Zomato: Difference between revisions
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In January 2019, more than 500 small to medium-sized restaurants filed an online petition to the [[Competition Commission of India|Competition Commission of India (CCI)]] and the [[Prime Minister's Office (India)|Prime Minister's Office]] (PMO), alleging that online food delivery companies such as Swiggy, Zomato, [[Uber Eats]] and [[Foodpanda|FoodPanda]] were misusing their dominant market position. The consortium of restaurants cited that the use of deep discounting, in-house kitchens and internal sourcing of orders were wiping out small restaurants. Unlike in Indian retail, FDI norms do not apply to the restaurant or food service aggregators.<ref>{{Cite web|url=https://www.timesnownews.com/business-economy/companies/article/zomato-swiggy-misusing-dominant-position-allege-500-small-eateries/341274|title=Zomato, Swiggy ‘misusing dominant Position’, allege 500 small eateries {{!}} Business News|website=Timesnownews.com|language=en-GB|access-date=2019-01-03}}</ref> |
In January 2019, more than 500 small to medium-sized restaurants filed an online petition to the [[Competition Commission of India|Competition Commission of India (CCI)]] and the [[Prime Minister's Office (India)|Prime Minister's Office]] (PMO), alleging that online food delivery companies such as Swiggy, Zomato, [[Uber Eats]] and [[Foodpanda|FoodPanda]] were misusing their dominant market position. The consortium of restaurants cited that the use of deep discounting, in-house kitchens and internal sourcing of orders were wiping out small restaurants. Unlike in Indian retail, FDI norms do not apply to the restaurant or food service aggregators.<ref>{{Cite web|url=https://www.timesnownews.com/business-economy/companies/article/zomato-swiggy-misusing-dominant-position-allege-500-small-eateries/341274|title=Zomato, Swiggy ‘misusing dominant Position’, allege 500 small eateries {{!}} Business News|website=Timesnownews.com|language=en-GB|access-date=2019-01-03}}</ref> |
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In July 2019, Zomato received a Hindu customer's complaint about being assigned a non-Hindu delivery executive for his food order and responded to it stating "Food doesn't have a religion. It is a religion,"<ref>{{cite news |title=Zomato snubs customer seeking non-Muslim rider, earns praise and brickbats |url=https://www.business-standard.com/article/current-affairs/zomato-snubs-customer-seeking-non-muslim-rider-earns-praise-and-brickbats-119080100560_1.html |accessdate=1 August 2019 |work=Business Standard India |date=1 August 2019}}</ref> as a twitter response. It faced praises on social media including support from [[Uber Eats]].<ref>{{cite news |title=Uber Eats tells Zomato we stand by you on Jabalpur Muslim delivery boy row. Internet loves |url=https://www.indiatoday.in/trending-news/story/uber-eats-tells-zomato-we-stand-by-you-on-jabalpur-muslim-delivery-boy-row-internet-loves-1575959-2019-08-01 |work=India Today |language=en}}</ref><ref>{{cite news |title=Man cancels order over delivery person’s religion, Zomato wins hearts by taking stand |url=https://indianexpress.com/article/trending/trending-in-india/man-cancels-order-after-non-hindu-guy-picks-food-zomato-wins-hearts-taking-a-stand-5866103/ |accessdate=1 August 2019 |work=The Indian Express |date=1 August 2019 |language=en-IN}}</ref> However, some |
In July 2019, Zomato received a Hindu customer's complaint about being assigned a non-Hindu delivery executive for his food order and responded to it stating "Food doesn't have a religion. It is a religion,"<ref>{{cite news |title=Zomato snubs customer seeking non-Muslim rider, earns praise and brickbats |url=https://www.business-standard.com/article/current-affairs/zomato-snubs-customer-seeking-non-muslim-rider-earns-praise-and-brickbats-119080100560_1.html |accessdate=1 August 2019 |work=Business Standard India |date=1 August 2019}}</ref> as a twitter response. It faced praises on social media including support from [[Uber Eats]].<ref>{{cite news |title=Uber Eats tells Zomato we stand by you on Jabalpur Muslim delivery boy row. Internet loves |url=https://www.indiatoday.in/trending-news/story/uber-eats-tells-zomato-we-stand-by-you-on-jabalpur-muslim-delivery-boy-row-internet-loves-1575959-2019-08-01 |work=India Today |language=en}}</ref><ref>{{cite news |title=Man cancels order over delivery person’s religion, Zomato wins hearts by taking stand |url=https://indianexpress.com/article/trending/trending-in-india/man-cancels-order-after-non-hindu-guy-picks-food-zomato-wins-hearts-taking-a-stand-5866103/ |accessdate=1 August 2019 |work=The Indian Express |date=1 August 2019 |language=en-IN}}</ref> However, some social media users criticised it for using [[Jain food]] and [[halal]] tags on food items to which the company issued a clarification.<ref>{{cite news |title=Zomato delivery row: People explain difference between halal and jhatka meat with funny examples |url=https://indianexpress.com/article/trending/trending-in-india/zomato-controversy-desi-users-explain-difference-between-halal-and-jhatka-meat-with-funny-examples-5869924/ |accessdate=1 August 2019 |work=The Indian Express |date=1 August 2019 |language=en-IN}}</ref><ref>{{Cite web|url=https://scroll.in/latest/932435/zomato-defends-using-halal-tag-on-app-after-facing-flak-for-food-has-no-religion-remark|title=Zomato defends using ‘halal’ tag on app after facing flak for ‘food has no religion’ remark|website=Scroll.in}}</ref> Soon after this incident, the customer who complained against Zomato, deleted his tweet. He has been issued a notice for his ''hate tweets'' from Superintendent of Police of [[Jabalpur]].<ref>{{cite news |title=Jabalpur police to Zomato customer: Tweet hate, go to jail |url=https://www.indiatoday.in/trending-news/story/jabalpur-police-to-jabalpur-zomato-customer-tweet-hate-go-to-jail-1576159-2019-08-01 |work=India Today}}</ref> |
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On 11 August 2019, Zomato delivery executives in [[Kolkata]] protested against the company for forcing them to deliver beef and pork after their denial and request of not to do so for religious reasons.<ref>{{Cite web|url=https://www.timesnownews.com/india/article/zomato-forces-us-to-deliver-beef-pork-delivery-execs-threaten-to-go-on-indefinite-strike/467143|title='Zomato forces us to deliver beef, pork': Delivery executives threaten to go on indefinite strike|website=www.timesnownews.com|language=en-GB|access-date=2019-08-11}}</ref> <ref name=":0">{{Cite web|url=https://www.ndtv.com/india-news/forcing-us-to-deliver-beef-and-pork-say-zomato-riders-in-kolkata-2083632|title="Forced To Deliver Beef And Pork": Zomato Riders Protest In Kolkata|website=NDTV.com|access-date=2019-08-11}}</ref> They shouted in the streets of Kolkata, “''Zomato ki Dadagiri nahi chalegi''” meaning “''Zomato’s bullying is unacceptable''”.<ref name=":0" /> Hindu and Muslim delivery executives of company went on indefinite strike.<ref>{{Cite web|url=https://www.news18.com/news/india/zomato-forcing-us-to-deliver-beef-and-pork-delivery-executives-go-on-indefinite-strike-in-howrah-2266697.html|title=‘Zomato Forcing Us to Deliver Beef, Pork’: Delivery Executives Go on Indefinite Strike in Kolkata|website=News18|access-date=2019-08-11}}</ref> <ref>{{Cite web|url=https://www.indiatoday.in/india/story/zomato-hits-another-controversy-hindu-muslim-delivery-boys-to-go-on-strike-against-delivery-of-beef-and-pork-1579684-2019-08-11|title=Zomato hits another controversy: Hindu, Muslim delivery boys to strike against delivering beef, pork|last=KolkataAugust 11|first=Manogya Loiwal|last2=August 11|first2=2019UPDATED:|website=India Today|language=en|access-date=2019-08-11|last3=Ist|first3=2019 11:54}}</ref> |
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==References== |
==References== |
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Revision as of 01:27, 12 August 2019
Zomato is an Indian restaurant search and discovery service founded in 2008 by Deepinder Goyal and Pankaj Chaddah. It currently operates in 24 countries.[1] It provides information and reviews of restaurants, including images of menus where the restaurant does not have its own website and also online delivery.
History

The restaurant search and discovery platform began its operations under the name, Foodiebay. In November 2010, the brand was renamed as Zomato.[2]
By 2011, Zomato launched in Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.[3] With the introduction of .xxx domains in 2011, Zomato also launched zomato.xxx, a site dedicated to food porn.[4] The company 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.[5]
In September 2012, Zomato expanded overseas to the United Arab Emirates, Sri Lanka,[6] Qatar,[7] the United Kingdom,[8] the Philippines, and South Africa.[9] In 2013, the company launched in New Zealand,[10] Turkey, Brazil and Indonesia with its website and apps available in Turkish, Brazilian Portuguese, Indonesian and English.[11]
In April 2014, Zomato launched its services in Portugal, followed by launches in Canada,[12] Lebanon and Ireland[13][14] 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.
In February 2017, Zomato in a company's blog, explained the concept of cloud kitchen. With its cloud kitchen, the company will help the restaurants to expand their presence without incurring any fixed costs.[15]
In September 2017, Zomato claimed that the company had "turned profitable" in the 24 countries it currently operates in. Furthermore, Zomato announced that the "zero commission model" is to be introduced for partner restaurants.[16]
Towards the end of 2017 Zomato stopped accepting updates from its active users, it appears this includes no longer utilising moderators to verify and make updates from users. Restaurant information is not being kept up to date, this includes not adding new restaurants nor removing closed locations. The aspects that helped them directly compete with Yelp and Google, including reviews and images, have become obsolete. Most new users of the app are reporting issues with the new feature to pay for orders. The app is being updated only to keep working with newer operating systems.
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.[17][18]
Investments
Between 2010-13, Zomato raised approximately US$16.7 million from Info Edge India, giving them a 57.9% stake in Zomato.[19][20][21] In November 2013, it raised an additional US$37 million from Sequoia Capital and Info Edge India.[22]
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.[23]
In April 2015, Info Edge India, Vy Capital and Sequoia Capital led another round of funding for US$50 million.[24] This was followed by another US$60 million funding led by Temasek, a Singapore government-owned investment company, along with Vy Capital in September.[25]
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.[26]
Acquisitions
Zomato has acquired 12 startups globally.[27]
In July 2014, Zomato made its first acquisition by buying Menu-mania for an undisclosed sum.[28] The company pursued other acquisitions such as lunchtime.cz and obedovat.sk for a combined US$3.25 million.[29] In September 2014, Zomato acquired Poland-based restaurant search service Gastronauci for an undisclosed sum.[30] Three months later, it acquired Italian restaurant search service Cibando.[31]
Zomato acquired Seattle-based food portal Urbanspoon for an estimated $60 million in 2015.[32] Other acquisitions of 2015 include Mekanist in an all-cash deal,[33] the Delhi based startup MapleGraph that built MaplePOS (renamed as Zomato Base,[34] and NexTable, a US-based table reservation and restaurant management platform.)[35]
In 2016, the company acquired Sparse Labs, a logistics technology startup[36] and the food delivery startup, Runnr, in 2017.[37]
In September 2018, Zomato acquired Bengaluru-based food e-marketplace TongueStun Food for about $18 million in a cash and stock deal.[38] The same year, in December 2018, Zomato acquired Lucknow-based startup TechEagle Innovations, that works exclusively on drones, for an undisclosed amount.[39] Zomato said this acquisition will help them pave the way towards drone-based food delivery in India, creating a technology that will power hub to hub delivery network.
Zomato security breaches
On 4 June 2015, an Indian security researcher hacked the Zomato website and gained access to information about 62.5 million users. Using the vulnerability, he was able to access personal data of users such as telephone numbers, email addresses and Instagram private photos using their Instagram access token. Zomato fixed the issue within 48 hours of it becoming apparent.[40] On 15 October 2015, Zomato changed business strategies from a Full-Stack market to an Enterprise market[clarification needed]. This led Zomato to reduce of its workforce by 10%, or around 300 people.[41]
On 18 May 2017, a security blog called Hackread claimed over 17 million accounts had been breached. "The database includes emails and password hashes of Zomato users, while the price was set for the whole package is $1,001.43 (Bitcoins 0.5587). The vendor also shared a trove of sample data to prove it is legit", the Hackread's post said. Hackread claimed details of 17 million users had meanwhile been sold on the Dark Web. Zomato confirmed that names, email addresses and encrypted passwords were taken from its database. The company reassured affected customers that no payment information or credit card details were stolen.
Zomato said the security measures it uses ensure the stolen passwords cannot be converted back into normal text, but it still urged users who use the same password on other services to change them. It also logged the affected users out of the app and reset their passwords. "So far, it looks like an internal (human) security breach - some employee's development account got compromised", the company said in a blog post but later, when Zomato contacted the hacker, they discovered a loophole in their security. The hacker removed the stolen content from Dark Web asking for a healthy bug bounty programme.[42]
Controversies
In November 2017, Zomato had to apologize after the “MC BC” ad went viral.[43] There were mixed reactions regarding this ad on social media and some found it very offensive due to which Zomato had to take the advertisement down immediately. It is said that it was one of their marketing strategies and though they pulled down the hoarding, it created a buzz that the brand needed.
In December 2018, Zomato was caught in a controversy after a leaked Twitter video showing one of its delivery executives eating out of a customer's delivery box went viral. In the two-minute video, the delivery boy was then seen resealing the packages and putting them back into the delivery bag.[44]
In January 2019, more than 500 small to medium-sized restaurants filed an online petition to the Competition Commission of India (CCI) and the Prime Minister's Office (PMO), alleging that online food delivery companies such as Swiggy, Zomato, Uber Eats and FoodPanda were misusing their dominant market position. The consortium of restaurants cited that the use of deep discounting, in-house kitchens and internal sourcing of orders were wiping out small restaurants. Unlike in Indian retail, FDI norms do not apply to the restaurant or food service aggregators.[45]
In July 2019, Zomato received a Hindu customer's complaint about being assigned a non-Hindu delivery executive for his food order and responded to it stating "Food doesn't have a religion. It is a religion,"[46] as a twitter response. It faced praises on social media including support from Uber Eats.[47][48] However, some social media users criticised it for using Jain food and halal tags on food items to which the company issued a clarification.[49][50] Soon after this incident, the customer who complained against Zomato, deleted his tweet. He has been issued a notice for his hate tweets from Superintendent of Police of Jabalpur.[51]
On 11 August 2019, Zomato delivery executives in Kolkata protested against the company for forcing them to deliver beef and pork after their denial and request of not to do so for religious reasons.[52] [53] They shouted in the streets of Kolkata, “Zomato ki Dadagiri nahi chalegi” meaning “Zomato’s bullying is unacceptable”.[53] Hindu and Muslim delivery executives of company went on indefinite strike.[54] [55]
References
- ^ "Zomato acquires Urbanspoon, enters US market; restaurant coverage to touch a million". Financialexpress.com. Retrieved 15 November 2016.
- ^ "How Foodiebay became Zomato". Businesstoday.in. Retrieved 15 November 2016.
- ^ "Zomato launches first local-search android application". Indiainfoline.com. Retrieved 15 November 2016.
- ^ "People looking for food porn come to Zomato.xxx, says founder Deepinder Goyal". Economictimes.indiatimes.com. Retrieved 15 November 2016.
- ^ "Zomato Launches Printed Food Guide; Monetization, International Expansion, WP7 App". Medianama.com. Retrieved 15 November 2016.
- ^ "After UAE, Zomato expands into Sri Lanka; adds a Colombo section". Techcircle.vccircle.com. Retrieved 15 November 2016.
- ^ "Zomato expands Middle Eastern presence with Doha launch". mideaster.com. Retrieved 15 November 2016.
- ^ "After UAE & Sri Lanka, Zomato expands into Europe; adds a London section". Techcircle.vccircle.com. 9 January 2013. Retrieved 15 November 2016.
- ^ "Zomato launches in South Africa » NextBigWhat". Nextbigwhat.com. Retrieved 15 November 2016.
- ^ "Update: Zomato Breaks Even In India; Expands To New Zealand". MediaNama.com. Retrieved 12 August 2015.
- ^ "Zomato tackles new languages for first time, takes restaurant listings to Indonesia, Turkey". Techinasia.com. Retrieved 15 November 2016.
- ^ "Zomato launches in Canada". MediaNama.com. Retrieved 12 August 2015.
- ^ "Zomato launches Lebanon section; expands into Middle East". Exchange4media.com. Retrieved 12 August 2015.
- ^ "Zomato launches in Ireland, opens revenue source by making advertisement live on its app". Firstpost.com. Retrieved 12 August 2015.
- ^ "Inside Zomato's Push Towards Cloud Kitchen - And The Road To Profitability? - Inc42 Media". Inc42.com. Retrieved 18 March 2017.
- ^ "Zomato Claims To Be Profitable, Introduces Zero Commission For Partner Restaurants". Inc42.com. Retrieved 21 September 2017.
- ^ "With revenue servings up at 81%, Zomato cuts losses by 34% in FY17". The Economic Times. 29 June 2017.
- ^ Sharma, Disha (29 June 2017). "Zomato losses shrink in FY17, revenue grows 81%". VCCircle.
- ^ "Info Edge to invest Rs 13.5cr in Zomato.com". moneycontrol.com. Retrieved 15 November 2016.
- ^ "Info Edge invests $2.3M more in Zomato, ups stake to 48.5%". Techcircle.vccircle.com. Retrieved 15 November 2016.
- ^ "Zomato raises 4th round of funding". Articles.economictimes.indiatimes.com. Retrieved 15 November 2016.
- ^ "Sequoia leads $37M funding round in Zomato". Vccircle.com. Retrieved 15 November 2016.
- ^ "Zomato raises $60 million from Vy Capital, Info Edge & Sequoia". Articles.economictimes.indiatimes.com. Retrieved 12 August 2015.
- ^ "Zomato raises Rs 311 crore from existing investors". Articles.economictimes.indiatimes.com. 11 April 2015. Retrieved 9 September 2015.
- ^ "Zomato raises $60 mn from Temasek and Vy Capital". Business-standard.com. Retrieved 18 March 2017.
- ^ "Ant Financial puts another $210 million in Zomato". The Economic Times. 2018-10-13. Retrieved 2018-10-15.
- ^ Inc42 (5 September 2018). "Zomato Acquires Food Startup TongueStun for $18 Mn". Inc42.com.
{{cite web}}: CS1 maint: numeric names: authors list (link) - ^ "Zomato buys New Zealand's MenuMania for Rs 5 crore". Retrieved 15 November 2016.
- ^ Pani, Priyanka. "Zomato acquires Lunchtime, Obedovat for $3.25 mn". Thehindubusiness.line.com. Retrieved 15 November 2016.
- ^ "Zomato acquires Poland's Gastronauci, fourth acquisition in three months". Retrieved 12 August 2015.
- ^ Verma, Shrutika (19 December 2014). "Zomato buys Italy's Cibando, to enter 15 more countries in 2015". Livemint.com. Retrieved 26 December 2016.
- ^ Dunn, Matthew (15 January 2015). "Restaurant discovery service Zomato buys Urbanspoon for $60 million". News.com.au. Retrieved 21 September 2017.
- ^ "Zomato strikes 7th deal, buys Turkish firm". Retrieved 12 August 2015.
- ^ Ghoshal, Abhimanyu. "Zomato Buys MaplePOS to Offer Restaurant Reservations". Thenexthub.com. Retrieved 12 August 2015.
- ^ Lunden, Ingrid. "Zomato Buys NexTable To Rival OpenTable And Yelp In Reservations". Techcrunch.com. Retrieved 12 August 2015.
- ^ Chanchani, Madhav (2016-09-27). "Zomato acquires logistics tech startup Sparse Labs". The Economic Times. Retrieved 2018-08-26.
- ^ Sen, Anirban (2017-09-13). "Zomato acquires food delivery start-up Runnr". Livemint.com. Retrieved 2018-08-29.
- ^ Inc42 (5 September 2018). "Zomato Acquires Food Startup TongueStun for $18 Mn". Inc42 Media.
{{cite news}}: CS1 maint: numeric names: authors list (link) - ^ "Zomato buys Tech Eagle Innovations to work on drone - based food delivery". Tech.economictimes.indiatimes.com. Retrieved 2019-02-11.
- ^ "Tech in Asia - Connecting Asia's startup ecosystem". Techinasia.com. Retrieved 18 May 2017.
- ^ "Shifting focus to what matters and what works". Blog.zomato.com. Retrieved 1 November 2015.
- ^ blog.zomato.com/post/160791675411/security-notice
- ^ "Zomato apologises after latest 'MC BC' ad goes viral, generating mixed reactions". Indianexpress.com. 1 December 2017.
- ^ "Zomato delivery boy seen consuming food from sealed orders in a video". Tech.economictimes.indiatimes.com. Retrieved 2019-01-03.
- ^ "Zomato, Swiggy 'misusing dominant Position', allege 500 small eateries | Business News". Timesnownews.com. Retrieved 2019-01-03.
- ^ "Zomato snubs customer seeking non-Muslim rider, earns praise and brickbats". Business Standard India. 1 August 2019. Retrieved 1 August 2019.
- ^ "Uber Eats tells Zomato we stand by you on Jabalpur Muslim delivery boy row. Internet loves". India Today.
- ^ "Man cancels order over delivery person's religion, Zomato wins hearts by taking stand". The Indian Express. 1 August 2019. Retrieved 1 August 2019.
- ^ "Zomato delivery row: People explain difference between halal and jhatka meat with funny examples". The Indian Express. 1 August 2019. Retrieved 1 August 2019.
- ^ "Zomato defends using 'halal' tag on app after facing flak for 'food has no religion' remark". Scroll.in.
- ^ "Jabalpur police to Zomato customer: Tweet hate, go to jail". India Today.
- ^ "'Zomato forces us to deliver beef, pork': Delivery executives threaten to go on indefinite strike". www.timesnownews.com. Retrieved 2019-08-11.
- ^ a b ""Forced To Deliver Beef And Pork": Zomato Riders Protest In Kolkata". NDTV.com. Retrieved 2019-08-11.
- ^ "'Zomato Forcing Us to Deliver Beef, Pork': Delivery Executives Go on Indefinite Strike in Kolkata". News18. Retrieved 2019-08-11.
- ^ KolkataAugust 11, Manogya Loiwal; August 11, 2019UPDATED:; Ist, 2019 11:54. "Zomato hits another controversy: Hindu, Muslim delivery boys to strike against delivering beef, pork". India Today. Retrieved 2019-08-11.
{{cite web}}:|first2=has generic name (help);|first3=has numeric name (help)CS1 maint: extra punctuation (link) CS1 maint: numeric names: authors list (link)