Evolution of online consumer services industry, in particular the restaurant restaurant search search and discovery, with focus on
About Zomato Zomato is a restaurant search and discovery service It was founded in 2008 by Deepinder Goyal and an!a" #haddah$ It currently operates in 2% countries, includin& India, Australia and the 'nited (tates$ It features restaurant information such as scanned menus and photos sourced by local street teams, as well as user reviews and ratin&s$ )he company also provides provides cashless cashless payment, online orderin&, white*label apps, table reservation, and point*
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Introduction )he service be&an as +oodiebay+, conceptualised in the cafeteria of -ain . #ompany$ #ustomers would line up to loo! at the menus to order food durin& the lunch hour$ /ealiin& this too! up a lar&e amount of everyone1s time on a daily basis, Deepinder and an!a" decided to scan restaurant menus and upload it on an intranet website for -ain employees$ )he website saw a lot of trac and was launched publicly in 2008 And now Zomato have listed 3$4 million restaurants in 30000 cities of 22 countries with 80 million users, 8 million reviews and 2500 employees
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6ission and 7ision Zomatos mission is to ensure nobody has a bad meal$ Zomatos vision is to be the &lobal platform when someone is loo!in& for food locally )he said mission and vision is achieved by9
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:elpin& people discover &reat places around them$ -uildin& amain& e;periences around dinin&$ Enablin& restaurants to create amain& e;periences$
undin& Zomatos total fundin& to <=22> million which comes from a close set of four investors ? Info Ed&e, (e@uoia India, 7y #apital, and now )emase!$
#ritical (uccess actors ? ocal •
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irst mover advanta&e (tron& content platform Ecient employees Great roduct
#ritical (uccess actors ? Global •
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6er&er . Ac@uisitions route for &lobal entry (tron& content platform :irin& local employees ocal mana&ement ? reportin& to :ead oce #ulture Bt
Globaliation (trate&y )o e;pand themselves across the &lobe as a leadin& service provider As part of further Globaliation (trate&y, Zomato recently started online food delivery system usin& Zomato money, ma!in& it a end to end e;perience for its customers$ :irin& s!illed local people /obust I) software system ocal tie ups, mer&ers . ac@uisition
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6a"or Ac@uisitions Company
Country
6enu6ania
Cew Zealand
unchtime
#ech /epublic
bedovat
(lova!ia
Gatronauci
oland
#ibando
Italy
'rbanspoon
'(A
6e!anist
)ur!ey
6aple (
India
Ce;)able
'(A
() Strength Innovative #ulture inancial evera&e )echnolo&y -rand name Global presence
Weakness :i&h staF turnover
Opportunities Emer&in& 6ar!ets International E;pansion Cew business verticals ? nline food orderin& /isin& internet penetration
Threat /isin& competition #han&es in Govt$ olicy Easily imitated -usiness model
ru&al Innovation •
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A e;ible and brea!throu&h idea A common system that can be customied as per country re@uirements, and can be centrally used &lobally$ earnin& with &reater eciency 6ultilin&ual system #ustomied user e;perience romotin& Entrepreneurship
G#6 ramewor! •
Global Competitive Matrix ( GCM ) Framework Cational Ethos :i&h on base on mobile H vast talent pool of I) en&ineers
ublic olicies 'nder startup India campai&n ? omato has the ri&ht environment to &o &lobal
irm #ulture Global delivery, (trate&y ? DiFerentiation Applied InnovationJ
#ompany strate&y #ontent driven ? innovative product solutions * #ustomer oriented and employee friendly olicies$
orter Diamond ramewor! irm (trate&y * ar&e pool of en&ineers * Growin& internet penetration
Demand #ondition * /isin& demand in food industry * Innovative new di&ital solutions for the industry
actor #onditions * Developed )elecom Industry * Developed #omputer * :ardware Industry
/elatin& . supportin& industries * /isin& demand in I) * Di&ital solutions on boom
Global resence
Entry mode strate&ies implemented Mergers !"#uisitions Cew Zealands 6enu6ania
$o"ali%ation
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'( based /estaurant search en&ine 'rbanspoon Italys restaurant search portal #ibando unchtime in #rech /epublic, bedovat in (lova!ia and Gastronauci in oland )ur!ey based 6e!asnist
3$4 million restaurants in 30000 cities of 22 countries
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Developin& . customiin& website and app in local lan&ua&e •
ocal lan&ua&e communication with customers
6ore visibility in the mar!et as compared to their competitors li!e Kelp, -urrp, Lust Eat, )imeout, etc$ •
roduct Ferin&s /estaurant (earch . Discovery #ashless ayments /ecommendation En&ine nline food orderin& )able /eservation hitelabel Apps Zomato D-
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Cew Innovations )able -oo!in& nline ood rderin& #loud solutions for /estaurants
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E()E ACAK(I( Sl/ 'o/
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&FF&CT O' OMOTO *S+'&SS ,*& TO M!C-O &'.+-O'M&'T +' *S! F!CTO-
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'(A li!e India is a democratic country and has a consistent record of uninterrupted democratic elections$ $ (table political country$ Elections are held freely and fairly contested and have been held 1O$+T+C!$ on schedule$ General elections are held every 4 years$ Co ma"or labourNtrade union unrest$ ne of the least corrupt country Oran!ed 3P th out of 3P8 countries in #orruption erception Inde;, as per )ransparency International 203>Q$ )here are no e;chan&e controls in '(A$ roBts can be freely remitted and capital moved in and out of the country without restriction$ :i&h per capita income, GD er #apita >4 P2R '(D
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'(A has hi&h level of business freedom O5th in ease of doin& business out of 38R countriesQ &CO'OM+ :i&h economic freedom O32 th ran! out of 358 countriesQ OInde; of Economic reedom C determines whether individuals in a country are free to wor!, produce, consume, and invest without bein& constrained by the stateQ$ 6ember of CA)A O)he Corth American ree )rade A&reement is a treaty entered into by the 'nited (tates, #anada, and 6e;icoS it went into eFect on Lanuary 3, 3RR4Q and AE# OAsia*aciBc Economic #ooperation is a forum for 23 aciBc /im member economies
&FF&CT O' OMOTO *S+'&SS 2
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&FF&CT O' OMOTO *S+'&SS ,*& TO M!C-O &'.+-O'M&'T +' *S! ("ont4/) Sl/ 'o/
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&FF&CT O' OMOTO *S+'&SS
:i&h literacy rate
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nly 34$80T of the total population of %2 6illion is under poverty line
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#ulture of '(A is diFerent from India$ /eli&ion, customs, food habits are diFerent thou&h lan&ua&e is common OEn&lishQ$
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:i&hly technolo&y based and innovative country$ /.D e;penditure is 2$8T of GD$
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T&C:'O$OG+C R2T of '( youths O3>*%4 years of a&eQ have access to computers Oas on 203%Q$ !$
'(A is %4th in U Inde; of &lobalisation Oout of 38> countriesQ OU Inde; of Globaliation measures the economic, social, and political dimensions of &lobaliation in each countryQ OAs per (wiss ederal Institute of )echnolo&y, ZurichQ $ '(A is part of the -asel #onvention Ore&$ disposal of haardous wasteQ, the O/amsar #onventionQ, the &'.+-O'M&'T #onvention on -iolo&ical Diversity Uyoto rotocol, the 6ontrVal rotocol, the Cuclear )est -an )reaty, and the 'C !$
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&FF&CT O' OMOTO *S+'&SS
/obust le&al system and strict enforcement of laws$ Approval of food items and dru&s are routed throu&h DA O)he ood and Dru& Administration is an a&ency within the '$($ Department of :ealth and :uman (ervicesQ$ :i&hest @uality standards are followed and strin&ent punishment Oincludin& blan!et ban on productQ is awarded for the defaulters$
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As per world ban! data, (tren&th of e&al /i&hts Inde; of '(A is very &oof O33 at a 32 point scale$ O(tren&th of le&al ri&hts inde; measures the de&ree to which collateral and ban!ruptcy laws protect the ri&hts of borrowers and lenders and thus facilitate lendin&$ )he inde; ran&es from 0 to 32, with hi&her scores indicatin& that these laws are better desi&ned to e;pand access to creditQ$
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As per orld Lustice ro"ect, '(A is ran!ed 3R th out of 302 countries O)he orld Lustice ro"ect is an independent, multidisciplinary or&aniation wor!in& to advance the rule of law around the world$ )he rule of law provides the foundation for communities of opportunity and e@uity ? communities that oFer sustainable economic development, accountable &overnment, and respect for fundamental ri&htsQ$
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(ince independence in 3R45, India has maintained a stron& belief in democracy Oworld1s lar&est democracyQ, with a consistent record of uninterrupted democratic elections since its independence$ (table political country$ E;cept for a short duration in 3R55, elections are held freely and fairly and on schedule at every > years$ Co labour union unrest since independence
&FF&CT O' OMOTO *S+'&SS
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6oderately corrupt country Oran!ed 5P th out of 3P8 countries in #orruption erception Inde;, as per )ransparency International 203>Q$
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India has low level of business freedom O342 nd ran! in ease of doin& business out of 38R countriesQ Oorld -an! DataQ
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GD &rowth of P$>T, Imports 45R -n$ '(D, E;ports 2R3 -n$ '(D$ er capita Income is 3>RP '(D Oorld -an! DataQ
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ow economic freedom O328th ran! out of 358 countriesQ OInde; of Economic reedom determines whether individuals in a country are free to wor!, produce, consume, and invest without bein& constrained by the stateQ$
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Availability of s!illed manpower at a cheaper rate$
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Adult literacy rate is P>T Oas per 2033 #ensusQ$ As per 2033 #ensus, 43T of the populations is under 38 years of a&e$
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#omprises of diFerent customs, reli&ions, lan&ua&es Othou&h En&lish is the
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As per 6c!insey report, technolo&y sector in India is one the fastest &rowin& sector , the most potent of these is the mobile Internet, will li!ely reach 500 million to R00 milli on Indians by 202>$#ollectively, the technolo&ical sector in T&C:'O$OG+C! India could contribute =>>0 billion to =3 trillion of economic impact per year $ in India by 202>$ E;tensive laws to safe&uard environment vi$ Air Orevention and #ontrol of Act, 3R83, -iolo&ical Diversity Act, 2002 &'.+-O'M&'T ollutionQ Environment OrotectionQ Act, 3R8P,orest #onservation Act, 3R80, Indian !$ orest Act, 3R25, Cational Green )ribunal Act, 2030 etc$ As per orld Lustice ro"ect, India is ran!ed >R th out of 302 countries O)he orld Lustice ro"ect is an independent, multidisciplinary or&aniation wor!in& to advance the rule of law around the world$ )he rule of law provides the foundation for communities of opportunity and e@uity ? communities that oFer sustainable economic development, accountable &overnment, and respect for fundamental ri&htsQ$ $&G!$ As per world ban! data, (tren&th of e&al /i&hts Inde; of India is moderate OP at a 32 point scale$ (tren&th of le&al ri&hts inde; measures the de&ree to which collateral and ban!ruptcy laws protect the ri&hts of borrowers and lenders and thus facilitate lendin&$ )he inde; ran&es from 0 to 32, with hi&her scores indicatin& that these laws are better desi&ned to e;pand access to creditQ$
&FF&CT O' OMOTO *S+'&SS
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Global #ompetition * Zomato vs Kelp vs pentable
6ovin& from 2EE to %EE •
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Zomoto doesnt own a sin&le restraint but controls business for 3$4 million restaurant Zomato which started as content portal providin& menu restaurants from a hard copy to a readable di&ital softcopy has moved way ahead of it convention model$ Zomato now oFer customied cloud pos solutions for restaurants Acts as a event advertisin& platform or!s as a recommendation en&ine
#onclusion •
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(o far Zomato is proBtable from only proBtable from the 'AE and India mar!et$ Its bi&&est ac@uisition of 'rbanspoon ? Is yet to publish fruitfull results$ 203> will be showin& &reater impacts of its Ac@uisition strate&y As per company ? Zomato will continue to focus on ac@uisitions of companies which have a strate&ic Bt
