CHAPTER -2

INDUSTRY’S PROFILE
 These Companies Are the Major Players in the Online Food Industry

These companies represent 82% of the market share of the food industry which a
company occupies in the market where they operate. I have chosen these
companies ( zomato, foodpanda, swiggy) because these are the major players in
online food industry sector and secondly People majorly use these as a medium to
order food online. Therefore. I have restricted my study to these companies only. I
have collected data from the respondents those who are using these companies as a
medium to order food with the help of questionnaire which contains questions
like :- which consider as the main factors while ordering food online??. But my
research is not about these company it is about whole food industry. Future
research can be undertaken by studying the satisfaction level of the consuners for
each company separately and then the results can be compared.
 FOODPANDA

INTRODUCTION
Foodpanda is a global online takeaway food ordering marketplace, with a focus on emerging
markets. The Foodpanda group is the leading online food delivery marketplace in emerging
markets. It enables restaurants to become visible in the online and mobile world and provides
them with an industry leading software and technology to generate additional demand. For
consumers, Foodpanda offers the convenience to order food online and the widest gastronomic
range, from which they can choose their favourite meal via app or online with a few fingertips.

KEY FACTS ABOUT THE COMPANY

• Founded in May 2012
• Operating across three continents
• Active in more than 450 cities around the world
• Partners with more than 45,000 restaurants globally
• With a team of more than 3.000 people worldwide
• Headquartered in Berlin
• CEO –Ralf Wenzwl
• Highly funded with over USD 310M and backed by internationally renowned investors
HISTORY
Food Panda was launched in March 2012 in Singapore and expanded into 16 countries by the
end of the year. By February 2013, Food Panda was operating in 23 countries across Africa,
Asia, Eastern Europe and Latin America. The group consists of multiple brands. Food Panda is
primarily used in Asia and Eastern Europe. In the Middle East, the company operates under the
hello food branding. Additionally, Delivery Club in Russia, Eat Oye in Pakistan, 24h in UAE,
NetPincer in Hungary, Donesi.com in Serbia, Bosnia & Herzegovina and Montenegro, Pauza in
Croatia, Room Service in Malaysia and Singapore, City Delivery in Philippines, Food by Phone
in Thailand, Koziness and Dial-A-Dinner in Hong Kong, belong to the Foodpanda group.

In November 2016 the company sold its Delivery Club business in Russia to mail.ru for $100
million. In December 2016, the Foodpanda group was acquired by the German competitor
Delivery Hero.

CONCEPT OF ONLINE FOOD ORDERING

Foodpanda accepts orders via its websites and mobile applications. It connects customers with
restaurants that offer food delivery in their area and lets them choose, order and pay online. Food
Panda also has a review section on restaurant pages, where customers can comment on sales
process, delivery, taste and overall impression of restaurants. Food Panda has entered into a
collaboration with Indian online railway system enabling customers to buy meals while
travelling, beginning December 2015.

REVENUE GENERATION METHODS

Online food ordering platforms like Deliveryhero.com (Foodpanda acquired by delivery hero)
follow a simple business model. They act as a common platform between customers and
restaurants. Subscribed users search for restaurants, place the order with their chosen restaurant,
and pay for it online or opt for COD (cash on delivery).
The delivery part is mostly handled by restaurant owner. However, this is not all you need to
know for starting your online food ordering and delivery website.

SOME OTHER CRITICAL POINTS:-

• Online Food Ordering systems partner with local restaurants that offer home delivery, and
prepare a database.
• For every order placed through the website, the restaurant gives a pre-decided commission.
• Restaurants can also get featured on the website homepage for publicity.
WORKING OF FOODPANDA

Following are the 4-steps followed by Foodpanda during the whole delivery process:-
1. .Search Enter your location to discover the restaurants delivering to you
2. Choose Browse hundreds of menus to find the food you like
3. Pay Pay fast & secure online or on delivery
4. Enjoy Food gets prepared & delivered to your door by the restaurant

SWOT ANALYSIS

SWOT ANALYSIS
STRENGTH  Trained people making and delivery
 International understanding of business
 Better customer support
 Wide coverage of restaurants
WEAKNESSES  Has not covered all area in the city
 Quantity required for free delivery
 Order only available from restaurants that are located in the zone
in the city
OPPORTUNITIES  Growing market for potential customers
THREATS  Increasing potential competitors
 Low customer at present
 Negligence of potential competitors
 ZOMATO

OUR MISSION IS TO ENSURE NOBODY HAS A BAD MEAL

INTRODUCTION
Zomato is an Indian restaurant search and discovery service founded in 2008 by Deepinder
Goyal and Pankaj Chaddah. It currently operates in 23 countries, including Australia and United
States. It provides information and reviews on restaurants, including images of menus where the
restaurant does not have its own website.

KEY FACTS ABOUT THE COMPANY

 Founders are Deepinder Goyal, Pankaj Chaddah
 Founded in July 2008
 Available In: English, Turkish, Portuguese, Indonesian, Spanish, Czech, Slovak,
Polish, Italian
 Ceo is Deepinder Goyal
 More than 90 Million users Visits Monthly
 More than 2000 Employees
 Headquarters in Gurgaon, Haryana, India
HISTORY

The service began as Foodiebay, and in November 2010 was renamed as Zomato.Between 2010-
13, Zomato raised approximately US$16.7 million from Info Edge (India) giving them a 57.9%
stake in Zomato.

By 2011, Zomato launched in Bengaluru, Pune, Chennai, Hyderabad and Ahmedabad and

introduced smartphone applications.  Zomato also launched zomato.xxx, a site. The company
also launched a print version of the website content, "Citibank Zomato Restaurant Guide", in
collaboration with Citibank in May 2012, but it has since been discontinued. In September 2012,
Zomato expanded overseas to the United Arab Emirates, Sri Lanka, Qatar,the United
Kingdom, the Philippines, and South Africa. In November 2013, it raised an additional US$37
million from Sequoia Capital . In July, it made its first acquisition by buying Menu-mania for an
undisclosed sum. 

In February 2017, Zomato in a company's blog had explained the concept of cloud kitchen. With
its cloud kitchen, the company will help the restaurants to expand their presence without
incurring any fixed costs.

In September 2017, Zomato claimed that the company had "turned profitable" in the 24 countries
it currently operates in. Furthermore, Zomato announced that the "zero commission model" is to
be introduced for partner restaurants.

Zomato narrowed down its losses by 34% to 389 Cr for the financial year 2016-17, from Rs
590.1 Cr crore in the previous year 2015-16.

REVENUE GENERATION METHODS

Zomato has three major sources of revenue.

1. Advertising: The ads which are placed on their website generate the majority of the revenue
for the company
2. Ticket Sales: Zomato also sells tickets for various events and earns a commission through
these sales
3. Consulting: Owing to the huge database of restaurants, users and their preferences, Zomato
also provides business consulting and data analytics services to their clients
ZOMATO BUSINESS MODEL
SWOT ANALYSIS

SWOT ANALYSIS
STRENGTH  Users perceive Zomato as ‘Specialty product’ (Focused only on
foods & restaurants)
 High awareness – Top of the mind product
 Global presence – 25 countries – 1.5 million listed restaurants
 . Superior technology and a strong workforce of over 1200
people
 . Asset less business model
 High financial leverage due to its business model
 Simple & user friendly interface
 Aggressive and Innovative marketing strategy
 Strong brand recognition and has won several accolades &
awards
WEAKNESSES  Competition from search engines & other similar apps means
limited growth
 Drastic growth means susceptible to bad content
OPPORTUNITIES  Opportunity to expand to further more countries
 Increasing internet penetration & number of smartphone users
 Rapid technology development
THREATS  Intense competition
 Lack of clear rules and regulations - Changes in government
policy can easily affect the business model
 Business model can be easily imitated by other players
 SWIGGY

RESTAURANTS IN YOUR POCKET

Order from your favorite restaurants

INTRODUCTION

Swiggy is an Indian-based company that provides a complete food ordering and delivery solution
from the best neighborhood restaurants to the urban foodie. Swiggy aims to stand out by offering
a more curated list of restaurants and services, not to mention its own in-house delivery fleet that
pick up orders from restaurants and deliver it to the customers. It charges between 15-40 percent
in commission to restaurants and for smaller orders, customers pay an additional delivery charge
between 20 and 50 rupees depending on their city.

“Swiggy is the food odering and delivery company based out of Bangalore,india. Swiggy was
inspired by the thought of providing a complete food ordering and delivery solution from the
best neighbourhood restaurants to the urban foodie. A single window for ordering from the wide
range of restaurants, we have our own exclusive fleet of delivery personnel to pickup orders from
restaurants and deliver it to customers. Having our own fleet gives us the flexibility to offer
customers a no minimum order policy on any restaurant and accept online payments for all
partner restaurants that we work with. Our delivery personnel carry one order at a time which
ensures we get reliable and fast deliveries.”

KEY FACTS ABOUT THE COMPANY

 Found on Aug 1, 2014
 Founders are Nandan Reddy, Rahul Jaimini, Sriharsha Majety
 There are 1001 -5000 numbers of employees.

HOW SWIGGY STARTED??

it is mostly a familiar progression that happens in most of the startups. Two people (Sriharsha
Majety & Nandan Reddy) set out to launch a delivery management platform had to shut
operations the next year of its launch. But with enough experience of logistics operations they
decided to give hyper local delivery a shot. But do hyperlocal delivery of what? Food is what
they thought of after having enough troubles of ordering food for themselves. A deeper look and
they realized that the segment is to be organized and took it on themselves. They roped in a
techie (Rahul Jaimani) and started in house tech development.Restaurants were signed up, a fleet
of delivery boys (full-time and part-time) was made, customer facing iOS and Android app and
website were designed, all these were put together and the rest is history.

Swiggy has made it possible for us to order food from nearby restaurants and relish it within the
next 40 minutes (average time).Now we can ponder if failing fast or having an in-house tech
team or owning a delivery fleet and having real time updates is ever a good idea!

REVENUE GENERATION METHODS

These are as follows:

1. Commission from the restaurants: One of the main sources of revenue for Swiggy is the
commissions that are earned from the enlisted restaurants. While Swiggy receives commission
on each order placed, it gets a fixed commission for providing the online platform to the
restaurants.

2. Delivery charges: Swiggy charges a high delivery charge from the customers, for delivering
the ordered food to the designated location. The delivery charges increases with the increase in
the distance.

3. Surge pricing: The same dishes are often sold at a higher price, with the increase in demand
for the same dishes. This surges help Swiggy to earn a good amount of revenue.

4. Advertisement and promotions: A good amount of revenue is generated from advertisements

and promotions.

5. Satellite kitchens: Setting up a small shared kitchen for ease of delivery in a high demand area
is also one way of revenue generation for Swiggy.

6. Swiggy’s own restaurants: A fact, unknown to many, Swiggy has taken initiative to set up
their own restaurants, thus increasing the flow of revenue.
SWIGGY FUNDING

Swiggy is backed by one of best investors available in the market. Swiggy has raised a total of
75.5 million dollars in funding from various investors, including Bessemer Venture Partners,
Norwest Venture, Accel Partners, SAIF Partners, Harmony Venture Partners, RB Investments
and Apoletto.

SWOT ANALYSIS

SWOT ANALYSIS
STRENGTH  Quick delivery
 Good brand image
 Trained people for making delivery
 Better customer support
 Good organizational structure and managers
 Wide range of restaurants offered
 Delivery is free
 Neat packaging(hygiene)
WEAKNESSES  Orders only available from restaurants that are located in the
zone of the order placed
 Low awareness of brand or low marketing
 Delivery charges in some cities
 Price differences in menu and app prices
OPPORTUNITIES  Pioneer in food delivery business
 Growing market for potential customers
 Increasing market share
 Few other food delivery business
 Cost effective and good quality food
 Provide better and effective service
 Delivery options are lacking in the market
THREATS  Present customer base is low
 Increase health consciousness
 Increasing potential competitors
 Negligence of potential competitors