Zomato India’s largest online food delivery company Established India’s largest food delivery network with a few lakh employees providing restaurant food to every household in India, Zomato which started as a small company in 2008 has a valuation of Rs 56 thousand crore today. It has grown into a company but this is not the real story of 56 thousand crore rupees valuation my Zomato company shares the investors who have invested in the Indian stock market, why is it just 65 rupees The Zomato company which started in 2008, has not seen a single rupee of profit but you will be shocked if you see the losses that this company is getting, but many universities are investing lakhs of crores on this company but what is the logic behind it If you think like that, your wrong because those who are investing thousands of crores in Zomato company are not investing only by looking at this food delivery business. In 2018 two people Deependra Goyal and Pankaj Chedda started an online website called Pudibe. The website had restaurants in major Indian cities and food items available there along with customer reviews. Even there was no online website, but there was no facility to deliver online food order. In 2010 a company called foodebe was converted into zomato. We all know how fast publicity can spread in India which has a population of more than 100 crores. They have started investing in the company they have spread their business in almost 25 countries but now let’s see how the business earns.
The zomato company has all the data about the amount of personal information that is the amount of data that is the customer in every state every city every area at what time in what season, what kind of food they like what kind of flavor they like in what price range they buy most similarly according to this every single customer who is registered in its app has all the data about what he likes to eat at what time so this is the power of data science. More orders will come what kind of food do people eat most in your area if you want to set up a shop in an area what kind of food should you have in that shop who are the people around you, what kind of food do they like to eat at what price and everything is told by Zomato consultancy service. And not only this using this customer data Cloud Kitchen in Zomato India has developed all the concepts. God Kitchen means catering services not the same but similar kind of concept. Zomato delivers directly to them. The difference between a normal restaurant and a cloud kitchen is that in restaurants we have a sitting option where we can have lunch or dinner but in a cloud kitchen there is only a kitchen without a sitting area which means that instead of cooking services they run on the name so the advantage is that a restaurant is run. The cost of running a cloud kitchen is much less than the cost of making it. In which area to put the cloud kitchen it is very easy for Zomato to know where the customers eat the most. We have already seen how they became number one and another source of income for Zomato is through advertisements.
For example if you open the Zomato app and search for biryani there will be hundreds of restaurants listed on Zomato. Food delivery advertisement will appear and the amount must be paid for the advertisement. That why the biryani prices you get in the top 5 are slightly higher than the ones below. All the restaurants also cover the money spent on the ad in the food prices. So when you search, the cost of each food item that appears in the starting list is also higher. If you place an order you will have to pay a lot of delivery charge to the person who delivers it to the customer home. In this way some amount will go as commission to Zomato. Special party Sunday. Here you may have a doubt. Why this Zomato company is generating money somehow from so many places. You may have a doubt that Swiggy and Zomato are two major companies doing food delivery business in India. According to 23 calculations Swiggy company valuation is eight billion dollars while Zomatos company is seven billion dollars. Even the rupee has not seen profit but now let us see what is the reason for this. Most of us while ordering food first check its prices in both Swiggy and Zomato applications. Why is it low then we purchase only in that. Customer to order food should definitely pay less than the competitor company because if the competition is high then this business. It is very difficult to give a survey so that is why they are trying to beat each other by giving offers to make this business non-competition.
Because of this, these two companies are seeing losses of thousands of crores every year. In 2019 Zomato company income increased from 1300 crores to 2600 crores in 2020, while the losses of this company increased from 1000 crores in 2019 to 2400 crores in 2020, it was announced that Zomato company had losses of more than 350 crores and eliminated this competition. Zomato has also implemented the paid subscription strategy followed by Amazon to lock in customers, for example if you take Amazon Prime membership you will order on Amazon instead of going to Flipkart. Many used to do this with the intention of paying and ordering the food very quickly but it was not very successful as it was not delivered on time. They wanted to be successful by giving an additional discount but it was not possible. Similarly in 2019 the slogan of logout campaign against Zomato was also raised. It came because by subscribing such a boyfriend if the company lost profit, the restaurants came out thinking that there is no profit at all not only Swiggy and Zomato have given these offers, they have already entered India with the same strategy and could not win customers by giving offers but even American food companies have retreated as fast as they entered India. If you want to know but listen carefully the reason for this is actually Zomato company is not only a food delivery business but in the future zomato has also interviewed a multidimensional business model like Amazon and part of it is Zomato Hyper Pure.
Chicken and spices are used and all the materials related to these spices are also purchased from the restaurant’s separate stores. It looks easy but actually only those who are in the restaurant business know how hard it is to collect raw materials Pure supplies all the restaurants in India with raw materials vegetables and high quality ingredients from time to time In short how we all go to Demart for groceries Similarly hyperpure is not the same for restaurants as they are dealing directly with farmers to provide best quality materials at low prices to restaurants so they have also arranged dealers to supply quality food, so in future this option is joining Zomato company and making good profits. There is no such doubt in compliance because a trusted company sells a quality food that means how many customers will be attracted to it. If food is prepared people who eat it will definitely order again and again. By implementing business models like consultancy services cloud kitchen and hyperpure with many good strategies many investors are interested in investing in this company. Finally we have to wait and see who will win and earn profits. The company has observed the customer’s taste and what food the customer wants to eat at what time so this data is very useful for all those who have built thousands of restaurants in the cities with that data, so this data is also very useful to provide them with what food should be in what price range. Zomato company has decided and if you convert the company to restaurants then these companies have assured you that it will definitely be good for you so these companies are only delivering food to each and every customer through some rules and regulations and this delivery company will soon have whatever the food materials are. They focus on collecting unadulterated food from the farmers and packing it in the right way to provide it to the restaurants and if this is definitely successful then they will see good profits.
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