PROJECT REPORT

[Submitted for the Degree of B.B.A (H) under the

LNCT Bhopal]
ON
"CUSTOMER SATISFACTION TOWARDS ONLINE
FOOD DELIVERY APP- ZOMATO"

Submitted by:
Name: SUJIT PRASAD
Enrolment no: LNCABBA11027
College: LNCT BHOPAL

Month & Year of submission

July 2022

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STUDENT'S DECLARATION
I hereby declare that the Project Work with the title "CUSTOMER
SATISFACTION TOWARDS ONLINE FOOD DELIVERY APPS
Submitted by me for the partial fulfillment of the degree of B.B.A (H) under the
LNCT Bhopal is my original work and has not been submitted earlier to any other
University [Institution for the fulfillment of the requirement for any course of
study.
I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the references.

Signature:-

Name- Sujit Prasad.

Address – PragatiToll, Jaigaon – 736182.
Enrolment No - LNCABBA11027

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ACKNOWLEDGEMENT

I would like to convey my gratitude to the Bhopal University for giving me an

opportunity to indulge in this intellectual learning process of Entrepreneurship
Development and Project Planning in order to help me in preparing my Project
Reports. This will give me an impetus to take self-employment in future. I am
deeply indebted to my supervisor whose help, stimulating suggestions and
encouragement helped me in all the time of research for and preparation of this
project. I gratefully acknowledge her contribution and convey my sincere thanks to
her for guiding me. This project gave me a great learning experience.

Thank You
SUJIT PRASAD

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CONTENTS
TITLE
PAGE
NO.
NO.

1. CHAPTER -1

INTRODUCTION
1.1 Background of Project
1.2 Literature review
1.3 Research Design
2. CHAPTER-2
CONCEPTUAL OVERVIEW

2.1 Conceptual framework

2.2 Global and National Scenario
2.3 Benefits or Challenges

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ANAL YSIS & FINDINGS 3.1
Objectives
3.2 Methodology
3.2.1 Sample (Company Profile) Zomato
Investment History Key
people
SWOT Analysis
3.2.2 Data time, sources, Period of study
and Tools used
3.3 Analysis of findings

4. CHAPTER-4
CONCLUSION & RECOMMENDATION 4.1
Summary of Observation
4.2 Recommendation for improvement
4.3 Limitation of study
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5. CHAPTER-5
REFERENCES

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INTRODUCTION

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1.1 ABSTRACT
Developments in technology and reliance on internet have piched a new pathway for marketing through
mobile applications. According to worldwidewebsize.com the internet holds 15-50 billion active websites.
These websites and applications have outdated many traditional ways of marketing and selling products.
A combination of marketing intelligence and technology has reached to the development of mobile
applications which use internet as a medium to advertise products as well as services. Customers as well
as business houses now a day have a contemporary perception of products and services available in the
market. Marketing strategies are based on online marketing which suits demands of todaVs customers.
Keeping in view the online services this project aims to study the perception of customers ordering food
through online food delivery apps viz. Zomato, Swiggy. The research is focused on the people who already
use above mentioned food delivery apps. A survey was conducted for purposeful analysis to study various
attributes of all two applications is having the best overall satisfaction with customers of online food
ordering customer BHOPAL (MADHYA PRADESH).

1.2 BACKGROUND OF STUDY

The study aims to gauze the customer reviews and satisfaction towards the available online
food ordering and delivery services in Bhopal (Madhya pradesh). The study further compares
various aspects of the two available food delivery service providers in the area. Based on these
factors the findings of the study can help service providers meet customer expectations in a
better way. On the other hand, new customers of the online food ordering and delivery
services can choose best out of all available options in their residential location. Therefore,
findings from the study can be helpful for residents as well as service providers in Bhopal
(Madhya pradesh).

1.1 LITERATURE REVIEW

In this research study the attempt has been made to identify the previous literature pertaining
to the topic to draw a deeper insight into the concept. The study of previous related literature
pertaining to consumer behaviour towards online food delivery apps would immense helps in
understanding the contribution made by others and in creating a link to the chosen topic. This
has help to identify the contribution and the research gap which facilitates in designing the
framework of this study and in formulation of the questionnaire for data collection and
conducting research.

As per Serhat Murat Alagoz & Haluk Hekimoglu (2012) determined a noticeable growth in
ecommerce with a substantial speed worldwide, similarly food industry has noticed to grow by
the time. Researchers have used Technology Acceptance Model (TAM) model to study the

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online food ordering system. Ease and usefulness of the online ordering and delivery services
has been emphasized as a major factor towards the acceptance and growth of these services.
AnsarZ. & Jain S. (2016) specified the growth in the ecommerce industry as prime factor for the
success of online food ordering and delivery services. Research has mentioned that more than
400 food delivery apps are nurturing in India with a funding of about $120 million from venture
capital firms and other such investors. Considering the fact that a minimum 3 meals are
consumed by each individual in a day the food industry is called as a repetitive business industry
which attracts the interest of investors and entrepreneurs towards this growing business
segment.

H.S Sethu & Bhavya Saini (2016) have wonderfully investigated the perception, behavior and
satisfaction of students towards online food ordering and delivery services. The study
emphasized the online food ordering and delivery services helping students in time
management and having their favourite food at any time of the day. Research have also
revealed that easy access to internet as one of the supporting factors to the use of such
services by the students.

Jyotishman Das (2018) in his study titled "customer's perception towards the online food
ordering and delivery services in Pune. The survey was conducted around 153 respondents
who are already using the online food delivery services. The purpose was to known the
influencing factors, buyer's perceptions, needs, positioning of various attributes of different
online portals in their mind and overall satisfaction towards online food delivery services. The
factors that encourages customers to use online food ordering is doorstep delivery followed by
ease and convenience. Customers are mostly influenced when they receive any cashbacks and
rewards. Their most preferred online food delivery service provider is Zomato followed by
Swiggy. The factors that prevent customers to use the online food delivery services are bad
past experience followed by influence from friends/family.

Mr. Vashu Panwar & Ms. Madhu Singh(2019) have investigated that mostly students those who
are on the verge of completing their studies using online food delivery services the customers
are satisfied with the services of both online food provider. The perception of the customer
varies according to various similarities & difference based on their personal options. In their
study, it reveals that the price of the products, discounts and special offers have the most
influencing factor on online food delivery system.

Nitiwanakul w(2014) this study was to examine the relationship between customers' perceived
value and its drivers which influence fine dining restaurant selection. The results indicated that
perceived value and monetary cost were the key factors that influence consumers' intention to
select a fine dining restaurant. Food quality, service quality, monetary cost and non- monetary
cost were found to be the essential factors which directly affect the overall customer perceived
value of fine dining restaurants, and a positive way for quality and a negative way for cost.

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Jabir Tribhuvan(2015) The study resulted in that the majority of the respondents reported
eating out once in a month. They primarily dined out with friends or family members on
holidays or special occasions. By using chi- square analysis the difference in consumers'
preferences for eating out has been analysed for family and fast-food style restaurants. The
study also identified that the preference for eating out was significantly more prominent
among those who were younger (0<30 years), more educated (preferably graduate in any
discipline), employed, and having more than one income earners in their family and
belonging to higher income groups of households per month).

Krishna Kumari (2019) invested that on-line ordering system was a simple and convenient way
for customers to purchase food online, without wasting the time in restaurants. This method
was convenient, safe, reliable and it is revolutionizing the present restaurant industry.
Structured questionnaire was employed to identify the factors influencing the buying behavior
and relationship between the on-line food service and the facilities provided. The study
concludes that the social media helps the on-line service provider of food, by advertising in
their media and websites.

S. Manju (2019), in her study on Customer Preference and Impact of Online Food Service Apps
tells about the impact of various food ordering apps in our day to day life and what factors
have contributed to this great deal of food service app usage.

Mrs. A. Mohanapriya, Mrs P. Geetha & Mr. A. Prasathkumar(2020) The consumer behavior has
become an emerging area of research within the business discipline here various factors has an
influence on consumer behavior. The research investigated the consumer's preference on
dining in a restaurant and ordering food online. Even online food delivery service is an energing
market in India the consumer prefers the traditional way of dining in the restaurant.
Restaurants is the place where people can sit and relax and spend their time with their family by
having their favourite food. Most of the consumers have online food delivery apps in their
mobiles but they place orders only once in a while. From this research paper we had identified
that the main problem for the consumers not preferring online food delivery service is lack of
trust. Consumers afraid of the quality of the packed food, so the online food aggregators should
gain the trust of the consumers to improve their business.

1.2 RESEARCH DESIGN

Descriptive Statistics: Descriptive statistics are used to describe the basic feature of the data
in a study. They provide simple summaries about the sample and the measures. Together
with simple graphics analysis, they form the basis of virtually every quantitative analysis \

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CONCEPTUAL
OVERVIEW

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 2.1 CONCEPTUAL FRAMEWORK
About Online Food Delivery System
The Online Ordering System can be defined as a simple and convenient way for customers to
purchase food online, without having to go to the restaurant.
This system is enabled by the internet- it is the internet that connects the restaurant or the food
company on one hand, and the customer on the other hand. Therefore, as per this system, the
customer visits the restaurant's apps or website, browses through the various food items,
combos and cuisines available there and goes ahead and selects and purchases the items he or
she needs. These items will then be delivered to the customer at his or her doorstep at the time
they choose by a delivery person. Payments for such online orders can be made through debit
cards, credit cards or cash on delivery, or even through digital wallets. This system for online
food delivery is completely safe, secure, and is a very popular method that is revolutionizing the
way in which the food industry operates.

2.2 GLOBAL AND NATIONAL SCENARIO

NATIONAL SCENARIO
E-commerce in India is expected to grow from US $2.9 billion in 2013 to a mammoth US $100 billion by
2020, making it the fastest growing e-commerce market in the world! E-commerce is also witnessing a
spurt in online food & restaurant service companies, which is expected to reach $2.7 billion by 2019. This
white paper explores drivers of the growth of such online food delivery companies in India, the current

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competition and how this affects the brick-and-mortar restaurant business in India. Here's a look at the
supply and demand drivers for online quick food services.

Demand Drivers

Encouraging Demographics
With a population of over 1.2billion, India is undeniably one of the biggest consumer markets in the
world today. Moreover, 50% of this population fall under the age of 25, and the rest before the age of 35
years; making India among the youngest population in the world too. Most of the fast food demand
comes from age group 18-40 years. What's more, by the year 2025 the Indian middle-class demographic
is expected to touch 550 million. Young India's appetite is one of the key drivers for demand in the food
and beverage industry on the whole.

Promising Income and Consumption Levels

With an increasing number of young Indians being productively employed in lucrative industries, sectors
like IT services have upped the living standards and made their wallets fatter too. The World Bank reports
a staggering 50% increase in per capita income since 2006 until now. Urban India sees a visible change in
the social setting, which further fuels the advance of fast food restaurants in India. Higher disposable
income is also a key driver for other subcategories of food products too.

Favourable Lifestyle Changes

With dual-income families, now urban India sees both parents bring home the bacon, thus changing the
way people live drastically; with changes in routines, lifestyle and food habits. The demand for quick
access to food and one with affordable rates is on the rise. Time crunches and an increasing need to
spend quality time with 92% nuclear families reaching out for fast food or takeouts to save time and
energy that would otherwise go into cooking up a meal at home every day of the week.

Rising Number of Working Women

Keeping in line with the above point, there has been an astounding increase in working women. Working
women end up spending most of their productive hours commuting and at work, therefore there is very
less time to cook full blown meals at home, all by themselves. Working women typically spend a large
amount of their disposable income on buying takeouts or eating out. This is again a key demand-driver for
the food and beverage industry in India.

Supply Drivers

Expanding Variety of Cuisines

With more and more restaurants offering global cuisines, this has had a significant impact on the overall
food industry. Chicken biryani, burgers, butter chicken, pizza and Hakka noodles are customers' most
preferred orders. North Indian fare tops, but Chinese, Italian, south Indian and 'healthy food' are also
popular. The more Indians living in urban areas are willing to experiment with new cuisines, the more will
frequency of dining out increase.

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Upgrading of Retail Formats
With a slew of international food brands and restaurants making themselves available at popular malls,
these seem to be the ideal space to get more customers who go to malls to shop. And inversely, more
customers going to food courts and restaurants at malls, shop! It is a win-win situation for all parties,
indeed.

Rising of Contract Cultivation

Contract cultivation is essentially a binding agreement that guarantees farmers' purchases from giant
global companies, provided they agree and supply the preferred crops to the companies. For example,
McDonald's currently has over 400 farmers cultivating potatoes for them in over 2000 acres of farmland
in the state of Gujarat.

Emerging of Logistics Providers

It's not just true for the emerging e-commerce industry where couriers and delivery-handling companies
are on the rise. There are logistic providers for the food industry too, such as Radhakrishna Foodland who
is a local partner, providing their logistics services to global giants in India such as McDonald's AND Pizza
Hut.

Growing of Delivery - dedicated Formats

The initial investment needed for a delivery-focused format is much lower compared to starting up a
restaurant or even a fast food joint. Investments includes rent, designing interiors, furniture and so on.
Due to such cost benefits, more operators are ready to devote their time, energy and investments in the
formats dedicated to delivering food at the doorstep. There is a considerable decrease in the costs of
labour, supplies and the biggest cost saving aspect is the need for quality real estate. This is the most
expensive of all investments in restaurants, and with a delivery format this cost is saved.

Extension to Delivery Services in Existing Restaurants

Restaurants are now trying to maximize their business output by offering food delivery services. This way
they all are able to rationalize existing fixed costs and also keep their business sustainable. Home Delivery
is a very vital ingredient in this mix. It's no wonder restaurants big and small, all are vying to get a piece of
this pie! Moreover with this format, a higher number of customers can be serviced, compared to the
sitand-dine format where at peak hours, customers will be missed. The delivery format keeps customer
loyalty going strong too.

New Trends in the Delivery Sector

The role of mobile apps and also web-based system of ordering food cannot be undermined at this point.
With more people using smart phones, increasing literacy and access to the Internet, the fortunes
waiting to be reaped from the business of home delivery are just a click away! Domino's Pizza claims to
deliver over 50,000 pizzas in a day and 15,000 of those orders are made online. Fassos is another popular
food chain that doles out over 60,000 orders in a day and all from their mobile app too. Now that
Dominoes and other players have tied up with the online food service site FoodPanda, these numbers
are expected to double in the coming years. E-Tailing, which is having a sound presence online, is very

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promising for all delivery-based 'quick service restaurants' (QSR) compared to the revenues generated
from the typical brick-and-mortar format.

Impact of Online Food Services on Restaurant Business in India

The format of home delivery or the takeaways have gained a lot more customers in locations such as
malls, offices and big-party orders for residential complexes. People missing breakfast on the way to
work, order-in. People who desire a better choice of corporate lunch or party, order in too. Everyone
seems to be in awe of the online food order and delivery option for the convenience and immediate
source of food at home. Besides, the convenience of ordering groceries from your mobile app or web
browser has certainly taken away some market share from the trusted 'kirana' or the mom-n-pop stores.
India is the 6th largest grocery market in the world, but the organized sector as run by some of the
online businesses mentioned above makes up only for 5-8% market share of the grocery business. The
vast majority is still owned by these local markets and the mom-n-pop stores. This has some obvious
impacts on the brick-and-mortar formats of in-dining restaurants as more people prefer to have
restaurant-style cuisines right in the privacy of their homes or workplaces, but the impact is not so much
as it may appear to be. The fast food business in India is only about 2 decades old, and remains largely
unorganized. Given the rate at which the organized sector is rapidly growing, it is only a matter of time
and a much larger chunk of global investments before a really big impact is made on ongoing restaurant
businesses that may not have a delivery-focused format of their own.

Food Tech Companies Prefer Chefs to Head Operations.

It's not just housewives who are getting a go at entrepreneurship. To offer their flavours from home to
customers who yearn homemade food, culinary talent from the hospitality industry are now most
wanted at food tech companies that operate on a pure home-delivery model - for their experience, skills
and expertise in the food industry. The companies want them to not only head the kitchen operations,
but also work closely in bringing up new menu options and update the old ones too. Chefs enjoy
complete freedom and democracy at such establishments, agrees Chef Amit Tyagi who after working 10
years at Taj, joined Yumist to bring up 2-3 dishes to the menu every week. Cook Gourmet is another
platform where even culinary students get a chance to have their recipes showcased and recognised
under their own names! These are musings from 19-year-old culinary student Tejasvi Arneja who got his
recipe featured and is now a popular Facebook culinary celebrity.

Conclusion
The changing urban lifestyle of the average Indian is dramatic enough to be favourable for the
foodonthe—go and quick home delivery models to grow at higher rates. The ever-increasing population
crowded metro cities and longer travel times are drivers for the convenient, ready-to eat and cheaper
options of having food and groceries delivered at your doorstep. Companies that are aware of the huge
potential for growth may venture straight in, but only the fittest will survive. Businesses who keep their
value proposition and their brand active in consumer's minds, will take the biggest share of the Indian
online food service pie.

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 GLOBAL SCENARIO
The Asia Pacific was the largest region in the online food delivery services market in 2019.
North America was the second largest region in the online food delivery services market in
2019.1n January 2020, Zomato, an Indian food delivery services company, has acquired Indian
operations of Uber Eats for $350 million in an all-stock transaction. The combined entity of
Zomato and Uber Eats India is expected to corner more than a 50-55% market share in terms
of the number and value of orders. Uber Eats is an online food delivery services vertical of
Uber, a US-based ride-hailing company.An increase in smartphone users has given a boost to
online food delivery services worldwide. Smartphone users are the primary online shoppers
for the F&B industry and an increase in the number of smartphone users reflects a potential
increase in online shopping for food and beverages. The world F&B e-commerce users
reached 1.5 billion in 2019 and are expected to grow by 800 million, with an average of 25%
y-o-y growth, by 2024. Indian food delivery platform, Zomato, has 80 million monthly active
users and has set targets of reaching 20 million over the next few years. Hence increase in
smartphone users and internet penetration is driving growth in online food delivery
services.The cost of supply chain and logistics will be the key restraint for the online food
delivery services market. This cost includes the cost incurred for order fulfillment, delivery
cost, adjusting business resources to dynamic market demand and lastmile connectivity.
Besides, there are costs of cardboard boxes for packaging, gas, mileage and the cost for hiring
a driver. The supply chain and logistics has to be in place in order to avoid the spoilage of
products with limited shelf life.According to the report by Capgemini, in 2019, the retailers
could lose up to 26% of their profit if they fail to upgrade their logistics system to ensure
ontime delivery despite the increased online grocery system. Therefore, the costs incurred by
the supplier side may restrain the growth of the online food delivery services market.

2.3 BENEFITS OR CHALLENGES

Merits of online food delivery apps:

1. Workaholics, don't starve anymore

Being a profession-driven person, we afford to miss on our diet but never to miss on our
deadlines. But not to worry anymore! You can quickly order your favorite quick munchies
from one of the nearest restaurants and grab a bite in no while refilling up your stomach
and you are back on the trail.

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 2. Ladies, you can enjoy the parties too!
When you finally have your long-awaited guests coming home; Ladies, you can quickly
order delicious food items, single or many, with just a few taps on your mobile screen.
One are the days, when you needed to boil yourself in the scorching heat in the kitchen
cooking all the time for the guests. With the new food delivery system or online food
delivery apps, ordering food has been easier than before.

3. Urban restaurants, reach out to remote foodies

You captured the foodies of the complete city! Are you sure? Why not extend out the
reach to the remote foodies. With the online food delivery in place, you can be available
to the remote food-lovers by being visible with your restaurant menu and giving the
option to deliver in their area.

4. Pinchpenny? Get cashback

You love the restaurant food but you want to save money as well, don't worry. We
have got discounts for you. With this food ordering system, you get excellent deals for
cashback and discount offers while ordering for delivery or eating at a restaurant.
5. Reserve that quiet side table for your next gathering
Tired of facing the problem of last-minute bookings and cancellations of the tables at
the time of your gatherings. You can now pre-book the preferred table for your
preferred time of the meeting and get notified in advance if there is any cancellation
and yet get a chance to book the table beforehand in another restaurant.

6. Restaurant owners, smile ear-to-ear seeing profit graph

Is your restaurant located amidst ten other restaurants serving similar cuisine of food?
Are you worried about your profit seeing the competition?
Being available online will give you an extensive reach to customers who order
frequently from restaurants and you can get a smooth increase in your revenue in the
same investment.

Problems faced by online consumers:

1. Deliverymen put themselves in danger

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 Whether it is a heat wave boiling down the city or it is snowing or raining heavily, a
Delivery Boy is waiting outside the restaurant to pick and deliver your order. Although we
get the joy of our favorite food in any season, they are also humans who forget their
human rights putting themselves in danger sometimes.

2. Disguised increased expense

We surely get attracted by yummy-looking food pictures on the app and a small but
highlighting banner of cashback offer. However, we forget that despite cashback, it is
costing us higher than the food which we can cook with the groceries available using all
our magical cooking skills and spend blindly ordering the food online.

3. Revenue conflicts between the restaurants and delivery providers

Not every restaurant owner can afford to employ ten delivery boys and bear all the
transport and remuneration expenditure; so, they choose to contract with the delivery
service providers through these apps. However, despite automation in place, one can't
control everything through an automated system, and conflicts occur between the
restaurant owner and delivery providers regarding the payments.

4. Juggling with your health

Another disadvantage of an online ordering system for restaurants is even though when
you go to a restaurant you won't be seeing the material they use in that mouthwatering
Pasta dish that they bring to your table, still, you can get it replaced if you find any faults.
However, you are again not going to know what they use, but you won't be able to get it
changed or sense any faults in it. Also, due to the pressure of meeting up all the deliveries,
the restaurants heat it up so quickly that it kills almost all the nutrients of the food you
eat. Moreover, many cases have been noted where people who consume this type of
food, face health issues such as food poisoning and consuming on a regular basis, which
makes them obese as well.

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 CHAPTER-3

ANALYSIS &
FINDINGS

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3.1 OBJECTIVES

To analyse the Technological competitive edge between Zomato & Swiggy.

To study the Challenges faced by Zomato & Swiggy.

To understand the customer preference towards online food delivery service providers.

To analyse the Service competitive edge between Zomato & Swiggy.

To understand the market and analyse the marketing strategies adopted by Zomato &
Swiggy.
3.2METHODOLGY
3.2.1 SAMPLE (COMPANY PROFILE)
ZOMATO

Zomato is a restaurant search, discovery & delivery service which was founded in 2008 by
DEEPINDER GOYAL & PANKAJ CHADDAH. It operates in over 23 countries includes India, Australia
and United States. It features restaurant informatioOn which gives the customer information
about best dining places, their menus and photos uploaded by local street teams as well as users'
reviews and ratings.

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The company also provides a variety of services like online ordering, table reservations and so
on. It collects all the required information from every restaurant on a regular basis to ensure
their data is fresh. They have a vast community of food lovers and bloggers who share their
own photos and reviews so that customers have all that they need to make their preferred
choice.

Zomato also began grocery delivery amid the COVID-19 outbreak, as of 2019, the service is
available in 24 countries and in more than 10,000 cities.

Types of Business Private

Available in English, Turkish, Portuguese, Indonesian,

Spanish, Italian, Vietnamese

Founded July 2008

Headquarters DLF Phase V , Gurugram, Haryana India, New

Zealand, Qatar, Singapore, UAE, UK, US,
Portugal, Poland, Malaysia, South Africa, Sri
Lanka, Turkey

Services Restaurant Search & Discovery, Online

Ordering, Table Reservations, Subscription
Services

Revenue crore(H1-FY 2020)

Employees 5000+

Parent Info Edge, Ant Financial, Uber

URL https://www.zomato.com/akola?cityid=11434

Users 8 crores

Native Clients Windows Phone, iOS, Android, Universal

Windows Platform

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 INVESTMENT
Zomato has approximately raised around USD 16.7 million in the year 2010-13 from Info Edge
India by offerings stakes of 57.9% in Zomato. It also raised USD 37 million additionally from
Sequoia Capital Info Edge India.

Zomato completed another round of funding which was jointly taken from Info Edge India & Vy
Capital in November 2014, the funding being around USD 60 million.

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 round $2 billion. Zomato had also raised an additional $150 million also from
Ant Financial earlier in 2018.
HISTORY
Like most other start-ups, India's pioneering foodtech unicorn Zomato has seen many peaks and
troughs in its journey. While there were some illustrious moments and accomplishments, there
were troubled times too, some that even brought the very existence of the company into
question. Zomato kicked off essentially as a rebranded version of the food directory services
Foodie bay. Goyal and Chaddah, both 11T graduates and both working as analysts at Bain and
Company back then, had started Foodie bay in 2008.

In a matter of just nine months, Foodie bay became the largest restaurant directory in Delhi
NCR. After two successful years, the company was rebranded Zomato and since then there was
no looking back, With support from its investors and multiple rounds of consecutive funding,
Zomato built not only its valuation but also an interesting portfolio of investors which includes
Info Edge India, Sequoia, Vy Capital, Singapore-based investment earlier this year led Zomato to
cross the $1 Bn valuation. Zomato's quick growth can also be attributed to its rapid expansion
to countries other than India. Soon after its success in Delhi-NCR, the company started
branching out to cities like Pune, Ahemdabad, Bengaluru, Chennai, and Hyderabad.

By 2012, Zomato had started expanding overseas by extending its services to Sri Lanka, UAE,
Qatar, South Africa, UK, and the Philippines. The year 2013 saw New Zealand, Turkey, and Brazil
get added to its list. During this time, Zomato also kept working on its tech backbone to match
the boom in the smartphone trend and launched its app. It was also in 2015 that Zomato,

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struggling with falling revenues, the company decided to roll back operations in nine of the
countries it had expanded to, handling them remotely to ensure it did not lose out on the
markets. In terms of numbers, Zomato recorded a 225% rise in revenue in the first half of
FY2020. According to the company's biannual report, it has registered $205 million in revenue,
compared to $63 million in the first half of last year. Zomato claimed to have registered an
increase of 177% of restaurant partners after getting an additional 73K restaurant on board. In
the HlFY20, the food aggregator and delivery start-up has around 119K restaurants, compared
to 43K last year. Zomato Gold service has registered a 180% increase with 1.4 million users.
With an eventful FY20, Zomato's rival Swiggy has also been out on the block seeking fresh funds.
The Bengaluru-based food delivery unicorn is also in talks to raise $500 million fresh funds led
by Naspers at a valuation of $3.3 Billion.
22 |
KEY PEOPLE

Name: Deepinder Goyal Designation:

Founder & CEO Linkedin

Profile:

https://www.linkedin.com/in/deepigoval

Twitter: https://twitter.com/deeigoyal

Name: Pankaj Chaddah Designation:

Co- Founder

Linkedin Profile:

https://in.linkedin.com/in/pankai-chaddahOa54979

Twitter:

https://twitter.com/pankaichaddah

Name: Gaurav Gupta

Designation: Chief Operating Officer

Linkedin Profile:

23 |
Page
https://www.linkedin.com/in/gaurav-gupta-4873212/

Name: Akriti Chopra

Designation: Chief Financial Officer

Linkedin Profile: https://www.linkedin.com/in/akriti-chopra-

2a21aa56/

Name: Pramod Rao Designation: Senior Vice

President Linkedin Profile:

https://www.linkedin.com/in/pra024

Twitter: https://twitter.com/pra024

SWOT ANALYSIS
Strengths:

1. It is the first delivery service in most of the nations.

2. It has a fast expanding & growing market.

3. The app is user friendly compared to its competitors and also has won many awards for its
design.

4. Zomato has made a lot of profits since the time it was launched. 5. Zomato has a huge
customer base which is an added advantage.

6. It has a large number of investors and has enough funding.

7. It has a very good marketing strategy which has helped in acquiring a lot of customers.

Weakness:
24 |
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 1. The major concern was related to the privacy and security issues for the app.
2. Zomato still requires an expansion in rural areas.
3. Word of mouth and Facebook check-ins have lessened the number of people using Zomato.

Opportunities:

1. Further expansion.
2. More acquisitions.

3. Cloud Restaurant-where the restaurant need not have a physical existence to sell their food,
instead they can sell their food through Zomato.

4. Creating a forum and a community out of the users already following Zomato can be a huge
benefit for the brand.

Threats:

1. Major threat would be from the new entrants, many new food deliveries start ups have
been emerging in the recent years.

2. Not all the customs will be loyal towards one aggregator, if there is a better one providing
more offers and discounts the exciting customers may move on.

3. Uncertain Research & Development outcomes, sometimes if the prediction of R&D may not
work as thought it might lead to failure.

3.2.2 DATA TIME SOURCES PEROD OF STUDY AND TOOLS USED

A questionnaire was circulated online with the help of Google Forms to collect
data from individuals. It is a set of questions which consisted of close ended and
open-ended questions devised for the purposes of survey on which the study is
conducted. Most of the questions were closed-ended questions and
multiplechoice questions. Some of the respondents are from Bhopal and some
are from my hometown Jaigaon. There were 27 questions in the questionnaire
which included both general questions and questions specific to the topic. The
questionnaire was distributed to 100 people and it took a3-4 days to receive all
the replies after which analysis was made based on the data collected from the
respondents. Data Sources:
25 |
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1. Primary Data: Primary data were generated in an investigation with help of
questionnaires.
2. Secondary Data: Secondary data collected from internet, articles, journals,
websites and magazines.

Tools used:
Graphs, Questionnaires,
Tables,
Bar Graph
• Pie Chart

26 |
Page
#Data Analysis:

Table showing the

3.3 ANALYSIS OF FINDINGS

age of respondents
Tab 3.3.1

Options No. of Respondents Percentage

Below 18 4 4%

18-24 84 84%

25-30 5 5%

31—44 6 6%

45 and above 1%
1

Total 100
Diagram shows number of male and female Fig.3.3.1

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Page
#Data Analysis:

#Data Interpretation:
Above pie chart shows that most of the people who order online food is from 18-24 age group.
Table showing the
That means young people prefer online food delivery system.

current employment status of the respondents

Tab.3.3.2
Options No. of respondents Percentage

Self-Employed 14%

A Homemaker 4 4%

A Student 77 77%

Retired oo oo

Others 5 5%

28 |
Page
#Data Analysis:

Total 100
Diagram shows the occupation of respondents

Table showing the

Fig.3.3.2

29 |
Page
#Data Analysis:

#Data Interpretation:
This bar graph shows that maximum students prefer online delivery. Their percentage is 66%
which is the highest percentage.

number of respondents who prefer online food

Table.3.3.3
Options No. of respondents Percentage

Yes 98 98%

No 2 2%
Table showing the

Total 100
Diagram shows the preference of respondents

Fig.3.3.3.

30 |
Page
#Data Analysis:

Do you order food Yes

online? No
#Data Interpretation:
This pie chart shows that 94% respondents prefer online food which says most of the people
does opt for online food delivery but only 2% of respondents did not prefer online food
delivery.

31 |
Page
Table shows preference of respondents towards food delivery apps

Tab.3.3.4
Options No. of respondents Percentage

Zomato 63 63%

Swiggy 31 31%

Others 6 6%

Total 100
Diagram shows the preference of respondents towards food delivery apps Fig.3.3.4.

32 |
Page
#Data Analysis:

#Data Interpretation:

#Data Analysis:
This pie chart shows the preferences of consumer towards online food delivery service
provider, where in 63% prefer Zomato , 31% prefer Swiggy & 6% prefer other food delivery
apps. This shows Zomato has more preference than Swiggy. Table shows how often
respondents order food online

Tab.3.3.5
Options No. of respondents Percentage

Daily 4 4%

Weekly 33 33%
Fortnight 14 14%

Monthly 49 49%

Total 100

How often do you order food online?

50

40

30

20

10

60
Daily Weekly Fortnight Monthly
#Data Interpretation:
This bar graph gives clear view of how often they order food online. It shows the most of them
order food online i.e. 67% of respondents & rest of them seen ordering weekly (33%).

Table shows preferred meal respondents wish to order

Tab.3.3.6
Options No. of respondents Percentage

34 |
Page
#Data Analysis:

Breakfast

Lunch 13 13%

Snacks 50 50%

Dinner 37 37%

Total 100
Diagram shows preferred meal of respondents
Fig.3.3.6

#Data Interpretation:

#Data Analysis:
As the above bar graph shows most of the respondents prefer to buy snacks whose percentage
is 50% & 37% opted for order dinner online.
Table shows reason for ordering food online

Tab.3.3.7
Options No. of respondents Percentage

Faster delivery 9 9%

Convinent 34 34%

Time-saving 7 7%

Money-saving

All of the above 50 50%

Total 100
Diagram shows reasons for ordering food online

Fig.3.3.7

#Data Interpretation:
This pie chart shows people prefer food online because of Faster-delivery (9%) as well as it is
most convenient method (34%) and others reasons are all of the above (50%). Time saving is
the reason for very few people.

36 |
Page
#Data Analysis:
Table shows amount of money spend by respondents

Tab.3.3.8
Options No. of respondents Percentage

< 150 13 13%

<250 36 36%

<500 36 36%

More than 500 15 15%

Total 100
Diagram shows amount of money spend by respondents

Fig.3.3.8
This bar graph gives clear idea that 36% of the people likes to spend amount of money
between 150- 250 & 36% of them spend around 250-500. And also more than 500 amount
there is only 15% people.

#Data Interpretation:

#Data Analyssis:
Table shows in the time of pandemic how often they order food online food Tab.3.3.9
Options No.of respondents Percentage

3-4 days 4 4%

7-10 days 6 6%

10-14 days 13 13%

More than 15 days 77 77%

Total 100
Diagram shows in the time of pandemic how often they order online food

Zomato
PROVIDER GIVES MORE
PROMOTIONS?

#Data Interpretation:

|
Swiggy
Swiggy 31 31%

Total 100
Table shows responses of service provider gives more offers & promotions
Tab.3.3.10

Options No. of respondents Percentage

41 Page
Zomato 64 64%

Swiggy 36 36%

Total 100
Diagram shows which service provider gives more offers & promotions
Fig.3.3.10

#Data Analysis:

Table shows who provide better customer service

Tab.3.3.11

Options No. of respondents Percentage

Zomato 69 69%

40
#Data Interpretation:
This bar graph shows that Zomato gives better customer service (69%) rather than Swiggy who
gives (31%) customer service. The best customer service provider will always lead the market.

#Data Analysis:

Table shows who have more tie ups with restaurants

Tab.3.3.12

Options No. of respondents Percentage

Zomato 64 64%

Swiggy 36 36%

Total 100
Diagram shows who has more tie ups with restaurants

Fig.3.3.12

42 Page
 WHICH SERVICE PROVIDER HAS MORE TIE
UPS

WITH RESTAURANTS?
Zomato Swiggy
#Data Interpretation:

The most important is on having a lot of tie ups with restaurants which will attract more
customers. This pie chart that Zomato has more tie ups with restaurants i.e. 64% whereas
Swiggy has tie ups which is 36%.

#Data Analysis:

Table shows which company is good in packaging food

Tab.3.3.13 (a)
Options No. of respondents Percentage

Zomato 64 64%

Swiggy 31 34%

Others 5 5%

43 | Page
Total 100
Diagram shows which company is good in packaging Fig.3.3.13

(a)

#Data Interpretation:
This pie chart shows that the packaging of food delivered by Zomato is better (64%) whereas
31% of respondents claims that Swiggy have better packaging of food and 5% of respondents
have claims about other food delivery apps.

44 Page
 CONCLUSION &

RECOMMENDATION
 4.1 SUMMARY OF OBSERVATION
As per my study it clearly states that almost 98% of the respondents choose to order
food online which says that most of the people prefer to order food online where in
only a few respondents did not prefer to order food online.

It clearly shows preference of customer towards online food delivery aggregators,

wherein 63% prefer Zomato, 31% prefers Swiggy and 6% prefer other food delivery
apps. This shows the preference of customers towards various aggregators available in
the market. This also shows that most of the people prefer Zomato as compare to
Swiggy.

It gives us a clear picture that most of them prefer to order snacks which stands at 50%,
and it also shows that 36% prefer ordering dinner and the remaining have opted for
lunch which shows that the demand is more for snacks.

46 Page
 Through this it could analyse how often people order food online and we can see that most
of them order food monthly (49%), and some respondents are seen ordering weekly
(33%), some orders fortnight (14%), where takers of daily is comparatively few in number.
Zomato provides more offers, discounts and promotions compared to its rival Swiggy,
where in both stand at different levels where is Zomato has 64%, Swiggy has 36%.
Therefore, Zomato is the best in giving offers and promotions.

This gave me an insight on the money spent on ordering food where 13% of the people
likes to spend amount of money 150 to 250 & 36% of them spend around 250-500. And
also there are some people who likes to spend 500 (36% people) or more (i.e. other 15%)
amount of money to order food online.
The best customer service provider will always lead the market. The best customer
service provider where in most of the respondents have opted for Zomato at 69%
saying that it provides better customer service compared to Swiggy at 39%.

This study shows which aggregator has the most important no of tie ups and it is the
most important having a lot of tie ups with restaurant which will attract more
customers. It shows Zomato leads the market which stands at 64% as compare to
Swiggy 36%.

This study shows that most of the young people or students whose age group is 18-24
prefer online food delivery system rather than 25-30 and other age groups.

With the help of this, I had come to know the reason behind the online food delivery
preference as compared to walk-in. It shows that Online food delivery service is more
convenient as well as it saves time and money also by various discounts and offers given
by online food delivery aggregators.
Because of Covid19 situation Online food delivery service sector reaches at its peak. This
report gives me insight that at the time of pandemic, people order online food is more
than 15 days which stands at 54% and those who order online food in between 10-14
days stands at 16%.

4.2 RECOMMENDATION FOR IMPROVEMENT

Following Suggestions would be recommended to both Zomato and Swiggy:

47 | Page
 These food aggregator services are only popular in few cities, they need to expand into
other markets and explore the unexplored cities. Come up with ways to retain the
existing customers.

Be aware of the competitors.

| Attract customers by providing new offers, promos and schemes.

Conduct R&D on regular basis to see which yield benefits.

Takeovers or acquire other food delivery aggregators who are not doing well in the market.

Provide proper quality and efficient training to its staff.

Understand the choice, taste and preference of customers.

Understand the needs and wants of customers.

Try different ways of delivery like: Drone delivery, Railway station delivery etc.

Keep an eye out on your product performance and as they change with seasons. Use this
insight to plan out special dishes. Smaller and functional menu adds great value to
customer satisfaction.

4.3 LIMITATION OF STUDY

Results are just an indication of the Present scenario & may be not applicable in future.

As the study was conducted in Bhopal (Madhya pradesh), so it can be said that the study
was conducted on regional basis.

Since, sampling was done under convenience sampling method, where easily
approachable respondents were picked up, so it will not justify the whole universe.

Lack of time on the part of respondents for filling up the questionnaire.

Respondents may fill partially correct information in the questionnaire.

The sampling size of 100 respondents is enough to gauze the reviews and satisfaction of
customers living in Bhopal.

Keeping in view social and cultural variations amongst the population, the results of the
study cannot be generalized to each and every part of Bhopal or its adjacent locations.

48 Page
 CONCLUSION
The change in the standard of living of the people, increasing disposable income of
people and the busy schedule has changed the life of people and their eating habits,
where in people used to prefer cooking food than going to restaurants or ordering
food but now things have changed where in most of the people have got addicted to
online ordering of food and prefer to order food instead of cooking mostly the young
crowd, working professionals and people who don't like to cook or don't know to
cook have started taking the at most use of these apps.
Online food delivery services have made the life of individuals much easier and
convenient wherein they can save on a lot of time and energy. With the rise of these
services there is no need to call the restaurants for placing orders, there is no need
to wait for a long time, through this you can order your choice of food from your
choice of restaurant anytime, anyplace and from anywhere.
On the basis of responses from the customers of online food ordering services in this
particular research, it is concluded that Zomato is the most successful food ordering
online service in Bhopal, Jaigaon. Customers have reported Zomato as most active
online food delivery service availing maximum promotional offers in terms of
discounts, with courteous and professional delivery staff as well as supportive
customer care. Respondents have also chosen Zomato for providing best packaging
materials and. overall customer satisfaction over Swiggy in Bhopal

ANNEXTURE

49 | Page
 8REFRENCES
https://www.slideshare.net/VashuPanwar/vashu-panwar-presentation-
ofcomparative-study-between-swiggy-and-zomato
• https://craft.co/zomato/executives
• https://en.wikipedia.org/wiki/Zomato
https://pitchbook.com/profiles/company/56174-23#overview

6&wsso=Moderate https://www.academia.edu/40985395/POPULARITY
OF ONLINE FOOD
ORDERING AND DELIVERY SERVICES-
A COMPARATIVE STUDY BETWEEN ZOMATO SWIGGY AND UB
ER EATS IN LUDHIANA
https://www.spaceotechnologies.com/online-food-ordering-
systemadvantages-disadvantages/
• https://theaims.ac.in/resources/online-food-service-in-india-an-analysis.html
https://www.businesswire.com/news/home/20200511005687/en/GlobalOnlineFoodDe1iv
ery-Services-Market-2020-t0-2030---COVID-19-Growthand-Change-
--ResearchAndMarkets.com

80UESTIONNAIRE:
NAME:

•:• GENDER:
FEMALE
MALE

50 | Page
 OTHERS
AGE :

BELOW
18
18-24
25-30

31 —44
45 AND ABOVE

EMPLOYMENT STATUS, ARE YOU CURRENTLY...?

SELF-EMPLYED
A HOMEMAKER
A STUDENT
RETIRED
OTHERS

•e WHAT IS YOUR ANNUAL INCOME?

LESS THAN 50,000
50,001-100000 100001-
150000
ABOVE 150000
NOT YET EARNINN G

•e DO YOU ORDER FOOD

ONLINE? YES NO

51 | Page
 IF YES, FROM WHICH COMPANY DO YOU
PREFER? ZOMATO SWIGGY

OTHERS
HOW OFTEN YOU ORDER FOOD ONLINE?
DAILY
WEEEKLY
FORTNIGHT

MONTHLY

•e WHICH MEAL YOU TYPICALLY ORDER FOOD ONLINE?

BREAKFAST
LUNCH

SNACKS
DINNER

IN GENERAL, HOW DO YOU PREFER TO ORDER FOOD?

OVER THE MOBILE APP
OVER THE BROWSER
OTHER
•e WHAT IS THE APPROXIMATE MONEY YOU SPEND ON ORDERING
FOOD PER TIME?
<150

<250

<500

MORE THAN 500

52 | Page
 FASTER DELIVRY
CONVINENT
TIME-SAVING
MONEY-SAVING

ALL OF THE ABOVE

•:• WHICH COMPANY SERVICES ARE GOOD IN...?
IN PACKAGING
ZOMATO
SWIGGY OTHER
IN

QUALITY SERVICE
ZOMATO
SWIGGY
OTHER
ON TIME DELIVERY
ZOMATO
SWIGGY OTHER
•e WHICH WEBSITE OR APP HAS EASY ACCESSIBILITY TO ORDER

FOOD? IN PROCESS AND PAYMENT OPTION...?

o ZOMATO
o SWIGGY o

OTHERS

•:• ACCORDING TO YOU WHICH COMPANY PROVIDES MORE OFFERS

56 Page

| AND
PROMOTIONS?
ZOMATO

SWIGGY

OTHERS
PLEASE RATE VARIOUS ASPECTS OF ZOMATO
IN DELIVERY SERVICE

POOR 3
IN ORDERING PROCESS
POOR 1 5
23 MENU
SELECTION 4 EXCELLENT

POOR 1
5
4 EXCELLENT
QUALITY 23 FOOD

4 5 EXCELLENT
POOR 1
PRESENTATION
23
4 5 EXCELLENT
POOR

3 4 5 EXCELLENT
•e IN THE TIME OF PANDEMIC, HOW OFTEN DO YOU ORDER ONLINE
FOOD?
3-4 DAYS 7-
10 DAYS

10-14 DAYS
 MORE THAN 15 DAYS

ANY SUGGESTIONS....?

THANK YOU

55 | Page