1.1.

INTRODUCTION
The development of internet has boosted the extension of online food services by enabling
people to search, compare prices and conveniently access these services. As per research
conducted by market research future, the online food ordering markets in India is likely to grow
over 16 percent annually to touch USD 17.02 billion by 2023. Indian market has a huge
potential for food ordering and delivery and as more players enter the industry it will bring
opportunities and innovation benefitting the entire ecosystem. Online food ordering and
delivery has become an integral part of the food experience of Indians. Thus, online food
ordering is growing in Indian market day by day. Indian people are so active while using the
apps for ordering food online. As a result of all these online food marketing is also able to
generate ample amount of opportunities for employment. It also helps to connect with people
due to which they are able to increase their earning. Simply ordering system is a website or
mobile application through which user can order food online from a food cooperatives or a
native restaurant ordering food online is similar to online shopping. Food tech is the hot talk in
the startup town. After technology startups have made their mark in the e-commerce, taxi & real
estate sectors, now the ever hungry Indian entrepreneurs are looking to satiate the appetite of
others. Food tech is a vast market and food delivery startups are just a part of it. The popularity
of online food delivery services can be attributed to the several benefits it provides, such as
food delivered to the doorstep of the customer, various payment options, attractive discounts,
rewards and cash back offers. The market for online food delivery is mainly driven by
disposable income. Changing demographics, increasing penetration of internet and smart
phones, favorable lifestyle changes, young population, consumption levels, a greater share of
women in the workforce, aggressive marketing strategies adopted by food startups and the
convenience of ordering is increasing significantly which led to the growth of the market. So
with such benefits online food services is becoming a huge sector and will benefit India’s
economic condition.

1.2 LITERATURE REVIEW

(Hult K. K., December 2005): The results of this study provide good support for the relationships
between customer perceptions of service/Product quality, Product freshness, Site easiness, Time
saving, and their continued loyalty to both the channel and the particular brand. The evidence clearly
shows a longitudinal relationship between higher perceptions and increased loyalty. The data provide
important insights for researchers and managers interested in developing and perfecting methods for
retaining customers in the dynamic arena of Internet retailing. The application of behavioural models of
this type is generalizable, given that most Internet retailers have some type of ongoing data-collection
system for surveying customers regarding their satisfaction with various aspects of the transaction.
While the models developed in this article are specific to the two companies and the online grocery
industry, the general approach should generalize fairly easily because companies generally have
substantial investments in information technology of the type necessary to support such behavioural
modeling.

(Jenvild, 2014): According to the research Indian consumers are demanding more takeaway and home-
delivery services. There is much unpenetrated scope in this market, and successful operators should
apply the new preferences and trends in an innovative manner when developing their home-delivery
services. Indians are extremely active online, and social media marketing is very effective for this
market. Consumers from all social groups are identifying with each other under the umbrella of
nationalism, Operators have a golden chance to exploit this phenomenon when attempting a strategy to
appeal cross-segments. Indian tastes call for more experimentation. Consumers experience little
difference of outlets, and thus will not develop brand loyalty without more differentiation in the
market. India wants more health and hygiene. Higher education and increased lifestyles diseases has
created awareness of importance of health. The demands and supplies of “healthy” products will
continue to grow at a fast rate.

(Ahmed, December 2015): The research is all about key success factors of online food ordering
services. In this study attempt was made to identify the key success factor that lead to loyalty in an
online ordering environment, result suggest that online food ordering companies have to emphasize on
information quality, website design, security, privacy and payment system towards their customer in
order to increase the level of web trust and satisfaction. The service provider could also enjoy
continuous recurring revenues for the loyal customer if they provide efficient delivery reliable
customer service and food quality. The result of the empirical study provide support for the positive
relationship between website quality and web trust, service quality and satisfaction, web trust and
loyalty, satisfaction and loyalty.

(Saini, 2016): This study is based on customer perception and satisfaction on ordering food via internet.
It is found from the study that almost all the respondents have easy access to the internet, a major
percentage of the respondents buy twist or at least once in a week. The student users of these services
are well versed with the information available on these websites and also use help services available
online. Raising the service levels could delight the customer but at the same time create more
expectation in the minds of the customers. This would require more investment from the company to
ensure the desired service level.

Pathan, December(2017): According to the purposed system is based on user need and is user
centered. The system is developed in considering all issues related to all users which are included in
this system. Wide range of people can use this if they know how to operate android smart phone.
Various issues related to mess/tiffin service will be solved by providing this system. Thus,
implementation of online food ordering system is done to help and solve one of the problems of people.
Based on the results of this research, it can be concluded: it helps customer in making order easily; it
gives information needed in making order to customer.

Das, 2018: according to this research, Zomato has gained positive opinion of majority of the
consumers in comparison to other service providers. It is mainly because of their better on time
delivery and better discount. Zomato has been in the first position in online food delivery service
provider and if it includes the minor improvements. It will sustain its upper hand in forth coming
future. The factors that encourage consumers the most is door step delivery followed by ease and
convenience. Consumers are mostly influenced when they received any rewards and cash back
followed by location. Most preferred online food delivery service provider is zomato followed by
swiggy. The factors that prevent consumer to use online food delivery services are bad past experience
followed by influencing from friends/family.

(Tran, 14 May 2018): The recent development of the Internet has boosted the extension of online food
services by enabling people to search, compare prices and conveniently access these services. As of
2016, approximately 95% of the United States population searched for online food service information
at least once, and while in 2015 more than one-third of Asia-Pacific participants, especially in
developing countries, answered that they looked for and ordered products via the Internet. However,
such business raises food safety and hygiene considerations, particularly in low and middle—income
countries where food systems are heterogeneous and fragmented, with a predominance of small
informal food retailers. Specifically, uncontrolled food processing, packaging and transferring among
small online food retailers can elevate the risk of food contamination and contribute to food poisoning
outbreaks due to the development of several pathogenic bacteria.
(Gupta, November 29, 2018): The online food delivery market is segmented into fixed online food
delivery and movable online food delivery. On the basis of cuisine-wise, the market is segmented into
Indian food, fast food, Italian food, and others. On the basis of the business model, the market is
segmented into logistics focused food delivery system, order focused food delivery system and full-
service food delivery system. Full-service food service is useful for small-scale & independent
restaurants. On the basis of food sources, the market is segmented into grocery stores, restaurants &
food outlets and supermarkets etc. In addition, on the basis of the platform, the market is segmented
into the application based and platform based. The market for online food delivery is mainly driven by
rising disposable income. Changing demographics, increasing penetration of internet & smart phones,
favorable lifestyle changes, young population, consumption levels, a greater share of women in the
workforce, aggressive marketing strategies adopted by food startups and the convenience of ordering is
increasing significantly which led to the growth of the market. Apart from the advantages some of the
challenges include unpredictable demand patterns, inability to influence external circumstances (traffic,
weather & changing demand on a daily basis), high delivery cost, highly concentrated peaks in
ordering during mealtimes, limited delivery times and kitchen operations etc.
1.3 RESEARCH GAP

From the literature reviews above, it has been found that, many eminent researchers have worked on
the most popular app for food marketing, emergence of online food marketing, consumers’ preferences
regarding online food marketing & its segmentation etc. However, no significant study or research has
been carried out to analyses the impact of online ordering of food and the facilities provided by the
food delivering app. It also analyses the consumers’ preference towards online food delivering app, i.e.,
Zomato.

1.4 RELEVANCE OF STUDY

The study is related to the online food marketing, their importance, scope, customers’ attitude &
perception towards digital food app services and satisfaction of consumer by using online food
services.

1.5 OBJECTIVE OF THE STUDY

1. To analyze the impact of online ordering of food on customer.

2. To know the preferences of customers while ordering food online.
3. To evaluate the performance and acceptability in terms of security, user friendliness, accuracy
and reliability.
4. To understand consumer behavior and perception mainly towards zomato.
5. To study the consumer decision making variables regarding zomato.
6. To find out the most popular app in the digital food delivery app.
1.6. SCOPE & PERIOD OF THE STUDY

The area where the study has been conducted covers various popular digital food apps in India. The
data has been collected from respondents who are the users of those apps. The time period of the study
is almost two months.

1.7. RESEARCH METHODOLOGY

Research is an original contribution to the existing stock of knowledge making for its advancement. It
gives us the proper understanding regarding the subject matter with the help of study, observation,
comparison and experiment.

A. Sources of data:- Both primary data and secondary data has been used during the study.
I. Primary data :- Primary data is the data i.e. collected by a researcher from first hand sources,
using methods like survey, interviews, experiments or questionnaire. It is collected with the
research project in mind, directly from primary sources.
II. Secondary data:- Secondary data refers to data i.e. collected by someone other than the user. In
other word, the secondary data are collected through various sources like –
 Through internet related company, company etc.
 Review of articles being published on the topic in various magazines, news papers and journals
etc.

B. Statistical data:- For the project, percentage variation has been collected various charts,
pie-charts and bar-diagram has been showing the representation of the data collected.

C. Limitation of the project:-

I. The research is an academic effort which constraints time, cost and geographical area.
II. The respondents may be biased or influenced by other factors.
III. An interpretation of this study is based on the assumption that the respondents have
given the correct information.
IV. The sample was limited.
V. Behaviour of many respondents was not co-operatives.
 VI. The time period allowed for this project work is almost two months which restricted the
detailed research.

1.8 CHAPTER PLAN

I. Chapter 1- Introduction
II. Chapter 2-Impact of online services on emerging market
III. Chapter 3-Company profile
IV. Chapter 4- Data analysis and interpretation
V. Chapter 5-Findings, suggestion and conclusion
CHAPTER 2:
Impact of Online Services on Emerging Market:

ABSRACT
Services are intangible products where in there cannot be any transfer of possession or ownership, and
they cannot be sold but come into existence at the time they are consumed or bought. Services cannot
be stored or transported. Eg: accounting, banking, cleaning, consultancy, education, etc. Digital
services on the other hand are services that are anything that can be delivered through an information
infrastructure such as the internet, in various forms i.e. applications, web pages, social media, etc. In
the paper the major focus will be on the various apps that are available either by 3rd party for delivery
purpose or by restaurants themselves for various purposes like delivery, pointing system, in house app
ordering, etc. Consumer behavior is the study of how individual customers, groups or organizations
select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the
actions of the consumers in the marketplace and the underlying motives for those actions. From this
research paper we would understand the shift of consumer’s behaviors with the introduction of
technology and what are the different kinds of applications that consumers are satisfied with and what
makes them happy and satisfied about the service. The main objective of the paper is to understand the
relation between facilities and the purchase behavior. Secondly to find the most popular app in the
food delivery industry and understand as to how have technology played an important role in the
restaurant industry. Keywords: Consumer behavior, Food delivery app, zomato, fasso, e-commerce,
2.1 INTRODUCTION
In today’s world service sector contributes 64.80% in GDP. Zomato is one of the most popular
applications that provide services to the user to discover restaurants. The rise of digital technology is
reshaping the industries. With the increased use of technology, the number of people engaging into the
digital sector are rapidly increasing. Even Consumers are accustomed to shopping or even ordering
online through apps or websites, with maximum convenience and transparency, expecting the same
experience that they would get from the outlet itself. To match up with the consumer’s expectations
apps are providing increased facilities and services to the customers. This scenario doesn’t exist only in
one country but all across the globe. Being up to date with the customers’ expectations helps firm retain
customer’s to a greater extent. The Figure 1 below shows the average retention of customers with the
help of providing various kinds of facilities to the customers.
Figure 1: Retention of Customers with the Help of Digital Technology
Digital technology has just started growing, it will continue to grow at a rapid rate and with the
effect of this so will the various other industries, including the food delivery industry. In the
below figure we can see that the usage of online portals have been constantly increasing and they
are expected to increase at a rapid rate even in the near future. Our research indicates that online
penetration of the total food-delivery market broke 30 percent in 2016. It is also believed that the
penetration rates will grow further as the market matures, eventually reaching 65 percent per
year. As per another research the perceptions of the user regarding the service quality of
ZOMATO is less than his expectations of what an excellent service should be. So, ZOMATO
cannot be categorized an excellent service provider as per the responses we have received from
the users.
Figure 2: Expected Growth of online and offline industry

The recent innovations in the global market are:

 Mobile ordering.
 iPad order kiosks.
 Facebook ordering.
 Tabletop e-waiter & checkout.
 Digital menu boards + smartphones.
 Games while-u-wait.
 Online coupons.

2.2 Indian Food App Scenario

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 With all the boom in digital industry across the globe, it’s had its impact on the Indian economy
too. The online food ordering firms have sprouted up in bulk. The market size of food in India is
expected to reach Rs. 42 lakh crore by 2020, reports BCG. Presently, the Indian food market is
around $350 billion. The space is coming up with a lot of innovation catering to their customer
convenience, satisfaction and retention. This has also built room for a lot of new players, who are
targeting specific groups of people. Many new players joining the segment with innovative
business models such as delivering food for health conscious people, home cooked meals, etc.
Food tech is the hot talk in the startup town. After technology startups have made their mark in
the e-commerce, taxi & real estate sectors, now the ever-hungry Indian entrepreneurs are looking
to satiate the appetite of others. Food tech is a vast market and food delivery startups are just a
part of it. Various apps in the Indian market are:
 Food Panda
 Zomato
 Swiggy
 Box8
 Fasoos
 Fast food delivery apps
Figure3: The various food apps available in India

Services provided
Apps Originated Deliver Online Expanded Deliver
y menu y
changes

Food panda Singapore yes Yes 12000 restaurants Yes

Zomato Portugal Yes Yes 10000 restaurants No

Beer café India no Yes 33 restaurants No

Box8 India Yes Yes 60 stores Yes

Fasoos India Yes Yes 125 centers No

Dominos India Yes Yes 800 outlets No

Just eat Denmark Yes Yes 2000 restaurants No

Swiggy India Yes Yes 5000 restaurants Yes

Pizza Hut Delivery US Yes Yes 1300 outlets No

2.3 Introduction of the Industry

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2.3.1 History of Online Food Delivery Industry

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. The site
originally serviced only northern California, later expanding to several additional cities in the
United States. By the late 2000s, major pizza chains had created their own mobile applications
and started doing 20-30% of their business online. With increased smart phone penetration, and
the growth of both Uber and the sharing economy, food delivery startups started to receive more
attention. Instacart was founded in 2012.] In 2013, Seamless and Grubhub merged.By 2015,
online ordering began overtaking phone ordering. As of September 2016, online delivery
accounted for about 3 percent of the 61 billion U.S. restaurant transactions.

2.4 Online Food Service in India

A decade back eating out had not been a prominent feature in an Indian’s life but over the years,
due to changing consumption pattern, eating out has gained momentum. This changing pattern
has ensured constant growth for the Indian Food Services market. India’s Food Services market
has come a long way from early 1980’s when the number of organized brands were countable
and the market otherwise was dominated by un-organized players. The revolution in this sector
began in 1996 with the opening up of restaurants by

McDonald’s, Pizza Hut, and Domino’s followed by Subway, Haldiram’s, Moti Mahal and
Barbeque Nation etc. E-commerce in India is expected to grow from US $2.9 billion in 2013 to
a mammoth US $100 billion by 2020, making it the fastest growing e-commerce market in the
world! E-commerce is also witnessing a spurt in online food & restaurant service companies,
which is expected to reach $2.7 billion by 2019. This white paper explores drivers of the growth
of such online food delivery companies in India, the current competition and how this affects the
brick-and-mortar restaurant business in India. Here’s a look at the supply and demand drivers for
online quick food services.

2.5 Major Players of Online Food Delivery Marketplace

 Zomato
 Swiggy
 Foodpanda
 Ubereats
 Tastykhana

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2.6 Model of Online Food Delivery Business
Figure: 1.2

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Customers on food portal- First of all customers have to visit the on food portal either on
company’s website or on the mobile application.

Search and choose food with quantity- Then the customers have to search for the food which
they want to have and they can also order it from the desired restaurant with the quantity of food
they want to order.
Finalise order- After surfing the food with quantity customers just need to finalise the order.
Payment by customer- After selecting the desired food customers have to make the payment. It
could be done via debit/credit card or else cash on delivery option is also available for the
customers.
Online store owner- The marketplace owner cuts commission & routes order to restaurant for
delivery.
Restaurant process order- Then the restaurant process and prepare the food which is ordered.
Merchant or 3rd party delivery service- At the end food is prepared and it is delivered either
by the restaurant or by 3rd party delivery services.
2.7 Market Size Globally
 Revenue in the Online Food Delivery segment amounts to US$18,358m in 2019.
 Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 7.3%, resulting in
a market volume of US$24,345m by 2023.
 The market's largest segment is Restaurant-to-Consumer Delivery with a market volume of
US$16,162m in 2019.
 In global comparison, most revenue is generated in China (US$38,411m in 2019).

2.8 Market Size in India

The meaning of foodtech has evolved over the years. Earlier, it referred to food processing and
the technology used for its manufacturing. Now, it pertains to the online food ordering and
delivery services market. Adequate funding and investments in this market space have enabled
companies to provide online food delivery services that have never been seen before. The
popularity of online food delivery service can be attributed to the several benefits it provides,
such as food delivered to the doorstep of the customer, various payment options, attractive
discounts, rewards, and cashback offers. Restaurants and cafes also find it profitable to sell their
food through online mediums since it reduces a significant amount of operational overheads.
College students, working couples and office goers are the key target audience of foodtech
companies.
More than 80% of the orders that come on these online food delivery platforms are from the top
five Indian cities, out of the 20 where they are active. The report online food delivery market in
India (2018-2023) takes a look at the current market scenario, its segmentations, drivers and
deterrents of growth, investments, the competitive landscape, and recent developments.
 Revenue in the Online Food Delivery segment amounts to US$8,167m in 2019.
 Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 9.1%, resulting in
a market volume of US$11,569m by 2023.
 The market's largest segment is Restaurant-to-Consumer Delivery with a market volume of
US$7,477m in 2019.

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 In global comparison, most revenue is generated in China (US$38,411m in 2019).

2.9 Pestle Analysis:

Figure: 1.3

Political
Any business firm wishing to enter the overseas market is highly prone to political risks. The
political decisions made by a host country are likely to affect the organisational productivity and
profitability. Extreme political actions can very detrimental. The digital India campaign that was
recently launched by the country's Prime Minister Narendra Modi is more likely to allow the
company to get more internet penetration in India and everyone can easily access from every
corner of the market. Zomato can exploit this opportunity to cover many restaurants of cities
using the Digital India Campaign. The Indian government puts more focus on ease of doing
business in the country because it encourages foreign direct investment. In this regard, Zomato
can be a beneficiary with such kinds of investment. The government puts emphasis on skill
development among the youths who will eventually help many people with skills and
knowledge. Zomato requires skilled people to enable it to penetrate and establish itself in the
market. In this case, Zomato can hire skilled people from the Pradhan Mantri Kaushal Vikas
Yojana program that develops skills of the youths.

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Economic
Between the periods of 2011 and 2014, Zomato achieved an overwhelming growth by 1399%.
This comes as a result of its tremendous achievements in 22 countries, thus, contributing
effectively to economies of the countries. Besides, there is a potential rise in service prices after
the country announced a service tax from 12.36% to 14%. This move is likely to affect the
economic well-being of Zomato. Furthermore, the company is initiating cashless transaction
aimed at creating jobs in different countries. As it stands, the company has 2319 employees, and
it has somehow managed to solve the unemployment problems in the country. Lastly, the
company attracts several investments as well as funding from the government and foreign
investment, all of which are good for the country's economy.
Socio- Cultural
In the last six years, Zomato has turned out to be the country's favourite online restaurant
discovery tool. However, it has influenced the manner in which individuals select their preferred
restaurants. The changing lifestyle patterns and income levels of the Indian working population,
and this is advantageous to Zomato. This is because many young people and new age working
couples like eat out, with this category attracting about 30% in 2012. For this reason, user
engagement in its website is therefore critical for customer participation. Finally, customer
service Zomato has been amazing and going by the friendly replies from the customers, the
company has managed to maintain customer loyalty. As a dimension of social engagement with
people, Zomato stays ahead over its competitors.
Technological
Zomato has enjoyed a greater advantage by using technology in designing a beautiful user
interface that makes it easier for the users to browse. One advantage that Zomato continues to
enjoy out of this kind of technological innovation is that the service is much faster despite the
fact that the high resolution is needed for the menus. In essence, the technology encourages
online services. For example, incorporating what the restaurant into mobile app helps the
customers to select the restaurant on the go. The restaurant information is customised in a
manner that the customer to obtain the information he or she needs without

necessarily making a hassle. Technology also makes the company have a good business model
that keeps the customers' information. The only thing a customer is required to do is to log and
use the service. This move exposes the company to a competitive environment with the likes
Google. However, since the product is purely made to for Indian restaurants, it cannot serve the
demands of the global market. Therefore, Zomato has used technology effectively to achieve
competitive advantage
Environmental
Achieving business sustainability is dependent on how the company addresses the ecological
requirements and in online food delivery business these days all major players come up together
to work for environmental welfare. Bengaluru-based food ordering and delivery platform Swiggy
has announced the launch of ‘Swiggy Packaging Assist’, a new initiative that will help restaurant
partners access a range of innovative packaging solutions.. Also, Gurugram-based restaurant
search and discovery service Zomato has expressed its concern over the environmental hazards
caused due to plastic packaging. It has introduced a new feature in their app that enables
customers to opt out of cutlery when they order, thereby reducing the use of plastic.
Legal

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The company is required by the Indian law to comply with all regulations that control technology
firms in the country. This ensures that it is used effectively without being subjected to abuse. The
Food Safety and Standards Authority of India (FSSAI) has issued revised guidelines that directly
impact online food and grocery operators such as Grofers and BigBasket as well as food delivery
platforms like Swiggy and Zomato. The national food regulator said it's stepping up scrutiny of
ecommerce food companies because there can be no compromise on last-mile delivery and
safety of food products. Food products offered for sale are liable to sampling at any point in the
supply chain. Companies will also need to provide an indicative image of the food on their
platforms so that consumers can recognise the product. All mandatory information mentioned in
the Food Safety and Standards (FSS) Act will also have to be provided to consumers before
purchase and only fresh food should be delivered to consumers

2.10 Porter’s Five Forces Model:

Figure: 1.4

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Threat from Substitutes
Zomato is of the strong belief that their focus on restaurant discovery and facilitating a holistic
dining experience gives them an edge over competition. As Deepinder Goyal, founder, Zomato,
says, Zomato is driven to constantly improve our product within the space with a small margin of
error. Zomato realizes that it is a winner-takes-all and is therefore focused on dominating the
competition within its space.
Google Maps - Latest release of Google Maps for desktops includes listings of restaurants in the
neighborhood. It also facilitates restaurant search and provides photos, reviews, ratings and even
the floor the business is located at. Zomato’s advantage over Maps is that Maps hasn’t started
menu listings yet.
Local Competition- FoodPanda and swiggy- FoodPanda gained first mover advantage by
launching the online order facility earlier than Zomato, thus resulting in Zomato losing relevant
market share
JustDial- JustDial offers a wide range of restaurant listings; however, it loses out against
Zomato as it doesn’t have an equivalent collection of reviews, photos and user engagement.

Also, in the minds of consumers, Zomato offers a specialized and differentiated service thus
making it a natural choice.
Global Competition- Yelp-Basic difference between Yelp and Zomato is that while Yelp
publishes crowd-sourced reviews, organizes social events and provides basic data about
businesses, Zomato provides information (photos, menus and geographic coordinates) and allows

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users to create their own network of foodies for personalized recommendations. The flipside for
Zomato: Total number of unique monthly visitors to Yelp is a staggering 139 million, amounting
to four times Zomato’s existing traffic of 35 million. In terms of revenue, Zomato earned $6
million in revenue compared to Yelp’s $232 million in 2014.
Timeout- Founded in 1968, it has become a global authority on entertainment and events all
across the world. With a reach to 39 million people, it has a huge market share, however is more
known for providing information on events and happenings than restaurant listings and reviews
Since majority of users check rating and not reviews, it is very important to maintain fair ratings
on the website.
Competitive Rivalry-
Foodpanda– foodpanda who has also acquired TastyKhana and JustEat is a competitor to
Zomato in this marketspace. But, as per one of interviews with Mr. Deepinder Goyal, Zomato
doesn’t consider it as a threat because foodpanda in spite of being present in market for 3 years
has clocked only 10,000 orders a day whereas people visiting Zomato has 1, 00,000 searches a
day. Zomato’s large sales team gives an added advantage to Zomato.
Burrp! – Burrp! is a competitor to Zomato. But due to its expansion from restaurant listing to
other divisions such as events and retail outlets, the company’s focus has been distributed
whereas Zomato has stuck to its core functions.
TinyOwl – TinyOwl is an emerging start-up with business model of food ordering through App
on smart phones. It is currently present in Bangalore, Mumbai, Gurgaon, Hyderabad and Pune.

Swiggy- Swiggy is a food ordering 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 a wide range of restaurants, they have our own exclusive fleet of delivery
personnel to pick up orders from restaurants and deliver it to customers. Having their own fleet
gives them the flexibility to offer customers a no minimum order policy on any restaurant and
accept online payments for all partner restaurants that they work with. Our delivery personnel
carry one order at a time which ensures they get reliable and fast deliveries.
UberEATS- On-demand cab hailing services firm Uber on Tuesday launched a new food
delivery service named UberEATS to rival services offered by Zomato, foodpanda and Swiggy.
Food prices are set by restaurant partners according to their own menu and there’s a delivery fee
of Rs 15, inclusive of taxes. There is no minimum order size.
Barriers to Entry – Barriers to entry are very high as there are already major players established
in market. Zomato is very well established and market leader. There are other players such as
foodpanda, TinyOwl and ubereats, which have already having decent market share.
Bargaining power of buyers
 Presence of various competitor apps in the market means that it is easy for the buyers to
switch to other apps like food panda, swiggy, ubereats.
 With improving features, and upgrades such as food ordering, people may switch to other
apps offering better features.
 Since it is easy-to-use online platform, constraints related to distribution is eliminated. This
removes a potential factor for bargaining of buyers

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Bargaining power of suppliers
 For Zomato the suppliers are the restaurants with which the company makes a collaboration
and deliver the food of that particular restaurant to the end customer.
 As these days there are many online food delivery businesses available in the market thus,
restaurants have the ability to partner with any of the major food

delivery services with fairly low switching cost hence it makes the bargaining power of supplier
strong.
Threat of new entrants
Advanced technologies:
This is another area where Zomato has taken huge strides. As mentioned earlier in the
technological analysis, the app and website are aesthetically beautiful and the whole experience
is enriching! Thus new entrants will have to come up with an overhaul of the whole strategy as
far as application and technological advancements are concerned. Innovation in technology
positively affects Zomato.
Industry affects economies of Scale:
Economies of scale positively affects large producer by lowering the cost of the next unit of
output at lower cost. Thus it is relatively easier and economical for Zomato to expand at a faster
pace. Any new entrant will have to pump in a lot of investment to challenge Zomato because
they will have smaller economies of scale. However, this is one area where if the new entrant can
generate enough capital they can challenge Zomato on the ground level even though economies
of scale are tilted towards Zomato.
Strong Brand Name:
A brand name is a must to survive in the industry. Zomato has been very effective in the past few
years. However, they have been late in entering the ordering segment and Food Panda has taken
effective strides in the same. Any new competitors will need to work extensively on their brand
value in order to effectively compete. Thus this threat is low for Zomato however they need to
constantly innovate in different verticals to ensure that they build on the advantage that they have
created.
Geographical Factors affecting Competition:
Food Panda is present in 200 Indian cities and has made huge strides in the recent past however
it is still considerably lagging Zomato in terms of territory covered as Zomato has presence not
only in huge number of Indian cities but also in different countries and they are taking strides
very fast. Tying up with restaurants and getting the information organized in the way Zomato has
done is a huge challenge for any new entrant. However, seeing the pace at which Zomato has
reached out and expanded it seems possible and thus Zomato will have to constantly maintain
that advantage and keep coming out with new and innovative models.

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CHAPTER 3:

COMPANY PROFILE:

3.1 Introduction of company

Zomato is a restaurant search and discovery app and website, providing in-depth information
about restaurants. Zomato is used by consumers globally to discover, rate and review restaurants,
as well as create their own personal network of foodies for trusted recommendations. In addition
to restaurant search and discovery, it has expanded its offering to include Online Ordering, Table
Reservations, a Whitelabel Platform and a Point-of-Sale system, creating the technology to
connect restaurant businesses and customers.
3.2 History of Brand Zomato
Zomato, which started as Foodiebay, was established in July 2008 by two IIT Delhi alumnus,
Deepinder Goyal, and Pankaj Chaddah. The idea struck Deepinder when his colleagues
consistently had a demand for paper menu leaflets of different restaurants, to order food. That's
when he thought of converting these restaurant paper menus into a digital app, which is far more
accessible and easier to use. The online food delivery space in India is dominated by two big
players- Zomato and Swiggy. There are other players like Foodpanda, JustEat, TastyKhana and
FoodMingo but the competition for the No 1 position is majorly confined between Zomato and
Swiggy, backed by big global investors and a large user base.

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Zomato started as the website Foodiebay.com, by Deepinder Goyal, a post-graduate from IIT
Delhi. Foodiebay officially started in July 2008 with a list of 1,200 restaurants in the Delhi NCR
region. This database expanded to 2,000 restaurants by end 2008. Expanded its reach to Kolkata,
Mumbai, Bangalore and Pune within the next six months That is when Info Edge (India), the
parent company of the Naukri.com group, invested 4.7 crore (US$1 million) in the business. In
November 2010, Foodiebay.com was renamed Zomato.com. The brand name was changed due
to a possible move outside of the food vertical and also to avoid a possible conflict with eBay,
because the earlier brand name Foodiebay contained ‘ebay’ in it.

Funding:
Between 2010 and 2013, Zomato received its biggest funding of approximately USD 16.7
million (INR 167, 000, 00) from “Info Edge India”. This gave them a 57.9% stake in the
company. In the November 2013, another lucky round of funding got a new investor to pitch in-
Sequoia Capital. They with Info Edge took the total sum of that round to USD 37 million.
In a fresh round a year later, Info Edge, Sequoia, and a new investor- Vy Capital raised USD 60
million for the company. The total funding of Zomato by the beginning of 2015, was a promising
USD 113 million. In 2015, along with the 3 initial investors, Temasek- a Singapore based
investment company, also pitched in, bringing in USD 110 million for that year.
2016 was a slow year for the company in terms of funding, but 2017 picked the pace up again
with WhatsApp’s Neeraj Arora adding to the list of investors and raising a conservative USD 20
million. This racked up the total funding of Zomato to USD 223.8 million since its founding in
2008.
With the most recent rounds of funding, things started looking peachy for the company in March
2018, especially with Alibaba’s Ant Financial coming into the picture with a whopping USD 150
million.
Acquisitions:
Zomato has acquired 12 startups globally. In July 2014, Zomato made its first acquisition by
buying Menu-mania for an undisclosed sum. The company pursued other acquisitions such as
lunchtime.cz and obedovat.sk for a combined US$3.25 million. In September 2014, Zomato
acquired Poland-based restaurant search service Gastronauci for an undisclosed sum. Three
months later, it acquired Italian restaurant search service Cibando.
Zomato acquired Seattle-based food portal Urbanspoon for an estimated $60 million in 2015.
Other acquisitions of 2015 include Mekanist in an all-cash deal, the Delhi based startup
MapleGraph that built MaplePOS (renamed as Zomato Base, and NexTable, a US-based table
reservation and restaurant management platform.

In 2016, the company acquired Sparse Labs, a logistics technology startup and the food delivery
startup, Runnr, in 2017.
In September 2018, Zomato acquired Bangaluru-based food e-marketplace TongueStun Food for
about $18 million in a cash and stock deal.
Growth:
As funding started picking up the pace in 2010, Zomato’s presence across India did too. By 2011
the company after establishing a monopoly in Delhi NCR moved to cities like Pune, Bangalore,
Chennai, Hyderabad, and Ahmadabad.

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It kept pace with the smart phone boom too, by introducing its mobile app at this point in time.
The company in order to keep up with its hip brand image and humor its audiences launched a
.xxx domain which had pictures strictly dedicated to food porn.
By 2012, overseas operations of Zomato started operating in full gear with the UAE, Sri Lanka,
Qatar, United Kingdom, Philippines, and South Africa becoming a part of its user base. In 2013,
countries like Turkey, Brazil, and New Zealand were also added to the list.
While its expansion was happening in full force, Zomato also started acquiring foreign-based
companies to maximize its business. In 2013 it acquired Portuguese company Gastronauci and
the Italian service Cibando. A big acquisition came in when they got a hold of the American
service called NexTable which catapulted Zomato into the US market’s competition.
About the Founders:
Zomato was founded by Deepinder Goyal and Pankaj Chaddah, both of whom are from IIT,
Delhi. Deepinder Goyal currently serves as the Chief Executive Officer (CEO) at Zomato. Prior
to launching Zomato, he used to work at Bain & Company as a Senior Associate Consultant.
Pankaj Chaddah is the co-founder and prior to launching Zomato, he had worked at Bain &
Company as a Senior Analyst and Associate Consultant.

3.3 SWOT ANALYSIS

Figure: 2.1

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Strength:
First mover advantage – One of the best competitive advantages of Zomato is that it is the first
mover in many of the nations where it is establishing itself. Directories and other forms of
restaurant ratings might exist. But as an app Zomato is excellent and many countries (like India)
have loved the usability of the Zomato app.
Evergreen industry – The restaurant industry is an evergreen industry. Sure, there may be
recessions and other downturns which might affect the industry. But overall, this industry is
going to stick around at all times and is only going to grow with rising disposable income.
Fast Expansion – It is appreciative that Zomato has expanded so fast. It is already in 24
countries and is expanding year on year.
Fantastic design of the app – Zomato has regularly won awards for its app design and for its
user-friendliness. The App design is fantastic and it helps you discover restaurants nearby as well
as in an area you are going to visit.

Number of users – Zomato has a huge number of users using their app. At the same time, the
site also has 90 million visitors a month approximately. With so many users following the app
and site, there are more reviews and hence more chances to find better restaurants.
Focused approach – The brand has a much focused approach and has always tried to bring the
most of out of its unique offering. It is well connected with restaurants and regularly takes
feedback from customers as well as restaurants. This focused approach has also helped the brand
image and reputation of the firm.
Excellent funding available – Zomato has picked multiple rounds of funding over the years and
because it is now so well established in many countries, there is a lot of funding available for the
app.
Multiple acquisitions – Zomato has acquired multiple companies most of which are software or
technology related.
Fantastic marketing – You can find Zomato working for its own marketing offline as well as
online. Its print ads are hilarious and make an immediate connect with the audience. It is strong
on Social media marketing and uses a combination of ATL and BTL strategies to attract and
retain customers.
Weaknesses:
Security issues for the app – A major issue for Zomato in the past has been some security
issues due to which the app was hacked and at least 17 million users’ data was copied. Such
security issues are a nightmare for internet companies.
Still a lot of expansion required – Considering that the app has established in 24 countries,
there is good expansion. But at the same time, the app has been started 7 years back and with the
amount of funding available for Zomato, the expansion can be much faster. It is allowing other
services to establish themselves in this niche before it reaches their country.

Word of mouth and Facebook check-ins – Besides such apps, in many places word of mouth
still trumps apps and at the same time, Facebook check-ins are a strong competitor wherein
people might not need Zomato. Thus, it is an app for early adopters but definitely not for
laggards.
Opportunities:

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Further expansion – The number 1 opportunity for Zomato is to expand to more countries and
establish its base faster. Service industry has a major problem that services can be copied very
fast and very easily. As a result, it is critical for Zomato to establish and expand itself faster.
More acquisitions – There are and were many small players in this space. Zomato can acquire
several of its competitors and at the same time, it has to keep an eye on the tech industry and
acquire any tech innovation it can get its hands on to keep on rising.
Cloud restaurants – Zomato is coming up with the concept of Cloud restaurants wherein
restaurants will not have to get a physical space to actually sell their food products. Instead, they
can sell from Zomato.
Creating a community – 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.
Adoption of the internet and Smart phones – There is a huge increase in the adoption of
Internet across developing and underdeveloped countries as well. Similarly, adoption of smart
phone has also increased. Thus more and more orders and research about restaurants can happen
online instead of through physical visits.
Threats:
Google’s schema module – One of the major threats Zomato faces right now is the Schema
module of Google wherein google locations itself is getting in restaurant recommendations. Even
google homepage shows the google maps page where you can search for restaurants

within your locality. Google being such a big brand, zomato faces huge competition from them.
Market followers and challengers – In the service industry, it is very easy to replicate the
success of another service product or offering. Similarly, marketing followers and challengers
can slowly take away the market share of Zomato. Intense competition from National and
international brands - With expansion to various countries, it now has competitors like Yelp
(revenue $377.5 million) which are much older and bigger than Zomato. On the other hand, we
have small players which are slowly covering ground in domestic area.

CHAPTER 4:

Analysis and Interpretation of Data:

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Age of the Respondent

Table 1

Option Respondents Percentage

(out of 150)
Below 18 years 18 12

18-25 years 84 56

Above 25 years 48 32

Source:-Primary survey

Interpretation

Out of 150 respondent 84 respondents belongs to the age group of 18 – 25 years and occupy
56%, 48 respondents are above 25 years of age and occupy 32% and remaining respondents
belong to below 18 years of age and occupy only
12%.
90
84
80

70

60

50 48

40

30

20 18

10

0
Below 18 years 18-25 Above 25 years

Figure 1

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Marital Status

Table2
Respondent Percentage
Option (out of 150)
Married 41 27.34
Unmarried 109 72.67

Interpretation

Out of 150 respondents, 109(72.67%) respondents are unmarried while rest 41(27.34%)
respondents are married who uses online food services.

Marital Status

27%

married
unmarried

73%

Figure 2

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Educational Background

Table 3

Respondent Percentage
Option (out of 150)

15 10
School student
80 53.34
College student
20 13.34
Professional
35 23.34
Others

Interpretation

By above data I found that 15 respondents were school student, 80 were college student, 20 were
engaged in professional courses & 35 were engaged in other courses & comprised 10%, 53.34%,
13.34% & 23.34% respectively of total respondents.

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 80

70

60

50

40

30

20

10

0
School student
college student
professional
others

Figure 3
Type of Residence

Table 4

Option Respondent Percentage

(out of 150)

88 58.67
Own
Rental 62 41.34

Interpretation

From the total responses obtained I found that 88 respondents (58.67%) uses food app have their
own house and remaining 62 respondents (41.34%) have rental residence.

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 Sales

41%

own
rental
59%

Figure 4
App you Prefer to Order Food
Table 5

Option Respondent Percentage

(out of 150)

35 23.34
Uber eats
77 51.34
Zomato
29 19.34
Swiggy
9 6
Others

Interpretation

Out of 150 respondents, 77 respondents use zomato, 35 respondents use uber eats, 29 use swiggy
and remaining 9 respondents use all the above food apps to order online food.

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 90

80

70

60

50
77
40

30
35
20 29

10 9

0
uber eats zomato swiggy others

Figure5

For which Meal do you use it the most

Table 6

Option Respondent(out of 150) Percentage

Breakfast 13 8.67
Lunch 42 28
Dinner 78 52
Snacks and Dinners 17 11.34
Interpretation

From the responses obtained 78 respondents (52%) prefer to order dinner, 42 respondents (28%) prefer to
order lunch,
17 respondents prefer to order snacks and other items and 13 respondents (8.67%) prefer to order
breakfast.

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 140

120

100

80

60

40 78

20 42

13 17
0
Breakfast Lunch Dinner Snacks & Others

Figure 6

Food you Prefer the most

Table 7

Respondent Percentage
Option (out of 150)

58 38.67
Veg
42 28
Non-veg
38 25.34
Fast food
12 8
Home items

Interpretation

Out of 150 respondents, 38 respondents (25.34%) prefer to order fast food, 58 respondents prefer to order
veg food, 42 respondents prefer to order non-veg and only 12 respondents prefer to order homemade
items.

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 58
60

50
42
38
40

30

20
12

10

0
veg non-veg fast food home items

Figure7

Spending money on these Apps Monthly

Table 8
Respondent Percentage
Option (out of 150)

98 65.34
5% of your income
42 28
10% of your income
10 6.67
More than 10% of your income

Interpretation

From the responses obtained 98 respondents(65.34%) spend 5% of their income, 42 respondents(28%)

spend 10% of income and 10 respondents(6.67%) spend more than 10% of his/her income.

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 100
90
80
70
60
50
40
30
20
10
0
...
f in ...
o in
5% of ...
10
1 0% an
e th
or
m
Figure 8
Mode of Payment you use

Table 9

Respondent Percentage
Option (out of 150)

COD 49 32.67

Paytm 76 50.67

Debit card-net banking 14 9.34

Others 11 7.34

Interpretation

From the responses obtained 76 respondents use PayTm to made payment, 49 respondents use COD, 11
respondents use other mode, i.e., they use all the methods mentioned above for paying the bills.

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 90

80

70

60

50

40 76
30
49
20

10
14 11
0
COD Paytm Debit card-net banking Others

Figure 9

Is the food ordered by Zomato found to be hygienic

Table 10

Frequency Percent Valid percent Cumulative

percent

41 27.3 27.3 27.3

Extremely hygienic
98 65.3 65.3 92.7
Somewhat hygienic
11 7.3 7.3 100.0
Not at all hygienic
150 100.0 100.0
Total

Interpretation:

The analysis of respondents’ profile shows that 66% of them find the food ordered by Zomato is
somewhat hygienic, 27% of them find the food extremely hygienic whereas only 7% find it
unhygienic.

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 7%

27%

65%

Figure 10

Help services of Zomato

Table 11

Frequency Percent Valid percent Cumulative

percent

Extremely Satisfied 64 42.7 42.7 42.7

Somewhat Satisfied 81 54.0 54.0 96.7

Not Satisfied 5 3.3 3.3 100.0

Total 150 100.0 100.0

Interpretation:
From the above chart it is shown that 54% of the respondents find the help service provided by Zomato is
somewhat satisfied, 43% of them said they are extremely satisfied with the service quality and only 3% of
them said that help service is dissatisfied.

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3%

Extremely Satisfied
43% Somewhat Satisfied
Not Satisfied

54%

Figure11

Choice of restaurant

Table12

Frequency Percent Valid percent Cumulative

percent

72 48.0 48.0 48.0

Good choice than others
70 46.7 46.7 94.7
Same as others
8 5.3 5.3 100.0
Bad choice than others
150 100.0 100.0
total

Interpretation:
According to the analysis it came to know that 48% of the respondents find that Zomato offers good
choice of restaurants as compare to other online food delivery service providers, 47% of them find it
same as other player provides whereas 5% find Zomato provides bad choice of restaurant.

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 Sales
5%

Good choice than others

Same as others
48% Bad choice than others

47%

Figure12

Delivery charge

Table13

Frequency Percent Valid percent Cumulative percent

Low 25 16.7 16.7 16.7

Medium 105 70.0 70.0 86.7

High 20 13.3 13.3 100.0

Total 150 100.0 100.0

Interpretation:

According to the above chart it is shown that 70% of the people said that they can afford ordering
from Zomato as the delivery charges are economical, 17% of the people said the delivery charges
charged by Zomato is low whereas only 13% said the delivery charges are high.

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 13% 17%

Low
Medium
High

70%

Figure13

Is it risky to share credit/debit card details on Zomato?

Table14

Frequency Percent Valid percent Cumulative

percent

50 33.3 33.3 33.3

Agree
100 66.7 66.7 100.0
Disagree
150 100.0 100.0
Total

Interpretation:

33% of the respondents are agree that it is risky to share credit or debit card details on Zomato
whereas 67% of the respondents disagree with that statement.

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 Sales
33%

Agree
Disagree

67%

Figure14

Trustworthiness as a service quality of zomato

Table15

Frequency Percent Valid percent Cumulative frequency

38 25.3 25.3 25.3

Strongly agree
82 54.7 54.7 80.0
Agree
23 15.3 15.3 95.3
Can’t say
4 2.7 2.7 98.0
Strongly disagree
3 2.0 2.0 100.0
Disagree
150 100.0 100.0
Total

Interpretation:

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With respect to the service quality around 55% of the respondents agree that they trust or reliable on
Zomato, 25% of them said they are highly reliable on the quality of service provided by Zomato,
15% of the respondents are neutral about the trustworthiness whereas 5% of the respondents do not
trust on Zomato.

Sales
2%
3%

15% 25% strongly agree

Agree
Can't say
Strongly disagree
Disagree

55%

Figure15

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