By the way, Swiggy charges 30% commission fee.
The company will remotely continue to operate in the markets from India headquarters.
Zomato had earlier claimed that it has achieved operational break even in six countries including India, the UAE, Lebanon, Qatar, the Philippines and Indonesia.
However, Zomato said that the investors do not understand the business model and will become profitable very soon. The company has also claimed that it is profitable in eight countries and its ad business in various countries has up to 93% gross margin.
“Do not build a business for investors , keep on building and one day people will believe in what you are building.”
Burning money in an unreasonable way to grow the business doesn’t make sense. Agreed, competition is tough, but positive unit economics are necessary for any business to scale. Building companies on negative unit economics is an unproven concept, and has far too many disasters associated to it.
The feature allows users to make, modify, and cancel bookings in 3 simple steps at any given time of the day, even outside of the restaurant’s operating hours. The app also makes bookings stress-free by syncing them with calendars, and sending reminders prior to the booking time.
Zomato will be shutting down its online ordering service in Lucknow, Kochi, Indore, and Coimbatore. Zomato launched its online food ordering business in 2015 and had expanded this offering to 14 cities. The combined order volume in these 4 cities accounted for less than 2% of Zomato’s total order volumes.
An online petition was recently started, urging Zomato to ensure background checks and training for its delivery team. While Zomato functions as the technology enabler, it does not have its own delivery fleet. Zomato is working together with Grab and Delhivery to ensure police verification for all.
85% of users ordered food online using their mobile phones. When it comes to user demographics, 18-24 and 25-34 age group dominate the online ordering space! And yeah, Cash on Deliver wins the payment methods.
People in Delhi NCR clicked on Zomato’s *foodporn* banners ads the most on desktop while Bangalore came a close second. The highest number of clicks in Delhi came from around the Hauz Khas area (hey! there is IIT Delhi), while for Bangalore, it was Koramangala (startup+tech hub area) and Powai for Mumbai (IIT again!).