The Success Story Of Zomato: The sources speak of an incident in New Delhi, A restaurant owner in Delhi’s Rohini area has signed out of a food aggregator platform and asked a customer to come to the outlet with a tiffin box to collect food. What might sound like a funny incident, was a noble thought – the hotelier didn’t want to use plastic for food delivery.
And Zomato was on top of the list to have acquired the name eco-friendly delivery.
Is Zomato Boon or Bane?
Technology has impacted the food & beverage industry, that too profusely. The concept of “dine-in” has been replaced by “eating-in” and “Netflix and chill”. The usage of food and restaurant apps has increased by 70% since 2014, to its current standing of 34%. So, customers prefer ordering in, instead of the hassle of cooking and waiting at the restaurant for their food to arrive.
How did Zomato pull it off as a start up?
The major food franchisees have their own fleet of food delivery, but they cannot match the reach of these food delivery apps.
For Instance, Coffee chain Barista was in advanced stage of talks with Swiggy for serving the customers online. Cafe Coffee Day joined hands with Uber-Eats to launch a virtual restaurant network.
Zomato treaded diligently during?
In August, Zomato’s founder Deepinder Goyal had admitted that his company made mistakes with its premium subscription service ‘Gold’ and would make changes to the appease restaurants.
“Somewhere, we have made mistakes and things haven’t gone as planned. This is a wake-up call that we need to do 100x more for our restaurant partners than we have done before,” Goyal tweeted.
It trended so well!
Zomato started under the name, Foodiebay initially. Zomato expanded to other cities across the country in Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.
Between 2010-13, Zomato raised approximately US$16.7 million from Info Edge India, giving them a 57.9% stake in Zomato. In November 2013, it raised an additional US$37 million from Sequoia Capital and Info Edge India.
In November 2014, Zomato completed another round of funding of US$60 million at a post-money valuation of ~US$660 million.
In October 2018, Zomato raised $210 million from Alibaba’s payment affiliate Ant Financial.