Business Analysis

Prateik Mohapatra
20-S-075
Indian Online Food Delivery Industry
• One of the fastest-growing areas of the Indian e-commerce business is
online meal delivery.
• In the last three years, the industry has grown by 30% year over year,
and this trend is expected to continue in 2020.
• In 2020, the online meal delivery market in India will be worth about
USD 2,926 million.
• The industry's growth is erratic and largely dependent on capital.
• In 2020, mobile applications were the most popular means to access
online meal delivery services.
• Prepaid online methods accounted for approximately 80% of all
payments.
• Swiggy and Zomato are the market leaders, accounting for 65 percent
of the market.
 History
• Zomato began as the website Foodiebay.com in July 2008 as a restaurant search
engine that included in-depth information as well as independent reviews and
ratings.
• Foodiebay.com was rebranded Zomato.com in November 2010.
• Zomato paid $52 million for urbanspoon, a prominent restaurant service offering
site, in order to expand into the United States, Canada, and Australia.
• With over 1.4 million active eateries on our network, it is present in over 10,000
locations across the world.
• The site has 70 million monthly active users.
• It boasts 5 million new user registrations and 11 million app installations
(Android + iOS) every month.
• In India, approximately 100k eateries are listed, with an annual run-rate GMV of
over $1.5 billion. A total of 94 percent of these deliveries are handled by a fleet of
1,80,000 operational delivery vehicles.
 Business Model
• Value Proposition
• Zomato uses cutting-edge technology to bridge the gap between customers and eateries
• Zomato is a fantastic tool for diners to rate and evaluate a variety of eateries in their
region.
• At the same time, it enables restaurant operators to set themselves apart in the market.
• Revenue Model
• Restaurant Listings / Advertising
• Food Delivery
• Subscription Programs
• Live Events
• White Label Access
• Zomato Kitchens
• Zomato Consultancy
• Channels
• Application
• Website
 Marketing Strategy
• Segmentation
• Age group of 18-40
• College students
• Working professionals
• Targeting
• Between the ages of 18 and 35, there are a lot of young people.
• People who frequently wish to dine out with their friends and coworkers
• Often refer to ratings and reviews
• Online opinion seekers of restaurants and smartphone users
• Positioning
• Zomato has established itself as a platform that connects restaurants, suppliers, customers, food providers, and logistical partners.
• Zomato is the go-to app for Indian millennials when it comes to dining out.
• Promotion Strategy
• Content marketing entails the use of images to advertise a company's products.
• It has made significant investments in social media and search engine optimization.
• Promotional codes and discounts
• Zoomaland: Using music, dancing, and stand-up comedy to turn meals into a carnival.
Social Media Strategy
• Facebook
• Zomato has a Facebook network of 1.9 million people.
• Facebook serves as a platform for Zomato's updates.
• It features unique meals and encourages people to explore new foods.
• Twitter
• The brand is doing a fantastic job of engaging people in discussion.
• It holds contests on Twitter on a regular basis, with Foodie Friday being
one of the most popular.
• The Yummy Yatra was covered live almost entirely on Twitter
• Blogs, Pinterest and Instagram
• The Zomato blog serves as the company's public face, with regular
updates on the brand and its activities.
• Pinterest and Instagram content are a visual pleasure and a genuine
delight for foodies.
 PESTEL Analysis
Political
• Digital India campaign
• Ease of doing business

Economical
• Cashless transactions
• Solved unemployment problem
• Foreign investments

Social
An increase in the working population of Indians from the middle class
People are now working 24 hours a day, seven days a week.
• Young people and young working couples enjoy eating out.

Technological
• Beautiful and easy to browse user interface
• Restaurant finder module
• SEO friendly website
• Information storage
Environment & Legal
Covid-19 has had an impact on sales and has changed the focus away from dine-in and toward delivery.
• Complies with all of the country's rules governing technology companies.
 Porter’s Five Forces Analysis

Threat from Industry Barriers to Bargaining Bargaining Threat of new

Substitutes Rivalry Entry power of power of entrants
• Google Maps • Swiggy • There are buyers suppliers • Strong Brand
• Local • Foodpanda already • People could Reviewers and Name
competition • Faaso’s significant move to restaurants are • Advanced
• Global • Yelp competitors in alternative both reliant on technologies
competition the industry, the applications with you. • Economies of
• Hunger go risk is very high. more • Incentives for Scale
functionality. both are lacking.
Impact of COVID
Celebrations have gone back home because to the
lockdown limitations. Orders skyrocketed on
festivals and occasions including Raksha
Bandhan, Janmashtami, Teacher's Day, and
Independence Day. Customers who haven't
ordered since the shutdown began are 20 percent
more inclined to do so at such festivals and
events.
Group ordering has grown more important than ever as
customers spend more time with their family. Order sizes, or
the number of products per order, have grown by 20% since
pre-COVID. Single-person dinners, which accounted for over
60% of all orders prior to COVID, are still recovering at 50-
70 percent in most locations. Orders with meals for three or
more people, on the other hand, have rebounded nicely and
are now greater than pre-COVID levels.
Consumer Perception towards Food delivery apps
Consumer Perception towards Food delivery apps
 Conclusion
• Model of company that is unique and sustainable
• Affordability, accessibility, and variety have all contributed to people's faith in the company
throughout the years.
• To engage customers, the Facebook page should be more active.Virtual restaurant tours, for
example, should be provided as new features.
• It is possible to include live video from cafés and pubs.
• To improve consumer engagement, provide virtual dine-out experiences.
• Weekday and weekend price that changes based on demand
• For bachelors, there are meal subscription options and bulk order discounts.
1. Media Reports McKinsey & Company, 2016
References
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17. http://www.iamwire.com/2015/03/rise-online-food-ordering-startups-india-opportunities-challenges-innovations/113052
18. https://www.techsciresearch.com/report/india-online-food-ordering-and-delivery-market/3952.html
Thank you