Caselet: Zomato Limited – Navigating

Growth, Competition, and Public Trust in

India’s Food-Tech Industry

1. Introduction
Zomato Limited has been one of India’s most visible
success stories in the digital economy. Founded in 2008, the
company transformed the way urban India eats—digitizing
restaurant discovery, delivery, and customer engagement.
Over the past decade, Zomato has evolved from a simple
restaurant listing site into a tech-driven platform that
integrates consumers, delivery riders, and restaurant
partners through one of the largest food delivery networks
in Asia.
However, Zomato’s growth has been accompanied by
several challenges—sustainability of its business model,
labor concerns, and intense competition. The company’s
strategy has constantly evolved to balance customer
satisfaction, profitability, and brand ethics. This caselet
explores how Zomato manages this balance amid the fast-
changing dynamics of India’s food delivery market.

2. Company Background
Zomato was started by Deepinder Goyal and Pankaj
Chaddah in Gurugram as [Link]. It was renamed
Zomato in 2010 and soon expanded to major cities in India.
The app allows users to browse restaurants, place orders,
and rate experiences. In addition, Zomato provides services
such as advertising solutions for restaurants, a subscription
model for customers (Zomato Gold), and a business-to-
business supply chain network (Hyperpure).
The company went public in 2021, becoming one of India’s
most celebrated tech IPOs. Its listing was oversubscribed by
more than 30 times, showing strong investor confidence.
Zomato’s mission is to “better the way the world eats,”
supported by data-driven insights, innovative technology,
and a vibrant delivery ecosystem.

Exhibit 1: Key Milestones of Zomato (2008–2025)

Yea
Event
r
2008 Founded as [Link] in Gurugram
2010 Rebranded as Zomato
2015 Expanded food delivery services in India
2018 Launched Zomato Gold (subscription model)
2020 Introduced contactless delivery during COVID-19
2021 Launched IPO on Indian stock exchanges
Acquired Blinkit (formerly Grofers) for instant grocery
2022
delivery
2024 Crossed 75 million monthly active users
2025 Announced carbon-neutral delivery goal by 2027

3. The Business Model and Market Position

Zomato operates on a three-sided platform—customers,
restaurant partners, and delivery partners. Its revenue
primarily comes from:
1. Delivery commissions,
2. Restaurant advertisements,
 3. Subscription plans, and
4. Quick-commerce (Blinkit).
As of FY 2024–25, Zomato operated in over 1,200 Indian
cities and had an international presence in select regions
such as the UAE and Sri Lanka. Despite heavy competition
from Swiggy and emerging players like ONDC-based
delivery services, Zomato retained a dominant market share
in India.

Exhibit 2: Zomato’s Financial Performance (₹

Crores)
Financial Revenu Operating Active Users Market Share
Year e Loss (Mn) (%)
2020–21 1,940 -816 32 42
2021–22 4,100 -1,220 50 44
2022–23 6,700 -1,100 62 45
2023–24 9,200 -390 71 46
2024–25* 10,800 +120 (profit) 75 47

*Projected data based on company disclosures and analyst

estimates.
After years of losses, Zomato reported its first annual profit
in FY 2024–25, primarily due to improved delivery
efficiency, reduced discounts, and rapid growth of Blinkit’s
quick-commerce division.

4. Key Issues and Challenges

a) Labor and Gig Worker Concerns
Zomato employs over 350,000 delivery partners across
India, most of whom work on a gig basis. These workers
often face long hours, uncertain income, and road safety
risks. While Zomato offers accident insurance and incentive
bonuses, fluctuating delivery rates have led to periodic
protests. The company faces the dual challenge of
maintaining delivery affordability while ensuring fair
compensation for riders.
b) Competition and Pricing Pressure
Swiggy remains Zomato’s closest competitor, and the entry
of ONDC (Open Network for Digital Commerce) has
introduced new low-cost delivery options. This puts
constant pressure on Zomato’s pricing strategies. The
company must strike a balance between offering discounts
to retain users and maintaining profitability to satisfy
investors.
c) Restaurant Relations
Restaurant partners have criticized Zomato’s high
commissions and promotional structures. The “#Logout”
movement in 2019, where thousands of restaurants
temporarily boycotted aggregator platforms, forced Zomato
to reconsider its partnership models. Since then, it has
introduced tier-based commission plans and loyalty
programs for restaurants.
d) Sustainability and Image Management
Zomato’s marketing is known for its humor and relatability.
However, a few campaigns have drawn public backlash for
being tone-deaf or culturally insensitive. The company has
since focused on more socially conscious communication,
including campaigns on food wastage and environmental
responsibility.

5. Strategic Responses
Zomato has adapted to these challenges through a
combination of strategic innovation and corporate
responsibility initiatives.
1. Operational Efficiency – The company adopted AI-
based delivery optimization systems that reduce idle
time and fuel usage.
2. Worker Welfare – Zomato launched a Partner Welfare
Fund to support riders during emergencies and
introduced paid “rest hours” in select metro cities.
3. Sustainability Goals – Plans to achieve carbon-neutral
delivery by 2027 through electric bikes and eco-
friendly packaging.
4. Diversification – Expansion of Blinkit into quick
grocery delivery and Hyperpure for B2B food supply
has reduced reliance on restaurant deliveries.
5. Customer Loyalty – Revamped its subscription
program as Zomato Gold+, combining food and
grocery benefits.

Exhibit 3: Customer & Partner Sentiment Survey

(2025)
 Stakeholder Positive Opinion Neutral Negative
Key Concern
Group (%) (%) (%)
High surge pricing during peak
Customers 78 12 10
hours
Restaurant Commission fees and visibility
64 18 18
Partners issues
Delivery Riders 59 22 19 Income stability and working
hours
Investors 85 10 5 Consistency of quarterly profits

(Source: Primary data compiled from hypothetical survey

of 1,000 respondents)

6. Analysis and Discussion

Zomato’s business strategy reflects a constant balancing act
between innovation, cost efficiency, and stakeholder
satisfaction. Its decision to acquire Blinkit shows an
understanding of changing consumer behavior—shifting
from food delivery to instant commerce. However, while
diversification brings growth, it also increases operational
complexity.
From a human resources perspective, Zomato’s reliance on
gig workers raises questions about long-term sustainability.
The company’s attempts to introduce welfare programs are
steps in the right direction, but challenges remain in
ensuring equitable earnings and safety for riders.
On the branding front, Zomato’s marketing agility—
especially its humorous social media tone—has kept it
culturally relevant. Yet, it must continue to refine its
messaging to align with social sensitivities and corporate
responsibility.
Financially, the turnaround to profitability in 2025 marks a
significant milestone. However, the next challenge will be
sustaining profits without cutting essential costs or
overburdening delivery partners. Continuous innovation in
logistics, data analytics, and customer retention will remain
central to Zomato’s competitive advantage.

7. Conclusion
Zomato’s evolution from a restaurant listing site to a global
food-tech powerhouse captures the essence of India’s
digital transformation. The company’s journey underscores
the importance of adaptability, responsible innovation, and
stakeholder balance.
Looking ahead, Zomato’s long-term success will depend on
its ability to maintain ethical labor practices, foster fair
partnerships with restaurants, and continue innovating in
customer experience and technology. With its strong brand
identity and expanding ecosystem, Zomato stands poised to
define the next phase of India’s online food and quick-
commerce revolution.

Exhibit 4: Zomato’s Diversified Business Model

(2025)
Contribution to Revenue
Segment Key Offerings
(%)
Food Delivery App-based restaurant orders 58
Quick Commerce Instant grocery & daily
25
(Blinkit) needs
Hyperpure Supply chain for restaurants 10
Subscriptions & Ads Gold+, in-app advertising 7

Submitted by:
Argha Sengupta – 24LABT018009
Krish Khakhkhar – 24LABT018021
Suyashveer Pratap Singh – 24LABT018051