In the year 2008, a website has been started just to show the menu of the food of its office canteen, on which today more than sixteen lakh people place the order of their favorite food in a day, yes, I am talking about the world. About Zomato, the number one food delivery brand whose valuation is more than sixty crores i.e. five billion dollars today, which had asked for only nine thousand three hundred and seventy five crore rupees in its IPO and people gave them two lakh crore rupees by tearing the roof.
Despite having such a big brand, so much name and so much money, why their top management i.e. their CO Founder Mohit Agarwal, their Chief Technical Officer CTO Gunjan Patidar, their Chief Financial Officer Gaurav Gupta from the company one after the other Resigns are hitting and why within just six months four important pillars have said bye to Zomato and why within just one year Zomato’s share price seems to be fifty eight percent down from its listing gain.
What is the reason behind this and what is going on inside Zomato?
So let’s first talk about what is the story behind the beginning of Zomato, then the story is like this that in the year 2008, Deepinder Goyal, who is the founder of Zomato, had recently passed out IT and started working in IT. He joined Bain & Company where he saw that the office canteen is overcrowded, people climbing one on top of the other keep jostling to see the menu of the empty canteen.
Secondly, he saw that the young employees there often talk to each other that brother, tell me, is there any good restaurant in your eyes, friend, I want to take my girlfriend there on a date, then another friend asks brother. Tell me, you have a good offer going on, there is no restaurant. After listening to all these problems, he found a simple and effective solution. First of all, he made the entire menu of his office canteen and put it on a website. After getting a good response from there, he started putting the contact numbers of nearby hotels and their addresses along with their menu and other details on his website.
Due to which many problems of the people were being solved, they started getting good response slowly and gradually from this website, now people using their website started ordering food by taking out the phone number from the hotel. Later he covered NCR including Delhi, while doing this he quit his job in the year 2009 and started making full time career in it.
He spread it all over India as well as twenty-four countries and this started a food delivery business. Whose name is Zomato, for your more information, let me tell you that the first name of Zomato was not Zomato, its first name was Foodiebay, but in the year 2010, its name was changed to Zomato.
Most people still feel that Zomato earns all its money from empty food delivery business only, but it is not at all that Zomato does not earn money by delivering empty food, it also provides new services like you You must have heard that towards Zomato Hyperpure, this company does such things that whatever restaurant partner Zomato, that is, whoever is the owner of the hotel, whatever is the requirement of cooking things like vegetables, milk, meat, seafood, etc. Zomato says that we will provide them the cheapest and best quality goods from Hyperpure. Through which this Zomato provides goods directly from farmers to restaurant partner and from which why it earns a lot of money.
Along with this, Zomato’s second business is Quick Commerce, for which they have recently acquired Blink it for Four Thousand Four Hundred Forty Seven Crores, so how does this business work for them, so if you have any shop If you want to bring milk or take medicine from medical, then you will get all these things delivered at your home in a few minutes and Deepinder believes that this business will do absolute growth in the future because today’s people are slowly becoming lazy and despite offering so many services, Zomato is in a loss of 1100 crores and in such a huge loss. Despite being there, why are they investing a lot of money in big investors, then the brand new model of Zomato is hidden behind it i.e. from where Zomato earns money.
Where does Zomato earn money from?
Zomato Mainly earns money in three ways first, one is food delivery i.e. they take food from simple restaurant and then deliver it to customer’s home, charge order commission on restaurant ownership to deliver to customer’s home, second is advertising i.e. That if any restaurant has to sell more of its food, then those restaurants put ads on Zomato’s application.
So that Zomato charges a lot of money, suppose if any restaurant put an ad on Zomato’s application and its sales increase, then it again puts an ad on the application, so that this look will continue and Zomato will continue to earn money from it. And the most important consultancy i.e. Zomato has so much data that they know that in which area of Mumbai, at what price, which dish will be sent, then people will buy more, due to which whoever wants to open hotel business. They ask them in which area should I set up my business that if I set up this food business then it will be okay, tell me Zomato? Now instead of that Zomato charges them a hefty fee for their consultancy and this is one of the biggest reasons why investors are investing a lot of money in Zomato.
Because they know that no hotel restaurant will be able to stand in front of Zomato, so after knowing about the in and out business of Zomato, let me tell you why they are leaving their top manager, then the biggest thing That no confession of employee’s design has come from Zomato yet, but two reasons have come to the fore through the estimate.
The first reason is that there are new startups like Zomato, swiggy, Ola, Uber to bring contractual basis work, all of them work on the basis of employee contact, that is, how many days any person will work in any company. , It is already fixed, as for example, talking about Zomato’s food delivery chief Siddhant Jawahar, he was working in Zomato for the last five years and after completing five years, he worked for the US ad- Tech company Moloco has provided its service.
So what would be the benefit of Zomato behind this, then Zomato or any other company does not have to increase the salary of the employee again and again because they are working on contract basis and secondly, they do not have to give their Incentives, their salary and insurance claims are not to be taken for them at all and thirdly no fixed liability, i.e. home rent for them and no safety is separately expensed for them, due to which Zomato saves a lot of money and the second thing is that if you look at the exchange filing report of Zomato, then every time the company has given resignation to any employee, it has written that it was not our person, so we are leaving it out of the company, it is clear from this that The company does not want to tell why it is resigning its employee.
So now let’s see whether their founder Deepinder gives an accurate answer to this or not or there is a turning point.
