Zomato: Transforming the Global Restaurant Business

Ahamed Jameel : [email protected]

Au Willy : [email protected]

Li Qi : [email protected]

Li Juexing : [email protected]

Liew Ethan : [email protected]

Luo Yi : [email protected]

ZomatoTransforming the Global Restaurant Business

MT5016: Business Model for High-Tech Products

National University of Singapore

Introduction

Business Model

Value Proposition

Customers

Scope of Activity

Value Capture

Scope Extension

Competitor

Strategic Control

Introduction

Food is a Necessity

Convenience

Technology

Self-actualization

Esteem

Love / Belonging

Safety

Food

Food discovery application

23 countries

62.5 million registered users

9 languages

90 million visits monthly

1.4 millions restaurant listings

Founded: 2008

Business model

Business Model

User Restaurant

• Restaurant Pays Zomato for being featured

• More Customer footfall for the restaurant

• User Views restaurant

Increasing value for restaurants, users & Zomato with more users & restaurants

Network Effect

Restaurants Users

Attracted by More Users

Attracted by More Restaurants

Revenue Sources

Source

http://techcircle.vccircle.com/2015/06/04/zomatos-revenue-and-operating-loss-more-than-

tripled-last-year-meritnations-growth-slowed/

Source

http://www.medianama.com/2013/06/223-chart-zomato-

revenue-split-fy13/

2.8%

1.5%

95.7%

Latest Update:

Feb 8th 2016: Zomato breaks even in 6 countries

out of portfolio of 23 countries.

Core Competency

Field Teams

App / Website Platform

Customer Service

User & Restaurant

Database

Restaurant Advertising

Key ActivitiesKey Resources

Data Analysis

Zomato maintains a strong internal structure to complement their business model

• Abundant dining options

• Ease decision making process while saving time

Location

Rates

Menu

Reviews

Promotions

Share

experience

Find restaurants

nearby

Accurate

Information

Personal

ProfileIts weekend. I want

to eat something

Dine in

Value Proposition - Users

Zomato enable restaurants to:

Customer Service &

EngagementTargeted Advertising

Improved Visibility Manage Online Presence Track Performance

Event Management

Value Proposition - Restaurants

Customers

Customer Groups

Medium

Luxury

Small

Convenience Seekers

Tourists

Restaurants Users

Food lovers

Customer Channels

App for Business

Field Teams

Dedicated iPad

App for User

Advertising

Customer Care

User

Restaurant

Zomato maintains different channels of communication with their Customers

Scope of activities

Restaurant business is fragmented

Zomato is tying up the industry

Vertical disintegration of the restaurant

business

Restaurant Business

Beverages

Food

Customer services Restaurant visibility

Food delivery

Cashless payment

Table management

Food supplyKitchen appliances

Furnishing

Zomato sees an opportunity to

broaden its scope of activities

Value network for restaurant business

Visibility

Online listing

Advertisement

Services

Food delivery

Restaurant Solution

POS system

Table management

Inventory

Suppliers

Equipment

Food

Furniture

Consulting

Design

Menu engineering

ExpansionRestaurant Customers

Online platform

Food order

Table reservation

+ =DATASTRONG NETWORK

EFFECTNEW PRODUCTS

NEW SERVICES

COMPETITIVE ADVANTAGES

Capturing new values in the restaurant business value

network

Zomato is vertically integrating

restaurant business

Value chain in restaurant business

Supplier value chain

Equipments seller

Furnitures seller

Food supplier

Channel value chain

Advertisement

Online listing

Online presence

Food delivery

Customers value chain

CRM

Cashless payment

Comfort

Quality food

Restaurant value chain

POS system

Reservation

Table management

Zomato’s scope of

activities

Zomato for business

Answer reviews, analytics,

manage deals and events.

Zomato order

Online delivery orders

Zomato Base

Cloud-based POS system

Zomato Book

Table management

and reservations

Zomato Whitelabel

Personalized restaurant

smartphone apps

Zomato Widgets

Widgets for restaurant

Value capture

Market where Zomato is performing well :

India Philippines Indonesia Middle East Australia New Zealand

Capturing value with full stack

features

Focus on growing app penetration and ecosystem :

Zomato public app Zomato business app Zomato Advertisement

Zomato Order Zomato Base Zomato Book

Zomato Whitelabel Zomato Widget

Focusing on Enterprise Features, mainly on “Zomato Book” for market characterized by:

Small Size

Slow Economic Growth

Zomato is not dominant

Capturing value with enterprise features

Full-Stack

Full-Stack

Full-Stack

Full-Stack

Full-Stack

Full-Stack

Enterprise

Enterprise

Enterprise

Enterprise

Enterprise

EnterpriseEnterprise

Proposed Extension of

Scope

Value network for restaurant business

Visibility

Online listing

Advertisement

Services

Food delivery

Restaurant Solution

POS system

Table management

Inventory

Suppliers

Equipment

Food

Furniture

Consulting

Design

Menu engineering

ExpansionRestaurant Customers

Online platform

Food order

Table reservation

• Connect restaurants to suppliers

• Advertising platform for suppliers to 1.4 million restaurants

Supplier Restaurant

Zomato Supply

Database

Zomato Consultancy

Output

Provide advice to restaurants

• Restaurant database

• User data

• POS data

• Open data

Input

Knowledge from large database

Data

Analytics

Where

How

What

Zomato Partners

UberTaxi

Book a taxi to the restaurant by

Uber

UberRush

Order food through Uber’s food

delivery service

• Leverage its position and partner with other technologies

• Create synergies and add value to their product

Zomato Partners

Value Proposition

Users

• Convenient

• More restaurants choices

Restaurants

• Profitability: Reach a new segment

of customers

Catering options for travelers around railway stations

Station A Station B

Indian railways

Zomato Cook

Local Cooks

Connecting local cooks and people who want home-cooked food

Foodies/

Tourists

Competitor Analysis

Competitors

Since Zomato is expanding drastically, they face competition in different areas:

Geographic Service-based Technology-based

Local Players

IncumbentsFood Delivery

POS System

Search Engine

Recommendation System

Online Platform Food deliveryRestaurant

search & discovery

Restaurants guide,

shopping, entertainment,

& hospital reviews

Countries40

India, Singapore etc.

23

India, Australia etc.

32

USA, Europe etc.

Found 2012 2008 2004

Monthly

Users(million)4.5 90 160

Competitors

0

1

2

3

4

5

Delivery

Service

Advertisement POS Restaurant

Solution

Partnership Global

Presence

Ra

tin

g

Zomato

Foodpanda

Yelp

TakeoverCompetitors

Strategic Control

Growth Strategy

Entry into new

markets

Increase revenue sources

Boost network effect

Faster customer

acquisition

Visibility &

MarketingEntry timing Capture initial

customer base

NZ Czech Republic AU, CA, NZ, IE, UK, US US

Jul 14 Aug 14 Aug 14 Dec 14 Jan 15 Jan 15 Apr 15

• Natural growth in 16 countries,

• Acquisitions in 7 countries

Slovakia ItalyTurkey

Acquisitions

Growth Strategy

Thank You

Zomato: Transforming the Global Restaurant Business

Business

Transcript of Zomato: Transforming the Global Restaurant Business