Swot analysis of Zomato. Zomato is a food delivery and hotel aggregator Indian multinational company. Pankaj Chaddah and Deepinder Goyal are the founders of Zomato, and they laid the foundation of the company under the name of Foodiebay in July 2008 and changed it to Zomato in 2010. The headquarter of the company is in Gurugram, Haryana, India.
Zomato partners up with the local food delivery service providers and restaurant, and its online platform develops a link between the customers and the restaurant. Customers could share pictures of restaurants, food, read and write reviews, place an online order for food home delivery, and make an online payment on the company’s platform.
According to an estimate, the annual revenue of Zomato in 2020 was approximately 350 million dollars. Out of which, the net income of the company was -340 million dollars. However, the company has employed more than 5000 employees to manage its worldwide operations. Info Edge owns 18.6%, Uber 9.1%, AliPay Singapore 8.3%, and Antfin 8.2% share in the company.
Today, we’ll discuss the swot analysis of Zomato. It’s going to focus on the internal and external factors impacting the world’s growing food delivery service company. Here’s the swot analysis of Zomato as follows;
Strengths of Zomato
Zomato has earned a strong brand reputation among customers by winning many awards. For instance, Online Ordering Award in India 2019, Asia-Pacific Gold Winner 2015, Users’ Choice Award 2015, and many other awards over the years.
Zomato’s ads are very funny and customers immediately connect with the brand. The company is highly active in its online and offline creative marketing strategies. It uses various digital and social media platforms like Facebook, Twitter, Instagram, TikTok, LinkedIn, YouTube, and others to increase the customer’s engagement.
Zomato’s mobile application and web portal are very simple, easy, and user-friendly. It allows people to share pictures, write, read reviews of various restaurants in the regions, and order food online.
Zomato follows a unique business model of providing an online platform to customers and restaurants. They both can connect with each other on the platforms. If customers like the food and impressed with the pictures and reviews, then s/he can order it online or visit the hotel. However, the interesting thing about this business model that the platform doesn’t have to own anything.
According to an estimate, Zomato is operating its business in more than 25 countries across the globe. Like the USA, Australia, Ireland, Canada, Portugal, Indonesia, Brazil, Turkey, New Zealand, South Africa, Philippines, UK, Qatar, Sri Lanka, UAE, and others. However, the platform has partnered with more than 1.5 million restaurants in these countries. It shows the variety the platform offers to the customers.
According to an estimate, Zomato has got approximately more than 11.2 million monthly active users. The platforms’ users have increased to a great extent during the pandemic of covid-19. However, the company has established a strong awareness in those countries where it’s operating its business.
Weaknesses of Zomato
Review impacting Growth
The openness of Zomato’s platform is its strength and weakness at the same time. The bad reviews and negative customer feedback pushes many users away from the platform. Most importantly, when people update their status via checks-in, then they mention the location of the restaurant instead of Zomato that allowed them to be there.
The online food ordering industry has become very competitive in recent years. Many new applications are limiting the market share growth of Zomato’s platform. However, the availability of choices allows users to switch to other brands.
Zomato’s security system has been compromised many times over the years. The hackers gained access to the platform’s server and hacked the data of millions of users. However, the weak security system is discouraging new users to join the platform.
Opportunities available to Zomato
As we know that Zomato is an online food platform. The company should invest more resources in artificial intelligence and automated technology. It would open the doors towards a whole new world in terms of better security, updated features, and a more convenient interface.
The number of smartphone users and internet users has increased significantly for the past few years. It presents a great opportunity for all the tech companies like Zomato to approach new users and bring them on the platform. The pandemic of covid-19 has further enhanced the platform’s growth.
Zomato is currently offering its services in 25 countries. The food delivery company should expand its service platform in more countries and new geographies. If the brand delays its expansion, some other online platform would copy the business model and take advantage of the growth.
Zomato has millions of monthly active users. They can see pictures and read reviews of other users, but they don’t communicate with one another. The company should consider expanding its platform into becoming a social media platform. It would further amplify the user engagement rate.
Threats Zomato has to face
Fragile Business Model
It’s no doubt Zomato has the early mover advantage in the Indian market. The platform could have exploited its business model in the international market and become a global brand. Now, the company’s business model has become very fragile. Any new tech company with programming expertise could exploit the model.
Cybersecurity, data privacy issues, identity theft, and other online issues have made people cautious about their online activity. That’s why many governments are introducing new regulations and strict policies for tech companies to follows. It would directly impact the company’s platform.
The online food delivery market has become very competitive. The competitive market is making it difficult for the company to expand its platform and retain customers.
Conclusion: Zomato Swot Analysis
After an in-depth study of the swot analysis of Zomato, we’ve concluded that Zomato is indeed the world’s growing online food delivery market. The competitive market, government regulations, and cybersecurity issues are some of the main challenges. Zomato should expand its platform and invest in technology and security system to address these issues.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.