The Journey Of Zomato

The Journey Of Zomato

“Creative thinking lead to great business ideas”. One such similar story is of the online food delivery company Zomato. 

The restaurant search service started as Foodiebay and changed their name from Foodiebay to Zomato in 2010. 

Zomato started as a restaurant search platform. Now they also provide online food delivery service to its customers. 

  • Where did the idea of Zomato come from?

Deepinder Goyal and Pankaj Chaddah were working at Bain. They got the idea of starting a company like Zomato when they saw a long line in the office canteen for the menu card. 

They wanted to find a solution to this problem. This is how Foodiebay was born. Foodiebay scanned the menu of the restaurants and posted it on the private network of the company. 

Foodiebay started as an intranet facility. After the success at the office, they opened the service to the public. 

Foodiebay started gaining more popularity day by day. The number of users and clients also increased gradually. That’s when they decided to change the name from Foodiebay to Zomato as they wanted to avoid confusion with popular e-commerce company eBay.  

  • Zomato Funding:

The website of Zomato was getting a good amount of traffic. The website was doing well. But they had to keep up with the times and develop an app soon. Unfortunately they did not have enough funds to build a mobile application. 

Zomato needed funding and that’s when Sanjeev Bikhchandani of Naukri.com stepped in to save the company. He was fascinated with the company’s ideas and he invested around $ 1 million.  

Presently,  Zomato has raised a total of $755.6 million in funding over 13 rounds. Their latest funding was raised on March 1, 2019 from a corporate round. 

  • Zomato Business Model:

Key Activities of Zomato: 

  • Provides restaurant search service.
  • Online food delivery service.
  • Provides restaurant ratings and reviews. 
  • Collects data on food menus, contact and location of restaurants to provide relevant information to users. 

Value Proposition:

  • Bridges the gap between consumers and restaurants through efficient technology which saves time and cost.

Customer Segments:

  • Users who use the app to find restaurants and various cuisines.
  •  Customers who order home.
  • Restaurants who want to reach out to their target audience. 
  • Market research companies.
  • Database companies. 

Channels: 

  • Mobile App
  • Website

Revenue Streams:

  • Advertising – Advertising on their website and app generates a significant amount of revenue. 
  • Food delivery – Home delivery of food that is ordered online.
  • Subscription – Subscription of Zomato gold. 
  • Commission – Cut from online and offline orders from their side. They charge anywhere between 5% – 20% of the order value. 
  • Consulting – Provides business consulting and data analytics services to their clients. 

Zomato’s success did not happen overnight. They created a business model which played a major part in building the brand it is as of today. 

Zomato has grown extensively from 2008 and has come a far way. They have their presence in more than 500 + cities and aim to grow even bigger. 

Zomato has always catered to the needs of their customers. This is one of the main aspects that has helped them grow.

This is just the beginning of their success story. If they continue with this kind of hard work, dedication and innovation, the company has the potential to make it really big.   

Difference Between Self- Employment and Entrepreneurship

Difference Between Self- Employment and Entrepreneurship

Often, self – employment and entrepreneurship are confused to be the same. An entrepreneur and a self-employed person may share the similarity of owning a business but their mindset and approach are completely different. 

The distinction between self – employment and entrepreneurship are:

Self-employment: When one works for himself. Maybe as a contractor or running your business.

Entrepreneurship: Process of setting up a business, taking on financial risk, in hope of getting profits in return.

Here we have written 8 points to differentiate self-employment and entrepreneurship –

1. Being self-employed, you have people working for you. Being an entrepreneur, you have people working with you. 

2. As a self-employed person, you hire people to work for you. The vision and goal is set by you and it solely depends on you. As an entrepreneur, you have people working with you. You and your team work together on setting and achieving the company goals. 

3. Self-employed people are the face of their business. If their absenteeism is constant, their business will significantly go down. This is not the case for an entrepreneur. The business will keep running even if the boss is absent because the employees understand the vision of the business. 

4. For self-employed, if the business owner retires or passes away, the business will also die. But if the business owner passes away, the business will still continue. It is not dependent on him to exist.

For example: Even after the demise of Steve Jobs, Apple still continues its business. Or even after Jack Ma retired, Alibaba continues its operations. 

5. Self-employed is reserved in his thinking. He does not want to go big. He is just concerned about paying off bills. Entrepreneurs are open minded. They are global thinkers. They understand the advantages of catering to people’s needs on a large scale.

6. A self-employed person is not a risk taker. He fears change. An entrepreneur is a risk taker. He has the zest to explore new opportunities and believes that he can manage and control risk. They understand that with great risk comes great returns. 

7. A self-employed person tries to do everything on his own because he thinks he is the best and nobody is better than him. An entrepreneur on the other hand understands and accepts that he can’t everything on his own. He delegates the right work for the right people so that there is efficiency in the work done.

8. Self-employment does not have many requirements and restrictions. Entrepreneurs must deal with a wide range of legal requirements including business registration, insurance requirements and filing taxes.

From this, there is a fine distinction between self-employment and entrepreneurship.

With 8 aspects mentioned, where do you see yourself?

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