14th March 2023

ZOMATO's Journey
thorugh lenses of Micro
& Macro Economics
Presented by:
Neha, Zohaib, Ismail & Vinit
Roadmap of

2008 2011 2017 2020 2021

Founded as Expanded over Started Cloud Acquired Launched its IPO in

FoodieBay in India in 2011 Kitchen Services UberEats in July 21
2008 2015 started its in 2017 & shut 2020 In November 2021,
Renamed as food delivery down the same Started Zomato ceased its services
Zomato in 2010 service in India in 2018 Market in April in all countries
2020 & pulled except India & UAE
out the same in June 22,announced
June 2020 the acquisition of

Blinkit
 Alteration in
ZOMATO's Contact less Delivery
Operations due Cashless Payments
to Covid-19 Grocery Delivery
Zomato Gold Extension
Rider Relief Fund
Covid Insurance
Layoffs & Salary cuts
Supply and Demand
Supply: the amount of a good or service that
producers are willing and able to offer for
sale at a given price and time period

Demand: the amount of a good or service

that consumers are willing and able to
purchase at a given price and time period

At the intersection of the supply and demand

curves, the quantity of the good or service
supplied by producers is exactly equal to the
quantity demanded by consumers, resulting
in a market equilibrium price

Fig 1. Supply and Demand Curve

Shift in Supply Curve
Supply of zomato's services shifted towards
the right as result of restaurants were shut
down because of the pandemic
Zomato is expecting increase the supply by
delivering 40 million order in the future.

This Graph depicts the shift in Supply Curve of

Zomato Services during Pre-Pandemic, Pandemic
and Post Pandemic period.

Whereas,
S : represents the pre-pandemic supply curve
S1 : represents the pandemic supply curve
S2 : represents the post-pandemic supply curve

Fig 2. Shift in Supply Curve during three time frames

Shift in Demand Curve
Demand of zomato's services shifted form right
to left as people preference change due to
COVID-19
As per research, demand for Zomato is
increasing at very high rate. 22 million users are
joining every month.

This Graph depicts the shift in Demand Curve of

Zomato Services during Pre-Pandemic, Pandemic
and Post Pandemic period.

Whereas,
D : represents the pre-pandemic demand curve
D1 : represents the pandemic demand curve
D2 : represents the post-pandemic demand curve

Fig 3. Shift in Demand Curve during three time frames

Elasticity Curve
It can be said that the Zomato has
substitute company known as Swiggy
so if Zomato increases its price the
demand will shift to Swiggy as both the
companies has same business model.

So we can say that the company is

elastic as there is other also many
restaurants who have there own
delivery services and few other
competitors and change in can effect
the Zomato’s demand.

Fig 4. Elasticity Curve for Zomato Business

Price and Quantity
Demanded Before the pandemic, the price and
quantity demanded for Zomato services
were inversely related.
As the price of services increased, the
quantity demanded decreased.
During the pandemic, due to the
decrease in demand, the price of
services decreased, resulting in an
increase in the quantity demanded.
Post-pandemic, the price and quantity of
services demanded is expected to
increase as the demand for services is
expected to rise.
Price and Quantity
Supplied Before the pandemic, the price and
quantity supplied for Zomato services
were directly related.
As the price of services increased, the
quantity supplied increased.
During the pandemic, due to the
decrease in demand, the price of
services decreased, resulting in a
decrease in the quantity supplied.
Post-pandemic, the price and quantity of
services supplied is expected to
increase as the demand for services is
expected to rise..
 Impact on Macro-
Economics factors
Introduction of New Policies such as WFH,
flexible working hours,less pay
Increase in automation in customer services
and operations
Sourcing from local markets

The company's performance is

influenced by various macroeconomic
factors, such as inflation, recession,
unemployment, and taxes.
 Inflation Rate
Inflation Rate
8%

6%
Inflation refers to the rate at which the
general price level of goods and

Inflation Rate in %
services in an economy increases.
4%
A higher inflation rate can increase
Zomato's operating costs, as the
company may need to pay higher
wages to its employees, higher prices 2%
for food, and higher transportation
costs.

0%
FY2019 FY2020 FY2021 FY2022
Financial Years
Fig 5. Inflation Rate in Food Industry
 Recession 10%
GDP Growth in %

7.5%

GDP Growth Rate in %

5%
A recession refers to a period of
economic decline, characterized by a 2.5%
decrease in GDP and rising
unemployment. 0%
During a recession, people tend to
cut back on their discretionary -2.5%
spending, which can adversely affect
Zomato's revenue growth. -5%

-7.5%
FY2019 FY2020 FY2021 FY2022

Financial Years
Fig 7. GDP Growth rate YOY in India
 Unemployment 8%
Unemployment rate in %

6%

Unemployment rate
Unemployment refers to the
percentage of the labor force that is
without work. 4%
During periods of high unemployment,
people tend to cut back on their
discretionary spending, which can
2%
adversely affect Zomato's revenue
growth

0%
FY2019 FY2020 FY2021 FY2022
Financial Years
Fig 7. Unemployment rate in India
Affect of Change in
Fiscal & Monetary
Policy The pandemic has had a
major impact on the world
economy and has caused a
massive shift in the fiscal
and monetary policies of
many countries.
This shift has had a
significant effect on Zomato,
a leading food delivery
service in India.
Impact due to Fiscal
Policy Change
Increased in Tax on food
delivery services
Given Subsidies to Restaurant
Implemented a number of
measures to encourage the use
of digital payments,
Impact due to Monetary
Policy Change

The Reserve Bank of India

has lowered interest rates
Also increased the supply of
money in the economy
Conclusion
Overall, the pandemic has highlighted
the importance of economic resilience
for companies like Zomato, as they
navigate through challenging
economic conditions. The company
has demonstrated its ability to adapt
to changing economic conditions and
is well-positioned to continue to grow
in the future.
Thank You !!