Product details

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Abstract

Zomato, the food aggregator and delivery start-up, was founded by Deepinder Goyal and Pankaj Chaddah in 2008, as Foodiebay. Initially the brand was earning through advertising and subscriptions but over a period, Zomato forayed into online table bookings, food delivery, etc. In 2017, Zomato launched its flagship paid subscription scheme 'Zomato Gold' which was a blockbuster having 1.4 million enrolments including 150,000 in India. In 2018, Zomato entered the unicorn club with a valuation of USD1.3 billion. As of 2019, Zomato had been operating in over 10,000 cities across 24 countries including 500 cities in India. In order to carry forward Zomato Gold's success, it introduced 'Infinity Dining programme' and intended to extend Zomato Gold into delivery verticals. However, during the late 2019, restaurants had started a nationwide protest called '#logout campaign' against food aggregators including Zomato. Subsequently, the restaurants logged out from foodtech's portals, as they had objections such as deep discounting, data masking, private labels, etc. Even though Zomato tried to please the restaurant associations by discontinuing its Infinity Dining and modifying Zomato Gold offerings, they were not satisfied. In such scenario, it remained to be seen how Zomato would solve its ongoing conflict with the restaurants.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

Zomato
Type:
Self-owned
Industry:
Foodtech Industry

About

Abstract

Zomato, the food aggregator and delivery start-up, was founded by Deepinder Goyal and Pankaj Chaddah in 2008, as Foodiebay. Initially the brand was earning through advertising and subscriptions but over a period, Zomato forayed into online table bookings, food delivery, etc. In 2017, Zomato launched its flagship paid subscription scheme 'Zomato Gold' which was a blockbuster having 1.4 million enrolments including 150,000 in India. In 2018, Zomato entered the unicorn club with a valuation of USD1.3 billion. As of 2019, Zomato had been operating in over 10,000 cities across 24 countries including 500 cities in India. In order to carry forward Zomato Gold's success, it introduced 'Infinity Dining programme' and intended to extend Zomato Gold into delivery verticals. However, during the late 2019, restaurants had started a nationwide protest called '#logout campaign' against food aggregators including Zomato. Subsequently, the restaurants logged out from foodtech's portals, as they had objections such as deep discounting, data masking, private labels, etc. Even though Zomato tried to please the restaurant associations by discontinuing its Infinity Dining and modifying Zomato Gold offerings, they were not satisfied. In such scenario, it remained to be seen how Zomato would solve its ongoing conflict with the restaurants.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Asia
Country:
India

Featured company

Zomato
Type:
Self-owned
Industry:
Foodtech Industry

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