Get an Insight into the Success story of Zomato - Prime Insights - Business Magazine

Get an Insight into the Success story of Zomato

Success story of Zomato

Get an Insight into the Success story of Zomato

 

Ultimate Destination for Every Foodie

  • Do you recall the last time when you went to your favorite restaurant to have your meals? If you are enticing your friends and relatives to your home, how do you decide from which restaurant or eatery you should order your favorite Dal Makani, Kadai Paneer?
  • It is insignificant whether you are vegetarian or non-vegetarian, whether it is summers or winters, festive or non-festive seasons. The simple answer is Zomato. Zomato has become an integral part of our lives, as the premium food delivery service. What started as a simple experiment a decade ago has transformed our culinary experience. Zomato has expanded to nearly all India’s cities, and they have also become international, like in UAE, Qatar, South Africa, UK, etc. Now, let us check out this thrilling journey.

Inception

  • Zomato was commenced in 2008, by Pankaj Chaddah and Deepinder Goyal, who studied at the Indian Institute of Technology and worked in Bain and Company in New Delhi. The company was launched by intuition when they observed many people waiting a long time to capture the menu of the various eateries they were visiting.
  • ‘Zomato was initially launched as ‘Foodiebay’.The modus operandi was straightforward. They uploaded the soft copies of the different dining places and restaurants’ menus on their website. Soon, users started logging on to the site, and calls started coming. The firm was initially launched in NCR, followed by Kolkata and Mumbai. In 2010, Foodiebay was renamed ‘Zomato.’ Slowly, the firm started expanding in different cities of India and also abroad.

Success Journey

  • Zomato’s journey has been an exciting and challenging one. It operates on the commissions business model, in which the firm charges commissions from all its listed restaurants in return for its services. It primarily earns from advertisements, which the website displays. Zomato has expanded into various sectors like B2B Vertical. Their new firm Hyperpure has a provision in which restaurants purchase all the items online like vegetables, meat, dairy, fruits, beverages, poultry, fish, etc. from farmers directly, thereby ensuring the highest quality.
  • Another fantastic creation, is the launching of Zomaland, one of the country’s top food and entertainment carnival. In this festival, all the top restaurants, musicians, DJ’s come together and make merry. Zomaland made its debut in 2018 and has spread to more than ten cities and also globally into Singapore.
  • As is common to all success stories, there have been many challenges too. In 2015, the company had to fire almost ten percent of its employees due to various issues. Their acquisition of the famous company UrbanSpoon in the USA also flopped. In 2017, Zomato faced its most significant challenge, when 17 million user records from the company’s database were hacked. However, it was reported that the hacker could access only user ID’s, names, passwords, email ids. Soon, this controversy was solved by interacting with hackers.

Future Prospects and Growth

  • Zomato is poised for rapid growth in the future. Its main rivals are Swiggy, and currently, Zomato is beating Swiggy in all accounts. Since its commencement, Zomato has raised around 914.6 million USD from VCs and investors. They have also purchased approximately 14 companies, with the most recent one being Uber Eats, for 206 million USD. Their global expansion is in full swing, with Turkey, New Zealand, and Brazil, the latest additions.
  • The firm had crossed three million orders per month in 2017, and in 2019, the firm had a revenue of 205 million USD. Since the launching of the mobile app, the firm’s sales have mushroomed and are expected to cross ten million every month, thereby creating an incredible exhilaration in the marketplace.

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