https://businessmodelanalyst.

com/zomato-swot-analysis/#:~:text=Zomato%20faces%20numerous
%20operational%20challenges,ultimately%20hurting%20the%20company's%20profitability.

https://simran-pm.medium.com/market-share-swiggy-and-zomato-are-the-two-leading-food-
delivery-platforms-in-india-with-swiggy-bb15ed7bdbc8

https://www.linkedin.com/pulse/swiggy-vs-zomato-comparison-business-models-financial-5xntc

https://iide.co/blog/swot-analysis-of-zomato/#:~:text=2.,developing%20internet%20company
%20like%20Zomato.

https://chat.openai.com/share/60bcadd1-cf8a-44f6-8c2d-ce749264f6c8

https://www.linkedin.com/pulse/zomato-case-study-deepak-chawla

https://streamlynacademy.com/blog/a-detailed-zomato-case-study-2023/

https://www.simplilearn.com/tutorials/marketing-case-studies-tutorial/zomato-marketing-strategy

About

Zomato was founded by Deepinder Goyal and Pankaj Chaddah in

2008 and is the Indian restaurant aggregator and food supplies
service. Zomato provides restaurants with information, menus, and
user feedback, as well as food supply optioned from partner
restaurants in specific cities.

Story Behind it

Zomato is an Indian group founded in Delhi NCR in 2008 by

Deepinder Goyal and Pankaj Chaddah. Zomato originally began as a
''Foodie Bay" but was renamed ''Zomato; in November 2010. Two
IIT graduates, Deepinder Goyal and Pankaj Chaddah were formed to
found Zomato. In July 2008, Zomato was created. In New Delhi, they
were Bain & Co-workers. Deepinder once saw his colleagues who
were continuously demanding food from different restaurants.
That's when Deepinder came up with the idea to turn these
restaurant menus into a digital application.
Funding by Investors

2010-2013: raised by $16.7 million from Info Edge India.

 Zomato's five rounds of fundraising.

 August 2010: $1mn.

 September 2011: $ 3mn

 September2012: $2.3mn

 February 2013: $10mn

 November 2013: $37mn

November 2013: Raised by $37 million from Sequoia Capital and

Info Edge India.

September 2015: Raised by $60 million from Temasek and Vy

capital.

October 2018: Raised by $250 million from Alibaba.

Later 2018: additional raised by $150 million from Ant Financial.

Business Plan

Zomato is an Indian food supply company offering the search

application.

Which have restaurant detailed details?

 It assists consumers globally in discovering rates,
reviewing restaurants, and creating a network of
trustworthy foodies.

 Restaurant Listings / Advertising: Zomato was merely a

listing website and a restaurant directory in its first avatar.
This brought in revenues from ads from restaurants that
entered the network. Extending this further after the
introduction of food delivery and restaurant reservations,
Zomato now charges restaurant commissions to be
prominently put on the list. Restaurants can pay for
promoting their events or deals as well as their overall
banner which brings increased visibility and conversions
from users of Zomato.

 Food Delivery: For example, Zomato charges a

commission to the restaurants on the basis of orders
through its food delivery company. Although users pay a
delivery fee, Zomato receives a commission for each
delivery to restaurants which are then divided between the
delivery partner and the client. Restaurant commissions
differ depending on whether Zomato is shipping, or
whether the restaurant is using its own riders. This is said
to add to the overall profits of the company in a limited
way due to the massive rivalry and the need for profound
discounts etc.

 Subscription programs: With Zomato Gold for customers

and guests, and restaurant subscription options, Zomato
has opened up a steady revenue stream. While users are
paying a subscription fee to access the Zomato Gold
loyalty program which brings exclusive deals, restaurants
are also paying a monthly fee to be part of Zomato's
bouquet. Restaurants also pay Zomato a monthly fee for
 miscellaneous services such as live monitoring, tamper-
proof packaging branded with Zomato, and more.

 Live Events: Zomato joined last year's branded live events

market with Zomaland. Zomato charges an entry fee for
users to visit Zomaland, where they can experience live
musical performances and other activities, in addition to
food. It had organized the entertainment carnival in Delhi,
Pune, and Bengaluru in 2018, where over 100 K people
appeared to be claimed by Zomato. Zomaland heads for
Pune, Delhi, Bangalore, Hyderabad, Mumbai, Jaipur, Pune,
Chandigarh, and Kolkata this year.

 White Label Access: Zomato also allows companies such

as Zomato Whitelabel to create a personalized food
delivery app to offer restaurants offers. It also works with
consulting companies for cloud kitchens and restaurants.
Zomato partners with select restaurant operators to help
locate expansion sites at a low fixed cost, but with greater
product choices. It gives those restaurant partners the
necessary licenses and operational enabling.

 Zomato Kitchens: To facilitate the selection of restaurant

operators to provide kitchen infrastructure services,
Zomato partners with entrepreneurs to create and operate
Zomato Kitchens under various labels. With an investment
of INR 35 Lakh and more this helps entrepreneurs finance
restaurants in the right place. Zomato says that it offers
investors returns within the range of INR 2 Lakh to INR 4
Lakh per month, with 180 + affiliate kitchens already in
service.

As it has increased in size and scope, Zomato has attempted to

reduce dependency on cash-burn-reliant models and simplified the
entry into enabling and other revenue streams produced by users.
Zomato's cash burn primarily involves keeping users against her
competitor Swiggy. However, Zomato could soon be able to benefit
from other parts of its business model, being in the line of fire for
extreme discounting practices.

STRENGTHS

Extensive Database: Zomato boasts a comprehensive database of restaurants, providing users with a
wide range of options.

User-Friendly Interface: The platform's intuitive design and user-friendly interface contribute to a
positive user experience.

Global Presence: Zomato's expansion into international markets has strengthened its position as a
global player in the food delivery industry.

V. Strengths of the Company (Extended):

Market Leadership in India:

Zomato holds a dominant position in the Indian food delivery market, with a substantial market
share. As of my last knowledge update in January 2022, Zomato's strong presence in the country
contributes significantly to its overall revenue.

An analysis of the gross merchandise value (GMV) data shows that

Zomato has maintained its market share sequentially at
about 55% in the second half of 2022. The battle between India's
two large online food delivery companies is fierce. But Zomato Ltd
has the upper hand versus peer Swiggy in terms of market share.
V. Strengths of the Company (Extended):

Market Leadership in India:

Zomato holds a dominant position in the Indian food delivery market, with a substantial market
share. As of my last knowledge update in January 2022, Zomato's strong presence in the country
contributes significantly to its overall revenue.

V. Strengths of the Company (Extended):

Market Leadership in India:

Zomato holds a dominant position in the Indian food delivery market, with a substantial market
share. As of my last knowledge update in January 2022, Zomato's strong presence in the country
contributes significantly to its overall revenue.

Global Expansion and Presence:

Zomato's successful expansion into international markets, including the Middle East, Southeast Asia,
and Europe, demonstrates its ability to adapt to diverse cultures and consumer preferences. This
global presence increases the company's revenue streams and enhances its brand recognition on a
worldwide scale.

Diversified Service Portfolio:

The company has successfully diversified its services beyond restaurant listings to include online
food delivery and table reservations. This diversification allows Zomato to cater to a broader range
of consumer needs, making it a comprehensive platform for food-related services.

Strategic Acquisitions:

Zomato's strategic acquisitions, such as the purchase of UrbanSpoon in 2015, have strengthened its
position in specific markets and expanded its user base. Acquiring key players in the industry has
allowed Zomato to consolidate its market share and leverage synergies.

Tech-Driven Innovations:

Zomato's consistent investment in technology, evident in its app development and data analytics
capabilities, enables the company to stay at the forefront of the industry. The incorporation of
features like real-time order tracking and personalized recommendations enhances user satisfaction
and engagement.

Successful Initial Public Offering (IPO):

Zomato's successful IPO in 2021 marked a significant financial milestone. The public offering not only
infused substantial capital into the company but also showcased investor confidence in Zomato's
business model and growth potential.

User Engagement and Loyalty Programs:

Zomato has implemented effective user engagement strategies, including loyalty programs and
discounts, to retain and attract customers. These initiatives contribute to higher user retention rates
and increased order frequency.

Data-Driven Decision Making:

Zomato leverages data analytics to gain insights into user behavior, restaurant performance, and
market trends. This data-driven approach allows the company to make informed decisions, optimize
its services, and adapt to changing consumer preferences.

Brand Recognition and Trust:

Zomato has built a strong brand that is synonymous with food discovery and delivery. The platform's
reputation for reliable service, extensive restaurant information, and user reviews contributes to the
trust users place in the brand.

Partnerships and Collaborations:

Collaborations with restaurants, both large chains and local establishments, contribute to a diverse
and extensive restaurant database. These partnerships strengthen Zomato's position as a valuable
platform for both users and restaurant owners.

Data Sources:

Financial reports and statements released by Zomato.

Industry reports and market analysis on the food delivery sector.

Zomato's official announcements, press releases, and updates.

User reviews, ratings, and feedback available on the Zomato platform.

Global Expansion and Presence:

Zomato's successful expansion into international markets, including the Middle East, Southeast Asia,
and Europe, demonstrates its ability to adapt to diverse cultures and consumer preferences. This
global presence increases the company's revenue streams and enhances its brand recognition on a
worldwide scale.

Diversified Service Portfolio:

The company has successfully diversified its services beyond restaurant listings to include online
food delivery and table reservations. This diversification allows Zomato to cater to a broader range
of consumer needs, making it a comprehensive platform for food-related services.

Strategic Acquisitions:

Zomato's strategic acquisitions, such as the purchase of UrbanSpoon in 2015, have strengthened its
position in specific markets and expanded its user base. Acquiring key players in the industry has
allowed Zomato to consolidate its market share and leverage synergies.

Tech-Driven Innovations:
Zomato's consistent investment in technology, evident in its app development and data analytics
capabilities, enables the company to stay at the forefront of the industry. The incorporation of
features like real-time order tracking and personalized recommendations enhances user satisfaction
and engagement.

Successful Initial Public Offering (IPO):

Zomato's successful IPO in 2021 marked a significant financial milestone. The public offering not only
infused substantial capital into the company but also showcased investor confidence in Zomato's
business model and growth potential.

User Engagement and Loyalty Programs:

Zomato has implemented effective user engagement strategies, including loyalty programs and
discounts, to retain and attract customers. These initiatives contribute to higher user retention rates
and increased order frequency.

Data-Driven Decision Making:

Zomato leverages data analytics to gain insights into user behavior, restaurant performance, and
market trends. This data-driven approach allows the company to make informed decisions, optimize
its services, and adapt to changing consumer preferences.

Brand Recognition and Trust:

Zomato has built a strong brand that is synonymous with food discovery and delivery. The platform's
reputation for reliable service, extensive restaurant information, and user reviews contributes to the
trust users place in the brand.

Partnerships and Collaborations:

Collaborations with restaurants, both large chains and local establishments, contribute to a diverse
and extensive restaurant database. These partnerships strengthen Zomato's position as a valuable
platform for both users and restaurant owners.

Data Sources:

Financial reports and statements released by Zomato.

Industry reports and market analysis on the food delivery sector.

Zomato's official announcements, press releases, and updates.

User reviews, ratings, and feedback available on the Zomato platform.

Global Expansion and Presence:

Zomato's successful expansion into international markets, including the Middle East, Southeast Asia,
and Europe, demonstrates its ability to adapt to diverse cultures and consumer preferences. This
global presence increases the company's revenue streams and enhances its brand recognition on a
worldwide scale.

Diversified Service Portfolio:

The company has successfully diversified its services beyond restaurant listings to include online
food delivery and table reservations. This diversification allows Zomato to cater to a broader range
of consumer needs, making it a comprehensive platform for food-related services.

Strategic Acquisitions:

Zomato's strategic acquisitions, such as the purchase of UrbanSpoon in 2015, have strengthened its
position in specific markets and expanded its user base. Acquiring key players in the industry has
allowed Zomato to consolidate its market share and leverage synergies.

Tech-Driven Innovations:

Zomato's consistent investment in technology, evident in its app development and data analytics
capabilities, enables the company to stay at the forefront of the industry. The incorporation of
features like real-time order tracking and personalized recommendations enhances user satisfaction
and engagement.

Successful Initial Public Offering (IPO):

Zomato's successful IPO in 2021 marked a significant financial milestone. The public offering not only
infused substantial capital into the company but also showcased investor confidence in Zomato's
business model and growth potential.

User Engagement and Loyalty Programs:

Zomato has implemented effective user engagement strategies, including loyalty programs and
discounts, to retain and attract customers. These initiatives contribute to higher user retention rates
and increased order frequency.

Data-Driven Decision Making:

Zomato leverages data analytics to gain insights into user behavior, restaurant performance, and
market trends. This data-driven approach allows the company to make informed decisions, optimize
its services, and adapt to changing consumer preferences.
Brand Recognition and Trust:

Zomato has built a strong brand that is synonymous with food discovery and delivery. The platform's
reputation for reliable service, extensive restaurant information, and user reviews contributes to the
trust users place in the brand.

Partnerships and Collaborations:

Collaborations with restaurants, both large chains and local establishments, contribute to a diverse
and extensive restaurant database. These partnerships strengthen Zomato's position as a valuable
platform for both users and restaurant owners.

Data Sources:

Financial reports and statements released by Zomato.

Industry reports and market analysis on the food delivery sector.

Zomato's official announcements, press releases, and updates.

User reviews, ratings, and feedback available on the Zomato platform.

Weakness/challenges

2. Weaknesses of Zomato
 Security Issues: Over its tenure till now, the app has been hacked
several times and the data of at least 17 million users have been put
at risk. These kinds of security issues are like a living hell for a
developing internet company like Zomato.
 Inefficient Expansion: Since it has been 10 years since this app
started and it has established itself in 24 countries till now, it has
been steady growth. But it could have been better given the huge
funding it possesses. Zomato is allowing other services to establish
themselves in this particular niche despite being already present in
those countries first. This should not be allowed as they are paving
the way for tougher competitions by themselves only.
 Increased Competition: Competition from search engines and other
similar food discovery and delivering apps like Swiggy creates a lot
of hindrance for the growth of the brand in any particular location.
  Recent Losses: Zomato, and its competitors in general, are viewed
by investors as loss-making ventures with small margins. The
company reported losses in the year 2022.

Challenges faced by Zomato

In the financial year 2023, Zomato’s gross revenue surged by

68.9%, increasing from Rs 4,192 crore in FY22 to Rs 7,079 crore
in FY23. Apart from this, the food-tech giant also recorded a
positive EBITDA growth of Rs 78 crore. On a quarterly basis,
Zomato scaled up to 5.5% and showed a decrease in its losses
by 46%, which is positive news for its investors.

Zomato was listed on the Stock exchange in July 2021 at a

valuation of $12 billion. Since then, the company has lost
almost 45% of its market capitalisation in the past 21 months.

There is already a very strong competition on the market, which has

defined customer criteria to succeed.

Zomato brands stake its name if anything goes wrong that ends
customers are affected by.

Zomato must feel totally in the regular food market, operate with a
very low 50/-ticket size without minimum order delivery order
necessary. The biggest challenge is to keep up high margins
because of costs associated with food production, processing, and
supply.

The biggest challenge they had faced was to find a way to cover all
the cities to not miss a single, fine restaurant and to have a variety
of fine restaurants on all menus.
Competition

Competitors of Zomato

Zomato faces intense competition in the food delivery and restaurant discovery sector. Key
competitors include Swiggy, Uber Eats (now acquired by Zomato), and local players in each market.

With various new companies launched in the last decade, the food delivery industry has become one
of the largest online platforms.

Thanks to companies like Zomato, Swiggy, Uber Eats, FoodPanda, etc., they are changing the food
industry quickly.

The online food delivery system is booming in metros and Tier II and III cities. All credit goes to these
significant apps in the market.

The online food delivery industry is rapidly evolving and attracts vast money. However, growing
competition and unstable growth policies have resulted in few casualties.

Because of enormous losses, companies like TinyOwl and Eat Fresh had to shut their doors.

Even FoodPanda, a popular food delivery app with a presence in over 13 countries, has been
attained several times, initially by Delivery Hero and followed by OLA.

However, the company is still struggling to maintain its position in the online food delivery industry

\Intense Competition:

Zomato operates in a highly competitive market, facing strong competition from rivals such as
Swiggy and other local players. This competition puts pressure on the company to continually
innovate, improve services, and offer competitive pricing to retain and attract customers.

Regulatory Complexity:

Operating in multiple countries and regions exposes Zomato to a diverse set of regulatory
environments. Compliance with varying laws and regulations related to food safety, delivery
logistics, and licensing poses a significant challenge. Adapting to these regulations requires ongoing
efforts and resources.

Dependence on Restaurant Partners:

Zomato's revenue is closely tied to the success and cooperation of its restaurant partners. Changes
in the restaurant industry, closures, or disputes with partners can impact the company's financial
performance. Maintaining positive relationships with a diverse range of restaurants is crucial for
sustained success.

Logistical Challenges:
Efficient food delivery relies on a well-optimized logistics network. Zomato faces challenges in
ensuring timely and accurate deliveries, particularly in densely populated urban areas. Addressing
logistical issues, including traffic congestion and route optimization, is an ongoing concern.

Economic Sensitivity:

Zomato's business is influenced by economic conditions, as consumer spending on dining and food
delivery tends to fluctuate during economic downturns. Economic recessions or uncertainties can
impact customer behavior, affecting order volumes and the overall financial health of the company.

Customer Service and Quality Control:

Maintaining consistently high-quality customer service, particularly in the context of food delivery, is
challenging. Addressing customer complaints, ensuring accurate orders, and managing disputes with
restaurants are ongoing challenges that Zomato must navigate to maintain user trust.

Cybersecurity and Data Privacy:

As a technology-driven company that collects and processes a significant amount of user data,
Zomato faces cybersecurity threats. Protecting user information and ensuring compliance with data
protection regulations is an ongoing concern, given the increasing frequency and sophistication of
cyberattacks.

Sensitivity to Public Health Concerns:

Public health issues, such as disease outbreaks or pandemics, can significantly impact Zomato's
business. Concerns about food safety and hygiene become heightened during such events, requiring
the company to implement additional measures to reassure customers and maintain operational
integrity.

Cost of Customer Acquisition:

Acquiring and retaining customers in a competitive market can be expensive. Zomato invests in
marketing, promotions, and loyalty programs to attract and keep users, but the cost of customer
acquisition remains a challenge, especially as customer acquisition costs fluctuate.

Adaptation to Changing Consumer Preferences:

The food industry is subject to changing consumer preferences and trends. Zomato must continually
adapt its offerings to align with evolving tastes and preferences, necessitating ongoing research and
development efforts.

Data Sources:
Industry analyses and reports on challenges faced by food delivery companies.

Zomato's financial reports, quarterly statements, and official communications.

User reviews and feedback on Zomato's platform.

News articles and industry publications covering challenges in the food delivery sector.

Threats to Zomato
Last, under the segment of SWOT Analysis of Zomato, we have the
Threat. These factors are important to consider as they protect the
organization from dealing with potential losses and more.
 Fragile Business Model – We can not forget that Zomato is the first
one in this niche to arrive in the Indian market. It sure has the early-
mover advantage. There was enough scope for the firm to exploit its
business model in the international market. But lately, the
company’s business model has somewhat turned fragile. Any new
tech company with enough knowledge and expertise in this field can
now exploit the model.
 Policies by the Government – Various issues like identity theft,
cybersecurity, data privacy issues, etc have made the general public
aware and really cautious about their online activity. Due to these
reasons, governments are bringing up new policies and regulations
for these internet platforms to follow. These policies really hinder
the steady flow of the business model of the companies.
 Tough Competition – As this is quite evident, the online food
delivery market has very tough competition. These harsh conditions
make life difficult for the company in order to grow and prosper.
 Security breaches – The company faced security breaches in the
years 2015 and 2017. This issue can reoccur, thus the company
must take strict measures in order to prevent it.

Conclusion

Zomato becomes one of the successful food delivery apps in India.

In the financial year ended March 31, 2019 Zomato reported a
three-fold rise in sales of $206 million, while the topline's
remarkable growth was attributed to a splash of money for new
customers than before. "Zomato's perfect" is a wonderful food
order service online. Indians love this application and they can order
our food in a few minutes. In their office door. Even they can pick
their favorite restaurants and include food in their cart and order.
Even the customers appreciate the Zomato food delivery apps start-
up in India..