of people thinks that order to be delivered takes
time between 20-30 minutes. And rest than 21% are thinks that it takes 15-20 minutes
time and rest thinks that it takes more than 30 minutes.

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 Do you prefer online ordering of food rather than
going to the restaurant?

yes no maybe
15.

Here, majority of people are preferring to order food online rather than going to the
restaurants. And some are not sure about it. There is 48% of people who like to order
food online and 34% are not sure about it.

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 Findings
• Here we find that majority of people are male as compare to female. There is
more number of male people who used to online food order service.
• Majority of people are youngsters and students who are order food online.
• We find that those people who have less than 20000 they are mostly use to
online order food service.
• We find that out of 100 people 92% are order food online and they used both
delivery service but from them 54% people are use to prefer Zomato service as
comparison of Swiggy. So there is more number of people who prefer Zomato
delivery service.
• We find that mostly people are order food monthly and then some of them order
food weekly.
• Majority of people are typically order snacks and lunch meal for them. Most of
people are prefer cash on delivery payment mode.
• Majority of people spend money around 150-350 for ordering food each time
and according to most of people Zomato gives more offers & promotions.
• Majority of people are agree in various aspects of both Zomato and Swiggy. In
aspects of they provides better customer service, menu selection, more
restaurants option available, ordering process, delivery services, ease of using
app and quality of food delivered.
• Majority of people thinks that both services are takes 20-30 minutes time for
order to be delivered.
• In last there is majority of people who prefer online ordering food rather than
going to the restaurants.

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 Conclusion

On the basis of responses from the customers of online food ordering services in this
particular research, it is concluded that Zomato is most successful food ordering online
service as compare to Swiggy. Customers’ thinks that Zomato is most active online
food delivery service by including that Zomato gives more offers and promotions.
Respondents have also chosen that they mostly prefer Zomato and others are preferring
Swiggy. We know that customers are mostly used to order monthly and by using cash
on delivery payment mode. Majority of customers are order snacks or lunch meal with
spending money in range of 150-300. By responses we conclude that customers are
agree with both companies’ various service categories. So, in final we find that
customers are prefer to online ordering of food rather than going to the restaurants.

Online food delivery services have made the life of individuals much easier and
convenient wherein they can save on a lot of time and energy. With the rise of these
services there is no need to call the restaurants for placing orders, there is no need to
wait for a long time, through this you can order your choice of food from your choice
of restaurant anytime, anyplace and from anywhere.

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 Bibliography

Ansar Z. & Jain S. (2016)

H.S. Sethu & Bhavya Saini (2016)

Varsha Chavan et al. (2015)

Leong Wai Hong (2016)

According to Sheryl E. Kimes (2011)

According to Leong Wai Hong (2016),

According to Hong Lan, et al, (2016)

(Carsten Hirschberg et al 2016)

(Shiyin Chan, 2015)

Bhavna Singh (2015)

According to Deepinder Goyal

According to a January 28 report in The Times of India

References

https://en.m.wikipedia.org/wiki/Online_food_ordering

https://en.m.wikipedia.org/wiki/Zomato

https://en.m.wikipedia.org/wiki/Swiggy

https://www.marketing91.com/marketing-mix-swiggy/

https://www.marketing91.com/marketing-mix-zomato/

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 Annexure
"A Comparative study on online food delivery service of Zomato and Swiggy"

Note:

Dear Sir/Madam,

We Vishal Leuva and Hiren Panchal students of Oakbrook Business School. We're
doing survey on “A Comparative study on online food delivery service of Zomato and
Swiggy" as a part of our MBA program.

Kindly note that the responses given by you will be kept strictly confidential and will
be used only for the purpose of academic research.

1) Name:

2) Gender
o Male
o Female
o Other

3) Age
o 18-20
o 20-25
o 25-30
o 30 or more

4) Occupation
o Student
o Profession
o Other

5) Income
o Less than 20,000
o 20,000 to 30,000
o 30,000 to 40,000
o 40,000 to 50,000
o More than 50,000

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6) Do you Order Food online?
o Yes
o No

7) If yes, which of these online food delivery service you prefer?

o Zomato
o Swiggy
o Other

8) How often do you Order Food online?

o Daily
o Weekly
o Fortnight
o Monthly
o Other

9) Which meal do you typically order online?

o Breakfast
o Lunch
o Snacks
o Dinner

10) Which mode of payment do you prefer most?

o Cash on delivery
o Credit / Debit card
o E-wallet
o Other

11) What is the approximate money you spend on ordering food each time?
o Less than 150
o 150 to 300
o 300 to 500
o More than 500

12) According to you which service provider give more offers and promotions?
o Zomato
o Swiggy
o Other

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 13) Please rate various aspects of Zomato in terms of:

Strongly Agree Neutral Disagree Strongly

Agree Disagree
Better customer
service

More
Restaurants
option available

Menu selection

Ordering Process

Delivery Services

Ease of Using
App

Quality of food
Delivered

14) Please rate various aspects of Swiggy in terms of :

Strongly Agree Neutral Disagree Strongly

Agree Disagree
Better customer
service

More Restaurants
option available

Menu selection

Ordering Process

Delivery Services

Ease of Using App

Quality of food
Delivered

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15) How long does it usually take for the order to be delivered?
o 15-20 minutes
o 20-25 minutes
o 25-30 minutes
o More than 30 minutes

16) Do you prefer online ordering of food rather than going to the restaurant?
o Yes
o No
o Maybe

17) Would you like to do any suggestions for ordering food online?

______________________________________________________________
______________________________________________________________

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