How Zomato Becoming the #1 Food Delivery Service

Zomato is a one of largest food delivery platform.

It is a global restaurant discovery and food delivery service headquartered in India.

It offered comprehensive details on more than 1.4 million establishments in 23 countries.

The platform provides user reviews, ratings, menus, and photos for restaurants,

and operates in multiple countries worldwide.

Zomato also offers subscription services like Zomato Gold (now known as Zomato Pro),

which provides discounts and offers at partner restaurants.

1) How was Zomato Started?

Zomato was started in 2008 by Deepinder Goyal and Pankaj Chaddah in India.

Initially, it began as a restaurant discovery platform, offering online

menus and restaurant reviews. The idea originated when Goyal and Chaddah were working together at Bain & Company and saw an

opportunity to create a database for restaurant information. They launched the platform to address the lack of comprehensive

restaurant data available online, eventually expanding their services to include food delivery, reservations,

and more, growing into a global food tech company

2) Zomato digital marketing strategy

Zomato is active on Facebook, Instagram, YouTube, LinkedIn, and twitter.

It has 1.9 million followers on Facebook,

1 million followers on Instagram, 1.5 million followers on Twitter,

5.52 lakh subscriber on YouTube and more than 2M followers on LinkedIn.

Partnerships with Food Influencers:

Zomato collaborates with popular food bloggers, vloggers,

and social media influencers across platforms like Instagram, Twitter,

and YouTube. These partnerships help create relatable and engaging content that showcases Zomato's offerings,

thereby reaching a broader audience and increasing brand awareness.

3) Explain Zomato business modal

Zomato operates a multifaceted business model primarily centered around food delivery and restaurant discovery.

Founded in 2008, the platform connects users with local restaurants, allowing them to browse menus,

read reviews, and place orders for delivery or pickup.

Key Components of Zomato's Business Model

1. Customer Segments:

Users: Individuals seeking convenient food delivery options.

Restaurants: Eateries looking to enhance visibility and reach new customers.

Delivery Partners: Individuals providing delivery services, often on a freelance basis.

Commissions: Zomato charges restaurants a commission (typically 20-25%) on each order placed through its platform.

  2. Advertising: 

Restaurants pay for promotional placements and advertisements on the app, contributing significantly to Zomato's revenue.

Subscription Services:

Zomato Gold, a membership program, offers users discounts and exclusive deals at partner restaurants, enhancing customer loyalty.

  Revenue Streams:

Commissions:

Zomato charges restaurants a commission (typically 20-25%) on each order placed through its platform.

Advertising:

Restaurants pay for promotional placements and advertisements on the app, contributing significantly to Zomato's revenue.

Subscription Services:

Zomato Gold, a membership program, offers users discounts and exclusive deals at partner restaurants, enhancing customer loyalty.

Zomato Kitchens:

The company provides infrastructure for cloud kitchens, allowing restaurants to expand with lower overhead costs

  3. Value Proposition:

Zomato simplifies the food ordering process, offering a wide selection of restaurants and real-time order tracking, thus bridging

the gap between consumers and eateries.

This model has enabled Zomato to thrive in a competitive market, expanding its services to over 24 countries and millions of users globally.

4) What was Zomato's IPO price

Zometo IPO opened for subscription on July 14, 2021, and closed on July 16, 2021.Zomato's IPO price was set in a

range of ₹72 to ₹76 per share.

The total issue size was approximately ₹9,375 crores, which included both a fresh issue of shares and an offer for sale from the promoters.

5) How many shares were issued in Zomato's IPO

In Zomato's IPO, a total of 71,92,33,522 shares were issued.

This included shares allocated to various categories of investors such as Qualified Institutional Buyers (QIBs),

Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) among others.

The IPO was highly subscribed, reflecting strong investor interest in the company.

6) The current share price of Zomato

The current share price of Zomato is ₹250.53 as of August 30, 2024.

some key details about Zomato's stock performance:

1.Zomato's share price has a 52-week range of ₹90 to ₹281

2.The stock has a market capitalization of ₹221,328 crore