Zomato’s race to capture the foodtech market

What is it about?

The year 2018 was an important year for Zomato as it geared up to chart new heights amidst the changing dynamics of the industry on one hand and a co-founder exiting the company on the other hand. Zomato was incepted in 2008 as a restaurant discovery platform offering users the ability to access restaurant menus and post online reviews. It provided a range of value added services for both its restaurant partners and end customers. Its vertical integration enabled it to grow its revenues across its three lines of business, namely - Dining Out, Delivery and Sustainability. Zomato was an early internet startup that expanded rapidly in the international markets. In the last ten years, the company both scaled and rolled back its operations with unique lessons learnt in each market that paved its path for success both locally and globally. The domestic market was being dominated by a few large players sharing the market. Reports by market intelligence firms showed that Swiggy, the closest competitor was starting to dominate Zomato in India . Deepinder, CEO, Zomato’s dilemma for adding value and increasing revenues by weighing options of whether the company should strengthen its presence in the domestic market, or, venture into foreign markets or serve both local and foreign markets.

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