It is true when they say that the way to India’s heart is through its stomach. It is pertinent that a country known for its vibrant culture and food would love the idea of having online food service as a way of appeasing itself. Feeling hungry and don’t want to travel outdoors, don’t worry Zomato got you!
Yes, I am talking about the online food servicing app Zomato, forever edged in the lives of Indians for their hospitable services.
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The beginning of Zomato:
Zomatobr, CC BY-SA 3.0, via Wikimedia Commons
The journey of Zomato began in the year 2008 when the Indian startup ecosystem was just gaining its momentum. It could either be a great hit or an epic failure for the food venture but with minds like Deepinder Goyal and Pankaj Chaddah, Zomato was destined to succeed. Initially, the creators of Zomato launched a unique restaurant directory or a restaurant search service-Foodiebay, which was later renamed Zomato in 2010. Since then, the rise of Zomato has been unstoppable. Growing at an exponential rate, Zomato has today become one of the most popular food-tech platforms. Its archenemy- Swiggy does not come even close to its success.
Although Zomato saw massive growth and success along the way that doesn’t mean that the journey to the top was seamless. The company, like many, was met by countless challenges and hindrances.
So what kept Zomato going?
To say the least, Zomato’s success story is not unilateral. In fact, it’s the culmination of several facets that eventually led to its dominance over the online food market.
Through this blog, renowned Business Astrologer cum Astro Strategist Hirav Shah would put forward three main reasons for Zomato’s success and how you could benefit from this knowledge.
The first-doer advantage:
Zomato wasn’t the first business enterprise to unveil the concept of an online restaurant. However, it was the first business entity to do it in India. Naturally, it was the first app to establish solid market connections and familiarize itself with the consumers. That gave them a strategic advantage over other players in the market. Zomato managed to reap the boon of being the first doer and deservedly so. One must keep in mind that consumers are always on the lookout for something new and convenient. Understand their pain areas and come up with new target-oriented solutions. This is something Zomato excels in.
Build a strong business model:
The strong point of Zomato has been its exclusive business model. Their robust business strategy and ideation was the sole reason Zomato survived 2015-16 when the business took massive losses. So how did they recover from it? Zomato diversified its revenue channels with the inclusion of restaurants listing/ advertising, food delivery, subscription programs, live events, White Label access, Zomato kitchens and Zomato Gold. Taking Zomato as an inspiration, young entrepreneurs need to keep long term success and profitability in mind if they want to build a successful business model.
Have a stable inflow of funds:
With their robust USP (Unique Selling Proposition), Zomato had managed to bag some really good investors like Sanjeev Bikhchandani of Naukri.com from the get-go. These investors played a crucial role in its expansion by constantly pumping up money and investing in new projects. People also need to keep in mind that investors generally invest in the prospect of the project. Having an articulated business model along with the company’s desire to rise to new heights is enough to bring the flow of funding constant.
Conclusion:
Eminent Astro Strategist Hirav Shah concludes by saying, “Any business, like Zomato, needs a team of dedicated workers to write a great success story. Zomato was face-to-face with several hurdles like failing revenues, massive payoffs and errors in rural connectivity, but they managed to emerge victorious with flying colours. The rise of Zomato is the living testament of the fact that an idea can change the world. Execute the idea properly and that’s enough to build your brand.”
“So take on risks and spark a conversation. Who knows it might be the next big thing,” he adds.
