Product Overview

Zomato is a food-tech company, operating since the last ten years in India. Commenced as a restaurant search and discovery platform on which a restaurant could advertise itself. Zomato now operates in food delivery, loyalty program, and delivers cooking essentials to restaurants. Zomato oversold its Gold membership and offered massive discounts on Zomato Gold and online food delivery. Discounts offered by Zomato triggered resistance by the restaurants owners culminating in their "Log out campaign". Logout campaign made Zomato re-assess their growth strategies.

Learning Objectives

The role of mediators in the food delivery market and their relationship with various stakeholders. The extent and depth of leverage a market creator (first mover) may be able to use vis-à-vis various stakeholders. The various pricing models possible and limitations, if any. On the usage of discounting as a business growth tool.