Food Online Delivery Platform
Food Online Delivery Platform
1 Introduction 1
8 Conclusion 46
9 Research Methodology 47
10 Bibliography 48
Introduction
The format of home delivery or the takeaways have gained plenty additional
customers in locations like malls, offices and big-party orders for residential
complexes. Individuals missing breakfast on the thanks to work, order-in. People,
United Nations agency want a higher selection of company lunch or party, order in
too. Everybody appears to be in awe of the net food order and delivery possibility for
the convenience and immediate supply of food reception. Besides, the convenience of
ordering groceries from your mobile app or application program has definitely
alienated some market share from the trusty „kirana‟ or the mom-n-pop stores. Asian
country is that the sixth largest grocery market within the world, however the
organized sector as travel by a number of the net businesses mentioned on top of
makes up just for 5-8% market share of the grocery business. The overwhelming
majority remains in hand by these native markets and also the mom-n-pop stores. This
has some obvious impacts on the brick-and-mortar formats of in-dining restaurants as
additional individuals opt to have restaurant-style cuisines right within the privacy of
their homes or workplaces; however the impact isn't such a lot because it could seem
to be. The nutrition business in Asian country is simply concerning a pair of decades
recent, and remains mostly unorganized. Given the speed at that the organized sector
is quickly growing, it's solely a matter of your time and a way larger chunk of world
investments before a extremely massive impact is formed on in progress eating house
businesses that will not have a delivery-focused format of their own.
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The demand of online ordering is real. It conveys to the customer base that you are a
modern growing restaurant and very challenging to others that wants to be a
convenient and accessible for all the guests who used to ordered regularly. The most
important that which will always need to contact the quality of enhancing online food
ordering ever is the only one that has to be maintain the customer as a regular
customer, In the sense provides good qualities and quantities of food, time maintain,
delivery asap. This will give you the perfect result for online food ordering system
fulfilled. Offering online ordering lets your guests place an order more conveniently.
Without feeling pressure to wrap up their order, customers are more inclined to
explore all of their menu options, and even end up spending more than they would
when ordering over the phone or in person. With no line behind them, the pressure for
your guests to make speedy orders is gone, and they'll be more inclined to get that
extra item. Most of the people knows about swiggy, zomato,etc. , they are growing
online food ordering apps now a days. they provide good servicing for the customers
from different areas, places and clients along with fabulous taste.
2
Indian Food App Scenario
With the boom in digital industry across the globe, it‟s had its impact on the Indian
economy too. The online food ordering firms have sprouted up in bulk. The market
size of food in India is expected to reach Rs. 42 lakh crore by 2020, reports BCG.
Presently, the Indian food market is around $350 billion. The space is coming up with
a lot of innovation catering to their customer convenience, satisfaction and retention.
This has also built room for a lot of new players, who are targeting specific groups of
people. Many new players joining the segment with innovative business models such
as delivering food for health conscious people, home cooked meals, etc. Food tech is
the hot talk in the startup town. After technology start-ups have made their mark in
the e-commerce, taxi & real estate sectors, now the ever-hungry Indian entrepreneurs
are looking to satiate the appetite of others. Food tech is a vast market and food
delivery start-ups are just a part of it.
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Benefit of food delivery app
1. Easy to use The food ordering mobile apps are easy to use and offers high
convenience with time and effort saving for the customers. This has encouraged
more users to use the mobile apps and order their favourite food online,to get
them delivered to their houses. The UI/UX of these apps, along with the ease of
navigability and efficient search options enhances the convenience of the food
ordering apps.
2. Flexible payments The food ordering mobile apps offer flexible payment options
for the customers to be able to pay using various modes of payments, best
suitable for them. The integration of various popular payment gateways offers
flexibility and cashless transactions to the customers, thus encouraging them to
use the food delivery app.
3. Real time tracking The food ordering software is equipped with real time GPS
tracking systems, such that the customers can track the delivery boy bringing
their food, along with helping the delivery boys to track down the exact address
of the customers.
4. Loyalty points Online food ordering often offer loyalty points to the customers
for encouraging them to use the mobile app even more often. These loyalty points
can be used by the customers to place future orders, thus helping them to use the
app more often.
5. Effective customer support With 24/7 customer support facilities, the mobile apps
can offer the best customer supports, answering to their queries and assisting
them in any need or complaints. Customer support has effectively become even
more efficient, since the customers can connect to the executives, with just a few
clicks on their apps.
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Impact on restaurant
Customer Experience
1. It is a fact, if your customers like your service, they will come back and also
recommend you to their world. They will become your best advertisers. So, you need
to commit to a service that keeps them coming back.
2. People don‟t want to spend 5-6 minutes as they place their order over the phone by
looking at the ordering catalogue and pausing whatever work they were doing.
3. One thing online ordering will certainly do is“up your game” when it comes to
providing a better service by making the ordering process convenient for your
customers.
4. Remember, this time they will look at your online menu more carefully and select
items after reading descriptions from the menu. Your customers can order their
favourite food by clicking on the screen a few times and they do it from the comfort
of their homes.
Sales
1. When customers order online, there are fewer distractions. They don‟t have to
decide quickly on the items as there is no-one waiting to take the order.
2. Usually, there is no pressure to order.Hence, your customers spend more time on
the menu. And, this is good for your business.
3. Online ordering platforms are inbuilt for cross-selling items. As they spend more
time on the menu, they order appetizers that they wouldn‟t order in the store. Add-On
items in the menu see better sales, online.
Savings
1. Your online ordering system also takes care of your margins. Since your
restaurant‟s orders don‟t go through a third party platform, you will notice a change in
your operating margins.
2. Other available options don‟t work in a similar way, to avail their services you have
to use their portal which delays processing and also charges a commission on every
processed order.
3. Getting your own online ordering system will provide you a competitive edge.
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Positive and negative Effects of food delivery app on restaurant
Positive
When done right, delivery can help restaurant operators cultivate customer loyalty,
enhance profitability, and expand into new market segments. Overall, customer-facing
technology is poised to deliver a distinguishing, competitive edge – for a price. Some
chains, facing poor traffic numbers, are hoping delivery will help garner them new or
lapsed customers. For those in the food service industry that don‟t offer delivery, they
are certainly missing out on a multitude of opportunities.
1. Its just one click away Today, more than ever, people can easily order online
thanks to the smartphones and tablets. Studies conducted by the Interactive
Advertising Bureau and Viggle show that about 69% of customers order food online
using a mobile device.Whether on a break, stuck in traffic, or riding the bus, virtually
anyone will place an order quickly and painlessly. In fact, this is a better, and highly
desirable alternative to waiting until getting home and placing the order over the
phone.
2. Its fast, easy and comfortable In a nutshell, your customers choose to order food
online because it‟s literally at their fingertips. Virtually anyone with a smartphone can
order food online from your restaurant.
Negative
The outlook for fine dining restaurants is strong because they place a premium on
taste, while new ordering and delivery platforms mainly focus on convenience and
price, The delivery business is growing so fast, it's giving restaurants cause to rethink
their expansion strategies too.
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India Online Food Delivery Market
The India online food delivery market attained a value of USD 7.4 billion in 2023. In
the past three years, the market has shown a year-on-year growth of 100%. The
market growth is highly fluctuating and is dependent on investments. It is expected to
witness a robust growth in the coming few years.
The online food delivery industry is one of the fastest-growing segments in the Indian
e-commerce industry. Bengaluru is the largest regional market in the Indian online
food delivery industry. The city accounts for almost 30% of the industry. It is
followed by Delhi- NCR, Mumbai, and Hyderabad. Mobile applications were the
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leading way to access the online food delivery platforms in 2020, while online prepaid
methods accounted for nearly 80% of the payments. The service in India is dominated
by platform-to-customer delivery type where food is delivered by the platform‟s own
delivery executives, thus, creating a more reliable and accountable service. Platform-
to-consumer delivery type accounts for nearly three-fourths of the market.
The industry is dominated by Swiggy and Zomato. The two giants of the food
delivery industry in India represent over 65% of the industry. The growth of the two
companies is greatly aided by the expansion of their own delivery fleets. Zomato
increased its fleet to 74,000 delivery agents as of October 2018, with nearly 86% of
the orders being fulfilled by Zomato‟s logistics team, a growth from the 26% self-
delivery rate in January 2018. Swiggy had over 90,000 delivery agents as of October
2018. The two companies are expanding their businesses to smaller towns and cities,
with both of them adding a market every one or two days. They are both seeking to
raise fresh funds in 2020 to maintain their dominant positions in a highly competitive
market, with Swiggy raising USD 1 billion in December 2018.
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Market Segmentation
Online food ordering is the simple and convenient way of ordering food, either through a
restaurant or a fast-food chain‟s own website or mobile application or through a website or
app offering options for food delivery across multiple restaurants.
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Based on cuisine, the market is divided into:
Indian
Chinese
Italian
Others
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Competitive Landscape
December 2018- Zomato, the online food delivery giant in India, has joined the
coveted „unicorn‟ club by raising fresh capital worth USD 1 billion from its investor,
Naspers Ltd along with China‟s Tencent Holdings Ltd.
February 2020- Zomato received funding worth USD 39.74 million from a US
investor, Glade Brook Capital Partners.
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Market Analysis
The rapid rise in the number of smartphone users in the country with the availability
of affordable option is expanding the consumer base of the online food delivery
industry in India. The rising penetration of internet due to cheaper data rates is also
aiding the market. With the major players expanding away from their traditional
metro bases to smaller town and cities, the industry is being further propelled forward.
The industry is finding impetus for its growth in the tier-2 and 3 cities in the
introduction and expansion of delivery-only kitchen in places with limited restaurant
and cuisine options. The increase in marketing campaigns by the leading players is
also aiding the industry. The industry is being driven by the incentives offered by the
platforms like discounts and memberships, which are attracting more consumers to
these online delivery platforms. The increased funding received by the industry along
with the rise in the self-owned delivery fleet by the major players, is providing further
impetus for the industry growth.
The industry is being driven by the growing number of busy white-collar worker who
are increasingly looking for convenient and quick meals. With a growing number of
women joining workplaces and increasing prevalence of double-income families who
prefer eating-out frequently, the online food market in India is being further propelled
forward. The growth in the economy, along with an increase in the household income
is likely to drive the market in the coming years with consumers spending most on
food, household, transport, and communication segments. The rise in the population
of the younger population with higher disposable incomes will provide further
impetus to the industry growth as they define the food consumption patterns.
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Stats of Online Food Delivery
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Demographics by Age
Demographics by Gender
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Legal Aspects For Running A Food Delivery Application In India
Food Delivery Application is gaining popularity in the Indian market due to its
widespread reach and unparallel convenience. The popularity of these platforms is
increasing every passing day, which allows more start-ups to step into this business
domain. As the name suggests, Food delivery application works on an online channel
that allows customers to place an order in fractions of seconds through an intuitive
interface. Online dominance allows online food aggregators to gain access to the wide
bandwidth of the masses and earn more profit.
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Mandatory Registration For Running A Business Of Online Food
Delivery Application In India
In view of the existing legal framework, we have compiled a list of registrations and
license that one has to avail for setting up a business of online delivery application in
India.
FSSAI License
FSSAI license is mandatory for all food business operators, including running a Food
Delivery Application in India. FSSAI Registration is primarily classified under three
categories – Basic, State, and Central License. One can apply for these licenses based
on the scope of operation and income.
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FSSAI license holders are legally bound to avert malpractices regarding the food
business. They are liable to ensure that the food proposed to be served as a customer
is free from adulteration and other harmful substances. As per the government rules,
the FSSAI license remains active for the duration of one year.
Business Registration
A registered business can avail of proven benefits such as perpetual succession, tax
exemption, and fewer liabilities. Based on the scale of operation, management
structure, and income, you can opt to register under different business models such as
Sole Proprietorship, LLP, or Partnership Firm, or Company registration.
Tax Registration
Every business entity reaping income through non-exempted products and services is
liable to address the tax liabilities as per the GST and Income Tax Act.
For online transactions, one has to avail of a GST registration certificate from the
concerned authority. The applicant can also obtain MSME registration to get access
to government-mandated benefits.
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Once obtained, the registration will continue to serve its purpose even if the employee
numbers fall below the required limit. The applicant needs to visit the EPFP portal to
submit an online application for the EPF registration.
ESI Certificate
ESI is an abbreviated term of Employee State Insurance controlled by the Employee
State Insurance Corporation, an apex body set up by the law under the Ministry of
Labour & Employment, GOI.
Under the said scheme, the company owner requires contributing an amount of 4
percent of the employee‟s total monthly salary; meanwhile, the employee needs to
contribute about 1 % of this/her salary every month.
Trademark Registration
Trademark registration adheres to a lot of importance for businesses that care about
protecting their brand identity. Once your businesses attain the good repo in the target
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market, it will become more susceptible to brand violation. And this is something you
should consider very seriously if you are dreaming of reaping long term benefits from
your business.
Signage License
Signage License renders the legal permit to the applicant to promote their offerings or
brand through conventional marketing channels such as signs and boards. One can
reach out to local civil authorities to avail of such a license.
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Terms And Conditions of Food Delivery Platform
Recently, the news regarding the acquisition of Uber eats by Zomato has been
quite popular. Zomato has acquired the Indian operations of its competitor
Uber Eats, the food delivery business run by Uber, for around $350 million
with which the transaction marks the first big consolidation move in the cas h-
intensive online food-delivery market, led by Swiggy and Zomato. Nowadays,
the concept of ordering food online is not an unusual thing. Food
delivery applications are those applications which offer you to deliver you
mouth-savoring delicacies with the same price charge as your favorite
restaurant does with a minimal amount of delivery charges, which technically
means you order your favorite meal, there is timely receipt of your order with
the comfort of your home or at any place you would like to have your meal.
Dominos, Foodpanda, Swiggy, Zomato, etc, some of the most popular apps
among masses.
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Important Provisions for the Relevance of the Food Business in
the Legal World
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WHAT SHOULD BE THE TERMS AND CONDITIONS OF A FOOD
DELIVERY APP?
Defining the business and business objective.
Food delivery is a retail business whereby the “Goods” are sold to the public
through E-commerce is a relatively small quantity for consumption and from
here the role of Food Aggregators or Food Delivery Platform begins. Food
Aggregators or Food Delivery Platform are the companies that provide a
platform for restaurants on their domain to reach out to the consumers online.
These Food Aggregators provide or Food Delivery Platform its consumers
mainly with the following services:
• Allow for easy search of the restaurant nearby or wherever ;
• Allows for home-delivery
• Allow for its subscribers/members to go eat food in the restaurant itself at
an extremely discounted price (inclusive of food and drink) means buying or
selling goods or services including digital products over a digital or electronic
network.
• The entry of e-commerce has expanded that scope of the CPA, 2019,
enabling the consumers‟ to hold Food Aggregators or Food Delivery Platforms
liable for the violation of their rights. It is very evident that ther e is a shift from
caveat emptor (buyer beware) to caveat venditor (seller beware).
• In light of the above-provided transition, any Food Delivery
Platform (“hereinafter referred to as “FDP”) must bear in mind the following
clauses, while drafting its terms and conditions for its food delivery business.
1. Eligibility:
The User must undertake to adhere to the eligibility to enter into a contract in
view of section 11 of The Indian Contract Act, 1872. The User shall agree to
represent and warrant that the User is at the age of 18 or above and is fully able
and competent to understand and agree the terms, conditions, obligations,
affirmations, representation, and warranties as set forth in this Agreement.
2. Compliance of Law:
Both the User and the Food Delivery Platform must be in compliance with all
laws and regulations in the country in which they live while accessing and
using the Service. The User must agree to use the Services only in compliance
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with terms & conditions, applicable law, and in a manner that does not violate
legal rights or those of any third party/parties.
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2019 or any successor legislation, between the User and the Delivery Partner,
to which again food Delivery Platform is not a party.
6) The FDP must clarify that FDP does not provide any delivery or logistics
services and only enables the delivery of food and beverages ordered by the
Users through FDP by connecting User with Delivery Partners or the
Restaurant Partners, as the case may be.
7). The FDP must state that it will use reasonable efforts to inform the User of
the Delivery Charges that may apply to the User, provided the User will be
responsible for Delivery Charges incurred for User‟s order regardless of User‟s
awareness of such Delivery Charges.
8) The FDP shall reserve it‟s right that at any time and without prior notice,
the Food Delivery Platform can remove, block, or disable access to any Content,
for any reason or no reason, considered to be objectionable, in violation of the
terms and conditions of this Agreement or otherwise harmful to the Services.
9) Intellectual & Proprietary Rights: The Food Delivery Platform shall declare
in the form of a clause its ownership of FDP content and Proprietary Rights in
detail every user must agree to protect FDP‟S IPR and proprietary rights.
10) Use of License aspects: Food Delivery Platform shall grant User a personal,
limited, non-exclusive, and non-transferrable license to access and use the
Services only as expressly permitted as per the terms and conditions of the
Agreement. The user shall agree not to use the services for any illegal purpose
or in any manner inconsistent with the terms and conditions of this Agreement
11) Review and Ratings: The review or ratings for a restaurant by Users do no t
reflect the opinion of FDP. Food Delivery Platform gets many reviews or
ratings for Restaurant by User, which reviews or ratings for Restaurants by
Users, which shows the views of the User. It is important to state that every
review or ratings posted on FDP are the personal views of the User.
12) On-Time Delivery: The User may opt for on-time delivery services offered
by the Food Delivery Platform, for an additional non-refundable cost, at
selected Restaurants. The User shall, however, acknowledge that s uch services
are offered by the FDP on a best effort basis, hence should the order fail to
reach on or prior to the Promise Time, the User would be eligible to receive
Coupon worth value or up to INR 200, whichever is lower.
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The Coupon is required to be claimed within such time as provided from the
time such Order is delivered failing which the eligibility to receive Coupon
expires. The User shall not be eligible to receive the coupon if Food Delivery
Platform fails to deliver such Order within the time provided for unforeseen
reasons beyond the control of the food Delivery Platform eg. Strikes, natural
disaster, etc.
13) Price List: FDP shall take care to keep all the prices listed are correct at the
time of publication, and have been placed as received from the Restaurants.
The final price charged to the User may change at the time of delivery. In the
event of a conflict between prices of the FDP and price charged by the
Restaurant, the price charged by the Restaurant shall be deemed to be the
correct price except for the Delivery Charge of Food Delivery Platform.
The total price for food ordered, including the Delivery Charges and other
charges, will be displayed on the Food Delivery Platform when you place your
order, which shall be rounded up to the nearest rupee. The User shall make full
payment towards such food ordered via the FDP. Any amount that may be
charged to the User by Food Delivery Platform over and above the order value
shall be inclusive of applicable taxes.
14) Delivery periods/Pickup time quoted at the time of ordering are
approximate only and may vary depending upon the situation. When the User
opts for Pickup at the time of placing the Order, and FDP shall not be liable in
any manner in this regard.
15) Personal Promo Code/offers/memberships can be used by the User subject
to such terms and conditions set forth by the Food Delivery Platform from time
to time. The FDP can promote its new offers/membership plans etc. and the
User will have to subscribe for the same. The subscribers will only be eligible
for offers opted.
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An order, once placed on behalf of User by the FDP and accepted by a
Restaurant Partner constitutes a separate contract of sale of goods under the
Sale of Goods Act,1930 and the Consumer Protection Act, 2019 or any
successor legislation between the Restaurant Partner and the User, to which
the Food Delivery Platform shall not be a party.
2. The User must warrant that while placing an order the details like contact
number, delivery address, etc. are accurate and correct. By providing these
details, the User expresses his/her acceptance of FDP‟s terms and conditions
and privacy policies.
3. The User shall not resell food purchased via FDP.
4. The User shall be charged a delivery fee for delivery of the order by the
Delivery Partner or Restaurant Partner as the Delivery Partner or Restaurant
Partner may determine (“Delivery Charges”). The User must agree that
the Food Delivery Platform is authorized to collect, on behalf of the Delivery
Partner or Restaurant Partner, as the case may be. The Delivery Charges may
vary from, order to order, which may be determined on multiple factors such as
order value, demand during peak hours, etc.
6. CANCELLATION OF ORDER
• The User must acknowledge that any cancellation or attempted or purported
cancellation of an Order shall amount to a breach of User‟s unconditional and
irrevocable authorization in favor of the Food Delivery Platform to place that
Order against the Restaurant Partners on User‟s behalf (“Authorization
Breach”).
• In the event the User commits an Authorization Breach, the User shall be
liable to pay the liquidated damages of an amount equivalent to the Order
Value. The User must undertake to authorize FDP to deduct or collect the
amount payable as liquidating damages through such means as Food Delivery
Platform may determine in its discretion, including without limitation, by
deducting such amount from the payment made towards User‟s next order.
• The FDP shall not facilitate replacements/ refunds/ or any other resolution
without Restaurant‟s Partner permission. All refunds shall be processed in the
same manner as they are received, unless refunds have been provided to the
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User in the form of credits, the refund amount will reflect in User‟s account
based on respective bank policies.
iii. The user shall represent that you are entitled to disclose your Third Party
Account login information to us and/or grant the FDP access to your Third -
Party Account (including, but not limited to, for use for the purposes described
herein), without breach of any of the terms and conditions that govern your use
of the applicable Third-Party Account and without obligating them to pay any
fees or making us subject to any usage limitations imposed by such third-party
service providers.
iv. By granting us access to any Third Party Accounts, the Food Delivery
Platform shall be able to access, make available and store (if applicable) any
content or information that the user shall provide to and stored in your Third-
Party Account so that it is available on and through the Platform via your Food
Delivery Platform Account. Unless otherwise specified in these Terms of Use,
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all provided information if any will be considered to be your content for all
purposes of these Terms of Use.
v. Depending on the Third-Party Accounts, the user shall choose, and subject
to the privacy settings that the user has set in such Third -Party Account shall
be personally identifiable information that you post to your Thi rd-Party
Accounts will be available on and through your Food Delivery
Platform Account on the Platform.
vi. Every user shall have access to only one FDP account and shall not be
permitted to create multiple accounts. On finding multiple accounts of any
user, the FDP reserves the right to suspend such multiple accounts without
being liable for any compensation.
vii. Every user shall provide accurate, current and complete information during
the registration process and to update such information to keep it accurate,
current and complete.
viii. The FDP shall reserve the right to suspend or terminate your Food
Delivery Platform Account and your access to the Services in the event ;
a) if any information provided during the registration process or thereafter
proves to be inaccurate, not current or incomplete;
b) if it is believed that a user‟s actions may cause legal liability for the Food
Delivery Platform or the user; or for both.
c) if the user is found to be non- compliant with the Terms of Use.
ix) Every user shall be responsible for safeguarding his/her password. The user
shall not disclose his/her password to any third party and it will be their sole
responsibility for any activities or actions under your FDP Account, whether
or not you have authorized such activities or actions. Goods and services
purchased from the Platform are intended for your personal use and you
represent that the same are not for resale or you are not acting as an agent for
other parties.
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8. PAYMENTS & REFUNDS
I. Refunds
A) The user shall be entitled to a refund only if you pre-pay for your order at
the time of placing your order on the Platform and only in the event of any of
the following circumstances:
1. The order packaging has been tampered or damaged at the time of delivery;
2. The user cancels the order due to:
(a) Your delivery location following outside our designated delivery zones;
(b) Failure to contact you by phone or email at the time of confirming the order
booking; or
(c) Failure to contact you by phone or email at the time of confirming the order
booking, or
(d) Where the user cancels the order at the time of confirmation due to
unavailability of the items you ordered for at the time of booking.
B) The decision on refunds shall be at the sole discretion of the Food Delivery
Platform and shall be final and binding.
C) All refund amounts shall be credited to your account within 3-4 business
days in accordance with the terms that may be stipulated by the bank which has
issued the credit/debit card.
II. PAYMENTS:
In case of payment at the time of delivery, the user shall not be required to pay
for:
a) Orders where the packaging has been tampered or damaged by us;
b) Wrong order being delivered; or
c) Items missing from your order at the time of delivery.
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ii. Limitation of Liability: The Food Delivery Platform shall in no manner be
liable in any way for any in-person interactions with representatives or staff of
the Restaurant Partners or for the member‟s experience at the Restaurant
Partners. The FDP in no manner is liable to the member if any outlet of
Restaurant Partners temporarily or permanently shuts down its operations. The
FDP will only take care of claims/liabilities arising out of offers/membership
plans advertised by Food Delivery Platform solely.
iii. Assignment: The FDP may assign its right obligations under these terms
and conditions to any of its affiliates or any third party at any time.
iv. Food hygiene audit of Restaurant Partners: The FDP shall undertake to
initiate food hygiene auditing of Restaurant Partners in partner with certified
auditors
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errors or omissions in any content or for any loss or damage of any kind
incurred as a result of the use of any content posted, emailed, transmitted or
otherwise made available via the Services.
vi) Any material downloaded or otherwise obtained through the use of the
Services is done at User‟s own discretion and risk and the User will be solely
responsible for any damages to User‟s computer system or other device or loss
of data that results from the download of any such materials. The FDP Parties
will not be a party to or in any way be responsible for monitoring any
transaction between the User and third-party providers of products or services.
vii) Advertisement :
The User must agree to the advertisements that may be placed by the Food
Delivery Platform on the Service as some of the Services are supported by
advertising revenue and may display advertisements and promotions. The Food
Delivery Platform will not be responsible or liable for any errors or omission,
inaccuracy in advertising material or any loss or damage of any sort incurred as
a result of any such dealings or a result of the presence of such other
advertiser(s) on the FDP platform and mobile application.
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however, caused and under any theory of liability, including but not limited to,
any loss of profit (whether incurred directly or indirectly), any lo ss of goodwill
or business reputation, any loss of data suffered, cost of procurement of
substitute goods or services, or other intangible loss.
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Zomato Case Study- About Zomato Company
When Zomato started, it aimed to become the best restaurant search and discovery
platform.
It had the names of different restaurants, menus, costs, reviews, and other essential
details. It offered in-depth information on more than 1.4 million restaurants across 23
countries.
Over the years, it has become a popular online food delivery platform. Now
customers can order food from their favorite restaurants by using their website or app.
Zomato has many delivery executives who pick up the order from the eatery and
deliver it to the customer‟s address.
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How was Zomato Started?
Zomato is an Indian group founded by two IIT graduates, Deepinder Goyal, and
Pankaj Chaddah, in Delhi NCR in 2008.
Once Deepinder saw his colleagues ordering food from different restaurants. That was
when Deepinder came up with bringing these restaurant menus online.
One day they noticed their colleagues standing in a long queue in the cafeteria waiting
for lunch.
So they thought about how much time people could save if they did not have to wait
and get their favorite food delivered to their doorstep whenever required.
It is how they started the online food delivery service under “FoodieBay” and
renamed it “Zomato.” In the initial stage, FoodieBay listed restaurants in Delhi and
NCR. But, they soon grew their business in other metro cities like Kolkata and
Mumbai.
As FoodieBay started attracting more and more customers, the founders decided to
revamp its name to appeal to audiences outside India too. So then they changed the
name of FoodieBay to “Zomato.” By 2016, Zomato had its sophisticated app doing
food deliveries from registered restaurants.
The success of Zomato lies in its unique Business Model. Zomato is an app whose
business model works around food supply online, providing knowledge, user reviews,
and menus of partner restaurants. Here are some of the essential components of
Zomato‟s business model:
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2. Zomato provisions- Zomato has created a well-designed valuation model for its
food delivery services. Zomato Gold & Piggybank has enhanced the standard of
services that Zomato offers.
3. Alliances of Zomato- New partnerships with several big names like Visa, Uber
Taxi, and Paypal have improved the business model of Zomato.
This online food delivery app provides a discount to advertise its usage and improve
its customer base, considering the tough competition in the market. It‟s mainly a
selling strategy. Zomato soon started its service in the Cloud Kitchen industry too.
Competitors of Zomato
With various new companies launched in the last decade, the food delivery industry
has become one of the largest online platforms.
Thanks to companies like Zomato, Swiggy, Uber Eats, FoodPanda, etc., they are
changing the food industry quickly.
The online food delivery system is booming in metros and Tier II and III cities. All
credit goes to these significant apps in the market.
The online food delivery industry is rapidly evolving and attracts vast money.
However, growing competition and unstable growth policies have resulted in few
casualties.Because of enormous losses, companies like TinyOwl and Eat Fresh had to
shut their doors.
Even FoodPanda, a popular food delivery app with a presence in over 13 countries,
has been attained several times, initially by Delivery Hero and followed by OLA.
However, the company is still struggling to maintain its position in the online food
delivery industry.
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Zomato Partnership Strategy
Zomato is continuously working with the government to ensure that its services run
smoothly without any hindrance.
Furthermore, it makes sure to support millions of people who are part of their food
delivery network by earning money to cover the loss if they have lost their money due
to some crisis.
Zomato has always been a leader in identifying the importance of videos and using
them to its benefit on the YouTube platform.
Zomato plays short, lively, and unskippable video ads on YouTube with a “call-to-
action .” It is proven that video ads play an essential role in Zomato‟s advertising
strategy.
The brand is aware of its audiences, likes, and dislikes. As a result, it supports
material that people love to share, discuss, and reconsider.
To engage customers online, it utilizes popular topics and publishes simple pictures.
During the 2016 Olympics, Zomato promoted its brand on Twitter. The brand used
Olympic rings made of coffee and claimed they would receive the gold medal if
drinking coffee were a sport.
Another hot subject that Zomato targeted was The “Pokemon Go” video game.
Zomato started earning from that too. The brand used the famous Pikachu to promote
its brand on Twitter.
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Connecting with the customers by Zomato was aided by positing popular themes.
Users possibly don‟t want to contemplate too much while using social media.
Individuals use social media to enjoy and view humorous content.
Zomato‟s digital marketing strategies keep on getting adjusted with new trends
emerging. They find new methods to attract customers‟ attention. Currently, they are
doing a fantastic job.
However, they will benefit considerably if they put forth a sustained effort.
These people are skilled enough to make the most of the Email marketing tool. One of
the most innovative and effective strategies is Zomato‟s email marketing.
Zomato keeps its customers loyal to its company by utilizing appealing subject lines
and a drive to action. The brand ran an email marketing campaign on Amazon Prime
Video with the theme of the legendary series Mirzapur Season 2. Zomato used the
subject lines from Mirzapur.
In addition, it created a CV for Biryani as a vital part of one of its most prominent
email marketing methods. Food-related terms like, for example, “Curriculum Vitae of
Biryani” was showcased by Zomato.
In addition, it used the CTA “hire immediately” instead of “order now.” It is the
reason why Zomato‟s email marketing strategy performed so well.Regarding SEO,
Zomato has put a lot of effort into this field. According to Ubersuggest data, Zomato
ranks for around 7,544,348 keywords on June 2023. Its organic traffic is 77,874,441
users every month.
The company lists the top keywords in its niche and designs a webpage for those. This
indicates to the search engine that these pages are apt for the user‟s search query. It is
a great strategy to ensure that your website ranks top.
As of June 2023, Zomato has 12,738, 685 backlinks from different high-authority
domains. It, too, helps Zomato to rank higher. They are active on Social Media too.
Zomato has 829K followers on Instagram and around 1.5 M on Twitter.
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Zomato Target Audience
Zomato‟s target audience comprises people between 18 and 35 with smartphones and
well-versed in using different apps.
It focuses on attracting two customers, one who prefers to eat out and another who
wants to order food from outside and deliver it to their home. These groups frequently
coincide.
The Zomato Gold program offers incentives for those who eat out and offers food
delivery service for those who want the food delivered at home.
Individuals who work and want their food delivered to their office, students who live
in hostels and need food, those who lack time to prepare their food, and those who
occasionally enjoy eating outside under this group.
It focuses on attracting people who want food delivered to them. It also runs Google
Display ads to target individuals on apps and websites from 3rd parties.
It, in turn, increases the credibility of Zomato by enabling them to connect with
more and more audiences.
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Whether micro or macro-influencer, Zomato is not afraid to move further and
leverages its disrepute to expand its user base.
All of us are aware of Zomato‟s humorous takes on different scenarios through its
tweets.
Zomato offers content that will make its customers smile, no matter whatever
issue they are dealing with currently or the one they encounter regularly.
Moreover, its humor spreads fast and has a powerful impact.
Memes play a significant role in social media, and the brand has mastered the
“meme marketing” method as it recognizes its importance.
As a result, the food delivery company attracts a lot of organic traffic. Thanks to
the content marketing strategies followed by the brand, which ultimately helps to
increase its revenue.
The shares were sold at around $392 million to protect Uber against the losses. ICICI
Prudential Life and Fidelity purchased the Zomato stakes.
As per the reports published on 4th August 2022, Tiger Global sold half of its Zomato
shares.
According to the news, the American Investment company sold the shares between
25th July and 2nd August 2022.
As a result, tiger Global had a total of 5.11% shares in Zomato, now 2.77% after the
sale.
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What are the Future Plans of Zomato?
Online food delivery platforms, Zomato and Swiggy, hit an all-time high in sales
volumes during 2021, as most people stayed indoors due to an increase in Covid-19
cases.
Zomato said it earned more than 100 crores in Gross Merchandise Value (GMV),
which shows the value of food ordered through this platform- compared to Rs. 75
crores it had achieved the previous year on 31st December.
While Zomato‟s sales have been rising, the brand can still not make gains due to huge
payments led by marketing and discounts.
It posted a total loss of Rs. 1,222 crores for March, a rise of about 50% since the
previous year.
However, according to analysts, the food delivery business has a vast scope as it is
estimated that the brand will achieve a turnover of $110 billion by 2025. Zomato‟s
revenue increased 123% to Rs 4,109 crore in the financial year of 2021-22.
On the other hand, the brand‟s loss increased by 24% to Rs. 1,098 crores. The brand‟s
annual report said its average monthly transacting customer base increased by nearly
116%.
The online food delivery giant, Zomato, narrowed its focus on three essential areas of
online food ordering and delivery: food supply to restaurants through “Hyperpure”
and fast commerce.
So Zomato started focusing on three vital areas: online food ordering and delivery,
Hyperpure, and Quick commerce.
The brand‟s online food delivery business is stable and headed toward productivity.
As a result, online food delivery has enormous scope for growth in the future.
However, while restaurant food intake has risen in the last few years, its overall
penetration in India is still drastically low compared to its worldwide competitors.
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Behind the Scenes of EatSure: Case Study
The food ordering and delivery sector is a trillion-dollar industry globally, and this
market is only to rise in the coming years. With the rising demands of the customers,
the on-demand delivery apps have to be scalable enough to meet the customers‟
expectations.
For instance, food delivery apps like UberEATS and Zomato have made it possible
for users to get their orders delivered in a few minutes. On the other hand, EatSure has
allowed its customers to order from several eateries under one single order. It has
removed the tension of paying a different delivery fee on each order placed through
the platform.
EatSure has emerged as one of India‟s fastest-growing and most successful food
delivery apps. With its USPs like fast food delivery, 100% food safety, and the ability
to place different orders at one time, it has acquired a special place in the market.
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From Faasos to EatSure- How it Began?
EatSure is an Indian on-demand food delivery company headquartered in Mumbai.
EatSure lets its customers order anything and everything to satisfy their taste buds.
How did EatSure begin its journey?
Their journey started with Faasos, a food on-demand platform incorporated in 2004.
Faasos is an online restaurant company owned by Rebel Foods and founded by Kallol
Banerjee and Jaydeep Barman. It provides services in more than 35 cities in India and
has reportedly invested more than 50 million in the cloud kitchen network.
Jaydeep Barman and Kallol Banerjee created Rebel Foods in 2011 as a physical
restaurant franchise with an online ordering system. It introduced its first cloud
kitchen in 2015 and changed its focus to cloud kitchens in 2016. In order to outsource
its cloud cooking platform to other restaurant chains, the company launched the Rebel
Launcher Program in 2018. EatSure, a centralized food delivery service for its brands
and partner restaurant chains, was introduced by Rebel Foods in 2020. Additionally, it
started using EatSure Express food trucks.
The way people buy food and have it delivered to their doorsteps has changed thanks
to EatSure. The company currently serves thousands of consumers who place orders
using the app, and this number is continuously rising.
USPs of EatSure
One of the top USPs of EatSure that sets it apart from other on-demand food delivery
apps is that it enables users to enjoy cuisines from all over the world from a wide
variety of reputable restaurants in a single order, which is presently not feasible on
any other platform, online or offline.
Further, its features allow customers to place a single order from several different
eateries and share meals. The four pillars of EatSure are:
No artificial colors or flavors
Medically certified people
200+ stringent quality checks
Double sealed-packaging
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The radical transparency of information regarding food, its handling, preparation, and
delivery is another goal of EatSure. Additionally, Eat Sure distinguishes itself from
other food delivery services with its unique function of bringing the “food court”
experience to its smartphone.
2. Quick Delivery
EatSure also promises quick and timely food delivery, with most of these orders being
delivered within 45 minutes. It makes it a convenient option for customers who are
looking for fast food deliveries.
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The restaurant prepares the food according to the order specifications and
packs it for delivery.
EatSure delivery partners pick up the packed food from the eatery and deliver
it to the customer‟s location.
Customers can track the delivery in real-time using the app or website and
receive notifications about the delivery status and estimated delivery time.
Once the food is delivered, customers can rate their experience and provide
feedback on the quality of the food and the delivery service.
EatSure Market Study in Detail
To understand the success and growth of a brand, it‟s crucial to know its market stats
in and out. Here are some of the most important statistics of EatSure that will prove
what makes it a leading food delivery platform in India.
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2. Cities Covered by EatSure
As per the official website of EatSure, it is currently present in 35-45 cities across
India and is planning to expand its reach both nationally and internationally. Some of
its major cities include Bengaluru, Delhi, Mumbai, Indore, Gurugram, and
Ahmedabad.
3. Revenue Generated
EatSure generated revenue of ₹859 crores (US$110 million) in the financial year
2022.
The campaign focused on creating a new “food court on an app” category to allow
users to order from various restaurants under one single order. Sagar Kochhar, the co-
founder of Rebel Foods, said that online food ordering is an emerging choice for
customers. He also added that the EatSure platform allows its users to mix and match
from multiple trusted restaurants in a single order, and this is what the campaign is all
about.
Several on-demand food delivery companies like Zomato and Swiggy restrict their
customers to order from one restaurant at a time. It becomes a problem when users
want to place food orders from more than one eatery. Further, when all these orders
are placed separately, it adds up the delivery charges, making it even more expensive.
It is one of the biggest problems that EatSure has solved with its
#FoodCourtOnAnApp campaign. With EatSure, users can order a burger from
Wendy‟s, a pizza from Oven Story, a wrap from Faasos, coffee from SLAY, or
biryani from Behrouz, with no delivery fee.
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EatSure Revenue Model- How it Makes Money?
Along with being one of the most used food delivery apps, EatSure also generates a
handsome amount of revenue from its services. How does it make money? Below are
the revenue models followed by EatSure:
1. Commission fees
Commission fees are one of the best ways to generate revenue through the on-demand
food delivery app. EatSure charges a commission from restaurants that have partnered
with the platform. For every order that the restaurant receives, a part of the
commission goes to EatSure.
2. Advertising fees
The advertising fee is another revenue model followed by EatSure to make money. It
charges a small fee from the brands wishing to advertise on the platform to attract
more customers.
3. Transaction fees
The third revenue model adopted by EatSure is transaction fees. It charges an amount
on any online transaction that is done through its platform.
4. Listing fees
Every restaurant that partners with the food delivery app wants to ensure that it avails
a top position on the platform to attract more customers. EatSure charges listing fees
from those eateries that want to be on top of the list.
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Conclusion
Concluding the analysis of online food delivery platforms, it is evident that these
platforms have revolutionized the food industry, providing convenience, choice, and
accessibility to consumers and businesses alike.
The customers comfort is simply the primary facet good thing about such, whereas on
the second facet these system also are helpful for the expansion of eating place and
food provide trade, as by the utilization of digital food ordering system a eating place
owner are ready to attract the users attention by permitting them see the whole food
menu in conjunction with dish name, image, specialty, and price. Integration a web
food ordering system isn't any doubt are the simplest, cheap and helpful call for a
eating place business owner. With constant deluge of experts in urban areas and fast
urbanization of Indian scene, the food delivery and eatery portion is currently
flourishing at a rankling pace. Adding to this situation is an expanding number of cell
phones and food delivery applications. Food delivery applications have now turned
into a major hit with well-informed people crosswise over India. There are a few food
delivery applications in India that one can download on advanced cells to arrange
food in a hurry and from the solace of homes. The changing urban way of life of the
normal Indian is sufficiently emotional to be ideal for the food-on-the– go and fast
home delivery models to develop at higher rates. The regularly expanding populace
swarmed metro urban communities and longer travel times are drivers for the helpful,
prepared to eat and less expensive alternatives of having food and foodstuffs
conveyed at your doorstep. Organizations that know about the colossal potential for
development may wander straight in, yet just the fittest will endure. Organizations
who keep their offer and their image dynamic in purchaser's brains, will take the
greatest offer of the Indian online food benefit pie.
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Research Methodology
This research is totally based on Secondary data. Secondary data included collecting
information about various apps, the industry position, etc., from the various portals
from the internet, blogs, etc.
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Bibliography
www.expertmarketresearch.com
www.ijrar.com
www.streamlynacademy.com
www.valueappz.com
www.estartindia.com
www.corpbiz.io
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