.

KUVEMPU UNIVERSITY
Project Report on
A STUDY ON CUSTOMER PERCEPTION TOWARDS ONLINE FOOD
ORDERING APPS WITH SPECIAL REFERENCE TO ZOMATO APP
IN SHIVAMOGGA CITY
Submitted in Partial Fulfillment of the Requirement for the Award of the Degree In

BACHELOR OF BUSINESS ADMINISTRATION

BY
CHANDANA. J.S
Register No.BB178912

UNDER THE GUIDANCE OF

Mr. VINAY KUMAR K.S

Assistant Professor
Department of Commerce and Management
PESIAMS, SHIVAMOGGA

PES Institute of Advanced Management Studies,

(Affiliated to Kuvempu University)
Recognized by Government of Karnataka
N H 206, Sagar Road, SHIVAMOGGA – 577 204

2019-2020
 CERTIFICATE

This is to certify that CHANDANA. J.S bearing the Register No. BB178912 of
VI Semester BBA has carried out the Project Work entitled “A Study On
Customer Perception towards Online Food Ordering Apps with special
reference to Zomato App in Shivamogga City” under guidance of
Mr. Vinay Kumar K.S as part of her/his curriculum activity as per the norms
for obtaining Degree in Bachelor of Business Administration from PES Institute
of Advanced Management Studies, Shivamogga during the Academic year
2019-2020.

Mr. Vinay Kumar K.S Dr. G M Sudharshan Dr.K.Sailatha

Assistant Professor HOD Principal
Department of Commerce and Department of Commerce and PESIAMS
Management, Management, Shivamogga
PESIAMS PESIAMS
Shivamogga Shivamogga

Place: Shivamogga

Date:
 DECLARATION

I hereby declare that the project work entitled “A Study On Customer

Perception towards Online Food Ordering Apps with special
reference to Zomato App in Shivamogga City” is the result of my own
study done under the supervision and guidance of Mr. Vinay Kumar
K.S., Assistant Professor, Department of Commerce and Management,
PES Institute of Advanced Management Studies, Shivamogga
– 577204 and I further declare that the findings in this project report are
independent study done by me and it has not been submitted earlier to
any University/Institution for the award of any other course.

CHANDANA. J.S
Reg. No. BB178912
VI Semester BBA

Place: Shivamogga

Date:
 Table of Contents

Chapter Chapter name Page No.

1. Introduction 01 - 08

Company Profile 09 - 24
2.

3. Conceptual Frame Work 25 - 45

Analysis of data and interpretation 46 - 73

4.

Findings, Suggestions And Conclusion 74 - 78

5.

Questionnaire

Bibliography
 List of Tables

Table no Title Page no

4.1 Classification of Respondents on the Basis of Gender 48
Classification of the Respondent’s on the Basis Marital
4.2 49
Status
4.3 Classification of the Respondent’s on the Basis Age Group 50
4.4 Table showing Respondent’s Educational Qualification 51
4.5 Classification on the Basis of Respondent’s Occupation 52
4.6 Table showing Monthly Income of the Respondents 53
4.7 Table shows on the Basis Respondent’s order food online 54
Table showing which Company comes first to mind while
4.8 55
here the word food ordering app
Table shows respondents Come to know about Order food
4.9 56
line
Table shows How often do respondents order food in
4.10 57
online
4.11 Respondents do prefer to order food in Online 58
Table shows Approximate money spend on ordering food
4.12 59
per time
Table shows respondents that food ordering App will
4.13 60
prefer for online food order
Table shows which advertising influences to buy / suggest
4.14 61
any product
4.15 Table shows respondents Typically order meal food online 62
Table shows How did respondents Come to Know about
4.16 63
Zomato
Table shows respondents experience on other apps as
4.17 64
compared to Zomato
Table shows respondents often the product review
4.18 65
influence decision
4.19 Zomato promotional scheme on app to visit their app 66
table showing will respondents do market research or
4.20 compare different companies or products before doing 67
online food order
Table shows respondents will pay attention to
4.21 68
advertisements or consider them while doing online
4.22 Reliability of online food ordering apps important 69
Table shows respondents rate the food packing style by
4.23 70
Zomato
Table shows respondents like to rate quality service offered
4.24 71
by Zomato
 Table shows respondents to say about the pricing of
4.25 72
Zomato services
Table shows respondents give ratings towards satisfaction
4.26 73
level with Zomato services
 List of Graphs

Graph no Title Page no

4.1 Classification of Respondents on the Basis of Gender 48
Classification of the Respondent’s on the Basis Marital
4.2 49
Status
4.3 Classification of the Respondent’s on the Basis Age Group 50
4.4 Graph showing Respondent’s Educational Qualification 51
4.5 Classification on the Basis of Respondent’s Occupation 52
4.6 Graph showing Monthly Income of the Respondents 53
4.7 Graph shows on the Basis Respondent’s order food online 54
Graph showing which Company comes first to mind while
4.8 55
here the word food ordering app
Graph shows respondents Come to know about Order food
4.9 56
line
Graph shows How often do respondents order food in
4.10 57
online
4.11 Respondents do prefer to order food in Online 58
Graph shows Approximate money spend on ordering food
4.12 59
per time
Graph shows respondents that food ordering App will
4.13 60
prefer for online food order
Graph shows which advertising influences to buy / suggest
4.14 61
any product
4.15 Graph shows respondents Typically order meal food online 62
Graph shows How did respondents Come to Know about
4.16 63
Zomato
Graph shows respondents experience on other apps as
4.17 64
compared to Zomato
Graph shows respondents often the product review
4.18 65
influence decision
4.19 Zomato promotional scheme on app to visit their app 66
Graph showing will respondents do market research or
4.20 compare different companies or products before doing 67
online food order
Graph shows respondents will pay attention to
4.21 68
advertisements or consider them while doing online
4.22 Reliability of online food ordering apps important 69
Graph shows respondents rate the food packing style by
4.23 70
Zomato
Graph shows respondents like to rate quality service
4.24 71
offered by Zomato
 Graph shows respondents to say about the pricing of
4.25 72
Zomato services
Graph shows respondents give ratings towards satisfaction
4.26 73
level with Zomato services
 A Study on Customer Perception towards Online Food Ordering Apps with
special reference to Zomato App in Shivamogga city

Chapter – 1
Introduction
1.1 Introduction
1.2 Review of Literature
1.3 Need for the study
1.4 Statement of the Problem
1.5 Objectives of the Study
1.6 Scope of the Study
1.7 Research Methodology
1.8 Sources of data collection
1.9 Sampling design
1.10 Limitations of the study

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Introduction
1.1 Introduction

The recent development of the Internet has augmented the e-commerce industries in a
country like India. E-commerce development has made Online food ordering services
seamless for people who want to get food delivered at their doorstep. Although
consumers continue to go out for the meals, consumers feel very convenient to order
food online since it frees the customer from personally visiting the restaurants. In this
study, our main focus was to analyze the perception of consumer towards Online food
ordering services through Zomato.. In order to understand what factors have played a
dominant role to attract consumer in the developing country like India towards them,
we decided to study on the consumer perception on online food ordering app like
Zomato.
In today’s world service sector contributes 64.80% in GDP. Zomato is one of the most
popular applications that provide services to the user to discover restaurants. The rise
of digital technology is reshaping the industries. With the increased use of technology,
the number of people engaging into the digital sector are rapidly increasing. Even
Consumers are accustomed to shopping or even ordering online through apps or
websites, with maximum convenience and transparency, expecting the same
experience that they would get from the outlet itself. To match up with the
consumer’s expectations apps are providing increased facilities and services to the
customers. This scenario doesn’t exist only in one country but all across the globe.
Being up to date with the customers’ expectations helps firm retain customer’s to a
greater extent.
Zomato is an online discovery guide for restaurants, bars, pubs and clubs and for dine-
outs. The registered users are required to post reviews and rate (on a scale of 1 - 5
stars) the restaurants on the basis of their choice, visit and experience. The website
helps in defining the restaurant/pub/club on the basis of presence or absence of air
conditioning, smoking area, WiFi Internet, stag entry, live performances and outdoor
seating or whether non-vegetarian food and alcohol are served or not. Zomato also

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provides information related to cuisines served, operation timings, approximate cost

of a meal for two, credit cards accepted or not.

1.2 Review of Literature

Mrs I.Karthika, Miss. A.Manojanaranjani (2018), in their article about “A Study

on the various food ordering apps based on consumer preference” stated that the
advent of the Internet, accompanied by the growth of related technologies, has created
a significant impact on the lives of people around the globe. For marketers, one of the
most significant impacts has been the emergence of virtual stores that sell products
and services online. Consumer can now purchase goods and services virtually
anywhere, 24 hours a day, 7days a week, without geographical and temporal
boundaries. The goal is to save time of customers by providing facilities like vacancy
list at reception, digital food ordering, instant e-billing and fast parking service which
will result in consumer satisfaction and ultimately profit the restaurant. This
automated system saves time, reduce human errors, and reduce manpower and gives
consumer satisfaction, thus beneficial for both restaurant and customer Ms.
Harshleen Kaur Sethi (2017), in his article about “Product and Brand Strategy of
Zomato” stated that With the advent of e-commerce boom in India, the in almost
every vertical from online shopping to ticket bookings, healthcare, etc. One of such
verticals is e-food industry, which has very efficiently utilized the e-commerce
platform in the online food review and food ordering business. This is a vertical,
which has brought almost every restaurant in India under a single roof in the hands of
the consumer. Now, finding a great place to eat, ordering food, reserving tables, and
giving positive or negative feedback for a restaurant has become very easy and
accessible for the consumer. This vertical has shown tremendous growth over the last
5 years signifying the untapped potential. The pioneer and leader of this segment in
India has been Zomato. Zomato is a brand, which every consumer would associate to
when he thinks of an e-food platform.
H.S. Sethu & Bhavya Saini (2016), “Customer Perception and Satisfaction on
Ordering Food via Internet, a Case on Foodzoned.Com, in Manipal” stated that their

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aim was to investigate the student‟s perception, behavior and satisfaction of online
food ordering and delivery services. Their study reveals that online food purchasing
services help the students in managing their time better. It is also found that ease of
availability of their desired food at any time and at the same time easy access to
internet are the prime reasons for using the services.
Leong Wai Hong (2016), “Food Ordering System Using Mobile Phone” stated
thatthe technological advancement in many industries have changed the business
model to grow. Efficient systems can help improve the productivity and profitability
of a restaurant. The use of online food delivery system is believed that it can lead the
restaurant‟s business grow from time to time and will help the restaurants to facilitate
major business online.
Hong Lan, et al, (2016), “Improvement of Online Food Delivery Service Based on
Consumers‟ Negative Comments” stated that online food delivery market is immature
yet; there are some obvious problems that can be seen from consumers‟ negative
comments. In order to solve these problems, we can neither rely merely on the self-
discipline of online food delivery restaurants nor the supervision and management of
online food delivery platforms. Only by taking laws as the criterion, with the joined
efforts of the online food delivery platforms and restaurants, the government
departments concerned, consumers and all parties in the society, can these problems
be solved and a good online take away environment can be created.
Varsha Chavan, et al, (2015), in their study about “Implementing Customizable
Online Food Ordering System Using Web Based Application” the use of smart device
based interface for customers to view, order and navigate has helped the restaurants in
managing orders from customers immediately. The capabilities of wireless
communication and smart phone technology in fulfilling and improving business
management and service delivery. Their analysis states that this system is convenient,
effective and easy to use, which is expected to improve the overall restaurant business
in coming times.
Serhat Murat Alagoz & Haluk Hekimoglu (2012), “Customer Perceptions of
Electronic Food Ordering” in their stated that e-commerce is rapidly growing

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worldwide, the food industry is also showing a steady growth. In this research paper
they have used the Technology Acceptance Model (TAM) as a ground to study the
acceptance of online food ordering system. Their data analysis revealed that the
attitude towards online food ordering vary according to the ease and usefulness of
online food ordering process and also vary according to their innovativeness against
information technology, their trust in eretailers and various external influences.
Sheryl E. Kimes (2011), “Customer Perceptions of Electronic Food Ordering” his
study found that perceived control and perceived convenience associated with the
online food ordering services were important for both users and non-users. Non-users
need more personal interaction and also had higher technology anxiety to use the
services.

1.3 Need for the study

Researchers have keenly observed that people sometimes are not willing to spend
hours to enjoy good food at the restaurants. So, he was curious to know whether such
apps can help customers to change their perception about the dining experience

1.4 Statement of the Problem

Biggest challenge Zomato is facing under Zomato Order in India is the delivery. They
don’t have their own delivery system like Swiggy & Runnr. Thought they are
providing deliveries with their on invested Grab but they are also failing in service.
QSR & Only delivery merchants are getting more orders from Zomato but only issue
they are facing is in delivering it and it’s spoiling the brand of merchants also. I think
they need to look into their delivery services which will be prompt and to rely on. To
overcome with issues present study is conducted

1.5 Objectives of the Study

 To study the customer perception towards Online Food Ordering app Zomato.
 To determine the motivating factor for purchasing the product through
Zomato.

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 To find out the expectations of the customers while ordering food from
Zomato App.

1.6 Scope of the Study

Scope of the study is limited towards those customers who have experienced such
online food delivery services through Zomato app in Shivamogga City. The study is
basically conducted to know how consumers perceive the online food delivery
services. The perception of consumers may vary under different circumstances. From
this study, we can have a better understanding of the Online Food Delivery Service
Market. We will know about the consumer perception regarding the services they
provide in Shivamogga area and will get to know the variables affecting their
perception. Therefore, these findings may help the service providers to work upon on
these variables to fill up the gaps in the mindset of consumers. The survey was
conducted in different areas of Shivamogga and around 100 responses were collected

1.7 Research Methodology

The descriptive research is used to identify the perception and expectation of

consumer and its impact brand preferences.
The study is based on the collection of primary data. Quantitative research method
was used in this research so as to investigate and observe the collected data with the
help of statistical, mathematical and computational techniques. A structured
questionnaire was designed with close-ended and open-ended questions. It was
designed in such a manner so that it caters all the areas of study. The survey was
conducted in different areas of Shivamogga and around 100 responses were collected.
As the population was small & homogeneous, all subsets of the frame are given an
equal probability. Thus non-probability sampling method was used. Under non-
probability technique, convenience sampling method was used. The population
consist of the students, self-employed, homemaker, private company employee and
business owners of different areas in Shivamogga. For all variables used in the study,
multi-item scales (5-point, Likerttype) ranging from strongly agree (5) to strongly
disagree (1) are used.

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1.8 Sources of data collection

Primary Data
Primary data has been used by me in the form of Questionnaire & Observation, which
are the two basic methods of collecting primary data, which suffices all research
objectives.
Secondary data
Secondary data sources like catalogue of the company, product range book of the
company, various internet sites and Literature Reviews have been used.

1.9 Sampling design

The research was designed to achieve the above mentioned objectives and the
following tools were used to collect the required data.
Sampling Size
The sample size for the consumer’s survey is 50.
Sampling Method
The Convenience sampling method was adopted for the study with a sample size of
100 respondents from the customers. Convenience sampling techniques has been
usedto select the respondents. Sample design is non probability sampling design.
Sampling Frame
The sample frame represents the groups of respondents that were contacted during the
survey it also represents the profession of the respondents that were connected for
data.
Tools For Statistical Analysis
Structured Questionnaires were the tools for data collection. The Questionnaire was
neatly designed and constructed for the purpose in line with the objective of the study.
Analyze the data and interpret the results by using percentage analysis and ranking.
simple Percentage Method.

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1.10 Limitations of the study

 A small sample size of 50 respondents has been taken

 The data has been collected within Shimoga city
 Shortage of time due to Covid 19 and this the major limitation of the study

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Chapter – 2
Company Profile
2.1 Introduction
2.2 History
2.3 Vision and Mission Statement
2.4 Investments
2.5 Acquisitions
2.6 Key People/Management at Zomato
2.7 Swot Analysis
2.8 Marketing Mix of Zomato – Zomato Marketing Mix
2.9 Marketing Strategy of Zomato
2.10 Competitors

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Company Profile
2.1 Introduction

Zomato is a restaurant search and discovery service founded in 2008 by Deepinder

Goyal and Pankaj Chaddah, headquartered in Gurgaon, Haryana, India. It currently
operates in 24 countries, including India, Australia, and United States. It provides
information and reviews on restaurants, including images of menus where the
restaurant does not have its own website. Zomato provides a user friendly
environment to consumers where they can review, rate, share and search the favorite
or nearby restaurant.
Zomato was awarded as Startup of the year in 2014 by ET. Google awarded Best Top
Developer Badge to Zomato in 2016. Zomato has recently launched user’s choice
award in Delhi national capital region, Mumbai, Pune, Bengaluru, Chennai,
Hyderabad and Kolkata.
Launched in Delhi 11 years ago, Zomato has grown from a home project to one of the
largest food aggregators in the world. We are present in 24 countries and 10000+
cities globally, enabling our vision of better food for more people. We not only
connect people to food in every context but work closely with restaurants to enable a
sustainable ecosystem.
Back in 2008, all it took was an idea to enable digital access to thousands of
restaurant menus. Three passionate foodies who hated waiting in lines, drove around
Delhi to collect menus from restaurants, scan them and put them online. Their idea
has now grown into the vision that drives our team of 5000+ people everyday

2.2 History

Zomato was founded as Foodiebay in 2008. It was renamed Zomato in 2010. In 2011,
Zomato expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and
Kolkata. Subsequently, in 2012, the company expanded operations internationally in
several countries like the United Arab Emirates, Sri Lanka, Qatar, the United
Kingdom, the Philippines, and South Africa. In 2013, Zomato was launched in New

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Zealand, Turkey, Brazil and Indonesia, with its website and apps available in Turkish,
Brazilian Portuguese, Indonesian and English languages. Further in April 2014,
Zomato launched its services in Portugal, followed by launches in Canada, Lebanon
and Ireland in the same year.
The acquisition of Seattle-based food portal Urbanspoon marked the firm's entry into
the United States, Canada and Australia, and brought it into direct competition with
Yelp, Zagat and OpenTable.
With the introduction of .xxx domains in 2011, Zomato also launched zomato.xxx, a
site dedicated to food porn. It later launched a print version of the website content
named "Citibank Zomato Restaurant Guide" in collaboration with Citibank in May
2012, but it has since been discontinued.
With its cloud kitchen, the company aimed to help restaurants to expand their
presence without incurring any fixed costs. Later in September 2017, Zomato claimed
that the company had "turned profitable" in the 24 countries operated in and
announced that the "zero commission model" to be introduced for partner restaurants.
Towards the end of 2017, Zomato stopped accepting updates from its active users by
not utilising moderators to verify and make updates. Restaurant information was not
updated. Users of the app reported issues with new features to pay for orders.
Zomato narrowed down its losses by 34% to ₹389 Cr[clarification needed] for the
financial year 2016–17, from ₹590.1 Cr crore[clarification needed] in the previous
year 2015-16.
In September 2019, Zomato fired the highest number (541 people) of employees
almost 10% of workforce working on back end activities like customer service,
merchant and delivery partner support functions.

2.3 Vision and Mission Statement

Vision

We want to be the ‘Google’ of food. Our vision is to be the global platform when
someone is looking for food locally.

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Mission Statement

 Shaping the future of food.

 Our mission is to ensure nobody has a bad meal.

Tagline:

Discover great places to eat around you.

Goals

 Our goal is to change what you eat.

 Changing how you eat is just a means to an end.

Values

Resilience
We push ourselves beyond our abilities when faced with tough times. When we
foresee uncertainty, we address it only with flexibility.
Acceptance
Feedback is never taken personally, we break it into positive pieces and strive to work
on each and every element even more effectively.
Ownership
People here don’t work ‘for’ Zomato, they work ‘with’ Zomato. We treat every
problem as our own, take accountability and drive the change.
Humility
It’s always ‘us’ over ‘me’. We don’t lose ourselves in pride or confidence during
individual successes, but focus on being our simple selves in every which way.
Spark
We believe in, stand for and are evangelists of our culture - both, within Zomato and
externally with all our stakeholders.
Judgment
It’s not our abilities that show who we truly are - it’s our choices. We aim to get these
right, at least in the majority of the cases.

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2.4 Investments

Between 2010-13, Zomato raised approximately US$16.7 million from Info Edge
India, giving them a 57.9% stake in Zomato. In November 2013, it raised an
additional US$37 million from Sequoia Capital and Info Edge India.
In November 2014, Zomato completed another round of funding of US$60 million at
a post-money valuation of ~US$660 million. This round of funding was being led
jointly by Info Edge India and Vy Capital, with participation from Sequoia Capital.
While in April 2015, Info Edge India, Vy Capital and Sequoia Capital led another
round of funding for US$50 million. This was followed by another US$60 million
funding led by Temasek, a Singapore government-owned investment company, along
with Vy Capital in September.
In October 2018, Zomato raised $210 million from Alibaba's payment affiliate Ant
Financial. Ant Financial received an ownership stake of over 10% of the company as
part of the round, which valued Zomato at around $2 billion. Zomato had also raised
an additional $150 million also from Ant Financial earlier in 2018

2.5 Acquisitions

Zomato has acquired 12 startups globally. In July 2014, Zomato made its first
acquisition by buying Menu-mania for an undisclosed sum. The company pursued
other acquisitions such as lunchtime.cz and obedovat.sk for a combined US$3.25
million. In September 2014, Zomato acquired Poland-based restaurant search service
Gastronauci for an undisclosed sum. Three months later, it acquired Italian restaurant
search service Cibando.
Zomato also acquired Seattle-based food portal Urbanspoon for an estimated $60
million in 2015. Other acquisitions of 2015 include Mekanist in an all-cash deal, the
Delhi-based startup MapleGraph that built MaplePOS (renamed as Zomato Base, and
NexTable, a US-based table reservation and restaurant management platform.)
In 2016, the company acquired Sparse Labs, a logistics technology startup and the
food delivery startup, Runnr, in 2017.

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While in September 2018, Zomato acquired Bengaluru-based food e-marketplace

TongueStun Food for about $18 million in a cash and stock deal. Later in December
2018, Zomato acquired Lucknow-based startup TechEagle Innovations, that works
exclusively on drones, for an undisclosed amount. Zomato claimed that the
acquisition will help pave the way towards drone-based food delivery in India,
building a technology aimed at hub to hub delivery network.
On 21st January, 2020, Zomato acquired its rival Uber Eats' business in India in an all
stock deal

2.6 Key People/Management at Zomato

Deepinder Goyal Founder & CEO

Pankaj Chaddah Co - Founder

Akriti Chopra CFO

Gaurav Gupta COO

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Pramod Rao SVP Marketing

2.7 Swot Analysis

Zomato is the restaurant discovery app and website by Infoedge. Because of its
unique design and user-friendliness, Zomato is loved by its users. The brand has
spread fast across the world. Here is the SWOT analysis of Zomato.
Strengths in the SWOT analysis of Zomato
First mover advantage – One of the best competitive advantages of Zomato is that it
is the first mover in many of the nations where it is establishing itself. Directories and
other forms of restaurant ratings might exist. But as an app Zomato is excellent and
many countries (like India) have loved the usability of the Zomato app.
Evergreen industry – The restaurant industry is an evergreen industry. Sure, there
may be recessions and other downturns which might affect the industry. But overall,
this industry is going to stick around at all times and is only going to grow with rising
disposable income.
Fast Expansion – It is appreciative that Zomato has expanded so fast. It is already in
24 countries and is expanding year on year.
Fantastic design of the app – Zomato has regularly won awards for its app design
and for its user-friendliness. The App design is fantastic and it helps you discover
restaurants nearby as well as in an area you are going to visit.
Number of users – Zomato has a huge number of users using their app. At the same
time, the site also has 90 million visitors a month approximately. With so many users
following the app and site, there are more reviews and hence more chances to find
better restaurants.

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Focused approach – The brand has a very focused approach and has always tried to
bring the most of out of its unique offering. It is well connected with restaurants and
regularly takes feedback from customers as well as restaurants. This focused approach
has also helped the brand image and reputation of the firm.
Excellent funding available – Zomato has picked multiple rounds of funding over
the years and because it is now so well established in many countries, there is a lot of
funding available for the app.
Multiple acquisitions – Zomato has acquired multiple companies most of which are
software or technology related.
Already turning profits – In April 2017, Zomato was profitable in all 24 countries it
was operating in. For a company which is a start-up and has so much funding, it is a
big thing to turn profitable because many funded organizations are still declaring
losses even after a decade of establishment.
Brand Equity – Zomato is valued at $1.4 billion within 7 years of inception. That
says volumes about the popularity and love for the brand.
Fantastic marketing – You can find Zomato working for its own marketing offline
as well as online. Its print ads are hilarious and make an immediate connect with the
audience. It is strong on Social media marketing and uses a combination of ATL and
BTL strategies to attract and retain customers.
Weaknesses in the SWOT analysis of Zomato
Security issues for the app – A major issue for Zomato in the past has been some
security issues due to which the app was hacked and at least 17 million users data was
copied. Such security issues are a nightmare for internet companies.
Still a lot of expansion required – Considering that the app has established in 24
countries, there is good expansion. But at the same time, the app has been started 7
years back and with the amount of funding available for Zomato, the expansion can
be much faster. It is allowing other services to establish themselves in this niche
before it reaches their country.
Word of mouth and Facebook check-ins – Besides such apps, in many places word
of mouth still trumps apps and at the same time, Facebook check-ins are a strong

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competitor wherein people might not need Zomato. Thus, it is an app for early
adopters but definitely not for laggards.
Opportunities in the SWOT analysis of Zomato
Further expansion – The number 1 opportunity for Zomato is to expand to more
countries and establish its base faster. Service industry has a major problem that
services can be copied very fast and very easily. As a result, it is critical for Zomato to
establish and expand itself faster.
More acquisitions – There are and were many small players in this space. Zomato
can acquire several of its competitors and at the same time, it has to keep an eye on
the tech industry and acquire any tech innovation it can get its hands on to keep on
rising.
Cloud restaurants – Zomato is coming up with the concept of Cloud restaurants
wherein restaurants will not have to get a physical space to actually sell their
food products. Instead, they can sell from Zomato.
Creating a community – Zomato does have a huge following but the users do not
interact with each other. Creating a forum and a community out of the users already
following Zomato can be a huge benefit for the brand.
Adoption of the internet and Smartphones – There is a huge increase in the
adoption of Internet across developing and underdeveloped countries as well.
Similarly, adoption of smartphone has also increased. Thus more and more orders and
research about restaurants can happen online instead of through physical visits.
Threats in the SWOT analysis of Zomato
Google’s schema module – One of the major threats Zomato faces right now is the
Schema module of Google wherein google locations itself is getting in restaurant
recommendations. Even google homepage shows the google maps page where you
can search for restaurants within your locality. Google being such a big brand, zomato
faces huge competition from them.
Market followers and challengers – In the service industry, it is very easy to replicate
the success of another service product or offering. Similarly, marketing followers and
challengers can slowly take away the market share of Zomato.

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2.8 Marketing Mix of Zomato – Zomato Marketing Mix

Zomato is an online restaurant search & discovery service provider that was founded
by Pankaj Chaddah and his accomplice Deepinder Goyal in the year 2008. The firm
has grown within a short time to become present in about 23 countries by now.
Formerly known as Foodiebay, the company was renamed to Zomato in 2010 after
which Smartphone applications were introduced in 2011.
Product in the Marketing Mix of Zomato :
Zomato provides its users with restaurant search information and reviews that will
enable one to make an informed decision in regard to the choice of restaurant. Menu
images are offered to customers, especially for those restaurants that aren’t running
their own websites.
Their slogan “Never have a bad meal” has truly been proven right by the company’s
ability to help its users secure the right restaurants for their needs. In general, their
services include POS Systems, Restaurant Search & Discovery, Whitelabel Apps,
Table Reservations & Management and online ordering services. The company lists at
least 1.5 million restaurants across the almost 25 countries where it is present
Other products include the food porn, which is offered in the Zomato.xxx as well as
“Citibank Zomato Restaurant Guide”- a print version of its website content which it
launched in 2012 in collaboration with India’s largest bank Citibank. This print
version has however been discontinued.
Price in the Marketing Mix of Zomato :
Zomato doesn’t charge restaurants for putting their restaurant information on the
Zomato page. However, it doesn’t mean that the restaurants won’t ultimately pay
anything. There are three basic revenue generation avenues or sources namely:
advertisements (sponsor ads & banner ads), restaurant booking and event ticketing
Event ticketing is where tickets for special events are sold through the site basically
for large scale events or parties. Restaurant booking or online ordering is charged at
between 7.5% and 15% of the sales depending on the priority category of the
restaurant.

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Place in the Marketing Mix of Zomato :

Zomato is an online search site that can be accessed by native users of Windows
Phones, Universal Windows Platform i.e. Windows 10 and Windows 10
Mobile, Android users, iOS, and watchOS. It is currently available for use in about 23
countries including India, Canada, Chile, Malaysia, United Arab Emirates, New
Zealand, Lebanon, the United Kingdom, Ireland, Czech Republic, Italy, Sri Lanka,
Poland, Turkey, Slovakia, Portugal, Qatar, South Africa, the USA as well as Australia
among others.
Today, the site receives a flooded traffic of about 90 million visits every month.
Products are available in about ten languages namely: English, Italian, Slovak,
Spanish, Portuguese, Turkish, Polish, Indonesian and Slovak.
Promotions in the Marketing Mix of Zomato :
Zomato is credited for being one of the few brands to have become successful
in content marketing. One of their content marketing strategy, in fact, the
main strategy, is the vast use of images to promote their products.
Such products have been credited for offering pure entertainment. In other words,
images are important promotion features. However, one is not just to pick any image
but the right one. On Zomato, you will not come across one image that doesn’t make
you smile. It is because of this that I will keep waiting for them to post something
new.
Zomato’s content is also always fresh, with the old message being delivered with
unique approaches. Zomato has thus more than just preached about being unique but
has also proven so.
The company has invested vastly on SEO and SME’s. The use of the social media to
promote Zomato has also played an important role in making the company popular.
Their posts on social media are always just some simple industry jargons that help
attract the different audience segments. All their posts and promotions prove that the
company always sticks to the niche and also understands exactly who it is catering to.

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2.9 Marketing Strategy of Zomato

Zomato is restaurant search and discovery and deliver business and was founded by
Deepinder Goyal and Pankaj Chaddah in the year 2008. Zomato currently operates in
more than 24 countries. Initially, it started under the name Foodiebay which was later
changed into Zomato in the year 2010.
Zomato has also expanded overseas to Sri Lanka, Qatar, Turkey, Brazil, Indonesia,
etc. Zomato also claimed that it turned profitable in all 24 countries it operates in. In
February 2017, Zomato introduced its zero commission model in a partner restaurant.
SmartTech magazine announced that Zomato was among the top 25 most promising
internet companies and has been getting regular investments from Info Edge India.
Segmentation targeting and positioning in the Marketing strategy Zomato
Segmentation :
Under the demographic segmentation strategy, Zomato targets the age 18-
35. People who want to dine out and want to research the restaurants they wish to
visit. Zomato has found a larger target segment in the working professionals who
want to dine out and also want to get food delivered at their doorstep.
Zomato has also entered the experiential events segment and had launched the multi-
city food and entertainment carnival called Zealand. Zomato believes that there is an
experience that is needed to be built around food and Zomato has played a significant
role in making that happen.
It intends to launch new products and business lines centered on food in both dine out
and delivery segment.
Target:
The main target customer of Zomato is the youth who are between the ages 18-35 and
people who often want to eat out with their friends and colleagues. It targets those
customers who often refer to ratings and reviews and want to take a decision if the
place is good.
It is those customers who are seeking to have a good time with their friends and want
to be assured that the place is going to worth the price. It also targets the foodie
who wants to experience food and share it with people.

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These people also want to know where they get the best foods in town and visit those
restaurants. The consumption target is all the online opinion seekers of restaurants.
Positioning:
Zomato has positioned itself as a platform that brings restaurants, suppliers,
consumers, food suppliers, and logistics partners together. It aims to create a world
where detailed food consumption and taste patterns across the globe and share that
intelligently with the suppliers.
Zomato is an Indian youth’s go-to-app when it comes to dining out. It has become a
mandate now to check reviews and recommendations before visiting a restaurant and
Zomato is positioned as the app they should look for when it comes to looking for
authentic reviews.
With the launch of Zomato Gold, it has made dining out pocket-friendly for its
customers.
Distribution in the Marketing strategy of Zomato
Zomato revealed that about 40% of the total sales were referral driven. According to
Zomato, almost 30% of the subscribers are coming through referrals and more than $2
Million orders have been made using Z coins. Zomato cross-sells its several offerings
to a customer which has brought huge success as Zomato is able to capture the
customers are any phase.
According to Zomato, customer acquisition cost is very low. Zomato claims that of
the 1.4 million listings it gets, 150,000 are from India and sees 22 million users come
on board every month. Zomato Gold is another program that is referral driven, where
on sharing their referral code, a customer gets a month of the Zomato Gold
services extended.
Brand equity in the Marketing strategy Zomato
The name Zomato has become a synonym for food and restaurants. It has become so
popular among the consumers that they have reached 21 million monthly run rate and
it claims to be a market leader when it comes to food delivery as well. Zomato has
been able to show strong growth because the users are not using Zomato for
discounts, they are using it for convenience.

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To have easy access to food and get reliable information about restaurants. When it
comes to dining out, more than 70% of the customers check the reviews in the app.
Zomato has already laid strong foundations and has huge potential growth because of
its good brand name.
Competitive advantage in the Marketing strategy Zomato
Strategy:
Zomato creates innovative schemes that keep the customers engaged. The Zomato
Gold which is an exclusive membership loyalty program that gives customers an
exclusive dine out and drinking membership with BOGO( Buy One, Get One) and
2+2 complimentary drinks.
The Zomato Gold now has more than 600,000 customers. This has helped customers
to dine out more often, which according to restaurants has helped drive customer
traffic at a higher rate. Gold has made dining out more affordable than it ever used to
be.
The Zomaland which was an experience-driven around food, creating a carnival of
food and music. This strategy to turn food into experience has worked in favor of
Zomato.
Strong Brand Name:
A good brand name is a must when comes to surviving in the industry and Zomato
has been effectively creating a brand name that resonates trust and convenience.
There has been the number of entrants in this market like Food Panda and Uber eats
but they will have to work extensively on their brand value in order to be able to
compete with Zomato.
It has been able to constantly innovate across different verticals and has ensured to
build on the advantage that they have created.
Focus on technology:
The biggest advantage Zomato has over its customers is its beautifully designed User
interface. It is attractive and very easy to browse and this has helped create a pint
of differentiation from its competitors.

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The speed with which the website opens and the mobile application is also extremely
fast and extremely easy to use, even for a novice. Zomato gives a lot of focus and
effort in creating a convincing UI for its customers. Zomato has amazingly used data
science and has been able to crave its way for success.
Zomato has been able to obtain a competitive edge because it is extremely data-
driven. It has been able to drive operational and commercial efficiencies like delivery
time prediction, logistics optimization, ad delivery, and supply prioritization.
Zomato aims to implement the concept of cloud kitchen, which will help a restaurant
to expand its presence without incurring any fixed cost. The focus on Zomato
on technology will help it stay ahead of the competition.
Competitive analysis in the Marketing strategy of Zomato
The food industry is highly competitive with most of the companies doing extremely
good in the market. Google Maps as well includes listing of restaurants in the
neighborhood including reviews, photos, and ratings.
One main advantage Zomato has over Google Maps is that Maps has not started menu
listing. Zomato is still a customer’s favorite restaurant discovery tool. The main
competitor of Zomato is Swiggy when it comes to food delivery space, because of its
extremely well-designed logistics capabilities, it is giving good competition to
Zomato
Foodpanda had a first mover’s advantage as it launched an online order facility much
earlier than Zomato thus cause Zomato to lose the relevant market share. Burrp! Is
another important competitor or Zomato, because of its expansion from restaurant
listing to retails and events outlets, the company’s focus has been distributed but
Zomato has been stuck to its core functions.
Another competitor of Zomato is Uber Eats and it gets about 3.5-4 million orders per
month. Uber Eats and FoodPanda’s acquisition by Ola has further shaken the market.
Zomato will have to continuously innovate and evolve to stay ahead of the
competition.

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Promotion Strategy:
Zomato is one of the few companies to have been successful in the content market
and uses images to promote its products. Zomato ensures that its contents stay fresh
and has invested vastly on SME’s and SEOs.
Another important role is played by social media and it has helped Zomato become
more popular among its customers. All the promotions made by Zomato proves that
the company chooses to stick to the niche and understands exactly who it is catering
to.
Zomato’s Zomaland festival turned to be a great strategy for Zomato to promote its
services and it was able to turn food into a carnival with music, dance, and stand-up
comedies. Zomato uses the number of strategies like discounts and promo codes to
make more customers use the platform.

2.10 Competitors

 JustEat
 Foodpanda
 Burrp

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Chapter – 3
Conceptual Frame Work
3.1 Introduction
3.2 The shape of the market today
3.3 Two levels of online food delivery
3.4 The new-delivery opportunity
3.5 Customer behavior
3.6 The Evolution of Online Food Delivery Business
3.7 Types of food delivery app monetization
3.8 Top Ten Online Food Delivery Apps

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Conceptual Frame Work

3.1 Introduction

 Food delivery apps are certainly one of the vital apps that any food lover will
have on you “Love” food. You literally wait for your next meal. Well, you are
not the only one. There are millions of foodies who just incorporate food into
their lifestyle.
 Nowadays, there are tons of useful mobile apps that are literally dedicated to
food. Right from piling up recipes, watching someone cook to ordering food
online, there are food delivery apps for every foodie.
 Online food-delivery platforms are expanding choice and convenience,
allowing customers to order from a wide array of restaurants with a single of
their mobile phone

The business of delivering restaurant meals to the home is undergoing rapid change as
new online platforms race to capture markets and customers across the Americas,
Asia, Europe, and the Middle East. Although these new Internet platforms are
attracting considerable investment and high valuations—already, five are valued at
more than $1 billion—little real knowledge about market dynamics, growth potential,
or customer behavior exists. Research from McKinsey, based on a six-month study
covering 16 countries around the globe, provides insight into this fast-changing
market.

3.2 The shape of the market today

Worldwide, the market for food delivery stands at €83 billion, or 1 percent of the total
food market and 4 percent of food sold through restaurants and fast-food chains. It has
already matured in most countries, with an overall annual growth rate estimated at just
3.5 percent for the next five years.
By far, the most common form of delivery is the traditional model, in which the
consumer places an order with the local pizza parlor or Chinese restaurant (although
many other kinds of restaurants, particularly in urban areas, now offer delivery) and

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waits for the restaurant to bring the food to the door. This traditional category has a 90
percent market share, and most of those orders—almost three-quarters—are still
placed by phone.
However, as in so many other sectors, the rise of digital technology is reshaping the
market. Consumers accustomed to shopping online through apps or websites, with
maximum convenience and transparency, increasingly expect the same experience
when it comes to ordering dinner.

3.3 Two levels of online food delivery

Two types of online platforms have risen to fill that void. The first type is the
“aggregators,” which emerged roughly 15 years ago; the second is the “new delivery”
players, which appeared in 2013. Both allow consumers to compare menus, scan and
post reviews, and place orders from a variety of restaurants with a single click. The
aggregators, which are part of the traditional-delivery category, simply take orders
from customers and route them to restaurants, which handle the delivery themselves.
In contrast, the new-delivery players build their own logistics networks, providing
delivery for restaurants that don’t have their own drivers.
Aggregators
Aggregators build on the traditional model for food delivery, offering access to
multiple restaurants through a single online portal. By logging in to the site or the app,
consumers can quickly compare menus, prices, and reviews from peers. The
aggregators collect a fixed margin of the order, which is paid by the restaurant, and
the restaurant handles the actual delivery. There is no additional cost to the consumer.
With their asset-light model, aggregators post earnings before interest, taxes,
depreciation, and amortization (EBITDA) margins of 40 to 50 percent. Although
investment continues to pour in (Delivery Hero and Foodpanda, for example, both
attracted €100 million in new investment in 2015), most of the consolidation in this
subcategory has already occurred. Four players—Delivery Hero, Foodpanda,
GrubHub, and Just Eat—have achieved global scale. These four players tend to focus
on different regions. On a national level, there are typically two or three competitors

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that dominate, mostly driven by their ability to build a large user base. Consolidation
is advanced in most markets and will likely continue. McKinsey research shows that
just 26 percent of traditional-delivery orders are made online today, but we expect this
share to increase rapidly.
New delivery
Just like the aggregators, new-delivery players allow consumers to compare offerings
and order meals from a group of restaurants through a single website or app.
Crucially, the players in this category also provide the logistics for the restaurant. This
allows them to open a new segment of the restaurant market to home delivery: higher-
end restaurants that traditionally did not deliver. The new-delivery players are
compensated by the restaurant with a fixed margin of the order, as well as with a
small flat fee from the customer. Despite the higher costs of maintaining delivery
vehicles and drivers, the new-delivery players achieve EBITDA margins of more than
30 percent. Players include brands that operate globally such as Deliveroo and
Foodora, which are continuing to capture new regions. We believe the addressable
market for new delivery will reach more than €20 billion by 2025.
Both aggregators and new-delivery players have attracted significant investment,
allowing them to advertise widely and build recognition for their brands quickly.
GrubHub and Just Eat, for example, each reported marketing budgets of about €70
million in 2015. Since there is no limit to the number of restaurants these platforms
can sign up, once they enter a market, they can grow rapidly (see sidebar, “The new-
delivery business model.”)

3.4 The new-delivery opportunity

The opportunity for new delivery is to extend food delivery to a new group of
restaurants and customers. Rather than competing directly with the aggregators, new-
delivery players are expanding the overall market. However, it is possible that in the
future even lower-end traditional-delivery restaurants will migrate to new delivery
because they will find it more cost efficient to outsource logistics; thus, new delivery
poses at least a potential threat of disruption to the aggregators.

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The growth in new delivery is driven by two sources of consumer demand. This first
is as a substitution for dining in a restaurant. With new delivery, consumers can dine
at home with the same quality food they would enjoy at a fine restaurant. Some
platforms even include Michelin-starred establishments in their offerings in selected
cities. The second source of demand is as a substitution for meals prepared and
consumed at home.

3.5 Customer behavior

Customers drawn to the new online food-delivery platforms have a different set of
needs and expectations from the traditional pizza customer. Our study uncovered the
following important traits:
 Platforms are sticky. New-delivery platforms, which personalize the ordering
experience by storing relevant customer data, are sticky (Exhibit 1). Once
customers sign up, 80 percent never or rarely leave for another platform,
creating a strong winner-take-all dynamic, in which the reward goes to the
player who can sign up the most customers in the shortest amount of time.
 Time is critical. Speed of delivery is the biggest variable in customer
satisfaction, with an average 60 percent of consumers across markets citing it
as a key factor. The optimal wait time is no more than 60 minutes.
 Meals are for home. Most orders—82 percent—were placed from home, while
only 16 percent were placed from the workplace.
 Orders spike on weekends. The highest-volume days for the online platforms
were Friday, Saturday, and Sunday, when 74 percent of orders were placed.

3.6 The Evolution of Online Food Delivery Business

The online food delivery market is no longer the underdog but has evolved into a
champion. Having a food ordering and delivery platform was considered a state-of-
the-art innovation in the early 2000s but today the segment has expanded to different
demographics across the globe.

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As more Millenials jump of the online ordering bandwagon the food delivery market
size continues to evolve at a steady pace. And as more players continue to proliferate
this segment we are becoming witness to some fresh online food ordering trends.
Online orders by tweet, virtual assistants, smartwatches, cars, television screens and
even through your own eyes are now a part of this eCommerce segment. But the
innovations don’t stop there. That’s just how you can place your order. What about
the ways these orders are delivered?
The modern-day delivery option includes good old delivery by a person or these crazy
alternatives — delivery by robots, pizza drones, and parachutes. Yes, you heard it
right — a parachute!
And the food delivery business has not just improved the way food is delivered but it
has also created a level playing field for the underdogs that operate through virtual
kitchens. And with an ecosystem that brings vendors together, entrepreneurs are also
doing their bit for society by introducing the likes of food waste apps.
The operations of an online food delivery marketplace are divided into two basic
models. First, the food ordering only model — Aggregators — and second the food
ordering and delivery management model — Delivery Providers. Let’s refresh our
memory by understanding the definition of each in a few lines.
 Aggregators: They are the food ordering (only) businesses that negotiate with
the vendors and display their listings on their respective platforms. They
receive the orders from customers and route it to the featured restaurants.
 Delivery Providers: These fleets of delivery teams are united by an Uber-like
app to receive orders. Once an order is placed, it is forwarded to the featured
restaurants and the delivery team proceeds to deliver it to the customers.
Aggregators
The traditional Aggregators followed a very simple approach. It was as follows:
 Visit potential participating vendors
 Present a partnership plan
 Establish an association
 Do some branding and marketing to attract customers

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 Get customers to place orders

 Aggregators get commissions as per contracts
However, the traditional approach has also been disrupted over the years and the
aggregator business model followers have secured millions of dollars in funding with
some innovations of their own.
Some of them include:
 Increasing brand value by addressing customers’ touch points and allowing
them to create a positive association with the brand.
 Establishing a set of standards for the partners to follow in order to provide
consistent quality food.
 Creating a win-win situation for themselves and partnering vendors through
cooperative branding — partners focus their attention of standardised food
quality and aggregators focus on generating more leads.
 Giving comparison features in their mobile apps or websites to help the end-
users make an informed decision before placing an order online.
Apart from following the aggregator — order only — model, these businesses are
now also transitioning towards creating a order+delivery model in order to cater to
their customers in a better manner.
“Currently, 26% of traditional food delivery orders are placed online, and this
figure is expected to grow in the next few years.”
Delivery Providers
The delivery providers also allows the customers to compare menus, rate their
favorite places and place orders online. The only difference in this model is the
availability of a dedicated logistics team that manages deliveries.
Since a large number of restaurants do not have a delivery team, they collaborate with
delivery providers and pay commissions to the volumes of upto 30% of order amount
in exchange for their delivery services.
Thanks to the increasing number of online users and vendors, the delivery providers
have a sustainable business model. These businesses have immense opportunities to
expand their services to a new geographical area and cater to new demographics.

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While some outlets maintain their own fleet of riders to deliver food, outsourcing the
delivery services seems to be a preferred approach by majority partners. It is more
cost-efficient and has been created while taking local market dynamics into
consideration.
A Life Beyond Standard Delivery Models
But the delivery scenario innovations don’t stop here. Not by a long shot. Every new
entrant into the market brings something new to the table and over the past few years
we have seen some notable improvements in the business model. Some of them
include:
 Cuisine/restaurant-style design layouts
 Menus displayed in real-time
 Push notifications in mobile-apps
 Option to create user profiles
 Live order tracking and hassle-free delivery
And if this doesn’t satisfy your hunger for innovation in food deliveries then don’t
frown, here is another interesting update. You can also order a pizza through a pizza
vending machine and get custom-made pizzas in a matter of minutes.
Surprised? Don’t be. Pizza ATMs are a real thing and following in the footsteps are
vending machines for Omelettes. So, while these machines won’t deliver the pizza or
omelette to your door-step, you will be able to go out and grab those dishes without
the frequent wait and at your own convenience.
“It is expected that online food delivery market will reach $23.5 billion by 2025.”
The World Loves to Order Food Online
According to a whitepaper published by Sesame token, the global food ordering and
delivery sector stands at $95.64 billion and it is a mere 1% of the total food market. If
that doesn’t make you want to start an online food ordering and delivery business then
what else will?
Despite the fact that this segment has experienced significant growth in many
countries, there are still new demographics to cater to, new niches within the niche
can be created and the world is always open for some new ideas.

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Want more evidence? Well, if we talk about the overall food ordering market, about
42% of the orders are placed online. Which means you have a clear chance of
capturing a good market share and leverage the advancements today to attract the
remaining 58% of the users to your brand. In addition to that, the food sector
collectively has an annual growth rate of about 3.7% and interestingly, the online food
ordering and delivery segment is growing at an annual rate of 15-20%.
Need more information? Here are some interesting facts for you:
 The US food delivery market alone is expected to grow by 79% in the next 5
years.
 Food ordering and delivery business is expected to grow by $30 billion (from
$43 billion in 2017 to $76 billion in 2022) at an annual growth rate of 12%
over the next five years
 Apart from the millenials, online ordering and delivery is also becoming a
favorite among the users in the age group of 35-44
 The top five players in this sector have a combined valuation of $11.52 billion.
Phew! That’s a lot of potential and an untapped one. There is no better time than the
present to get on the online food ordering and delivery bandwagon. And it’s not even
that tough to get started. Why? Because you can start a website and mobile app
instantly using platforms like Yo!Yumm — an out-of-the-box solution to create food
ordering and delivery platforms.
Success of an Online Food Ordering Business — Customer Retention!
That’s right. Customer retention is the most important factor in keeping any business
afloat and resonates with profitability. Just try to count how many times you have
been to your favorite restaurant or how many times you asked a friend to come along
or recommended them the place.
Tough to recognize, right? Believe it or not, you are a repeat customer here and you
have contributed immensely in your favorite restaurant’s growth via word-of-mouth
marketing.
Maybe it’s time you got a paycheck from them for your unwavering support or maybe
a couple of free meals should be a good compensation.

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Anyways, jokes apart. Online food ordering and delivery business is no different. If
you start your own marketplace then you won’t be able to go far without a loyal and
happy customer base. So, why is investing time and effort in customer retention
important? Let’s find out.
 More repeat sales: A joint study by BIA & Kelsey states that retained
customers spend 67% more on your platform as compared to new customers.
 Higher revenues and profits: According to a research conducted at Harvard
Business School, a mere 5% increase in customer retention can help you raise
profits upto 95%. How? They use your platform to order regularly and this
helps in increasing revenues significantly.
 Word of mouth marketing: According to a strategy research report by
Accenture, 55% of the loyal customers are likely to recommend your brand to
their friends and family. So, from a loyal customer you have at least 10 more
potential customers. This is the true power of word of mouth marketing.
To Wrap Up
With all the extensive information about aggregators, delivery providers and the
perfect hack for an online food ordering business you should be able to create a plan
for your own venture.
You can start building your business website and app with the help of an in-house
team or you can play smart and opt for a ready-made and customizable platform like
Yo!Yumm to have your website and mobile app up and running in no time.
Leverage the huge potential that the online food ordering and delivery business has to
offer and take the right steps to become the next market leader. We wish you success
with your new entrepreneurial journey.

3.7 Types of food delivery app monetization

Delivery charges
If a restaurant doesn’t have its own delivery team, such kind of an app can take care
of delivery for a fee. Delivery fees can be a percentage of the order price or a flat fee
depending on distance.

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Deliveroo applies this method of monetization. As report shows, Deliveroo made

£129 million from delivering restaurant food to сustomers’ homes. The company’s
revenue comes from a £2.50 charge to customers for each delivery and commission
charged to restaurant owners (generally 10 percent of the order price). Deliveroo can
typically generate £16.50 each hour per driver.
Since delivery charges are the main revenue source of all food delivery apps, we’ve
made a comparison table that shows the delivery fees of popular food delivery apps.

Food delivery app Delivery fees

UberEats Flat rate starting at $4.99 and varying based on distance

DoorDash From $0.99 to $7.99 plus a service fee of 7–15% per order

Caviar From $1.99 to $8.99 plus a service fee of 18% on all orders

Swiggy 30–35% of the order price

GrubHub Standard $9.99 delivery fee

Foodpanda 10% commission along with 2% service charge

Pros and cons of monetizing with delivery charges

Charging for delivery is a good approach for stable income, but it can be hard to stay
afloat using this model alone. Therefore, you should think about additional sources of
income such as surcharges during peak hours.
Peak hours

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Let’s consider one more way to make money with food delivery apps. This
monetization approach involves a delivery surcharge during peak hours. For example,
UberEats sets surge pricing during lunch and dinner. At peak hours, UberEats limits
menus and locations and charges an extra fee to make them available. To see how
successful this approach can be, look at the graph below that shows the average
UberEats income per delivery by city.

Pros and cons of monetizing with surcharges during peak hours

Charging more during peak hours is a great way of bringing in extra revenue. But
keep in mind that not all customers are ready to pay a premium and may just go to a
competitor where the service is cheaper.
Advertising
Advertising is another way that food delivery apps make money. A delivery app can
offer advertising to restaurants at additional cost. In a delivery app, advertising can
mean listing a restaurant at the top of search results for a period of time. This is one of
the major sources of revenue for Swiggy. Swiggy charges money to restaurant owners
to feature their restaurants in the app. By being on a featured list, restaurants are
shown above others in search results and can attract more customers.
UberEats makes money through advertising income from restaurant partners. Like
Swiggy, UberEats charges restaurant owners a marketing fee to feature their
restaurants.

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Pros and cons of advertising

Since the market now has a huge number of restaurants, this means great competition.
Many people want to advertise their restaurants and be more visible than others.
Advertising is an excellent source of income. But partner only with trusted restaurants
that have good customer feedback.
Commission percentage
One more approach to monetize a food delivery app is a commission percentage.
Online food delivery apps can collaborate with restaurants on predefined commission
rates based on the order size. For example, Just Eat makes money by charging
restaurants commission on transactions. Today, the company boasts a market
capitalization of $3.5 billion and operates in 15 countries.
One more example of a company that applies this approach to monetization is
Deliveroo. Charging commision to restaurants has increased Deliveroo’s revenue by
20 to 25 percent a month for the last three years. The company’s latest funding round
in November 2017 raised $100 million, valuing Deliveroo at around $600 million.
Pros and cons of commission percentage
Commission percentage is a good way to make money and can lead to long-term
customer relationships. But the size of the commission may vary depending on the
restaurant level, its average revenue, and other factors.

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Below you can see some interesting statistics about the food industry.

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There are also alternative ways to make money with food delivery apps:
 Third-party advertising
 Allowing restaurants to list their services through the food delivery app for a
fixed monthly fee
 Charging extra for delivery during bad weather conditions
 App homepage advertising
 Extra fee for rush delivery
 Extra fee for businesses that want to open a restaurant using the mobile app

3.8 Top Ten Online Food Delivery Apps

1. Delivery.com (Android, iOS)

An app that offers users the option to browse from 1000+ restaurants & food stores to
get your favourite mean anytime. As the ordering is free you get to save time to tackle
and does your work list at home or on the go.

Key Features:
 Get access to all favourite local restaurants
 Even beer, wine or spirits are delivered at your door via this app
 Enables grocery and home essentials shopping
 Other than food orders, they provide options like wash & fold, dry cleaning
 Can save the address, payment details, order history, etc. for quick reordering
 Available in 100+ cities across the US including Los Angeles, San Francisco,
NYC, Washington DC, Philadelphia, Chicago, Boston, etc.

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2. Swiggy (Android, iOS)

Order food and beverages from your favorite and nearest restaurants. Swiggy app
delivers food from your neighbourhood local joints, food cafes, or even 5-star
restaurants with absolutely no minimum order restrictions.

Essential Features:
 Get amazing deals sponsored by both Swiggy and restaurants
 Live track your food delivery right from the moment you place your order
 Multiple payment option available
3. Zomato (Android, iOS)
Discover the best and nearest restaurants either to eat out or order in from. Check
through restaurant photos, menus, and customer reviews and ratings to decide where
you want to eat your next meal. The app runs across UAE, Philippines, and India.

Essential Features:
 Easy search for restaurants, pubs, cafes, and more by location and cuisine

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 Utilize advanced filters to find the best restaurant

 View images of restaurants, menus, user reviews, etc.
4. Uber Eats (Android, iOS)
Find your local flavors anytime you want with Uber Eats. Customers can either search
for all near or around restaurants, specific restaurant, dish, or cuisine and order it. This
app is currently available in all metro cities across countries

Essential Features:
 Pay easily with your existing Uber account
 Track your order in real time
 Nearest or farthest, order from anywhere
5. McDelivery (Android, iOS)
From healthy meals to happy meals, McDonald’s serves best and fresh food that will
always find ways to show commitment to customers and the food they deliver.
Users can use this app to pick out your favourite item and even add deals and offers if
available. The app automatically detects the user’s proximity to any of the nearby
restaurant location, thus making ordering much easier.

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Essential Features:
 Discover delicious McDonald’s deals
 See local menu prices, deals, order your favourites and pay online
 Users can get news, offers & promotions delivered right to your inbox
 Find your closest McDonald’s store
6. Yelp (Android, iOS)
With more than 130 million restaurant options across the globe, Yelp is considerably
one of the biggest and preferred food apps for foodies. If you are new to the city, then
Yelp is your food guide to finding the right places from breakfast to dinner.

Essential Features:
 Easily find the nearest and top-rated restaurants
 Book a table wherever and whenever you want
 Get amazing deals on food and drinks

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7. Delivery Hero (Android, iOS)

Users can easily browse thousands of restaurant menus within the app to find your
favorite dish and restaurant and with just a few clicks get the most delicious food.
Orders and payments can be conveniently placed online, making it easier to choose
the best restaurant every time.

Essential Features:
 Deliver traditional takeaway and more
 Largest food network with around 290,000+ restaurant partners
 Assured choice, convenience, reliability, and quality
 Convenient ordering and payment
 Operates in 39 markets globally
8. Foodpanda (Android, iOS)
Foodpanda is one of the largest food delivery apps and serves in more than 50
countries. With more than 15000 restaurant options, Foodpanda brings a lot of variety
of cuisines to the customers’ tables such as Mexican, Chinese, Thai, Continental, etc.

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Essential Features:
 Choose from the best restaurants nearby you
 Widest variety of cuisines
 Get access to live status updates to track your food
9. Whole Foods Market (Android, iOS)
Make life simpler, healthier with the new Whole Foods Market app where you can
browse dishes, save recipes, get filters for special diets; create shopping lists and
much more. This app serves to be an incredibly useful app to find all organic and
vegan food needs from the nearest stores.

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Essential Features:
 Display offers and items on sale
 It’s an American supermarket chain that sells products free from hydrogenated
fats, artificial colours, flavours, preservatives, etc.
 Get access to more than 3800 recipes that every user would love to try
 Prime members of the app receive better deals and offers
10. Takeaway.com (Android, iOS)
Using your smartphone or tablet order food online with ease. Get best offers and order
from thousands of restaurants around you. Users can order pizza, meals, pasta,
Chinese or Indian takeaways in just a few clicks.

Essentials Features:
 Map view features available for all listed restaurants
 Safety payment with credit, debit or even PayPal
 Consist of a wide selection of cuisines
 Users can create filters for distance, popularity, newest restaurants, price,
product, etc.
 Available in 4 languages including Dutch, English, French & German.

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Chapter - 4
Analysis of data and interpretation
 Tables
 Graphs
 Interpretations

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Analysis of data and interpretation

Analysis of data means studying the original material to discover the inherent facts.
The data are studied form as many angles as possible to explore the research data has
been collected and data analysis has been made the researcher can proceed of
interpretation is essentially one, stating what the result show. The research data
becomes meaningful only being analyzed and interpreted.
Results and findings are also called as Analysis and Interpretation. This part of the
report contains an allotment of tables, graph s, graphs, and narrative of the results of
the survey.
The analysis identifies the various factors that play a major role in determining why
the respondents go for a particular product on brand.
The analysis has also been made with reference to factory affecting buying decisions
the multinational factor to go far a particular brand.
For some of the tables. Graphs are used to interpret the findings in a better manner.
The occupation, income of the respondents is also recorded in order to know the
correlation between these features.

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Table No: 4. 1: Classification of Respondents on the Basis of Gender

Gender No of Respondents Percentage
Male 26 52
Female 24 48
Total 50 100
Source: Primary Data
Graph: 4. 1
53
52
52

51

50

49
48
48

47

46
Male Female

Interpretation
The above table and graph analysis represents that 52% of the respondents are male
and 48% of the respondents are female.
Majority of the respondents found in the survey are male.

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Table No: 4. 2: Classification of the Respondent’s on the Basis Marital Status

Marital Status No of Respondents Percentage
Married 13 26
Unmarried 37 74
Total 50 100
Source: Primary Data
Graph 4. 2
80 74
70
60
50
40
30 26

20
10
0
Married Unmarried

Interpretation
The above table and graph analysis represents that 26% of the respondents are
married and the remaining 74% of the respondents are unmarried.
Its interprets that Majority of the respondents found in the survey are unmarried.

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Table No: 4.3: Classification of the Respondent’s on the Basis Age Group
Age group No of Respondents Percentage
Below 25 35 70
Between 26-35 12 24
Above 36 3 6
Total 50 100
Source: Primary Data
Graph 4. 3
80
70
70
60
50
40
30 24
20
10 6
0
Below 25 Between 26-35 Above 36

Interpretation
The above table and graph analysis represents that 70% of the respondents age group
is below 25 years, 24% of the respondents age group is between 26-35 years and the
remaining 6% of the respondents age group is above 36 years.
Majority of the respondents found in the survey are below 25 years of age group.

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Table No 4.4: Table showing Respondent’s Educational Qualification

Educational Qualifications No of Respondents Percentage
SSLC 2 4
PUC/Diploma 4 8
Graduate 37 74
Post Graduate 5 10
Other 2 4
Total 50 100
Sources: Primary Data
Graph: 4. 4
80 74
70

60

50

40

30

20
8 10
10 4 4
0
SSLC PUC/Diploma Graduate Post Graduate Other

Interpretation
The above table and graph analysis represents that 4% of the respondents educational
qualification is SSLC, 8% of the respondents educational qualification is
PUC/Diploma, 74% of the respondents educational qualification is graduation, 10%
of the respondents educational qualification is post graduation and 4% of the
respondents educational qualification is others.
Majority of the respondents found in the survey are graduates.

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Table No: 4. 5: Classification on the Basis of Respondent’s Occupation

Designation No of Respondents Percentage
Professional 5 10
Business men 17 34
Govt. Employees 6 12
Student 20 40
Others 2 4
Total 50 100
Source: Primary Data
Graph: 4. 5
45
40
40
34
35
30
25
20
15 12
10
10
4
5
0
Professional Business men Govt Employees Student Others

Interpretation
The above graph analysis represents that 10% of the respondents are Professionals,
34% of the respondents are Businessmen, 12% of the respondents are Govt.
Employees, 40% of the Respondents are Students and 4% of the respondents are
belongs to others.
Its interprets that majority of the respondents are participated in the survey are
students..

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Table No: 4. 6: Table showing Monthly Income of the Respondents

Particular No of Respondents Percentage
Less than 10000 15 30
10000 -15000 12 24
15000 -20000 10 20
Above 20000 3 6
Total 50 100
Source: Primary Data
Graph: 4. 6
35
30
30

25 24

20
20

15

10
6
5

0
Less than 10000 10000 -15000 15000 -20000 Above 20000

Interpretation
The above table and graph analysis represents 30% of the respondents monthly
income is less than 10000, 24% of the respondents monthly income is between 10000
to 15000, 20% of the respondents monthly income is between 15000 to 20000 and 6%
of the respondents monthly income is above 20000.
Majority of the respondents found in the survey belongs to monthly income less than
10000.

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Table No: 4. 7 Table shows on the Basis Respondent’s order food online
Particular No of Respondents Percentage
Yes 50 100
No 0 0
Total 50 100
Source: Primary Data
Graph: 4. 10
120
100
100

80

60

40

20
0
0
Yes No

Interpretation
The above table and graphs showing that, all the respondents are who are participated
in the survey are ordering food through online.

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Table No: 4. 8 Table showing which Company comes first to mind while here the
word food ordering app
Particular No of Respondents Percentage
Swiggy 5 10
Zomato 45 90
Others 0 0
Total 50 100
Source: Primary Data
Graph: 4. 8
100
90
90
80
70
60
50
40
30
20
10
10
0
0
Swiggy Zomato Others

Interpretation
The above table and graph analysis represents that 10% of the Respondents belongs to
Swiggy, and 90% of the respondents are opined that Zomato Company comes first to
mind while here the word food ordering app.
Its interprets that Majority of the Respondents are well known about Zomato
Company.

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Table No: 4. 9 Table shows respondents Come to know about Order food line
Particular No of Respondents Percentage
Advertisement 12 24
Friends & Relatives 30 60
Other sources 8 16
Total 50 100
Source: Primary Data
Graph: 4. 9
70
60
60

50

40

30
24

20 16

10

0
Advertisement Friends & Relatives Other sources

Interpretation
The above table and graph analysis represents that 24% of the respondents opined
They come to know about Online Food Ordering apps through Advertisement, 60% of
the respondents opined They come to know about Online Food Ordering apps through
Friends and relatives and 16% of the respondents opined They come to know about
Online Food Ordering apps through other sources.
Its interprets that majority of the respondents opined They come to know about Online
Food Ordering apps through Friends and relatives.

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Table No: 4. 10: Table shows How often do respondents order food in online
Particular No of Respondents Percentage
Daily 5 10
Weekly 25 50
Fortnight 12 24
Monthly 8 16
Total 50 100
Source: Primary Data
Graph: 4. 10
60
50
50

40

30
24

20 16
10
10

0
Daily Weekly Fortnight Monthly

Interpretation
The above graph analysis represents that 10% of the Respondents opined that they
daily order Food in Online, 50% of the Respondents opined that they weekly order
Food in Online, 24% of the Respondents opined that they fortnightly order Food in
Online and 16% of the Respondents opined that they monthly order Food in Online
Its interprets that majority of the respondents order food in online weekly.

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Table No: 4. 11: Respondents do prefer to order food in Online

Particular No of Respondents Percentage
Over the mobile app 48 96
Over the web browser 2 4
Others 0 0
Total 50 100
Source: Primary Data
Graph: 4. 11
Over the web Others
browser 0%
4%

Over the mobile

app
96%

Interpretation
The above table and graph showing that 96% of the respondents are opined that they
order food in online through over the mobile app, and 4% of the respondents are
opined that they order food online through Over the web browser.
Its interprets that majority of the respondents opined that they order food in online
through over the mobile apps

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Table No: 4.12: Table shows Approximate money spend on ordering food per
time
Particular No of Respondents Percentage
<150 40 80
<250 7 14
<500 3 6
More than 500 0 0
Total 50 100
Source: Primary Data
Graph: 4. 12
90
80
80
70
60
50
40
30
20 14
10 6
0
0
<150 <250 <500 More than 500

Interpretation
The above table and graph showing that 80% of the respondents opined that they
spend < 150 Rupees spend on ordering food per time, 14% of the respondents opined
that they spend < 250 Rupees spend on ordering food per time, 6% of the respondents
opined that they spend more than 500 Rupees spend on ordering food per time.
Its interprets that majority of the respondents opined that they spend < 150 Rupees
spend on ordering food per time

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Table No: 4. 13: Table shows respondents that food ordering App will prefer for
online food order
Particular No of Respondents Percentage
Swiggy 5 10
Zomato 43 86
Food Panda 2 4
Others please specify 0 0
Total 50 100
Source: Primary Data
Graph: 4. 13
100
90 86
80
70
60
50
40
30
20 10
10 4
0
0
Swiggy Zomato Food Panda Others please specify

Interpretation
The above table and graph showing that 10% of the respondents opined that they
prefer Swiggy App for ordering food through online, 86% of the respondents opined
that they prefer Zomato App for ordering food through online & 4% of the
respondents opined that they prefer Food Panda App for ordering food through online.
Its interprets that majority the respondents opined that they prefer Zomato App for
ordering food through online

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Table No: 4. 14: Table shows which advertising influences to buy / suggest any
product
Particular No of Respondents Percentage
Magazines 3 6
Friends and Relatives 26 52
TV Commercial 12 24
Online advertisements 4 8
Social Media- Blogs, forums, social
5 10
networking sites
Total 50 100
Source: Primary Data
Graph: 4. 14

Social Media- Blogs, forums, social

10
networking sites
Online advertisements 8

TV Commercial 24

Friends and Relatives 52

Magazines 6

0 10 20 30 40 50 60

Interpretation
The above table and graph shows that 6% of the respondents are opined that
Magazine Advertisementinfluences to buy / suggest any product, 52% of the
respondents are opined that Friends and relativesinfluences to buy / suggest any
product through online, 24% of the respondents are opined that TV Commercial
Advertisementinfluences to buy / suggest any product, 8% of the respondents belongs
to Online Advertisement and 10% of the respondents are opined that Advertisement
by Social Media- Blogs, forums, social networking sites influences to buy / suggest
any product through online.

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Table No: 4. 15: Table shows respondents Typically order meal food online
Particular No of Respondents Percentage
Break fast 5 10
Lunch 31 62
Snacks 4 8
Dinner 10 20
Total 50 100
Source: Primary Data
Graph: 4. 15
70
62
60

50

40

30
20
20
10 8
10

0
Break fast Lunch Snacks Dinner

Interpretation
The above table and graph showing that 10% of the respondents opined that they
order breakfast through online, 62% of the respondents opined that they order Lunch
through online, 8% of the respondents opined that they order Snacks through online
and 20% of the respondents opined that they order Dinner food through online

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Table No: 4. 16: Table shows How did respondents Come to Know about Zomato
Particular No of Respondents Percentage
Friends 31 62
T.V., news paper and magazines 13 26
Advertisements 5 10
I haven't heard of it 1 1
Total 50 100
Source: Primary Data
Graph: 4. 16
70 62
60
50
40
30 26

20
10
10
1
0
Friends T.V., news paper and Advertisements I haven't heard of it
magazines

Interpretation
The above table and graph showing that 62% of the respondents come to know about
Zomato through Friends, 26% of the respondents come to know about Zomato
through TV, Newspaper & Magazines, 10% of the respondents come to know about
Zomato through Advertisement and 1% of the respondents haven’t heard of it.

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Table No: 4. 17: Table shows respondents experience on other apps as compared
to Zomato
Particular No of Respondents Percentage
Better 34 68
Equal 12 24
Poor 2 4
Not applicable 2 4
Total 50 100
Source: Primary Data
Graph: 4. 17
80
68
70
60
50
40
30 24
20
10 4 4
0
Better Equal Poor Not applicable

Interpretation
The above table and graph showing that 68% of the respondents opined that when
they compared to other apps Zamato apps give better experience to him, 12% of the
respondents opined that when they compared to other apps Zamato apps give equal
experience to him, 4% of the respondents opined that when they compared to other
apps Zamato apps give Poor experience to him & 4% of the respondents are belongs
to not applicable.

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Table No: 4. 18: Table shows respondents often the product review influence
decision
Particular No of Respondents Percentage
Always 34 68
Occasionally 12 24
Rarely 2 4
Never 2 4
Total 50 100
Source: Primary Data
Graph: 4. 18
80
68
70
60
50
40
30 24
20
10 4 4
0
Always Occasionally Rarely Never

Interpretation
The above table and graph showing that, 68% of the respondents opined that they
always review the products influence the decision, 24% of the respondents opined
that they occasionally review the products influence the decision, 4% of the
respondents belongs to rarely and 4% of the respondents belong to never.

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Table No: 4. 19: Zomato promotional scheme on app to visit their app
Particular No of Respondents Percentage
Always 17 34
Occasionally 21 42
Rarely 12 24
Never 0 0
Total 50 100
Source: Primary Data
Graph: 4. 18
50
42
40 34
30 24
20

10
0
0
Always Occasionally Rarely Never

Interpretation
The above table and graph showing that 34% of the respondents opined that Zomato
promotional scheme on app always influence to visit their app, 42% of the
respondents opined that Zomato promotional scheme on app occasionally influence to
visit their app, 24% of the respondents opined that Zomato promotional scheme on
app rarely influence to visit their app.

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Table No: 4.20: table showing will respondents do market research or compare
different companies or products before doing online food order
Particular No of Respondents Percentage
Yes ,always 20 40
Yes, sometimes 25 50
No 5 10
Total 50 100
Source: Primary Data
Graph: 4. 14
60
50
50
40
40

30

20
10
10

0
Yes ,always Yes, sometimes No

Interpretation
The above table and graphs shows that 40% of the Respondents opined that they
always do market research or compare different companies or products before doing
online food order, 50% of the Respondents opined that they sometimes do market
research or compare different companies or products before doing online food order
and 10 % of the Respondents opined that they don’t do market research or compare
different companies or products before doing online food order

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 A Study on Customer Perception towards Online Food Ordering Apps with
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Table No: 4. 21 Table shows respondents will pay attention to advertisements or

consider them while doing online
Particular No of Respondents Percentage
Yes 39 78
No 11 22
Total 50 100
Source: Primary Data
Graph: 4. 21
90
78
80
70
60
50
40
30
22
20
10
0
Yes No

Interpretation
The above table and graphs represents that 78% of the respondents opined that they
pay attention to advertisements or consider them while doing online and 22% of the
respondents opined that they don’t pay attention to advertisements or consider them
while doing online

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Table No: 4.22: Reliability of online food ordering apps important

Particular No of Respondents Percentage
Yes 25 50
Yes, but it is not the primary factor 22 44
No, I don't consider it 3 6
Total 50 100
Source: Primary Data
Graph: 4. 22
60
50
50
44

40

30

20

10 6

0
Yes Yes, but it is not the primary No, I don't consider it
factor

Interpretation
The above table and graph showing that , 50% of the respondents opined that yes,
reliability of online food ordering apps important for them, 44% of the Respondents
belongs to Yes, But it is not the primary factor, and 6% of the respondents belongs to
No, I don’t consider it.

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Table No: 4. 23: Table shows respondents rate the food packing style by Zomato
Particular No of Respondents Percentage
Excellent 37 74
Good 12 24
Neutral 0 0
Average 1 0
Bad 0 0
Total 50 100
Source: Primary Data
Graph: 4. 23
80 74
70

60

50

40

30 24
20

10
0 0 0
0
Excellent Good Neutral Average Bad

Interpretation
The above table and graph showing that, 74% of the respondents rate the Food
Packaging Style by Zomato as Excellent, 24% of the respondents rate the Food
Packaging Style by Zomato as Good

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 A Study on Customer Perception towards Online Food Ordering Apps with
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Table No: 4. 24: Table shows respondents like to rate quality service offered by
Zomato
Particular No of Respondents Percentage
Excellent 31 62
Good 12 24
Average 5 10
Bad 1 1
Terrible 1 1
Total 50 100
Source: Primary Data
Graph: 4. 24
70
62
60

50

40

30
24

20
10
10
1 1
0
Excellent Good Average Bad Terrible

Interpretation
The above table and graph showing that 62% of the respondents opined that Quality
service offered by Zomato is Excellent, 24% of the respondents opined that Quality
service offered by Zomato is Good and 10% of the respondents opined that Quality
service offered by Zomato is Average.

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Table No: 4. 25: Table shows respondents to say about the pricing of Zomato
services
Particular No of Respondents Percentage
Fairly priced 27 54
Over priced products 17 34
Under priced 6 12
Total 50 100
Source: Primary Data
Graph: 4. 25
60
54

50

40
34

30

20
12
10

0
Fairly priced Over priced products Under priced

Interpretation
The above table and graph showing that 54% of the respondents opined that pricing
of Zomato services is Fairly priced, 34% of the respondents opined that pricing of
Zomato services is over priced and 12% of the respondents opined that pricing of
Zomato services is under priced

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Table No: 4. 26: Table shows respondents give ratings towards satisfaction level
with Zomato services
Particular No of Respondents Percentage
Outstanding 35 70
Very satisfactory 8 16
Satisfactory 6 12
Somewhat satisfactory 1 1
Total 50 100
Source: Primary Data
Graph: 4. 26
80
70
70
60
50
40
30
20 16
12
10 1
0
Outstanding Very satisfactory Satisfactory Somewhat
satisfactory

Interpretation
The above table and graph showing that 70% of the respondents opined that
satisfaction level with Zomato services is outstanding, 16% of the respondents are
very satisfied with service offered by Zomato, 12% of the respondents are satisfied
with zomato service and 1% of the respondents belong to somewhat satisfied with
Zomato service.

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Chapter – 5
Findings, Suggestions and Conclusion
5.1 Findings
5.2 Suggestions
5.3 Conclusion

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Findings, Suggestions and Conclusion

5.1 Findings

 52% of the respondents are male

 74% of the respondents are unmarried
 70% of the respondents age group is below 25 years
 74% of the respondents educational qualification is graduation
 40% of the Respondents are Students
 30% of the respondents monthly income is less than 10000
 all the respondents are who are participated in the survey are ordering food
through online.
 90% of the respondents are opined that Zomato Company comes first to mind
while here the word food ordering app
 60% of the respondents opined They come to know about Online Food
Ordering apps through Friends and relatives
 50% of the Respondents opined that they weekly order Food in Online
 96% of the respondents are opined that they order food in online through over
the mobile app
 80% of the respondents opined that they spend < 150 Rupees spend on
ordering food per time
 86% of the respondents opined that they prefer Zomato App for ordering food
through online
 52% of the respondents are opined that Friends and relatives influences to buy
/ suggest any product through online,
 62% of the respondents opined that they order Lunch through online,
 62% of the respondents come to know about Zomato through Friends,
 68% of the respondents opined that when they compared to other apps Zamato
apps give better experience to him

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 68% of the respondents opined that they always review the products influence
the decision
 42% of the respondents opined that Zomato promotional scheme on app
occasionally influence to visit their app,
 50% of the Respondents opined that they sometimes do market research or
compare different companies or products before doing online food order
 78% of the respondents opined that they pay attention to advertisements or
consider them while doing online
 50% of the respondents opined that yes, reliability of online food ordering
apps important for them
 74% of the respondents rate the Food Packaging Style by Zomato as Excellent
 62% of the respondents opined that Quality service offered by Zomato is
Excellent,
 54% of the respondents opined that pricing of Zomato services is Fairly
priced,
 70% of the respondents opined that satisfaction level with Zomato services is
outstanding

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5.2 Suggestions

 Most of the respondents felt the prices of delivery charges are high. The high
price is one of the reasons for consumer to ordering food through online. So
food apps can consider this and reduce their delivery charges.
 The online food ordering apps have to improve their restaurants sites and
menus to satisfy the consumer in a better way.
 Advertising plays a very important role in the purchase of a online ordering
foods as most Customers are like to purchase because of advertisements.
 As most customers were between the age group of 20- 30 years so the
company strategies should focus on that age group 20- 30 years.
 The company should focus on giving better quality product as most customers
were very brand loyal and were generally satisfied with the product.

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5.3 Conclusion

Online food ordering apps nowadays become fast moving in India, people do not find
adequate time to go for ordering food, because of fast pace of life. The internet has
become a major source in the digital era where online food ordering has gained
significance not only by the entrepreneurs but also among the consumer. Online food
ordering is in the fingertip of the consumer. It gives a different experience and
consumer can make the food ordering more fashionable over the internet as they
getting used it and becomes more enjoyable and easier.
The customers comfort is simply the primary facet good thing about such, whereas on
the second facet these system also are helpful for the expansion of eating place and
food provide trade, as by the utilization of digital food ordering system a eating place
owner are ready to attract the users attention by permitting them see the whole food
menu in conjunction with dish name, image, specialty, and price. Integration a web
food ordering system isn't any doubt are the simplest, cheap and helpful call for a
eating place business owner. With constant deluge of experts in urban areas and fast
urbanization of Indian scene, the food delivery and eatery portion is currently
flourishing at a rankling pace. Adding to this situation is an expanding number of cell
phones and food delivery applications. Food delivery applications have now turned
into a major hit with well-informed people crosswise over India. There are a few food
delivery applications in India that one can download on advanced cells to arrange
food in a hurry and from the solace of homes. The changing urban way of life of the
normal Indian is sufficiently emotional to be ideal for the food-on-the– go and fast
home delivery models to develop at higher rates. The regularly expanding populace
swarmed metro urban communities and longer travel times are drivers for the helpful,
prepared to eat and less expensive alternatives of having food and foodstuffs
conveyed at your doorstep. Organizations that know about the colossal potential for
development may wander straight in, yet just the fittest will endure. Organizations
who keep their offer and their image dynamic in purchaser's brains, will take the
greatest offer of the Indian online food benefit pie.

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Questionnaire
I am Chandana J.S studying final year BBA in PESIAMS Shivamogga. I have
undergone a project report on the topic“A Study on Customer perception towards
online food ordering apps with special reference to Zomato in Shivamogga . I
would like to request you to fill the questionnaires
Thanking you
Yours faithfully,
(Chandana J.S)
Name : __________________________________
Address : __________________________________
__________________________________

1. Gender
i) Male [ ]
ii) Female [ ]
2. Marital status:
i) Married [ ]
ii) Unmarried [ ]
3. Age:
i) Below 30 [ ]
ii) Between 30-40 [ ]
iii) Above 40 [ ]
4. Educational qualification
i) SSLC [ ]
ii) PUC [ ]
iii) Graduate [ ]
iv) Post Graduate [ ]
v) Others [ ]
5. Occupation
i) Professional [ ]
ii) Businessmen [ ]
iii) Govt Employees [ ]

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iv) Student [ ]
v) Others [ ]
6. Monthly income
i) Less than 10000 [ ]
ii) 10000-15000 [ ]
iii) 15000-20000 [ ]
iv) Above 20000 [ ]
7. Do you order food online?
i) Yes [ ]
ii) No [ ]
8. If yes, which company comes first to your mind when you hear the word food
ordering app?
i) Swiggy [ ]
ii) Zomato [ ]
iii) Others [ ]
9. How you come to know about Ordering food online?
i) Advertisement [ ]
ii) Friends & Relatives [ ]
iii) Other Sources [ ]
10. How often do you order food in Online?
i) Daily [ ]
ii) Weekly [ ]
iii) Fortnight [ ]
iv) Monthly [ ]
11. In general, how do you prefer to order food?
i) over the mobile app [ ]
ii) over the web browser [ ]
iii) others [ ]
12. What is the approximate money you spend on ordering food per time?
i) <150 [ ]

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ii) <250 [ ]
iii) <500 [ ]
iv) More than 500 [ ]
13. Which Food ordering App will you prefer for online food order?
i) Swiggy [ ]
ii) Zomato [ ]
iii) Food Panda [ ]
iv) Others, please specify _________________
14. What mode of advertising influences you to buy/suggest any product?
i) Magazines and newspaper [ ]
ii) Friends and relatives [ ]
iii) TV Commercial [ ]
iv) Online advertisements [ ]
v) Social Media – Blogs, forums, Social Networking sites [ ]

15. Which meal you typically order food online?

i) Breakfast [ ]
ii) Lunch [ ]
iii) Snacks [ ]
iv) Dinner [ ]
16. How did you come to know about Zomato?
i) Friends [ ]
ii) T.V, newspaper and magazines [ ]
iii) Advertisements [ ]
iv) I haven’t heard of it [ ]
17. How was your experience on other apps as compared to Zomato?
i) Better [ ]
ii) Equal [ ]
iii) Poor [ ]
iv) Not applicable [ ]

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18. How often does the product review influence your decision?
i) Always [ ]
ii) Occasionally [ ]
iii) Rarely [ ]
iv) Never [ ]
19. How often does the Zomato promotional scheme on app influence you to visit
their app?
i) Always [ ]
ii) Occasionally [ ]
iii) Rarely [ ]
iv) Never [ ]
20. Do you conduct market research or compare different companies or products
before doing online food order?
i) Yes, always [ ]
ii) Yes, sometimes [ ]
iii) No [ ]
21. Do you pay attention to advertisements or consider them while doing online
food order?
i) Yes [ ]
ii) No [ ]
22. Is the reliability of online food ordering apps important for you?
i) Yes, [ ]
ii) Yes, but it is not the primary factor [ ]
iii) No, I don’t consider it [ ]

23. How do you rate the Food Packaging Style by Zomato?

i) Excellent [ ]
ii) Good [ ]
iii) Neutral [ ]
iv) Average [ ]

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v) Bad [ ]
24. How would you like to rate Quality Service offered by Zomato?
i) Excellent [ ]
ii) Good [ ]
iii) Average [ ]
iv) Bad [ ]
v) Terrible [ ]
25. What do you have to say about the pricing of Zomato Service?
i) Fairly priced [ ]
ii) Over priced products [ ]
iii) Under priced [ ]
26. How do you rate your satisfaction level with Zomato Service?
i) Outstanding [ ]
ii) Very satisfactory [ ]
iii) Satisfactory [ ]
iv) Somewhat satisfactory [ ]
27. Any suggestion to Company for providing better service to customers
………………………………………………………………………………………
………………………………………………………………………………………

Date : ……………
Place: ……………

(Signature)

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Mrs I.Karthika, Miss. A.Manojanaranjani (2018), “A Study on the various food

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06, June - 2017
H.S. Sethu & Bhavya Saini (2016), “Customer Perception and Satisfaction on
Ordering Food via Internet, a Case on Foodzoned.Com, in Manipal”, Proceedings of
the Seventh Asia-Pacific Conference on Global Business, Economics, Finance and
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Lumpur, Malaysia. 15-17, July 2016. Paper ID: KL631
Leong Wai Hong (2016), “Food Ordering System Using Mobile Phone”, A report
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Hong Lan, Li Ya‟nan & Wang Shuhua (2016), “Improvement of Online Food
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Varsha Chavan, Priya Jadhav, Snehal Korade and Priyanka Teli (2015),
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Application”, International Journal of Innovative Science, Engineering &
Technology, Vol 2 Issue 4, April 2015.
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Sheryl E. Kimes Ph.D. (2011), “Customer Perceptions of Electronic Food Ordering”,
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