Zomato is an Indian group founded in Delhi NCR in 2008 by Deepender Goyal and Pankaj Chadha. Zomato originally began as a ``Foodie Bay" but was renamed ``Zomato; in November 2010. Two IIT graduates, Deepender Goyal and Pankaj Chadha were formed to found Zomato. Restaurant Listings / Advertising: Zomato was merely a listing website and a restaurant directory in its first avatar. This brought in revenues from ads from restaurants that entered the network. Extending this further after the introduction of food delivery and restaurant reservations, Zomato now charges restaurant commissions to be prominently put on the list. Restaurants can pay for promoting their events or deals as well as their overall banner which brings increased visibility and conversions from users of Zomato. Food Delivery: For example, Zomato charges a commission to the restaurants on the basis of orders through its food delivery company. Although users pay a delivery fee, Zomato receives a commission for each delivery to restaurants which are then divided between the delivery partner and the client. Restaurant commissions differ depending on whether Zomato is shipping, or whether the restaurant is using its own riders. This is said to add to the overall profits of the company in a limited way due to the massive rivalry and the need for profound discounts etc.
Subscription programs: With Zomato Gold for customers and guests, and restaurant subscription options, Zomato has opened up a steady revenue stream. While users are paying a subscription fee to access the Zomato Gold loyalty program which brings exclusive deals, restaurants are also paying a monthly fee to be part of Zomato`s bouquet. Restaurants also pay Zomato a monthly fee for miscellaneous services such as live monitoring, tamper-proof packaging branded with Zomato, and more. Challenges faced by Zomato
There is already a very strong competition on the market, which has defined customer criteria to succeed. Zomato brands stake its name if anything goes wrong that ends customers are affected by. The biggest challenge is to keep up high margins because of costs associated with food production, processing, and supply.
Question 1:- ____________________ are those who address the same target market but provide a different offering to satisfy the market need, for example Haldirams, Dine-out, MTR foods in case of Zomato.
a) Direct competitions
b) Direct suppliers
c) Indirect distributors
d) Indirect competitions
Question 2:- Zomato moved from just listing of restaurants to food delivery . This is an example of:
a) intensive growth b) economies of scale c) diversification d) integrative growth
a) cash cows
b) question marks
c) stars
d) dogs