In the recent past, the business of Zomato has been affected by a host of controversies— a full-blown restaurant tussle — but the company has shown remarkable resilience to overcome the setbacks.
Revenues are up by 225 percent and earnings before interest, taxes, depreciation, and amortization (EBITDA) loss is down by 40 percent as compared to March 2019 in September 2019, according to a business report released by Zomato.
The startup delivered food in 200 cities in April 2019. The distribution has risen to 500 cities today. Volumes in the top 15 cities have doubled over the past year, while the remaining cities have already posted 35% of orders.
Zomato’s program for [email protected] also places 3 million orders a month. Making all of this possible— ensuring that your food arrives on time— is more than 2,00,000 distribution partners.
New restaurant listings have risen since last year by 144 percent. Table reservations grew organically, with no investment, from 8,00,000 in January 2019 to over 1.3 million in September 2019.
The Gold loyalty program of Zomato needs improvement due to less involvement of restaurants, less than 5 percent of restaurants are involved while 1.4 million members have signed up across the globe. This is happening because they are unable to handle the heavy discounts which food aggregators expect from restaurants.
For this very reason, some restaurateurs initiated a #logout movement on social media, but Zomato listened to them and made changes to the Gold Program. According to the agency, those restaurants have since signed on to see a 100 percent change in their revenues.
A third party study confirmed the value of the Gold Program to consumers and restaurants and stated: after partnering with Zomato Gold, gold partners saw an average 35 percent increase in their business.
Gold raises the restaurant industry’s overall size. The dining frequency for Gold members has increased after membership from 2.8 to 3.3 times/month. Up to 90 percent of Gold members are experimenting with new places, bringing new restaurants to the foot.
Zomato has launched sustainable campaigns like’ Hyperpure’ to supply their restaurant partners with clean and fresh ingredients.
‘Hyperpure’ sales for this year’s first half (H1) stands at $6.5 million. They’ve successfully completed more than 65,000 orders for 2,200 restaurants across Delhi and Bengaluru over the past six months. The report said that on average restaurants position 5-7orders every month, with an average order value of $100 (Rs 7,000).
Regarding global climate issues and food waste in mind, Zomato also began collecting and processing used cooking oil at its facilities and supplying it to biodiesel manufacturing facilities. The oil emits 75% less carbon compared to diesel/petrol. So far, from over 1,000 kitchens in the Delhi National Capital Region (NCR), Zomato has collected 130 tons of used oil per month and will expand this operation to five more cities from this month onwards.
To take care of its people, whether they are workers or distributors. A Sunday school has begun for the distribution partners ‘ children. The organization also set up 26 weeks of paid leave for new parents (men and women) and provided an endowment of $1,000 (Rs 70,000).
The company recently arranged a Town Hall to celebrate its 11th anniversary, where the highest performing distribution partners and their families are present. With the aid of ‘Zomans’ and feeding the Hunger volunteers of India, Zomato has provided 1,00,000 meals to the underprivileged in 11 countries.
“In the first month of this year, feeding India delivered 78,300 monthly meals to the vulnerable, rising to over 1,6 million meals a month in September 2019. Feeding India now has more than 22,500 volunteers in 95 cities, up from 8,500 volunteers in 54 cities in January 2019,” the study said.
A’ Founder ‘ scheme is launched in which the company chooses a person that represents values that are important for the ongoing success of Zomato and enables this person to make decisions on behalf of the company.