Zomato

Zomato
Name	Zomato
Founded	10 July 2008
Founders	Deepinder Goyal, Pankaj Chaddah
Hq location city	Gurgaon
Hq location country	India
Industry	Internet, Food delivery
Services	Online food ordering, Restaurant discovery, Table reservation

Zomato. Zomato is an Indian multinational restaurant aggregator and food delivery company, founded by Deepinder Goyal and Pankaj Chaddah in 2008. The company provides information, menus, and user reviews of restaurants, while its core service facilitates online food ordering and delivery from partner establishments. Headquartered in Gurgaon, it has expanded to become a major player in the global food tech industry, operating in numerous countries across Asia, Europe, and the Middle East.

History

The company was founded in 2008 as "Foodiebay" in Delhi, initially serving as a restaurant discovery service. It was renamed Zomato in 2010 to reflect its broader ambitions beyond a simple directory. A pivotal moment in its growth was the 2014 acquisition of MenuMania in New Zealand, marking its first major international foray. The company entered the food delivery segment in 2015, directly competing with rivals like Swiggy and Uber Eats. It became a publicly listed company on the National Stock Exchange of India and the Bombay Stock Exchange in July 2021, following a highly anticipated initial public offering.

Business model

Zomato operates primarily on a commission-based revenue model, earning a percentage of the order value from partner restaurants for each delivery or pickup transaction completed through its platform. It also generates significant income from its Hyperpure B2B supply vertical, which provides ingredients and packaging materials to restaurants. Additional revenue streams include advertising and promotional fees from restaurants seeking better visibility, and subscription fees from its Zomato Gold loyalty program. The company's financial performance is closely watched by investors in the Indian startup ecosystem.

Services

The company's primary consumer-facing service is its platform for online food ordering and delivery, accessible via its mobile application and website. It also offers a restaurant discovery and review feature, which includes curated lists and user-generated ratings. Other services include table reservation management through integrations with systems like Eazydiner, and a grocery delivery service launched under the Blinkit brand. For restaurant partners, it provides technology solutions like point-of-sale integrations and the aforementioned Hyperpure supply chain service.

Geographic presence

Originally launched in India, the company rapidly expanded its international footprint, at one point operating in over 20 countries. Key international markets have included the United Arab Emirates, Australia, and Turkey, often entered through strategic acquisitions. However, it has also exited several markets, such as the United States and the United Kingdom, to consolidate operations and focus on core, profitable geographies. Its largest and most significant market remains India, where it competes fiercely with Swiggy and previously with Uber Eats before its Indian operations were acquired by the company.

Acquisitions and investments

The company has grown significantly through an aggressive strategy of acquisitions and investments. Major purchases include the 2014 buyout of MenuMania in New Zealand, the 2015 acquisition of Urbanspoon which gave it a foothold in the United States and Australia, and the 2019 purchase of Uber Eats's India business. In 2022, it completed a landmark acquisition of Blinkit, a major quick commerce player in India. Its investment portfolio includes stakes in companies like Shiprocket, MAGICPIN, and Curefoods, broadening its reach in the broader logistics and food tech sectors.

Controversies

The company has faced several controversies, including allegations of inconsistent and high commission rates charged to restaurant partners, leading to protests by bodies like the National Restaurant Association of India. It has also been criticized for its dynamic pricing algorithms and delivery charges. A significant public relations crisis occurred in 2019 when a delivery executive was filmed eating food from an order, raising widespread concerns about food safety. More recently, its 2022 acquisition of Blinkit was scrutinized by investors and analysts over its high valuation and strategic fit.

Category:Indian companies Category:Food delivery services Category:Internet companies