Zomato: Hyperlocal Battle for Online Food Delivery

Name: Zomato: Hyperlocal Battle for Online Food Delivery (English version)
SKU: 9B20A037

Saju B.; Priya Mohandas

Product #:9B20A037

Supplier:Ivey

Discipline:Entrepreneurship, International Business, Marketing

Setting:India, 2019

Details:Case (PDF) • 15 pages • 2020-05-01

Subjects:

Digital marketing Business models Pricing strategy Corporate strategy Business management Sales and marketing Entrepreneurship International business Marketing

Geography:

Asia India

Your Price:

$10.54

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Zomato, a leading restaurant discovery and review platform, entered the highly competitive hyperlocal food delivery space in 2014. Though Zomato was a leading platform for search and discovery, it trailed behind the market leader in the delivery landscape. While Zomato’s attempt to increase profitability by implementing a subscription model proved popular among customers, it antagonized a significant segment of its restaurant partners. As December 2019 drew to a close, the key decision-makers at Zomato wondered whether entering the growing delivery market and the subsequent transition would be worth the cost of competition. The startup would have to make a strategic decision with respect to its market dominance and competitive moves in the delivery market. Should it focus on the large, hypercompetitive markets in major cities to build high-density delivery networks, or should it focus on pre-empting the competition by nurturing small-town markets? Would acquiring its competitors help in rapid scaling, or should Zomato engage in another round of business model innovation by focusing on cloud kitchens and private labels?

Learning Objectives

This case is for a graduate-level course that discusses the strategic marketing challenges faced by platform-based startups. More specifically, the case can be used in courses on marketing management, entrepreneurship, strategy, or digital marketing. After working through the case and assignment questions, students will be able to do the following:

Understand the competitive landscape of emerging markets to design customer-centric start-ups.
Understand and analyze the business model and marketing challenges faced by two-sided platform start-ups in high-growth markets.
Assess the challenges in implementing subscription models and promotional tactics like deep discounting.