Swot Analysis of Zomato

Zomato is now the catchword in everything related to food delivery and restaurant search. This food aggregator and delivery major have the support of many leading investors, making it one of India’s most valuable companies. 

But the thing we need to understand is that Zomato is so huge. Do you know in an average month how many customers visit Zomato? One crore and 47 lakhs. This is just an average. Imagine the amount in the festive season.

Zomato’s price has increased by 50% in the last three months. The festive season is here, and we are ordering food in our home. Is Zomato getting stronger again? Let’s find out.

About Zomato

Zomato is an entrepreneurial organization that started as foodiebay in 2008. Two IIT graduates founded it, Deepinder Goyal and Pankaj Chaddah. Initially started as foodiebay but got the name Zomato in the year 2010.

Zomato is a startup that began to help individuals arrange food from various restaurants and cafes and convey it to their places. The innovative idea of zomato is converting paper menus into a digital app for iOS and Android users.

The organization has grown effectively since 2008; its upward graph and success timeline result from its creative business plan and revenue generation strategy. The digital transformation in food and beverage industry plays a major role in the growth of this organization.  

Uniqueness in Zomato business model has gotten a good measure of funding from investors and helped the organization gain an extensive user base.

Objective of Zomato

Zomato is a company that works with various strategies to achieve its goals. 

 The financial objective of Zomato is to grow its revenue and fund. The growth goal is continually expanding and increasing the number of customers and page traffic. And to connect with customers across the globe. Extending its global reach as a leading service provider is the worldwide objective of Zomato.

Transforming the website and app into user-friendly and well-designed is another crucial objective of Zomato. They acquired Urbanspoon for $52 million to expand their business in US, Canada & Australia to become the most significant player in the food supply markets.

While the primary objective of Zomato was to make the process of finding a restaurant straightforward.

Zomato Business Model

Zomato business model

Customer segments of Zomato

  • Users – Zomato’s target customers are people who want a variety of foods from their local restaurant and prefer home deliveries.
  • Local Restaurants – Zomato provides a broad platform for local businesses to create a brand name for themselves. 
  • Reviewers – The content contributors who help to add pictures and reviews of the restaurant business. It also gives people a platform to develop their skills as food vloggers.

Unique value propositions of Zomato

  • Zomato is focused on providing something new and extra to customers every time.
  • They are a platform for restaurants to create different values for customers by providing customer feedback and unique offers for customers.
  • Efficient use of technology to help customers to track their orders and receive them on time.
  • Zomato is widely available across 24 countries and 10000 cities.

Key partners of Zomato

  • Zomato has created an Uber taxi partnership for users to book a trip to the restaurant they intend on dining at. 
  • Zomato has formed a partnership with London & Partners to help extend their virtual food reach in the regions of Europe. 

Key activities of Zomato

  • The business model of zomato needs to evaluate its main activities. The primary aim of Zomato was to help in finding out the best restaurants in a simple way. 
  • It also has main activities like managing and utilizing advertisements, managing network effects, and driving customer experience initiatives.

Key Resources of Zomato

  • Zomato has many resources that helped in its success. It has a massive directory of hotels, cafes, and related businesses in 24 countries. 
  • Zomato is about creating partnerships and winning global business.
  • Zomato’s high-quality database and employees in different countries are other vital essential resources of zomato.

Channels of Zomato

  • With the increase in smartphone usage, several companies like Zomato are focused on mobile apps to ensure that their services are enhanced for customers. Zomato’s mobile app is an important platform compatible with Android and iOS users. 
  • Zomato’s website also allows customers to purchase their favorite meals as well as search for restaurant reviews that are featured in Zomato.

Customer Relationship with Zomato

  • The reviews provided by customers who go to the listed restaurants on Zomato’s website play an essential role in its growth and success. Since it is a service business that relies on its customer reviews and for re-purchases as loyal customers.
  • Zomato offers a system of mandatory customer ratings through online support as an element of its customer support. A chatbot is also available for customers.
  • A customer service center is open for customers to get any queries from the staff of Zomato to solve their problems.

Swot analysis of zomato

Swot analysis studies the strengths, Weaknesses, Opportunities, and Threats of an organization. The main subject of this study is the external and internal factors that could impact every firm. Strengths and weaknesses are internal characteristics, whereas opportunities and threats are external.

The SWOT analysis is important for an organization to build its strategic plans and decisions. The SWOT analysis of Zomato is more beneficial for every business for adapting its business and social media marketing strategies for e-commerce and emerging trends.

Strengths of Zomato

The critical strength of Zomato is that it now has many customers. It results in a large number of deliveries every day.

And it is one of the two giants of this type of business; obviously, the one is Zomato, and the other is Swiggy. Also, it has a firm brand name.

Zomato has expanded to 24 countries fast. Another necessary strength of Zomato is the app design. Zomato has already won awards for the fantastic design and user-friendliness of the application. These are the essential strengths of Zomato. 

Weakness of Zomato

The major weakness of this organization is the security breach that happened in 2017. The data of 17 million customers were exposed to risk. It needs a robust security system. There is no proper customer support, and they need to update the data more frequently. There are a lot of restaurants’ old menus in the app, and they still need to correct them. And another one is that increased competition. Search engines and similar food discovery apps such as Swiggy cause a lot of obstacles to the expansion of the business in any specific area.

Opportunities of Zomato

The number of users using Zomato will increase shortly. Because now the internet is not accessible to everybody. So the number of users is going to increase in the future. This is a significant opportunity for Zomato.

The development of technologies is another critical opportunity for Zomato.

India’s population is enormous, and most people don’t have internet access right now. If they get smartphones and the internet, Zomato’s get many more customers. 

Threats of Zomato  

Zomato is the first in this field to be launched into the Indian market. Zomato certainly has the first-mover advantage. There was ample room for the company to leverage its business model on the global market. But recently, the business model has turned unstable. Any startup company with the proper knowledge and experience in this field can now profit from the model. 

The guidelines and government policies to ensure customers’ data privacy and security are other challenges for Zomato. These regulations slow the development of the business operations of Zomato. 

Comparative analysis between Zomato and swiggy

Food is an essential need for everyone. The food industry has grown from small-scale shops that offered food covered by leaves earlier to order your favorite food with a single click from your home. 

Digital platforms are now an attractive option, especially after covid situation. People are looking to buy food, clothes, and groceries without leaving their homes and office. 

Zomato and swiggy are India’s leading dominant players in the food delivery industry. In a country with a considerable population, we can see people who deliver food wearing red and orange shirts every day.

Here is a comparative analysis between zomato and swiggy.

Zomato is the top choice for free categories of food and drinks, with more than 100 million downloads. It has been awarded a score of 4.0, five stars based on four million reviews. It also is a reliable response to reviews posted by users, both positive and negative reviews. 

Positive reviews Include the advantages of fast delivery and discount provided by them. Negative reviews are based on the shipping charges in Zomato. The comparative analysis between Zomato and Swiggy helped to know about the success of both organizations.


In online food delivery service, Zomato reached an all-time high in 2021 in terms of sales since most people stayed inside due to the pandemic. Zomato’s food delivery service is stable and moving towards growth. This means that online food delivery offers considerable potential for growth in the future.

Zomato business model and digital marketing strategies helped the company to grow in these years. 

Do you want to know more digital marketing strategies and swot analysis? Please connect with nexxacorporates.com

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