Zomato

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search

Zomato
Zomato-flat-logo.png
Screenshot
Zomato screenshot.jpg
The big Zomato homepage in Greater Vancouver
Type of businessPrivate
Available inEnglish, Turkish, Portuguese, Indonesian, Spanish, Czech, Slovak, Polish, Italian, Vietnamese
FoundedJuly 2008 (2008-07)
HeadquartersDLF Phase V, Gurugram, Haryana, India
Area served24 countries: Australia, Brazil, Canada, Chile, Czech Republic, India, Indonesia, Ireland, Italy, Lebanon, Malaysia, New Zealand, Philippines, Poland, Portugal, Qatar, Singapore, Slovakia, South Africa, Sri Lanka, Turkey, UAE, United Kingdom, United States
Founder(s)Deepinder Goyal[1], Pankaj Chaddah
Key people
  • Deepinder Goyal (Founder and CEO)
  • Gaurav Gupta (Co-Founder & COO)
  • Mohit Gupta (CEO-Food Delivery business)
  • Gunjan Patidar (Head of Engineering)
  • Akriti Chopra (CFO)
IndustryOnline food ordering
Retail
ServicesRestaurant Search & Discovery, Online Ordering, Table Reservations & Management, POS Systems, Subscription Services [2]
Revenue1,530 crore (US$210 million) (H1-FY 2020)[3]
Operating incomeDecrease 2,220 crore (US$310 million) (FY 2019)[4]
Employees5,000+ [5]
ParentInfo Edge (27.6%)
Ant Financial (23%)[6]
Uber (9.99%)[7]
URLZomato
Alexa rank963[8]
AdvertisingYes
RegistrationOptional
Users8 crore (80 million) monthly active users
Current statusActive
Native client(s) onWindows Phone, iOS, Android, Universal Windows Platform (Windows 10 Mobile, Windows 10)

Zomato is an Indian restaurant aggregator and food delivery start-up founded by Deepinder Goyal and Pankaj Chaddah in 2008.[9][10] Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities. Zomato also began grocery delivery amid the COVID-19 outbreak.[11] As of 2019, the service is available in 24 countries and in more than 10,000 cities.[12]

History[edit]

Countries where Zomato is available.

Zomato was founded as Foodiebay in 2008, and was renamed Zomato in 2010.[13][14] In 2011, Zomato expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.[15] In 2012, the company expanded operations internationally in several countries, including the United Arab Emirates, Sri Lanka,[16] Qatar,[17] the United Kingdom,[18] the Philippines,[17] and South Africa.[19] In 2013, Zomato was launched in New Zealand,[20] Turkey, Brazil and Indonesia, with its website and apps available in Turkish, Brazilian Portuguese, Indonesian and English languages.[21] In April 2014, Zomato launched its services in Portugal, which was followed by launches in Canada, Lebanon and Ireland in 2015.[22][23][24]

In 2019, Zomato acquired Seattle-based food portal Urbanspoon, which led to the firm's entry into the United States and Australia.[25] This U.S.-expansion brought Zomato into direct competition with similar models such as Yelp and Foursquare.[25]

With the introduction of .xxx domains in 2011, Zomato also launched zomato.xxx, a site dedicated to food porn.[26] In May 2012, it launched a print version of the website named "Citibank Zomato Restaurant Guide," in collaboration with Citibank, but it has since been discontinued.[27]

Zomato had also made a name for itself for its prowess in digital marketing.[28]

In February 2017, Zomato announced plans to launch Zomato Infrastructure services, a service to help restaurants expand their presence without incurring any fixed costs.[29][30] In September 2017, Zomato claimed the company had "turned profitable" in all 24 countries where it operated and introduced a "zero-commission model" for partner restaurants.[31] Towards the end of 2017, Zomato stopped accepting updates from its active users by not utilizing moderators to verify and make updates. Users of the app reported issues with new features to pay for orders.[citation needed]

Zomato narrowed down its losses by 34% to ₹389 crore[clarification needed] for the financial year 2016–17, from ₹590.1 crore[clarification needed] in the previous year 2015–16.[32][33]

In September 2019, Zomato fired almost 10% of its workforce (540 people) tending to back-end activities like customer service, merchant and delivery partner support functions.[34] In April 2020, due to rising demand for online groceries amid the COVID-19 pandemic, Zomato launched its grocery delivery services named Zomato Market in 80+ cities across India.[35]

In April 2020, Zomato introduced Contactless Dining to get ready for a post-lockdown world. Through this initiative the company aims to minimise customer contact with anything that someone else might have touched, by eliminating use of high-touch elements such as the menu, ordering and bill payments through bar codes or the app while the staff will wear masks.[36]

In May 2020, Zomato further laid off 520 employees due to the COVID-19 pandemic. [37]


Investments[edit]

Between 2010–13, Zomato raised approximately US$16.7 million from Info Edge India, giving Info Edge India a 57.9% stake in Zomato.[38] In November 2013, it raised an additional US$37 million from Sequoia Capital and Info Edge India.[39]

In November 2014, Zomato completed another round of funding of US$60 million at a post-money valuation of ~US$660 million.[40] This round of funding was being led jointly by Info Edge India and Vy Capital, with participation from Sequoia Capital.[41]

While in April 2015, Info Edge India, Vy Capital and Sequoia Capital led another round of funding for US$50 million.[42] This was followed by another US$60 million funding led by Temasek, a Singapore government-owned investment company, along with Vy Capital in September.[43]

In October 2018, Zomato raised $210 million from Alibaba's payment affiliate Ant Financial. Ant Financial received an ownership stake of over 10% of the company as part of the round, which valued Zomato at around $2 billion. Zomato had also raised an additional $150 million also from Ant Financial earlier in 2018.[44]

Acquisitions[edit]

Zomato has acquired 12 startups globally.[45] In July 2014, Zomato made its first acquisition by buying Menu-mania for an undisclosed sum.[46] The company pursued other acquisitions including lunchtime.cz and obedovat.sk for a combined US$3.25 million.[47] In September 2014, Zomato acquired Poland-based restaurant search service Gastronauci for an undisclosed sum.[48] In December 2014, it acquired Italian restaurant search service Cibando.[49]

Zomato also acquired Seattle-based food portal, Urbanspoon, for an estimated $60 million in 2015.[50] Other acquisitions of 2015 include Mekanist in an all-cash deal,[51] the Delhi-based startup MapleGraph that built MaplePOS (renamed Zomato Base),[52][53] and NexTable, a US-based table reservation and restaurant management platform.[54]

In 2016, the company acquired Sparse Labs, a logistics technology startup,[55] and the food delivery startup, Runnr, in 2017 (renamed from Roadrunnr when it acquired TinyOwl in 2016).[56]

In September 2018, Zomato acquired Bengaluru-based food e-marketplace, TongueStun Food, for about $18 million in a cash and stock deal.[57] In December 2018, Zomato acquired Lucknow-based startup, TechEagle Innovations, that works exclusively on drones, for an undisclosed amount.[58] Zomato claimed that the acquisition will help pave the way towards drone-based food delivery in India, building technology aimed at a hub-to-hub delivery network.[59]

On 21st January, 2020, Zomato acquired its rival Uber Eats' business in India in an all stock deal, giving Uber Eats 10% of the combined business.[60][61]

Security breaches[edit]

On 4 June 2015, an Indian security researcher hacked the Zomato website and gained access to information about 62.5 million users. Using the vulnerability, he was able to access personal data of users such as telephone numbers, email addresses and Instagram private photos using their Instagram access token. Zomato fixed the issue within 48 hours of it becoming apparent.[62] On 15 October 2015, Zomato changed business strategies from a Full-Stack market to an Enterprise market[clarification needed]. This led Zomato to reduce its workforce by 10%, or around 300 people.[63]

On 18 May 2017, a security blog called Hackread claimed over 17 million accounts had been breached. "The database includes emails and password hashes of Zomato users, while the price was set for the whole package is $1,001.43 (Bitcoins 0.5587). The vendor also shared a trove of sample data to prove it is legit", the Hackread's post said. Hackread claimed details of 17 million users had meanwhile been sold on the Dark Web. Zomato confirmed that names, email addresses and encrypted passwords were taken from its database. The company reassured affected customers that no payment information or credit card details were stolen[citation needed].

Zomato said the security measures it uses to ensure the stolen passwords cannot be converted back into normal text, but it still urged users who use the same password on other services to change them. It also logged the affected users out of the app and reset their passwords. "So far, it looks like an internal (human) security breach - some employee's development account got compromised", the company said in a blog post but later, when Zomato contacted the hacker, they discovered a loophole in their security. The hacker removed the stolen content from Dark Web asking for a healthy bug bounty programme.[better source needed][64]

Controversies[edit]

"Food has no religion" tweet[edit]

In July 2019, Zomato received a Hindu customer's complaint that he was assigned a non-Hindu delivery boy for his food order in Jabalpur and had asked Zomato to provide a Hindu delivery boy. The customer alleged that Zomato had refused to change the rider after which he asked to cancel the order.[65] The customer then posted this incident on Twitter, after which Zomato responded to the message stating: "Food doesn't have a religion. It is a religion."[65][66][67] The tweet received mixed responses, and some Twitter users[who?] further criticised the company for using Jain food and halal tags on food items.[68] Zomato then issued a clarification that these tags were placed by restaurant owners and not by Zomato.[69]

Logout campaign[edit]

On 17 August 2019, more than 1,200 restaurants logged off from Zomato because of their offer of discount programmes at dine-in restaurants.[70][71] In Pune alone, more than 450 restaurants stopped serving to Zomato Gold because of aggressive discounts and loss of business.[72] Its premium subscription-based dining out service Zomato Gold had 6,500 restaurants partners and a total of 1.1 million subscribers in India as of August 2019. As part of the campaign, around 2,500 restaurants logged out from the Zomato Gold service. After Zomato made some changes, National Restaurant Association of India still refused to accept the modified version of the plan, saying that the corrective measures would not resolve the key issue of deep discounts.[73] However, Zomato founder Goyal admitted mistake, became ready to rectify it and called for sanity and truce.[74][75] He also urged restaurants to stop #Logout campaign.[76][77]

References[edit]

  1. ^ "In Depth Interview with Pankaj Chaddah, Founder of Zomato". The Startup Magazine. 7 November 2013.
  2. ^ "Zomato, Swiggy launch alcohol delivery service in Odisha". The Financial Express. 27 May 2020.
  3. ^ "Zomato H1 FY2020 Report". Zomato. Retrieved 4 July 2020.
  4. ^ "Zomato posts USD 294 mn loss for FY19; revenue up 3-fold to USD 206 mn". Economic Times. Retrieved 14 March 2020.
  5. ^ Alawadhi, Neha (15 May 2020). "Zomato lays off 500 employees, slashes salaries as CEO blames coronavirus". Business Standard India.
  6. ^ "Zomato raises $150 mn from Alibaba's Ant Financial at $3 bn valuation". Livemint.com. 10 January 2020. Retrieved 17 March 2020.
  7. ^ "Uber sells its food delivery biz for 10% stake in Zomato". The Times of India. 22 January 2020. Retrieved 26 January 2020.
  8. ^ "Zomato.com Site Infosite". Alexa.com. Retrieved 20 September 2018.
  9. ^ "Zomato co-founder Pankaj Chaddah quits as it shuffles top management". Economic Times. Retrieved 9 April 2020.
  10. ^ "Deepinder Goyal, Founder & CEO, Zomato". www.indiainfoline.com. Retrieved 5 March 2020.
  11. ^ www.ETtech.com. "Zomato forays into grocery delivery, in talks to partner with Grofers & BigBasket - ETtech". ETtech.com. Retrieved 26 March 2020.
  12. ^ "About Zomato". zomato.com.
  13. ^ "How Foodiebay became Zomato". Businesstoday.in. Retrieved 15 November 2016.
  14. ^ "Zomato: 10-year milestone reached but Zomato gets hungry for more". The Economic Times. Retrieved 13 February 2020.
  15. ^ "Zomato launches first local-search android application". Indiainfoline.com. Retrieved 15 November 2016.
  16. ^ "After UAE, Zomato expands into Sri Lanka; adds a Colombo section". Techcircle.vccircle.com. 5 November 2012. Retrieved 15 November 2016.
  17. ^ a b "Zomato Expands to Philippines; Dubai Operations Break Even & Future Expansion Plans". MediaNama. 21 March 2013. Retrieved 13 February 2020.
  18. ^ "After UAE & Sri Lanka, Zomato expands into Europe; adds a London section". Techcircle.vccircle.com. 9 January 2013. Retrieved 15 November 2016.
  19. ^ "Zomato launches in South Africa » NextBigWhat". Nextbigwhat.com. Retrieved 15 November 2016.
  20. ^ "Update: Zomato Breaks Even In India; Expands To New Zealand". MediaNama.com. 26 July 2013. Retrieved 12 August 2015.
  21. ^ "Zomato tackles new languages for first time, takes restaurant listings to Indonesia, Turkey". Techinasia.com. Retrieved 15 November 2016.
  22. ^ "Zomato launches in Canada". MediaNama.com. 22 October 2014. Retrieved 12 August 2015.
  23. ^ "Zomato launches Lebanon section; expands into Middle East". Exchange4media.com. Retrieved 12 August 2015.
  24. ^ "Zomato launches in Ireland, opens revenue source by making advertisement live on its app". Firstpost.com. Retrieved 12 August 2015.
  25. ^ a b "Restaurant Discovery Site Zomato Buys IAC's Urbanspoon, Enters The U.S." TechCrunch. Retrieved 9 October 2019.
  26. ^ Menon, Rashmi (10 October 2014). "People looking for food porn come to Zomato.xxx, says founder Deepinder Goyal". The Economic Times. Retrieved 15 November 2016.
  27. ^ "Zomato Launches Printed Food Guide; Monetization, International Expansion, WP7 App". Medianama.com. 6 April 2012. Retrieved 15 November 2016.
  28. ^ Purkayastha, Debapratim and Chakraborty, Barnali (2020). "Zomato: Redefining Digital Marketing". icmrindia.org. Retrieved 7 July 2020.CS1 maint: multiple names: authors list (link)
  29. ^ Singh, Rajiv (5 November 2017). "How cloud kitchens are helping Faasos survive the food tech bloodbath". The Economic Times. Retrieved 28 February 2020.
  30. ^ "Zomato to launch kitchen infrastructure service ZIS in March; to provide space, equipment to restaurant brands". Zee Business. 28 February 2017. Retrieved 31 July 2020.
  31. ^ "Zomato Claims To Be Profitable, Introduces Zero Commission For Partner Restaurants". Inc42.com. 18 September 2017. Retrieved 21 September 2017.
  32. ^ "With revenue servings up at 81%, Zomato cuts losses by 34% in FY17". The Economic Times. 29 June 2017.
  33. ^ Sharma, Disha (29 June 2017). "Zomato losses shrink in FY17, revenue grows 81%". VCCircle.
  34. ^ Tandon, Suneera (7 September 2019). "Zomato lays off 540 employees across customer support teams". Live Mint. Retrieved 7 September 2019.
  35. ^ Deepinder, Goyal (7 April 2020). "Summary of all of Zomato's COVID-19 related initiatives". Zomato munchies - The blog. Retrieved 22 May 2020.
  36. ^ Bhushan, Ratna (18 April 2020). "Zomato introduces contactless dining". The Economic Times. Retrieved 5 June 2020.
  37. ^ www.ETtech.com. "Zomato to lay off 520 people as Covid-19 hurts business - ETtech". ETtech.com. Retrieved 21 May 2020.
  38. ^ "Zomato to start its own delivery". www.nuffoodsspectrum.in. Retrieved 21 February 2020.
  39. ^ "Sequoia leads $37M funding round in Zomato". Vccircle.com. 6 November 2013. Retrieved 15 November 2016.
  40. ^ Shahi, Twishy. "Zomato raises US$60M from Vy Capital, Info Edge and Sequoia". e27. Retrieved 31 July 2020.
  41. ^ "Zomato raises $60 million from Vy Capital, Info Edge & Sequoia - timesofindia-economictimes". 5 March 2016. Archived from the original on 5 March 2016. Retrieved 21 February 2020.
  42. ^ "Zomato raises Rs 311 crore from existing investors - timesofindia-economictimes". 8 December 2015. Archived from the original on 8 December 2015. Retrieved 21 February 2020.
  43. ^ "Zomato raises $60 mn from Temasek and Vy Capital". Business Standard India. 8 September 2015. Retrieved 18 March 2017.
  44. ^ "Ant Financial puts another $210 million in Zomato". The Economic Times. 13 October 2018. Retrieved 15 October 2018.
  45. ^ Inc42 (5 September 2018). "Zomato Acquires Food Startup TongueStun for $18 Mn". Inc42.com.
  46. ^ "Zomato buys New Zealand's MenuMania for Rs 5 crore - timesofindia-economictimes". 15 July 2016. Archived from the original on 15 July 2016. Retrieved 21 February 2020.
  47. ^ Pani, Priyanka. "Zomato acquires Lunchtime, Obedovat for $3.25 mn". Thehindubusiness.line.com. Retrieved 15 November 2016.
  48. ^ Borpuzari, Pranbihanga (23 September 2014). "Zomato acquires Poland's Gastronauci, fourth acquisition in three months". The Economic Times. Retrieved 12 August 2015.
  49. ^ Verma, Shrutika (19 December 2014). "Zomato buys Italy's Cibando, to enter 15 more countries in 2015". Livemint.com. Retrieved 26 December 2016.
  50. ^ Dunn, Matthew (15 January 2015). "Restaurant discovery service Zomato buys Urbanspoon for $60 million". News.com.au. Retrieved 21 September 2017.
  51. ^ "Zomato strikes 7th deal, buys Turkish firm". Business Standard India. 30 January 2015. Retrieved 12 August 2015.
  52. ^ Ghoshal, Abhimanyu (14 April 2015). "Zomato Buys MaplePOS to Offer Restaurant Reservations". Thenexthub.com. Retrieved 12 August 2015.
  53. ^ www.ETtech.com. "Zomato acquires restaurant POS company MaplePOS - ETtech". ETtech.com. Retrieved 31 July 2020.
  54. ^ Lunden, Ingrid. "Zomato Buys NexTable To Rival OpenTable And Yelp In Reservations". Techcrunch.com. Retrieved 12 August 2015.
  55. ^ Chanchani, Madhav (27 September 2016). "Zomato acquires logistics tech startup Sparse Labs". The Economic Times. Retrieved 26 August 2018.
  56. ^ Sen, Anirban (13 September 2017). "Zomato acquires food delivery start-up Runnr". Livemint.com. Retrieved 29 August 2018.
  57. ^ Inc42 (5 September 2018). "Zomato Acquires Food Startup TongueStun for $18 Mn". Inc42 Media.
  58. ^ "Zomato buys Tech Eagle Innovations to work on drone - based food delivery". Tech.economictimes.indiatimes.com. Retrieved 11 February 2019.
  59. ^ "Zomato acquires Lucknow-based startup TechEagle for drone-based food delivery in India". Hindustan Times. 5 December 2018. Retrieved 20 August 2019.
  60. ^ "Zomato buys Rival UberEats in India for 350m". Tech.economictimes.indiatimes.com. Retrieved 21 January 2020.
  61. ^ Bhargava, Yuthika (21 January 2020). "Zomato acquires Uber Eats business in India in an all-stock deal". The Hindu. ISSN 0971-751X. Retrieved 21 January 2020.
  62. ^ "Tech in Asia - Connecting Asia's startup ecosystem". Techinasia.com. Retrieved 18 May 2017.
  63. ^ "Shifting focus to what matters and what works". Blog.zomato.com. Retrieved 1 November 2015.
  64. ^ blog.zomato.com/post/160791675411/security-notice
  65. ^ a b "Jabalpur police to Zomato customer: Tweet hate, go to jail". India Today.
  66. ^ "Uber Eats tells Zomato we stand by you on Jabalpur Muslim delivery boy row. Internet loves". India Today.
  67. ^ "Man cancels order over delivery person's religion, Zomato wins hearts by taking stand". The Indian Express. 1 August 2019. Retrieved 1 August 2019.
  68. ^ "'Food has no religion': Zomato tweets savage reply to customer who cancels order because of non-Hindu rider". The Economic Times. Retrieved 31 July 2020.
  69. ^ "Zomato delivery row: People explain the difference between halal and jhatka meat with funny examples". The Indian Express. 1 August 2019. Retrieved 1 August 2019.
  70. ^ "Why 1200 restaurants are choosing logging out from Zomato". www.thenewsminute.com. Retrieved 18 August 2019.
  71. ^ "1,200 restaurants delist themselves from dine-in programmes of Zomato, EazyDiner & others across India". The Economic Times. 17 August 2019. Retrieved 18 August 2019.
  72. ^ Aug 18, Neha Madaan | TNN | Updated; 2019; Ist, 6:38. "450 restaurants in Pune boycott Zomato Gold | Pune News - Times of India". The Times of India. Retrieved 18 August 2019.CS1 maint: numeric names: authors list (link)
  73. ^ Purkayastha, Debapratim and Qumer, Syeda Maseeha (2020). "Can Zomato Continue its Deep Discounting Strategy?". www.icmrindia.org. Retrieved 7 July 2020.CS1 maint: multiple names: authors list (link)
  74. ^ "Ready to rectify mistakes, Zomato extends olive branch to restaurant owners". Hindustan Times. 18 August 2019. Retrieved 18 August 2019.
  75. ^ Alawadhi, Karan Choudhury & Neha (18 August 2019). "Founder Goyal admits to 'mistakes', plans to alter Zomato Gold scheme". Business Standard India. Retrieved 18 August 2019.
  76. ^ "Restaurants delisting a wake up call for Zomato, says CEO; urges restaurants to stop logout campaign". The Financial Express. 18 August 2019. Retrieved 18 August 2019.
  77. ^ PTI. "Zomato appeals to restaurant owners to stop #LogOut campaign". @businessline. Retrieved 18 August 2019.

External links[edit]