How Zomato’s Business Strategy Enabled It to Become a Global Food Delivery Giant
Zomato is a popular online food ordering and restaurant discovery platform that started its journey as Dominos’ rival in India. Until 2015, Zomato’s main business was restaurant discovery, with a limited presence in food delivery. However, after realizing the potential in the food delivery industry, the company shifted its focus and introduced innovative strategies to cement its position as a global food delivery giant.
1. Diversification from Discovery to Delivery
Zomato expanded its business model from restaurant discovery to food delivery, recognizing the growth potential in the food delivery market. In 2015, it launched Zomato Order, a food delivery service. The company worked towards building a robust infrastructure, including logistics, technology, and operations for food delivery.
It also acquired UberEATS in India, strengthening its market position. Today, Zomato delivers in more than 25 countries, covering over 10,000 cities worldwide.
2. Collaboration with Restaurants
Zomato created a win-win scenario for both restaurants and customers. With its delivery services, restaurants increase their customer base without compromising their reputation or quality of service.
Zomato also collaborated with restaurants to provide exclusive deals and discounts to customers who order food through its app. This partnership helped restaurants boost their sales by reaching out to a new customer base, and in turn, increased Zomato’s delivery volume.
3. Use of Artificial Intelligence
Zomato leveraged Artificial Intelligence (AI) technology to personalize its user’s experience. Its machine learning algorithm suggests personalized restaurant recommendations based on user behavior, ordering history, and various other factors.
It also uses AI to predict delivery ETA (Estimated Time of Arrival). This results in accurate and real-time delivery information, improving customer satisfaction. Furthermore, AI-powered chatbots prompt customer feedback, build customer engagement, and ensure swift resolution of complaints.
4. Focus on Customer Satisfaction
Zomato focuses on customer satisfaction to build and retain customer loyalty. They implemented a “Zero Error Tolerance” policy, where its delivery executives have to retrace their journey to return a canceled order.
Zomato’s 24×7 customer care is also crucial in ensuring customer satisfaction. Any complaints or feedback are quickly addressed, with customer service representatives working at lightning speed to resolve the issues.
Conclusion
Zomato’s elite status as a global food delivery giant is a result of its innovative business strategies. Its focus on collaboration with restaurants, use of AI, and customer satisfaction has contributed to its global success. Zomato’s diversification of its business, from restaurant discovery to food delivery, has given it an edge over competitors. It has positioned itself as a customer-centric company by leveraging technology and innovation. The company’s transformation is an excellent example of how businesses can evolve to cater to changing consumer requirements and market trends.
