A Gurugram tech startup for restaurants, cafes, and bars is available on your mobile and the famous name is Zomato. Deepinder Goyal and Pankaj Chaddah founded this in 2008. It contains the information about the restaurants, their menus, and the prices. It was launched initially with a name of ‘Foodiebay’. Foodiebay was renamed to ‘Zomato’ in November 2010.
It used to cover a total of 23 countries. Its mobile application was launched in 2011 covering 5 major cities of India: Bengaluru, Pune, Chennai, Hyderabad, and Ahmedabad. From the period 2012 to 2014, it stepped outside India and expanded its business to UAE, Sri Lanka, Qatar, UK, Philippines, South Africa, New Zealand, Turkey, Brazil, and Indonesia.
Investments and funding include 9 rounds starting from 2010 to 2017:
2010- $1M; 2011- $3.5M; 2012- $2.3M; 2013- $47M; 2014- $60M; 2015: $110M; 2017: $20M.
It is having 1k-5k employees. In order to enhance its business, Zomato is now planning to acquire Runnr- a delivery startup, which will help in its delivery business.
Let’s have a look into its journey, ups and downs, and a famous success story.
Zomato contains a list of restaurants with menu and price to help you select the items with a great ease. It is giving a competition to Swiggy in the market. It started its full-fledged food delivery service in 2015.
Deepinder Goyal, the CEO, worked as a Management Consultant with Bain and Company. In 2008, he came up with an idea of ‘Foodiebay’ (now Zomato) which used to guide people to the restaurants available in different cities of the country.
How did the idea come up into the limelight?
While working with Bain and Company, Deepinder noticed that his colleagues used to wait in the queues to look for menus in the pantry. He thought what if this menu is available online, this whole process would become so much easier. And therefore, Zomato arrived, a complete application with menu cards, contact details, reviews and rating about the place and the food, location and direction and pictures.
It started from a small idea of the online menu but gradually, the new things added and it took a new turn in the market. The collaboration with the restaurants, overall information about their food services, ratings from the customers and finally delivery of the food, and now it’s having a rating of 4.3 out of 5 from more than 2 Lac customers. This much trust is built in just past 9 years.
It’s the first Indian e-commerce Unicorn to break records and get profit, a very big platform for restaurant search and food delivery startup. A statement by Deepinder Goyal, “We don’t need funding to keep our lights own”. This confidence shows that he has already achieved a lot through this startup. Zomato promises a good meal as its tagline says, “Never have a bad meal”.
Competition in the market.
Zomato is not the only one providing food delivery service, although, it gained success and high profits. Its main competitor present in the market is ‘Swiggy’. According to a report, Swiggy takes 1 lakh orders on an average on daily basis, whereas Zomato has still reached 80K average orders every day. After acquiring ‘Runnr’ , there are chances of increase in its delivery service. As a result, Zomato will be able to increase its business.
Zomato suffered a security breach, as the account of 17 million users were hacked and sold on the dark web. It’s a very disappointing phase for any e-commerce business that their security and trust for the customers break. In assurance, Zomato stated that the payment information, present on the site is totally safe and was not leaked. It also stated that the password information of the customers is not easy to decode as they have used a one-way hashing algorithm, with multiple hashing iterations. But they have suggested their customers change their passwords if they are using the same, anywhere else as well, for security reasons.
Zomato assured that it uses PDI Data Security Standard (DSS) to store payment related information.
Talking about SURVIVAL.
It’s not easy for a food startup like Zomato, Food Panda, Swiggy to survive in the market with such a tough business and less funding. Looking at few startups gives a brief idea, how difficult it is to maintain a name and better service. Dazos and Eatlo are nowhere at present. Spoonjoy merged with Grofers. According to a report, Food Panda ceased 300 people in Dec. 2015. TinyOwl ceased 100 employees in Sept. 2015. Zomato fired 300 workers in Oct. 2015. Therefore, it is struggling a lot to make and keep its place in the market.
According to an article in Economic Times, problems are occurring in Food Startup business because one needs to have a proper understanding of the locality of the user. It can’t be the same business like selling mobile phones or apparels online where the buyer can wait for few days, but in this case, it has to be near the buyer/ customer, so that the user can have the meal in an expected time.
According to Rajan Anandan, managing director, Google South East Asia & India,” Food is a scale business- optimizing on pricing and managing costs is very important”.
Zomato and It’s Aim.
While helping people in searching the nearby food places or ordering food at their homes, it is also helping the restaurants in creating their experiences.
The Aim of the Zomato :
- Help the people to search and find great places around them. Foodies can have a complete access to this app and explore their world of food. People can share their experiences of places and the food available, upload the images and reviews. This not only helps the other people in making their choices but it also helps the restaurants in checking and improving their ratings.
- Helps in creating great experiences where one can order the food online or book a table in advance and reach the place on time, and enjoy their meals.
- Helping restaurants in building amazing experiences by helping them providing reviews of the customers. Therefore help them focus on their services.
Zomato is spreading its business worldwide having 2000 employees in 23 countries. Take advantage of this app and try the lavish food of different restaurants around the globe. Don’t forget to give your rating because your ratings will help others as well.
Hope you like the article. Don’t forget to share your views about the article as well as your personal experience with Zomato.