1. Introduction

Zomato, established in 2008, has evolved from a restaurant discovery platform into one of India’s leading food delivery and quick-commerce companies. This case study delves into Zomato’s history, business model, financial performance, challenges, and future prospects.

2. History and Evolution

2.1 Early Years (2008–2011)

• 2008: Founded as FoodieBay by Deepinder Goyal and Pankaj Chaddah, former employees of Bain & Company.
• 2010: Rebranded to Zomato.
• 2011: Expanded services across major Indian cities, including Delhi, Mumbai, Bangalore, Chennai, Pune, and Kolkata.

2.2 Expansion Phase (2012–2015)

• 2012: Ventured into international markets such as the UAE, Sri Lanka, Qatar, the UK, the Philippines, and South Africa.
• 2013: Launched in New Zealand, Turkey, Brazil, and Indonesia, introducing localized versions of its website and app.
• 2014: Entered Portugal; by 2015, expanded to Canada, Lebanon, and Ireland.

2.3 Strategic Acquisitions and Growth (2015–2019)

• 2015: Acquired US-based Urbanspoon, marking entry into the US and Australian markets.
• 2017: Achieved profitability across all 24 countries of operation and introduced a “zero commission model” for partner restaurants.
• 2019: Launched Zomato Market, a grocery delivery service, in response to the COVID-19 pandemic.

2.4 Recent Developments (2020–2025)

• 2020: Introduced contactless delivery to ensure safety during the pandemic.
• 2021: Acquired Blinkit, a quick-commerce platform, to diversify services.
• 2025: Announced rebranding to “Eternal”, encompassing Zomato (food delivery), Blinkit (quick-commerce), District (live events), and Hyperpure (kitchen supplies).
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3. Business Model and Services

3.1 Core Services

• Food Delivery: Connecting users with restaurants for home delivery.
• Restaurant Discovery: Providing information, menus, and user reviews.
• Quick-Commerce: Through Blinkit, offering rapid delivery of groceries and essentials.
• Hyperpure: Supplying fresh ingredients to restaurant partners.

3.2 Revenue Streams

• Commissions: From partner restaurants on orders.
• Advertising: Promotional services for restaurants.
• Subscription Services: Premium offerings for users and restaurants.

4. Financial Performance

4.1 Revenue Growth

• 2024: Reported revenue of ₹12,114 crore (approximately $1.4 billion).

4.2 Profitability

• 2024: Achieved a net profit of ₹351 crore (approximately $40 million), marking a significant turnaround from previous losses.

5. Challenges and Competition

5.1 Market Competition

• Swiggy: Primary competitor in India’s food delivery sector.
• Quick-Commerce Rivals: Facing challenges from platforms like Zepto, Flipkart, and BigBasket.
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5.2 Restaurant Relations

• Tensions with restaurants over platform fees and the rise of standalone apps like Snacc and Bistro, which leverage dark kitchens and data analytics.
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5.3 Sustainability Concerns

• Industry experts question the long-term viability of the quick-commerce model, citing heavy reliance on venture capital funding.
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6. Future Outlook

6.1 Growth Projections

• Anticipates a 30% annual growth rate in the food delivery segment over the next five years.
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6.2 Strategic Focus

• Diversification: Expanding into live events and kitchen supplies.
• Technological Integration: Enhancing user experience through AI and data analytics.
• Sustainability: Addressing environmental concerns and optimizing delivery logistics.

7. Conclusion

Zomato’s journey from a restaurant aggregator to a multifaceted service provider showcases its adaptability and resilience. While facing challenges like intense competition and sustainability concerns, its strategic initiatives and rebranding efforts position it for continued growth in India’s dynamic market.

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