SWOT Analysis of Zomato | Zomato Strength , Weaknesses, Opportunities and Threats
1. What is Zomato?
Zomato is a global restaurant discovery service that was founded in 2008 by Deepinder Goyal and Pankaj Chaddah with its headquarters in Gurugram, Haryana, India.
Zomato offers restaurant information, menus, and user ratings, as well as meal delivery from partner restaurants in a few locations.
The program is now available in 24 countries and over 10,000 locations as of 2019.Zomato is one of the most popular online restaurant search site in India
2. How is Business Model for Zomato?
The business model Zomato provides its customers with a variety of options. The goal of Zomato work is well admired.
Zomato focuses on the QAAA model, which guarantees and provides quality, accessibility, accessibility, and a portfolio to clients and partners. Zomato values, which make it distinctive and praiseworthy,
Consumers are the main source of income as a service provider. Zomato key customers are consumers and restaurants alike.
Those who hunt for different restaurants, according to their budget, locality, and desired tastes, will be able to find different restaurants and a menu of numerous restaurants in their areas.
Zomato also has consumers in its kitty who wish to get home delivery quickly. Zomato has given them application facilities.
Zomato is very focused on marketing, which makes it appropriate for business or medium-sized businesses.
Zomato emphasizes on publicizing its own name and services, which is a strong means of advertising. Zomato has a direct channel of communication with consumers.
Zomato mobile application has been presented in over 10 languages and provides the customer service number for each restaurant.
Online customers are Zomato primary target audience. But Zomato also targets local eateries like restaurateurs, who want to advertise themselves on different websites.
Zomato uses the online medium for promoting its own business. The company’s application is available in 10 languages and provides customer service phone numbers for each eatery. It also guarantees quality for customers.
How does Zomato makes money?
Zomato has made its own money in several ways. Every month Zomato earns revenue through;
a) Subscription fees: subscribers pay a subscription fee as a platform to access the information and services.
b) Content fees: Zomato charges the restaurants for putting up their information and menus on its site. If someone wishes to advertise their food or business through Zomato then they will have to pay Zomato to do this for them.
c) Live events: Zomato charges a registration fee to restaurants wishing to get listed on the site. They also get paid by restaurants depending on the amount of orders they receive because of Zomato.
d) Merchant payment: Zomato gets paid by restaurants and individual food consumers for providing food delivery services
e) Web search: Zomato also makes money from its web and app search facility, which gives revenue each time someone clicks on ads displayed in the search results and/or through other advertisements on its platform.
f) Advertising services is a means to promote its business: Zomato has been able to earn an income from advertising from different channels. It has done so through podcasts, online videos within the app.
g) White label Access: As one of the leading restaurant search platforms in India, Zomato has also provided businesses the opportunity to white label its website and app with their information and their own branding in order to keep up with the changing customer preferences.
4. Zomato Revenue and financials
Zomato revenue in FY2021 stood at USD 260 million, a rise of 143 percent from the previous financial year. Its net loss for the year was USD 110 million.it has over 5,000 numbers of employees.
5. Zomato partners
a) Visa: Zomato has partnered with Visa which means through an e-wallet, consumers can pay for their food through the Zomato app.
b) McDonald: Zomato has partnered with McDonald’s to offer food delivery service, McDelivery is a service offered by McDonald which allows customers to have their food delivered to them at home by local restaurants. Zomato has partnered with McDelivery so that its customers can order their food through the app and have it delivered to them by one of the many participating restaurants.
c) PayPal: Zomato has partnered with PayPal to allow customers to pay for their orders using their PayPal accounts.
d) Jazzy b: Zomato has partnered with Jazzy B, a Punjabi music artist, to promote its app in India through music videos.
e) Uber Taxi: To improve the customer experience and broaden its reach, Zomato has partnered with Uber Taxi. The app will be used as a payment method for customers to order their food through the app.
g) London & partners: Zomato has partnered with London and its partners to provide the service through the app and through GPS tracking in case of an order being late.
h) Jet Airways: Zomato has partnered with Jet Airways to provide food delivery services in India. The Jet Airways app will be used as a payment method for customers to order their food through the Zomato app.
6. Zomato Competitors;
Zomato competes with;
a) BiteMyApp: BiteMyApp claims to be a restaurant search engine; in fact, it is a GPS-powered food delivery service. This is a kind of search engine that displays the nearest restaurants within your area. This is particularly useful when you have no idea about the address of the restaurant you are looking for. In addition to this, BiteMyApp also shows estimated delivery time.
b) FoodPanda: FoodPanda is a restaurant delivery platform. It has been ranked as the most popular Indian food delivery service. It specializes in delivering affordable yet delicious food from your favorite restaurants, bistros and cafes to your doorsteps.
c) Swiggy: Swiggy is another popular Indian food delivery app that delivers food from your favorite restaurants, bistros and cafes to your doorsteps.
d) DoorDash: DoorDash is yet another food delivery service. The company currently delivers restaurants, or anywhere that offers services on its platform. It allows customers to order food via the website, mobile app, or text message.
e) Restaurant: Probably one of the largest restaurant delivery service providers is the Restaurant itself. They offer cheap and cheap food to people who live in large cities like Mumbai and Delhi with deliveries all across India.
f) UberEats: Uber eats is an online food order and delivery application. UberEats assists in ordering food online by connecting users to restaurants that offer delivery.
7. SWOT Analysis of Zomato
Strengths of Zomato
a) Large user base: this includes customers who are willing to accept the delivery service even though they might be out of reach.
b) Lost delivery cost: compared to other services such as Go Green, BTTF, FoodPanda etc. This is due to the fact that Zomato delivers food in bulk which results in decreased expenses for the users in terms of packaging and transportation.
c) Global presence: Zomato is not restricted to India alone. It has its presence in 24 countries which reflects the company’s dedication to expand its market share. This geographical reach works to the advantage of Zomato due to its large user base in countries such as the United States, United Kingdom, Australia, New Zealand and South Africa. Zomato plans to extend its reach by entering Eastern European nations in the near future. Its global presence can be attributed to its large user base across continents.
d) Specialty product: Unlike Food Panda and Bite My App, Zomato is a platform that provides support for businesses within the restaurant industry. It also entails the support of customers. This translates to the fact that Zomato apps are special because they are utilized by many customers who are unaware that they are not overpaying for their food.
e) Superior technology: Zomato has well-developed technology compared to the other competitors. It is less expensive than extra delivery services because it does not have an office. It also uses online networks to transmit information between its stores and customers. This saves on transportation expenses, packaging of food etc.
f) Selling tips: Zomato has added a selling tips feature in its app, which is available for all the restaurants.
g) High financial leverage: Zomato has an immense amount of financial leverage that can be used to further increase its presence in the food delivery business. The company has raised funds from well-known investors who have provided funding to Zomato to use for expansion.
h) High brand value: Zomato has a relatively high brand value compared to other similar services in the market. Generally, this works in Zomato favor because it allows them to expand their portfolio by acquiring other companies in the same field.
i) Free mobile app: Zomato apps are free to use for customers even though they pay the delivery charges. This is due to the fact that customers access the smartphone market through retailers such as Amazon and Flipkart, which covers their cost of using Zomato apps free of charge.
Weaknesses of Zomato
a) Expense of Technology: Due to the fact that Zomato is more sophisticated than other competitors, it requires more technology to have a competitive edge over them. This does not work in Zomato favor since start-ups are highly funded by VC’s.
b) Customer experience: Although Zomato has excellent technology; they have often been criticized for their customer experience services. This is because their delivery men have often been accused of taking customers for granted.
c) Marketing: Zomato is not known for their amazing marketing campaigns or unique advertising methods. This is because the company focuses on creating awareness for its business to compete against other similar platforms.
d) Expansion: The Company is yet to expand its market shares since it does not have their own vehicles. This is still an obstacle for the company to overcome since new businesses are always looking out for new markets to enter.
e) Unique Features: Unlike other similar apps, Zomato does not have unique features that distinguish it from other competitors in the food delivery business. This is because of the fact that their services are similar to other online ordering systems available on the internet.
f) Innovative ideas: Zomato does have unique ideas in the food delivery business. However, these are not incorporated in their products. They do not need to be because users who obtain their services from FoodPanda or Bite My App are more familiar with the way they work.
g) Network effect: The network effect is the phenomenon that occurs when a product gains more utility when more people use it. This means that Zomato does not have a strong network compared to other online food ordering apps in India.
Opportunities of Zomato
a) Food-tracking: Food tracking is an opportunity that can be exploited by Zomato to increase its market share. This is because the company has the capacity to integrate food tracking application in its system. Food tracking can also be used to make sure that the food delivered to customers meets the required specifications.
b) Food delivery for events: Zomato is yet to provide food delivery services for events such as birthdays, parties etc. This gives them a unique opportunity of increasing their market share by expanding their portfolio.
c) Expansion: Zomato is yet to expand their market shares to other regions where they have only a limited presence. This will result in increased profits for the company due to the fact that more customers will use their services from time to time.
d) Expenditure on marketing: Zomato needs to invest more in its marketing campaigns in order to make it known among consumers nationwide. This will increase the number of customers who use their apps and thus, increase their market shares across the world.
e) Rapid technology development: Zomato provides a wide range of services that are supported by the latest technology. This gives the company a unique opportunity to utilize this advantage to its advantage.
f) Unique Selling Point: Zomato unique selling point is that they provide a platform for customers and restaurants to talk directly to each other. This allows customers to buy discounted food from restaurants they trust, which will increase their market share in the process.
g) Increase internet penetration: The internet penetration in India is increasing with time. This gives Zomato an opportunity to increase their market share by marketing their services online.
h) Strong brand image: Zomato has a strong market image that allows them to enter into many markets without having any trouble whatsoever.
Threats of Zomato
a) Intense competition: Zomato is an online food-ordering service provider. There are other companies that provide the same services such as FoodPanda and Bite My App. This means that Zomato has to compete against these companies in order to increase their market shares and expand their portfolio.
b) Intense rivalry: Zomato must also compete against other businesses in the food delivery business such as UberEats etc.
c) Lack of clear rules and regulations: The government has not created any clear rules and regulations for companies to follow. Zomato must thus, depend on the self-regulation methods to ensure that their business does not affect those of other companies in the market.
d) Copyrights: Zomato depends on the copyrighted material, information and documents from its providers such as restaurants. In case the copyrights are breached by these providers, it may result in a negative impact on Zomato business.
e) Lack of innovation: Zomato is yet to come up with new ideas in the food delivery business to provide customers with unique experiences. This means that their services are similar to other online ordering systems that are available on the internet.
f) Lack of target markets: Zomato does not have their own vehicles that can be used to deliver food or ingredients. This means that they are dependent on others in order to satisfy their customers. This will affect their business in the long run because they are yet to expand globally.
g) Lack of brand awareness: Zomato has weak brand awareness in the market which leaves room for other companies to enter the market and compete with them for its customers’ share.
8. FAQS of Zomato;
a) Who is a Zomato Delivery Partner?
A Zomato Delivery Partner is a person who is contracted by Zomato to deliver food from restaurants to their customers.
b) What are the requirements to become a Zomato Delivery Partner?
There are no strict requirements as such as becoming a Delivery Partner. The only thing you need to do is order from a local restaurant and complete the delivery task given by Zomato.
c) What is the delivery cost by Zomato Delivery Partner?
For this service, Zomato Delivery Partners can choose to receive a commission or a flat payment upfront. It would depend on the restaurant and the order that you place.
d) What if Zomato order is late?
Rest assured that whatever the Zomato Delivery Partner received from the restaurant, will be given to you. There is no risk when it comes to the payments made by Zomato.
e) How do I get paid for my services?
After you have completed an order, use the waitlist option in your app to receive your payment. The payment will be transferred into your bank account within a day or two after you place your order.
f) Does Zomato give free food if late?
No. If the order is delayed, then there is no other option but to wait until it reaches you. The Zomato Delivery Partner cannot demand for free food if the order is delayed.
g) How do I get a refund from Zomato for late delivery?
If you want to file a refund to your order, then there is no other option, but to email the management directly. It would be best if you provide your account ID and the refund details to the particular department that might help you better.
h) How can I terminate my duties as a Zomato Delivery Partner?
In order to terminate your contract with Zomato as a Delivery Partner, you must first complete all orders that are already on your waitlist.
i) How can I get a Zomato account?
Actually, joining Zomato is easy. All you need to do is download the application on your phone or tablet. You can also search for Zomato in the application store and install it to your phone or tablet.
j) Is there a way to earn money from this APP?
Yes, you can earn money from this app called Zomato Gold, which is a reward point’s app for delivery orders that you place on the system.
k) How do I complain to Zomato?
You can contact Zomato customer services by logging in with your account ID and the email you registered for this app.
l) Can I use my credit card on Zomato?
No, you cannot use your credit card to place an order. You need to pay using the methods that are available in your payment mode of choice.
m) Can I give Zomato my order number?
Yes, you can give them your order number when you complete your delivery task.
n) Can we get free delivery from Zomato?
Yes you can get free delivery with Zomato (if your delivery partner has placed an order for it).
o) Can we get free food from Zomato?
No, there is no free Zomato food.