This article has been contributed by Mandar Lande, Cofounder & CEO of Waayu.
Food delivery apps are now a standard element of daily life. With a few clicks, a hot meal is delivered to your doorstep with no preparation, no cleanup, just immediate pleasure. What was once a luxury has now become a default choice, in big cities as well as in tier 2 and 3 cities. However, beneath this apparent simplicity lies a complex network of economic trade-offs. The real cost of food delivery isn’t just about service charges and tips; it shows up in shrinking restaurant profits, unstable gig work, and the growing dominance of delivery platforms.
The approach of food delivery platforms seems straightforward: more access for consumers, more reach for restaurants, and flexible incomes for workers. On the surface, consumers seem to be the winners. They receive variety, quickness, and ease of use. However, there are certain drawbacks that customers and restaurants face.
The Subtle Economics of Food Delivery
Although online food delivery platforms provide visibility and volume, the cost usually falls on the small and mid-sized food operations that are just trying to keep their heads above water. There are also some challenges, which includes :
Tight Margins for Restaurants: Delivery platforms take a commission of 25–35% from restaurants, a big slice out of a profit margin. Restaurants also pay for other services such as rank boosts in order to remain seen and competitive on these apps, squeezing their profits even more.
Hidden Costs for Consumers: When all other fees are taken into account, a meal that seems reasonably priced at INR 250 can easily become more than INR 400. These include taxes, platform commissions, delivery fees, and packaging expenses; many of these are not readily apparent until the last payment screen. Customers are frequently caught off guard by this large markup, which causes a discrepancy between perceived and actual value. These unstated expenses have the potential to significantly raise a customer’s overall food delivery expenditures over time, making it less cost-effective than it first appears.
Exposure Without Sustainability: Small restaurants can reach a wider audience and gain visibility through platforms like Zomato, but many find it difficult to make ends meet due to the high commissions (up to 30%), required ad spends, and additional delivery costs. After platform deductions, owners frequently receive little to no profit, which eventually makes what initially appears to be growth into an unsustainable business model.
Insecure Gig Work: Despite being essential to the system, delivery workers often receive the least compensation and have minimal protections. With traffic, inclement weather, and late nights, they endure to bring home low, irregular pay and minimal security or benefits. Platforms, on the other hand, are asset-light, taking value from restaurants and riders alike, sustaining a model in which convenience to the customer obscures economic pressure on those really cooking and delivering food.
Food delivery platforms in the market like Swiggy and Zomato have transformed the supply and consumption of food by giving consumers historically unprecedented convenience and broadening restaurants’ clientele. Behind the ease, however, delivery workers struggle with inconsistent pay and lack of benefits, restaurants must contend with rising costs to remain visible, and customers gradually pay more while becoming disconnected from the local food culture.
While there are common benefits and difficulties, platforms benefit most. They employ asset-light strategies owning neither the kitchens nor the delivery fleets yet maintain control over customer data, visibility, and transactions. However, fixed subscription fees are now provided by some platforms in place of their formerly high commissions, decreasing pressure on restaurants and prices for consumers. Nevertheless, platforms have the most power in general, making money off both parties with minimum risk and maximum control over the ecosystem.
A Better, Fairer Model
Some food tech innovators and restaurant coalitions believe a more equitable system is possible. The key lies in rethinking the role of the platform not as a toll booth, but as a bridge.
Use Flat or Subscription Fees: Replace variable commissions with stable, fair pricing.
Let Restaurants Pay for Services, Not Give Up Revenue: Logistics or order management fees not a percentage per order.
Clear, Reasonable Delivery Fees for Consumers: Make fair pay and local businesses possible without hidden markups.
Build Long-Term Partnerships: Co-marketing, shared growth, and quality standards instead of sales in isolation.
Additionally, in India, food delivery portal staff are the backbone of food delivery websites but get low, irregular wages, no benefits, and no security of employment because they’re recognized as independent contractors. While modest accident insurance and hardship grants have been offered by companies like Swiggy and Zomato, most workers continue to pay for things like fuel and maintenance, working long hours to earn a minimum income.
Demands for fair treatment have grown in cities like Bengaluru and Delhi, with calls for increased wages and greater transparency. Internationally, cities like New York and several European countries have begun to introduce minimum wages or redefine gig workers as employees potentially offering blueprints for India to include better, more equitable working conditions without compromising flexibility.
The revolution in food delivery is not by nature flawed. It can be at its best a triumph of convenience, accessibility, and opportunity. But when convenience is made to take priority over fairness and sustainability, industries suffer whether it’s the richness of local restaurants, the dignity of the workers, or the quality of the eating experience itself. The task before us is not to tear down the delivery model, but to reimagine it. With improved regulation, moral innovation, and more openness, we can envision a system that rewards all parties in the kitchen and on the bike, and yes, even for the customer in their home. The question is not whether food delivery is here to stay. It’s whether we can make it work better for everyone.
The business of restaurants and cafes has taken on a new form thanks to the online meal delivery service. Customers now have access to an enormous array of options in addition to improved connections to regional and global food chains thanks to this system. At the moment, Swiggy and Zomato are the two industry titans; while numerous other businesses attempted their hand at this market, they were unable to compete with these titans. In addition to being the biggest online food ordering and delivery service in India, Swiggy is also the number one unicorn startup in the country. Since its launch in August 2014, it has more than five lakh app installations, partnerships with over 1,50,000 restaurants, and has a strong presence in more than 325 cities across India.
Swiggy pioneered quick pick-and-drop meal delivery services to ease people’s lives. It provides a single window for placing orders from a wide selection of restaurants and a complete meal ordering and delivery system that links local restaurants with food enthusiasts.
They have revolutionised and broken all barriers pertaining to food delivery. From a time when we had to travel, order, and wait to get our favourite food parcelled, today we have grown so much through apps like Swiggy to have high favourite delicacies delivered right in front of our doors. This article will look into the business model that has helped Swiggy gain a place in the market.
Through this article, we will understand the whole ecosystem of Swiggy’s business, right from what business model it follows to how it makes money, we will put a magnifying glass on each of its developments.
About Swiggy
The Bangalore-based business Swiggy was founded in 2014 and has already spread to over 100 Indian cities. Swiggy, which was founded by Rahul Jaimini, Nandan Reddy, and Sriharsha Majety, has a vast national business network. As food ordering and delivery giants, they are currently expanding their digital presence by introducing a variety of platforms and expanding their services in response to circumstances such as “when you prefer not to dine out, they bring the restaurant to you.” In the ongoing competition between Swiggy and Zomato, the app’s features are consistently attracting customers to place orders with Swiggy. Customers may keep tabs on their orders, get real-time updates, talk to customer service, pay with cash on delivery, find incredible bargains, and so on. People from the working class and students love Swiggy because they don’t have much time to cook for themselves.
For example, Swiggy Pop is a 30-35-minute meal delivery service for a single serving. Swiggy offers a variety of products and services to its customers. The Swiggy POP menu offers several dishes such as Asian combos, burgers, bowl meals, biryanis, and Indian thalis. All single-serve meals priced between Rs 99 and Rs 200 will be delivered quickly.
While Swiggy’s primary revenue generator is its commission model, the company does have other verticals that contribute to its success. It uses cutting-edge methods and technology to meet the market’s increasing need for foodies. In addition to being a model of efficient and effective customer service, it also follows all the latest trends in the restaurant industry.
It connects establishments with customers who are looking to eat. It runs well on a dual partnership basis, which is good news for eateries and grocery shops that want to use the platform for food delivery.
Swiggy’s business model focuses on localized, on-demand meal delivery. In addition to connecting eateries, it coordinates a network of delivery partners to provide customers with their meals whenever they want them (within 30 minutes).
Similar to Uber, Bundl Technologies Private Limited built this unicorn startup’s business model around a dual partnership arrangement.
Cooperating Restaurants: Restaurant partners are businesses that have agreed to deliver to Swiggy app and website users.
Collaboration with Delivery Partners: Individuals in the delivery fleet are in charge of picking up the order from the partner restaurant and delivering it to the final customer.
Swiggy’s entire business ecosystem runs on commission, delivery charges, subscriptions, restaurants, and cloud kitchens.
Let’s understand the Business Model of Swiggy in detail:
Key Partners of Swiggy
The major partners that drive Swiggy forward are the restaurants and shops that sign up to have their enterprise enter into food delivery services.
Other than eateries, Swiggy also partnered with pharmacies, groceries, et cetera through their platform. Today, Swiggy Mart is a very important part of the company.
Recently, they had also partnered with Instagram to allow users to use Instagram’s food order stickers in their stories. These stickers will help the viewers of such stories to order similar things from Swiggy.
Key Activities of Swiggy
The most important activity that Swiggy has to undertake is to acquire customers and manage their orders in real-time. This is accompanied by handling delivery and payment processes simultaneously.
Having a very efficient partnership with retail shops, restaurants, and other eateries is an unavoidable part of Swiggy. Swiggy Go fulfills another important activity of pick-up and delivery as well.
Having a sound technical system is a very important part of Swiggy since multiple aspects need to be addressed at the same time while an order is being placed.
Management of these technical operations, maintaining an efficient IT infrastructure, and proper updation of the system are other important activities of Swiggy.
Key Resources of Swiggy
The key resources of Swiggy are the local partners like Keventers, Yogidthaan, and Biriyani Blues tea, which are bestsellers in the cities.
Delivery providers and technology providers are other key resources of Swiggy, which have played a very significant role in strengthening its system.
The resources of Swiggy are expanding as it continues to reach out to more places and more untapped markets.
Value Proposition of Swiggy
Swiggy’s policy of no restriction is one of the main value propositions of the firm.
It also has a very robust online payment system, which has made the entire food ordering journey easier for the customers.
The no minimum order policy has also helped in reaching up to 14 million orders per month, while many orders amounted to less than a hundred rupees.
The Swiggy app’s other main value proposition is that it has given its platform to restaurants and stores to use.
It has helped both Swiggy and its partners to save more than 30% of their operational costs.
Recently, they also launched Swiggy Go, wherein they offer instant pick-up and drop services, which can be utilized by customers to send any kind of packages, documents, parcels, or even tiffin.
They also have digital wallets by partnering with companies like PhonePe, Paytm, FreeCharge, etc.
Swiggy, being an expanding company, needs to have a very efficient customer relationship to ensure long-term growth. Hence, it has active customer support at the perusal of user.
Apart from a 24*7 telephonic system, they also have chat services.
Being active on social media, customers can also send messages to Swiggy’s social media pages, where they usually reply promptly.
It also allows you to rate the places and food delivered by Swiggy.
Channels of Swiggy
Swiggy can be accessed in multiple ways. Various channels on Swiggy include their mobile apps and websites, which are available on both Android and iOS.
Their recent additions to Swiggy Stores and Swiggy Go are the new channels of the firm.
Customer Segment of Swiggy
The people who prefer dining in their own homes but do not want to cook their own food are the main customer segment of Swiggy.
From the people who wanted food to be delivered at their doorsteps being principal customers, we can see a shift to the people who not only want food delivered but also things like groceries, gifts, flowers, medicines, etc, coming into the central stage of customer segments.
Cost Structure of Swiggy
Swiggy also has to incur a lot of expenditure daily to ensure the proper functioning of the app and websites.
They have to incur the expenses of their employees and delivery partners. This is apart from the 2 or 3% commission that Swiggy gives to restaurants that partner with them.
They also have to bear the cost of website and app development, along with maintenance charges.
Advertisements, marketing, and administration create huge expenses as well. Swiggy also has to bear the cost of other miscellaneous expenses, including returns and refunds.
How Swiggy Makes Money | Swiggy Revenue Model
Swiggy Financials 2024
Swiggy Financials
FY23
FY24
Operating Revenue
INR 8265 crore
INR 11247 crore
Total Expenditure
INR 12884 crore
INR 13947 crore
Procurement Costs
INR 3381 crore
INR 4604 crore
Employee Benefit Expense
INR 2130 crore
INR 2012 crore
Advertising Expense
INR 2501 crore
INR 1851 crore
Delivery & Related Charges
INR 1694 crore
INR 1637 crore
Net Loss/Profit
INR -4179 crore
INR -2350 crore
Swiggy Financials FY24
Swiggy reported a 36% rise in operating revenue to INR 11,247 crore in FY24 ahead of its IPO and reduced its losses by 44% to INR 2,350 crore. Swiggy’s total expenses rose from INR 12,884 crore in FY23 to INR 13,947 crore in FY24.
Swiggy was an early player in the Indian food delivery market because of its innovative business approach, which has allowed it to diversify its revenue streams and become a market leader. Upon analyzing the activities of Swiggy over the years, one can observe that their revenue streams are increasing. This is indicative of the company’s very stable and long-term growth. The pandemic restrictions on dine-in services have further helped Swiggy to get the extra push it needed. Below are the Swiggy revenue streams through which the company earns and runs.
Delivery Charges
Since there is no minimum order amount for delivery on Swiggy, the app frequently receives orders below Rs 100. Owing to this, the logistics cost of such orders increases. Therefore, as Swiggy established a dominant position in the market, it began charging delivery fees for small orders, the exact amount of which varied by city. Customers are Swiggy’s primary source of revenue. If a customer’s order total is less than Rs. 250, the business will charge them for delivery. The fee for each order ranges from twenty to forty rupees.
Commission
Another significant portion of the income comes from commissions, which Swiggy gets. In exchange for delivering restaurants’ food orders through the Swiggy app and generating sales leads, it receives commissions from such eateries. Every order placed through Swiggy’s site costs a 15% to 25% fee for restaurants. Restaurants receive perks on this account, such as more exposure and, on occasion, a 2% to 3% reduction in commission.
Advertisement
Swiggy also uses many methods to earn money from advertisements. It displays advertisements for a variety of restaurants on its application and charges a fee to promote them in multiple regions. On top of that, Swiggy charges certain establishments a premium to have their names shown higher on the app’s list of available places to eat. Banner ads and priority restaurant listings were the two main ways that Swiggy began to commercialize its platform. Following in the footsteps of Zomato and Foodpanda, Swiggy has just begun using banner ads. Their website and app feature regionally specific restaurant promotions and listings. The pricing for different regions on the displayed page varies according to the restaurant’s desired level of visibility through the banner ad.
Swiggy Access
Just lately, Swiggy debuted Swiggy Access, a facility similar to a central kitchen base that holds the kitchens of several restaurants, including Swiggy’s own labels. Restaurants will be able to set up kitchens in locations even when they’re not physically there, thanks to this cloud kitchen business concept. From its humble beginnings in Bangalore, the chain has grown to include 36 kitchens across 30 locations in Hyderabad, Kolkata, Delhi, and Mumbai.
Table Reservations
Swiggy has made partnerships with several high-end restaurants. When customers reserve a table at one of these restaurants, Swiggy charges a commission to the restaurant. Additionally, customers are required to pay a nominal booking fee to Swiggy.
Through its Swiggy Instamart app, Swiggy has recently expanded into the online grocery delivery area. The company operates this business through its delivery partners and has established partnerships with numerous grocery retailers. The company retains a commission on each order from the grocery store, while the client is charged with delivery and handling fees.
Swiggy Super
A new membership program called Swiggy Super has just been introduced by Swiggy. Swiggy does not impose surge pricing, requiring the consumer to pay a set amount, and offers limitless free delivery on orders above Rs 99. An introductory price of Rs 49 for a one-month membership and Rs 129 for a three-month membership are the two available alternatives, with the former costing Rs 149 and the latter Rs 349.
Swiggy Go
Swiggy, a frontrunner in the delivery space, uses “Swiggy Go” as an income generator. With its 2019 launch, it provides clients with an immediate pick-up and drop-off service. The service enables users to select, send, and drop anything from and to numerous locations throughout geographies, and the corporation earns a significant amount from it.
Financial institutions like ICICI Bank, HSBC, and Citibank are some of Swiggy’s business partners. Affiliate marketing is a relatively new but very effective revenue stream, and it works for everyone involved. The meal delivery giant has gotten an advantage over competing models thanks to its innovative features and outstanding customer service. With its top-notch service, it has expanded its clientele.
How Does Swiggy Make Money?
USP of Swiggy
Delivery in a timely way and the absence of a minimum order requirement are Swiggy’s primary points of differentiation.
Swiggy SWOT Analysis
SWOT Analysis of Swiggy
Swiggy Strengths
The speed of Swiggy’s delivery is one of the reasons for its fame.
Swiggy has been an excellent p user-friendly platform for consumers to place orders.
The brand’s extensive range and the variety of nearby restaurants are two more of its strengths.
Swiggy Weaknesses
Swiggy will only take orders from establishments that are physically close to the consumer. However, to satisfy their clients, many competitors expand their territory.
Customers’ overall bills are increased by Swiggy’s specific packing and delivery expenses.
Swiggy Opportunities
To gain a larger portion of the market, the corporation can rebrand itself more frequently.
Additionally, the organization may capitalize on cities in which it does not have a presence.
Swiggy Threats
Zomato, another big player in this industry, is a direct competitor to the corporation. Since Zomato is a major player, it has the potential to offer substantial discounts to clients in the future, drawing them away from Swiggy.
People nowadays are more health-conscious than ever before, and as a result, they prefer to cook their meals at home rather than ordering from out.
Swiggy’s growth over time has been phenomenal. It aims to raise more funds to strengthen and expand its services to more places. Despite being a latecomer in the industry, Swiggy was able to gain its deserved position through strategic planning and stable expansion.
Swiggy is doing a fantastic job of satisfying its consumers’ appetites, and it has complemented this with a well-thought-out business plan. This venture is poised for massive growth in the years to come if it continues at its current rate. Even though it’s in a head-to-head competition with another giant named Zomato, Swiggy has a critical advantage that will determine its fate.
FAQ
Who is the founder of Swiggy?
Swiggy was founded by Nandan Reddy, Sriharsha Majety, Rahul Jaimini in 2014.
How much Commission does Swiggy charges?
Swiggy charges 22-25 per cent on order value from their restaurant partners.
What is the business model of Swiggy?
Swiggy’s business model is a hyperlocal food delivery platform. It connects customers with nearby restaurants through its app and website, charges restaurants a commission fee on each order, and collects delivery fees from customers. It also earns from ads and subscription plans like Swiggy One.
What is the revenue model of Swiggy?
Swiggy’s revenue model is multi-channel. It earns money mainly by charging a commission fee from restaurants on each order placed through its platform. It also collects delivery charges from customers, especially during peak hours or for long distances. Swiggy earns through advertisements by promoting restaurants on its app and website, and from subscription plans like Swiggy One, which offer users free deliveries and other benefits for a fee. Additionally, it has expanded into grocery and quick commerce (Instamart), adding new revenue streams.
How does Swiggy dineout make money?
Swiggy Dineout makes money by charging commission fees from partner restaurants for every table booking or dining bill paid through its platform. It also earns through subscription plans like Gourmet Passport, which offer users discounts. Additionally, it generates revenue from promotional listings and ads for restaurants.
Papa John’s, one of the world’s largest pizza delivery chains, entered the Indian market in 2006 with high hopes and global brand recognition. However, despite its international success, the brand struggled to connect with Indian consumers and eventually exited the market in 2017. This case study explores the reasons behind Papa John’s failure in India, including its challenges with localization, competition, and operational strategy, and what lessons other global food brands can learn from its experience.
Papa John’s was founded in 1984 by John Schnatter. After his venture became a success, the company went public in 1993. The growth of Papa John’s was so phenomenal that within a year that it had 500 stores, and by the year 1997, it had a total of 1500 stores. Papa John’s operates over 5,500 locations across 49 countries and territories, making it the third-largest pizza delivery company in the world, which is inclusive of both restaurants and company-owned stores. The restaurant chain has opened its franchises in many countries across the globe, including Russia, Spain, Colombia, the United Kingdom, Mexico, etc.
Papa Johns Entry In India
Papa John’s took its first step in India in 2006. They were run by Om Pizza and Eats. This firm was owned by the nephew of the steel baron Lakshmi Mittal, Atulya Mittal. Their main intention was to seize the pizza market in India and attract the customers of the already established pizza giants in India, like Domino’s and Pizza Hut. Papa John’s first opened four outlets in India.
They had very clear reasons for choosing India to expand their business. One of the main reasons was the immense efficiency of the consumer food market as far as national productivity, innovation, and R&D were concerned.
The pizza segment was contributing a major part of India’s gross fast food market. Along with this, the scope for tourism and the presence of a mix and diverse culture opened up a wide range of opportunities in front of the company as far as experimentation and innovation in their products are concerned.
They were also sure about the much-needed glocalisation that has to be done to suit the Indian taste and culture. They also decided to promote their brands in different ways, including advertisements in all kinds of media. They also ensured that the pricing of their products aligned with the capacity of the local people.
In June 2006, Papa Johns Pizza opened its first outlet in India in Noida. Aiming to take advantage of the rising middle class in India, it planned to open various outlets in all the prominent places in India. These places include Delhi, Haryana, Punjab, Himachal Pradesh, Rajasthan, Uttar Pradesh, and Uttarakhand. The outlets were opened by Om Pizza Eats India, the master franchise for Papa John’s.
Om Pizza had been operating more than 15 Papa John’s outlets across India and had a revenue of INR 25 crores and expected an annual cash loss of INR 10 crores. However, in December 2013, the controlling stakes in the major franchise were bought by Avan Projects for INR 25 crores.
Along with Avan Projects and Global Franchise Architects, Papa John’s announced a merger with the existing Pizza Corner stores in South India. This happened during the first quarter of 2015.
This merger helped Papa John’s expand the number of stores in India by more than 40 stores. But it had its downsides. Now they had outlets in major south Indian cities like Bangalore, Chennai, and Hyderabad. By the end of 2015, they were operating in 11 cities in India. They were Mysore, Bengaluru, Hyderabad, Chennai, Vellore, Maddur, Pune, Hosur, Mumbai, Mandya, Tirupati. Do note here that by this time itself, the first outlet at Noida was already closed.
There are several factors responsible for the failure of Papa John’s Pizza India. The challenges faced by Papa John’s that eventually resulted in the fall and closure of the Pizza company in India are mentioned below.
Unprepared for Competition
In India, Papa John’s had to face a lot of unprecedented challenges. Not all the challenges can be included in this category of unexpected; some of the problems were due to the lack of planning and vision of the firm.
The first one was its inability to compete with the giants in the industry, like Pizza Hut and Domino’s. Not only that, but the other two really took advantage of the shortcomings of Papa John’s, which made things harder for the company.
Although they trained their employees efficiently to use technology and build the name of the brand, they were unable to reach the lighter end of the tunnel. They lost all of their customers to the giants – Domino’s and Pizza Hut.
As mentioned earlier, the net profitability of Papa John’s was way behind that of Domino’s and Pizza Hut. Reports say that their net margin was only 4.6% of their total sales, while Domino’s Pizza and Pizza Hut had a net margin of 8.2% and 7.9%, respectively. This was the data of 2014, and it was during this dangerous juncture that Papa John’s came to terms with Pizza Corner for the merger.
They did not consider the risk factors involved with such a merger and nor did they calculate the risk that is associated with a probable failure. When they took so much on themselves, the management was unable to operate efficiently in their newly opened stores.
India Quick Service Restaurant Market
Lack of First Mover’s Advantage
During this time, Domino’s was expanding its outlets in India like wildfire. The company had only 364 stores in 2010. It rose to a whopping 1127 stores by the time it was 2017. As far as Papa John’s was concerned, it had only 66 stores across 11 cities in India, while Domino’s had launched its outlets in more than 265 cities.
They were also quick enough to become the first food service company that launch online and mobile ordering across India in a successful manner. The phenomenal growth of Domino’s crippled the expansion of Papa Johns. They were unable to compete with the extremely fast delivery and sophisticated technology of Domino’s.
One of the biggest setbacks that Papa Johns Pizza had to face was that they never got to have the first mover’s advantage. They were always the ones to watch Domino’s faring heights helplessly. This enabled Domino’s to sell its pizzas at a very low profit margin. They were able to bear the cost because of the wider presence they had across the nation. This further adversely affected Papa John’s Pizza.
Overdependence on Technology
While most of the firms, especially in the fast-food market, prefer people who are warm and cordial to others, Papa John’s looks for employees who are technically sound.
It forgot the fact that the staffing in the stores plays a very important role in establishing any outlet. This, along with the absence of good training and the lack of a sound employer-employee relationship, put Papa John’s in a very dark spot. One must say that they were dependent more on technology than on developing their human resources.
Unwise Choices
It is always important to watch the indicators such as exchange rate, interest rate, stock exchange, imports, exports, and similar details that inform us about the world economy. By inferring the nature of these indicators, every business firm should be able to improve and work on its EBITDA. However, Papa John’s was more interested in building its brand rather than strengthening its foundation.
They did not pay enough attention to the existing stores while they were busy opening up newer outlets in South India. When things were going south, instead of looking for ways to improve their business, they went on a merger with Pizza Corner, which demanded a huge investment. The inability to choose the right choice among the available choices further paved the way to the exit of Papa John’s from the Indian market.
Customer Dissatisfaction
Papa Johns India Pizza Pricing | Papa Johns menu vs Dominos menu
There is a very common phrase that never gets old in the business world – the customer is king. It can be observed that many times Papa John’s Pizza forgot this mantra. While they had planned the glocalisation of the menu, it did not materialise well when implemented.
In India, pork consumption is not that popular. Papa John’s India should have identified this cultural nuance and excluded or kept a low profile for their pork dishes. There are already existing examples where many international companies in the food business adapt their menu depending upon the country, if not the regional states. However, Papa John’s did not look into it, and their dishes were not accepted as dearly as they accepted Domino’s and Pizza Hut dishes.
It is understood that it does not mean that the whole of India does not eat pork, the numbers were very less and this led to a situation where there was absolutely no demand for the pork varieties.
This again would not have been a problem had they been able to effectively popularise their other dishes. But they were very behind in the market while Domino’s and Pizza Hut had an extremely localised menu that aligned with the likes of pizza lovers. This led to a rapid decline in sales.
Papa John’s is set to reenter the Indian market in 2025 after exiting in 2017 due to underperforming stores. Although its return was initially planned for last year, the launch was delayed. Now, the company aims to open over 650 outlets in India over the next decade. Papa John’s is taking a careful approach, ensuring its franchise partners have the right menu, technology, and restaurant setup to succeed in India’s complex market with diverse consumer preferences.
Conclusion
It can be concluded that the inability of Papa John’s to analyse the existing market and the nuances of the local market made them highly incompetent. While Papa John’s India saw a diverse population as an opportunity to expand their outlets, they did not foresee the challenges that are associated with it. Being in the business world, they should have been more careful about the correct signs that we see around and should have acted accordingly.
The untimely merger also came as a blow to the third-largest pizza delivery chain in the United States of America. Had they researched more about the demographic distribution of the Indian population and the challenges and advantages of the Indian fast food market, they would have had better luck in this country.
The case of Papa John’s is an example for all the entrepreneurs out there to have a clear understanding of the existing market and a clearer vision for their business in the future before getting into it.
FAQs
Who founded Papa Johns?
Papa Johns was founded by John Schnatter in 1984.
Is Papa Johns available in India?
Papa John’s entered India in 2011 and shut down its operations in 2017.
Why Papa John’s failed in India?
Some of the reasons why Papa John’s closed in India are:
Papa John’s was Unprepared for Competition
It lacked First Mover’s Advantage
They were over-dependent on Technology
Customer Dissatisfaction with the types of Papa John’s Pizza
Who were the biggest competitors of Papa John’s in India?
Dominos and Pizza Hut were the biggest competitors of Papa Johns, which were already successful in capturing the Indian market before Papa Johns.
What happened to Papa John’s pizza?
Papa John’s entered India in 2006 but exited in 2017 due to challenges such as poor localization, operational inefficiencies, and stiff competition from established players like Domino’s and Pizza Hut. The company failed to adapt its menu to Indian tastes and struggled with delivery logistics and customer service, leading to underperformance.
Is Papa John’s in India?
Papa John’s is planning to reenter India in 2025 after closing in 2017.
Zomato is one of India’s leading food delivery companies, making it easy to get your favourite meals to your doorstep. But Zomato is more than just a food delivery app, it has grown into a powerhouse by acquiring several businesses.
The Deepinder Goyal-led company now offers services like quick grocery delivery through Blinkit and entertainment ticketing after acquiring Paytm’s entertainment ticketing business. These moves have helped Zomato stay ahead in the competitive market.
In this article, we’ll explore all the companies owned by Zomato and its key acquisitions. So, without any further ado, let’s get right into exploring companies under Zomato and see how they contribute to the company’s success.
The key to making acquisitions is being ready because you really never know when the right big one is going to come along. – James McNerneyGoyal
About Zomato
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, is a leading Indian food delivery and restaurant discovery platform headquartered in Gurugram, Haryana. Initially known as Foodiebay, Zomato has expanded its services to include food delivery, table reservations, and more.
In February 2025, Zomato rebranded as “Eternal” to reflect its broader business scope, which now includes:
Zomato: Food delivery services.
Blinkit: Quick-commerce unit.
District: Live events business.
Hyperpure: Kitchen supplies unit.
This rebranding aligns with Zomato’s strategic focus on quick-commerce growth, particularly through its Blinkit acquisition.
Zomato’s mission is to “ensure nobody has a bad meal,” reflecting its commitment to enhancing dining experiences through technology and innovation.
Paytm Insider is one of India’s largest platforms to discover and find tickets to exciting live events and experiences in the country. Starting out in 2014 with tickets to Bacardi NH7 Weekender and Russell Peter’s early India tours, it has emerged as a leading entertainment ticketing platform. Zomato acquired Paytm’s entertainment ticketing business, Paytm Insider in August 2024 for INR 2,048 crore.
Blinkit
When we talk about the companies under Zomato, the first name that comes to mind is Blinkit. Blinkit, formerly Grofers, is an Indian quick-commerce platform that delivers groceries and essentials to customers’ doorsteps. Founded in December 2013 by Albinder Dhindsa and Saurabh Kumarand based in Gurugram, it promises delivery within 10 minutes. In June 2022, Zomato acquired Blinkit for approximately $568 million (INR 4,447 crore).
Hyperpure is Zomato’s B2B food supply platform, acquired in August 2018 through the takeover of Bengaluru-based startup WOTU. It provides restaurants with fresh, high-quality ingredients like fruits, vegetables, dairy, poultry, and grains. Hyperpure helps eateries maintain food safety and consistency by sourcing directly from farmers and producers. It has expanded across multiple cities, becoming one of the most important parts of Zomato’s supply chain ecosystem.
Feeding India
Feeding India is a non-profit organisation that fights hunger and food waste in India. Zomato acquired it in July 2019 to support its mission. Feeding India collects extra food from restaurants, events, and homes, then gives it to people in need. After the acquisition, Zomato helped expand its efforts, making food more accessible to underprivileged communities.
Fitso
In January 2021, Zomato acquired Fitso, a sports facilities provider, for approximately INR 80-100 crore. Fitso offers access to various sports activities like swimming, basketball, and tennis through a subscription model. Later, in November 2021, Zomato sold Fitso to Cult.fit for about $50 million.
Menu Mania was a restaurant discovery service, through which one could discover local places where they could eat. It was founded in the year 2006, and its headquarters were situated in Auckland, New Zealand.
In July 2014, Zomato acquired Menu Mania for an undisclosed amount. This acquisition marked Zomato’s first entry into the New Zealand market and its first acquisition in the Internet Software and Services sector.
Following the acquisition, Menu Mania’s website was integrated into Zomato’s platform as Zomato.co.nz. However, later on, Zomato stopped operations in New Zealand but continues to offer dine-in restaurant exploration and food delivery services in India and the UAE.
Urbanspoon
Urbanspo – Zomato Acquired Companies
Urbanspoon was a restaurant discovery service. Through its help, one could discover restaurants where users could give reviews and also recommend them to other people. It was founded in the year 2006 by Adam Doppelt, Ethan Lowry, and Patrick O’Donnell. The headquarters were situated in Seattle, United States of America.
At first, the service was open in countries like Canada, the United Kingdom, Australia, New Zealand, Ireland, and of course the United States of America. Urbanspoon was acquired by Zomato on 12th January 2015 for $55 million. Through the acquisition, Zomato established itself in countries like Australia and Canada.
MapleGraph Solutions was founded in the year 2011 by Arun Tangri and Varun Tangri, it is a technology powerhouse whose headquarters is situated in New Delhi, India. The company is all about building cloud-based and mobile-based solutions for everyone.
Zomato acquired MapleGraph in April 2015, and the company developed MaplePOS, which was later renamed Zomato POS. After this acquisition, Zomato Base was made to enable restaurants to manage their menus and also has an inbuilt payment system. This helped Zomato in providing restaurants with business-focused solutions.
Runnr
Runnr – Zomato Acquired Companies
Runnr was a startup founded in the year 2015 by Aravind Reddy, Arpit Dave, Gnanesh Chillukuri, Mohit Kumar, Mukunda NS, and Vatsal Singhal. It was a B2B platform that provided hyperlocal management services to those who get together and partner with merchants. Zomato acquired Runnr in 2017 to boost their delivery ways and to provide a good food delivery experience to their customers, the amount of the deal was not disclosed.
Uber Eats India
Uber Eats – Zomato Acquired Companies
Uber Eats India was another popular food delivery service in India through which one could get their favourite food at their doorstep. It was the India-based app of the American company Uber, founded in 2014 by Garrett Camp and Travis Kalanick. Uber Eats India was sold by Uber, and Zomato acquired the food delivery in 2020 for $350 million.
Lunchtime
Lunchtime was an online restaurant guide platform through which one could find different restaurants, pubs, and cafes in the Czech Republic. This online platform was founded in 2008, and users could find over 3,000 restaurants in Bohemia and Moravia through this app. Zomato acquired Lunchtime in 2014, though the amount was not disclosed.
The primary reason for this acquisition was to increase Zomato’s presence in more countries, and they were successful in doing so. However, as of September 2023, Lunchtime.cz initiated the liquidation process and is no longer operational.
Obedovat
Obedovat – Zomato Acquired Companies
Obedovat was an online restaurant guide platform for Slovakia, through which users could find numerous eateries across the country. It was founded in 2004. Zomato acquired this platform in 2014 for $3.25 million, helping Zomato expand its services into Slovakia. However, Zomato’s subsidiary, Obedovat, initiated liquidation and is no longer operational.
TongueStun
ToungeStun – Zomato Acquired Companies
TongueStun, an online marketplace was founded in the year 2012 by Manjunath Ramakrishnan, it deals with corporate catering. It specialised in corporate catering and served 1,500 companies with its catering services. Zomato acquired this company in the year 2018. The main reason for the acquisition was to make their presence in the workspace. Zomato acquired the startup for $18 million.
Sparse Labs was a logistic tech startup that was founded in the year 2014 by Pankaj Batra. Spars Labs ensured hyperlocal delivery companies have a smooth journey while delivering to their customers. Zomato acquired it in 2016, but the amount was not disclosed.
The acquisition helped Zomato improve its delivery services. Later on, Sparse Labs’ operations were integrated and it no longer functions as a standalone entity under Zomato.
Cibando
Cibando – Zomato Acquisitions
Cibando was an app that focused on serving iPhone users by allowing them to find restaurants and eatery places in different cities across Italy. It was founded in the year 2010 by Guk Kim. Zomato acquired Cibandoo in 2014 for an undisclosed amount.
The acquisition helped Zomato establish its presence in Italy. However, Cibando’s operations have since been integrated into Zomato’s platform and are no longer active as a separate app.
Gastronauci
Gastronauci – Zomato Acquisitions
Gastronauci was a Poland-based company that provided restaurant finder service. It was founded in the year 2007. Zomato acquired Gastronauci in 2014 and the main reason was to expand their global presence. After the acquisition, Gastronauci’s services were integrated into Zomato’s platform and are no longer available as a separate service.
NexTable
NexTable – Zomato Acquisitions
Founded in the year 2012, NexTable was a cloud-based table management restaurant reservation system. The main function of NexTable was to help customers reserve tables online in restaurants. Zomato acquired the company in the year 2015 and changed its name to Zomato Book. The amount was not disclosed. As of now, the Zomato Book service has been integrated into the company’s broader offerings.
Mekanist
Mekanist – Zomato Acquisitions
Another restaurant finder service Mekanist was a Turkish online platform through which one could find restaurants, cafes, pubs, and all. It was founded in the year 2008 by Ali Servet Eyuboglu, Alper Tekin, and Eren Baydemir. In 2015, Zomato bought Mekanist for an undisclosed amount. Again it was to increase their global presence. The services previously offered by Mekanist have been fully integrated into Zomato’s platform. Mekanist is no longer operating as a separate entity.
Zomato has become a huge name in the food delivery business industry, there is hardly anyone who is not aware of the app. Zomato is continuously trying to acquire more and more companies, some of them that are directly helping them better their services so that they can be undefeatable in this industry.
FAQs
What are the subsidiaries of Zomato?
Zomato’s key subsidiaries include Blinkit, Hyperpure, District, and Zomato itself, all of which operate under its parent company, Eternal Limited.
Who is the founder of Zomato?
Zomato was founded by Deepinder Goyal and Pankaj Chaddah in 2008.
Who is the CEO of Zomato?
Deepinder Goyal is currently serving as the CEO of Zomato.
Is Zomato making a profit?
Yes, Zomato is profitable, posting a profit of INR 351 crore in FY24, compared to a loss of INR 917 crore in FY23.
What is the parent company of Zomato?
The parent company of Zomato is Eternal Limited, which was previously known as Zomato Limited. The company rebranded in January 2025 to reflect its broader scope and growth.
What are the Zomato-owned companies?
Zomato owns several companies, including Blinkit, Hyperpure, Paytm Insider, Feeding India, and more. These acquisitions help Zomato expand its presence across different sectors, such as quick commerce, entertainment ticketing business, and more.
Swiggy, a platform that delivers groceries and food, has released a new app called Snacc that allows users to order meals, snacks, and beverages in as little as 15 minutes. The debut coincides with a race among Indian food delivery apps to deliver hot beverages and biryani to consumers’ doorsteps in less than ten to fifteen minutes.
Recently, Blinkit, Zomato’s quick-commerce subsidiary, launched “Bistro,” a platform that promises to deliver meals, snacks, and drinks in ten minutes. The debut took place barely one day after competitor Zepto announced the Zepto Cafe, their endeavour. In a few places, Zomato has started offering its own 15-minute food delivery service. Zomato’s explore page now has a special “15-minute delivery” tab. The business hasn’t, however, released an official statement. Quick-to-prepare, ready-to-eat meals from a few eateries within a two-kilometre radius are promised by the service.
Vibrant Features of Snacc
On January 7, Snacc, which has a bright fluorescent green background and dark blue writing, went online in a few areas of Bengaluru. The sources claim that Swiggy intends to expand the platform throughout the nation.
Chocolate cookies, Indian breakfast, coffee, tea, eggs, rolls and sandwiches, lunches, cold drinks, egg puffs, and cheese Maggie are among the foods offered at Snacc. Prior to that, Swiggy announced in December that it had expanded Bolt, its 10-minute meal delivery service, to more than 400 cities and towns nationwide. For the first time, fresh food from consumers’ favourite restaurants is being delivered right to their door. According to Rohit Kapoor, CEO of Swiggy’s Food Marketplace, fries are crispy straight out of the packaging, ice creams remain frozen, and idlis arrive warm and fluffy.
Offerings of Bolt
The Bolt offers a variety of well-liked food items that are ready to pack or take little preparation time, such as burgers, snacks, bakery goods, drinks, desserts, ice creams, and breakfast items. Local favourites like Gwalia Sweets in Ahmedabad, Shiraz and Kookie Jar in Kolkata, Karachi Bakery, and G Pulla Reddy Sweets in Hyderabad are available to customers on Bolt in addition to well-known domestic brands.
The app also offers food items from MM Mithaiwala in Mumbai, Bhartiya Jalpan and Anand Sweets in Bangalore, Sethi Ice Cream in Delhi, and Irani Cafe in Pune, etc. More than 10% of the orders placed by leading partners in Tier-2 cities, such as Varalakshmi Tiffins in Guntur, Akhshay Tiffins in Mangalore, and Baap of Rolls in Roorkee, already come through Bolt.
According to Swiggy’s annual report on the nation’s food ordering habits, the 10-minute Bolt meal delivery service set records for delivery times of up to three minutes for food items like burgers, cakes, and ice creams in places like Nashik, Hyderabad, Mumbai, and Delhi.
Magicpin’s magiNOW to Spice up the Competition
MagicNOW, a new 15-minute meal delivery service being piloted in major Indian cities and metros, was recently unveiled by magicpin, the country’s third-largest food delivery app.
In order to preserve freshness and culinary integrity, magicNOW strives to deliver fast meals within a 1.5–2 km radius. Bengaluru, Hyderabad, Mumbai, Chennai, Delhi-NCR, and Pune would be the first cities to host it. Between November 14 and December 15, magicNOW successfully performed 75,000 deliveries from more than 1,000 local restaurants and a network of more than 2,000 food brands, such as Wendy’s, Chaayos, and Faasos. According to Datum Intelligence’s study, the fast commerce market is projected to grow from $6.1 billion in 2024 to $40 billion by 2030.
Due to a growing middle class, rising internet usage, and shifting lifestyles, India’s food delivery market has experienced exponential growth in recent years. These startups guarantee that delicious meals will arrive at your door quickly, whether you are craving international or traditional Indian cuisine. The top ten food delivery startups in India that are changing the food scene are detailed in this detailed guide:
Swiggy, founded in 2014, is one of the leading food delivery startups in India. It was established by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini. Swiggy has successfully expanded its operations to numerous cities across India and has partnered with thousands of restaurants.
Key Features
Real-time Order Tracking: Allows users to track their orders in real-time.
Extensive Restaurant Network: Partnerships with a wide range of restaurants.
Swiggy Genie: Offers additional services like picking up and delivering packages.
Impact
Swiggy has transformed the food delivery landscape with its efficient delivery system and customer-centric approach. The platform ensures timely deliveries and a variety of food options, making it a top choice for food lovers.
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, started as a restaurant search and discovery service. It quickly evolved into a food delivery giant, competing head-to-head with Swiggy.
Key Features
Comprehensive Restaurant Listings: Detailed information about restaurants, including reviews and ratings.
Zomato Gold: Membership program offering exclusive discounts and offers.
Global Presence: Operations in several countries beyond India.
Impact
Zomato has significantly enhanced the food delivery experience with its user-friendly interface and extensive restaurant partnerships. The platform’s reviews and ratings system helps users make informed decisions.
Dunzo
Website
www.dunzo.com
Rating
4.7
Founded
2014
Platforms
Web, IOS/Android
Dunzo – Top Food Delivery Startups in India
Dunzo, founded in 2015 by Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha, is a hyperlocal delivery service. While it delivers groceries, medicines, and other essentials, its food delivery service is highly popular.
Key Features
Multi-utility Service: Delivers a wide range of items, not just food.
Quick Deliveries: Known for its fast and efficient delivery system.
User-friendly App: Easy-to-use interface with real-time tracking.
Impact
Dunzo has carved a niche in the food delivery market with its versatile service offerings. It provides a seamless delivery experience, making it a go-to option for many users.
Box8
Website
www.box8.in
Rating
4.6
Founded
2012
Platforms
Web, IOS/Android
Box8 – Top Food Delivery Startups in India
Box8, founded in 2012 by Anshul Gupta and Amit Raj, is a food delivery startup specializing in Indian meals. The company focuses on delivering freshly prepared, wholesome meals.
Key Features
Indian Cuisine Focus: Specializes in Indian meals prepared with fresh ingredients.
All-in-One Meal Boxes: Offers meal boxes that include a main course, sides, and dessert.
Quick Delivery: Ensures that food is delivered hot and fresh.
Impact
Box8 has gained popularity for its focus on Indian cuisine and quality meals. The startup’s commitment to delivering fresh and tasty food has made it a favorite among Indian food lovers.
FreshMenu
Website
www.freshmenu.com
Rating
4.5
Founded
2014
Platforms
Web, IOS/Android
FreshMenu – Top Food Delivery Startups in India
FreshMenu, founded in 2014 by Rashmi Daga, is a food delivery startup that offers gourmet meals prepared by professional chefs. The company focuses on delivering high-quality, freshly prepared food.
Key Features
Gourmet Meals: Offers a variety of gourmet dishes prepared by expert chefs.
Daily Menu: Features a changing menu with new dishes every day.
Fresh Ingredients: Emphasizes the use of fresh and high-quality ingredients.
Impact
FreshMenu has redefined the food delivery experience with its focus on gourmet meals. The startup’s dedication to quality and taste has earned it a loyal customer base.
Faasos
Website
www.eatsure.com
Rating
4.1
Founded
2011
Platforms
Eatsure, Swiggy, Zomato
Faasos – Top Food Delivery Startups in India
Faasos, founded in 2011 by Jaydeep Barman and Kallol Banerjee, is a food delivery startup known for its wraps and rolls. The company has since expanded its menu to include a variety of Indian and international dishes.
Key Features
Diverse Menu: Offers a wide range of dishes, including wraps, rice bowls, and desserts.
Quick Service: Known for its fast and efficient delivery.
Innovative Packaging: Uses eco-friendly and convenient packaging.
Impact
Faasos has made a mark in the food delivery industry with its diverse menu and quick service. The startup’s innovative approach to food delivery has resonated with customers across India.
Oven Story, founded in 2016, is a food delivery startup specializing in pizzas. The company focuses on delivering a variety of gourmet pizzas with unique toppings and flavors.
Key Features
Gourmet Pizzas: Offers a range of pizzas with diverse toppings.
Customized Orders: Allows customers to customize their pizzas.
Quick Delivery: Ensures timely delivery of hot and fresh pizzas.
Impact
Oven Story has become a favorite among pizza lovers for its gourmet offerings and customization options. The startup’s commitment to quality and taste has set it apart in the competitive food delivery market.
MojoPizza
Website
www.mojopizza.in
Rating
4.7
Founded
2017
Platforms
Web, IOS/Android
MojoPizza – Top Food Delivery Startups in India
MojoPizza, part of the Box8 family, was established to revolutionize pizza delivery in India. It offers a variety of pizzas with generous toppings and quick delivery.
Key Features:
Variety of pizza options
Generous toppings
Quick service
Attractive offers
Biryani By Kilo (BBK)
Website
www.biryanibykilo.com
Rating
4.7
Founded
2015
Platforms
Web, IOS/Android
Biriyani by Kilo – Top Food Delivery Startups in India
Biryani By Kilo, founded by Kaushik Roy and Vishal Jindal in 2015, focuses on delivering a wide range of biryanis cooked in traditional handis. The startup ensures that each order is prepared fresh upon request.
Key Features:
Freshly prepared biryanis
Variety of regional biryanis
Traditional cooking methods
Quality ingredients
India’s food delivery market is dynamic and varied, with new businesses constantly coming up with new ideas to satisfy customers. These top 9 food delivery startups in India offer a wide range of options to satiate your cravings, whether you are looking for quick snacks, healthful options, or gourmet meals. These businesses have revolutionized food delivery by utilizing cutting-edge technology and providing exceptional customer service.
FAQ
How many food delivery startups are there in India?
India has over 500 food delivery startups, including major players like Swiggy, Zomato, and many regional platforms.
Who is the leader of food delivery in India?
Swiggy is the leader in food delivery in India, followed closely by Zomato.
Why did Uber Eats fail in India?
Uber Eats failed in India due to fierce competition from local giants like Swiggy and Zomato, which had a stronger market presence. Additionally, Uber Eats struggled with high operational costs and an inability to gain significant market share, leading to its sale to Zomato in 2020.
Which is the fastest food delivery service in India?
Swiggy is often considered the fastest food delivery service in India, thanks to its large delivery network and technology-driven operations. Zomato also provides quick service, especially in major cities, but Swiggy tends to lead in terms of speed and efficiency.
Zomato, a food technology firm run by Deepinder Goyal, has made the necessary adjustments to its answer to the Goods and Services Tax (GST) order issued by the assistant commissioner of revenue from the West Bengal government. The order was for a total of INR 9.85 crore from April 2020 to March 2021.
The corporation has decided to file an appeal against the order rather than pay the amount that was ordered. According to the filing that Zomato made with the exchange, the company believes that it has a compelling case on merits and that it will be appealing the order to the relevant authority. In an earlier filing with the exchange, Zomato made a mistaken statement that the company is obligated to pay the GST authorities the applicable sums.
What Exactly Did Zomato State in Its Recent Filing?
Zomato disclosed in its September 13 filing that it had received an order from the Assistant Commissioner of Revenue, Government of West Bengal, for the period April 2020 to March 2021. The order confirmed the demand for GST in the amount of Rs 5,59,54,319/-, with an interest of INR 3,69,67,792/- (Three Crores Sixty Nine Lacs Sixty Seven Thousand Seven Hundred and Ninety Two Rupees Only) and a penalty of INR 55,95,432/- ( Fifty Five Lacs Ninety Five Thousand Four Hundred and Thirty Two Rupees Only).
The demand order has been obtained in regard to the non-payment of the Goods and Services Tax (GST) on delivery charges, as well as interest and penalties accordingly.
Profits for Zomato in the First Quarter of FY25
On the first of August, the food delivery company Zomato made an announcement on its profitability for the quarter that spanned April to June of the fiscal year 2024-25. A company saw its consolidated net profit increase to INR 253 crore in the first quarter of the fiscal year 2025 from INR 2 crore in the same time the previous year.
As per a survey conducted by a media house, it indicated that the company’s profit after tax for the quarter was INR 253 crore. It was reported that Zomato’s revenue from operations in the reporting quarter was INR 4,206 crore, which is higher than the survey poll forecast of INR 3,9826 crore. In comparison, Zomato’s revenue from operations in the same quarter a year earlier was INR 2,416 crore.
According to the analytics provided by the BSE, Zomato has a market cap of INR 2.41 lakh crore. The company is included in the BSE 100 index as one of its parts. According to Goldman Sachs, the market price of Blinkit, the Quick-commerce platform that Zomato purchased in 2022 for a total of $568 million, is currently at $13 billion. In terms of valuation, this translates to a remarkable sixfold gain from the previous year to the current year.
Zomato, a company that specializes in meal delivery, has just announced a huge expansion of its food delivery service on trains. Deepinder Goyal, the CEO of the company, mentioned the new development on X (which was formerly known as Twitter). He stated that the company now serves food directly to more than one hundred railway stations across India.
As a result of Zomato’s cooperation with the Indian Railway Catering and Tourism Corporation (IRCTC), Goyal emphasized the fact that the company has successfully fulfilled more than one million orders during its expansion.
Train Travel Is Set to Undergo a Revolution Thanks to This Partnership
Through this partnership, the goal is to revolutionise train travel by providing passengers with the opportunity to indulge in a wide range of foods without having to leave the convenience of their seats. At the moment, the service is operational in 88 different cities.
Zomato’s Chief Executive Officer for Food Delivery, Rakesh Ranjan, expressed his excitement about the company’s partnership with the Indian Railways Corporation of Transportation (IRCTC). This partnership would enable Zomato to offer culinary delights to train passengers, hence enhancing the overall experience of their journeys. When it comes to the magnitude of its collaboration with IRCTC, the company is convinced that it will have an impact on the lives of millions of customers all throughout India and make travelling by rail an experience that is both convenient and enjoyable.
How the Customer Can Order?
Customers are able to place orders for meals using the Zomato – Food Delivery in Trains service, regardless of whether they are at the station or inside their train cabin. Each and every passenger will benefit from the convenience.
When customers open the Zomato app, they have the ability to search for terms such as “train.” It is also possible for customers who are present at the station to update their location by opening the Zomato app. Once they have done so, they will be taken to a banner where they may input their PNR. Soon after the consumer has submitted their PNR, it will immediately retrieve the customer’s seat and train details, thereby ensuring that the delivery partners deliver the order to the appropriate seat.
Through the utilisation of this cutting-edge method, it is possible to have food orders delivered to the station just as the train is about to arrive. Additionally, customers have the option of picking up their orders from designated pickup points located within the station building. Even in the event that there is a delay in the train, Zomato monitors the train timetables in order to change the delivery times.
India’s food scene was simmering with change in the early 2010s. Food delivery apps like Swiggy and Zomato were redefining convenience, and a nascent cloud kitchen industry flickered on the horizon. Amidst this disruption, one company, Rebel Foods, defied the conventional by ditching dine-in and embracing the shadows of virtual kitchens. The result? A culinary whirlwind that redefined the industry, shaking giants and carving its billion-dollar empire.
How RebelFoods DISRUPTED India’s 8000Crore Cloud Kitchen Industry
Rebel Foods is an Indian online restaurant company that oversees more than 45 brands, including Faasos, Behrouz Biryani, and Oven Story. It stands as the world’s largest cloud kitchen restaurant chain, operating over 450 cloud kitchens in 10 countries as of April 2022. Recently, the brand expanded into the Saudi market with three new cloud kitchens.
Founded in 2009 as a single brick-and-mortar restaurant, Rebel Foods, then known as Faasos, faced a critical crossroads in 2013.
Founder Kallol Banerjee sensed the shift: “We found out our delivery business was growing independently of the stores,” he explains.
This led to a bold move – shedding the dine-in model and diving headfirst into cloud kitchens.
Pivoting for Profit
The gamble paid off handsomely. With lower real estate costs and streamlined operations, Rebel Foods’ rent-to-sales ratio plummeted from 15% to 4% within two years. “It fundamentally changed the economics of the business,” Banerjee observes.
Technology as the Secret Spice
But Rebel Foods wasn’t just playing the location game. They built a proprietary Rebel Operating System (ROS), a tech platform that streamlined everything from menu planning to inventory management and delivery logistics.
“ROS is the backbone of our efficiency,” says Arjun Krishna, Rebel Foods’ Chief Business Officer. “It helps us manage multiple brands, optimize kitchen layouts, and predict demand with astonishing accuracy.”
Rebel Foods didn’t stop at operational excellence. They understood the power of catering to diverse palates. Today, they boast over 15 brands under their umbrella, from the comfort of Indian biryanis (Behrouz Biryani) to global street food sensations (Fassos, Slay).
This strategy resonates with the evolving Indian consumer, as Krishna points out: “We offer customers variety without the hassle of switching apps or platforms.”
Sagar Kochhar, co-founder and chief of EatSure at Rebel Foods, attributes their success to the seamless integration of technology with exceptional food quality. Reflecting on the brand’s journey, Kochhar notes that before 2012, no indigenous food brand dominated the market. Although established brands existed for items like pizzas and burgers, Rebel Foods ventured into the market with wraps.
Successfully capturing the wraps market with Faasos, they had nearly 40 stalls by 2014. Recognizing the time it took for other successful brands to establish themselves, Kochhar underscores the importance of understanding customer preferences and the role of delivery in their business. They were pioneers in digitizing food ordering in India, capitalizing on the realization that a significant portion of their orders came through delivery.
From 2014 to 2016, Rebel Foods expanded to 160 locations, becoming the largest wrap operator in India. Kochhar observed that the food and beverage industry didn’t follow demographic divisions like other industries. This insight led them to explore diverse categories through the concept of cloud kitchens, which they introduced and coined as ‘dark kitchens.’
Moving beyond the association of a food category with a single brand, Rebel Foods adopted a multi-brand strategy with brands like Behrouz Biryani and Oven Story Pizza. Kochhar explains that they created each brand with unique positioning and invested in branding and storytelling. In 2020, Rebel Foods acquired the master franchise for Wendy’s, further diversifying its offerings.
The Impact: Numbers Don’t Lie
The results speak for themselves. With over 400 cloud kitchens spread across 10 countries, Rebel Foods has become the world’s largest internet restaurant chain, clocking over 15 million orders monthly. Their success has inspired a plethora of other cloud kitchen players, propelling the Indian market to an estimated $2 billion industry by 2024.
Operating Revenue of Rebel Foods Private Limited Between Financial Year 2019 to 2023
Challenges and Beyond
Rebel Foods is built on three pillars: great recipes, a robust tech stack, and an efficient supply chain, which are incorporated into all their brands. Kochhar acknowledges the challenges of building a food brand without visible kitchens and underscores their focus on storytelling, unique product naming, and challenging branding norms.
However, the road hasn’t been without bumps. Concerns about hygiene and worker welfare have occasionally shadowed Rebel Foods’ meteoric rise. The company has addressed these concerns head-on, implementing stringent quality control measures and partnering with NGOs to ensure ethical labor practices.
Looking ahead, Rebel Foods shows no signs of slowing down. With plans for international expansion and further tech integration, they aim to redefine the food delivery landscape not just in India, but on a global scale. Expanding globally, Rebel Foods recently entered the Saudi market, in addition to its presence in the UAE and London. Kochhar emphasizes their unique strategy in London, questioning the necessity of cloud kitchens and highlighting their ability to scale brands efficiently through the Rebel OS stack and partnerships.
Rebel Foods’ story is a testament to the power of vision, agility, and technological prowess. In a volatile industry, they not only adapted but thrived, transforming themselves from a single restaurant into a culinary behemoth. As the aroma of their success wafts across the global food scene, one thing is certain: Rebel Foods is here to stay, and their disruptive recipe for success is sure to inspire a generation of food entrepreneurs to come.
The hospitality sectors without a doubt are a huge industry offering an amazing range of challenges and excellent roles if one is thinking to start a career in this sector. Thanks to the boom in the economy and a sizeable population with standard income, this industry is growing immediately.
Speaking about the sector, OYO, the Indian multinational hospitality chain that has services in hotels, homes, and living spaces is one such example.
Rohit Kapoor was the former CEO of the India & South Asia business across Hotels, LIFE & Workspaces at OYO. He is the man behind the success of OYO in expanding not only in India but also across international markets. He is the reason for driving the new real estate business for OYO by exploring new territories, strategic partnerships, and investment opportunities.
Currently, Rohit Kapoor is serving his notice period at OYO and is soon going to head the food delivery business, Swiggy. Rohit Kapoor worked at OYOfor almost four years. As per sources, he is very likely to join Swiggy if there are no last-minute changes. This decision came into effect after former COO Vivek Sundar left Swiggy.
To learn about his life and bio, read through this article to know how he led OYOinto the global market.
Rohit Kapoor earned a PGD from the Indian School of Business, where he placed among the top five students in his class and won the Young Leader Award for having the greatest overall grade in 2006.
During his graduation time, Rohit has also been engaged in several activities and won achievements like the Torchbearer award for helping brand building for the school and winning the Merit List for core terms.
Before this, he also studied CFA institute (Charter, Investments, and Securities) from 2001 – 2004
The book “ISB Portraits” recently included Rohit Kapoor as one of ISB’s most important graduates.
Besides being an academic scholar, Rohit loves to travel and has a passion for photography.
Rohit Kapoor – Career
Rohit Kapoor is a true leader who has about 20 years of experience in leading many companies. Rohit spent over ten years as a consultant with McKinsey & Company before joining OYO. He experienced a wide range of international marketplaces while working at McKinsey.
Additionally, Max One Distribution, Crossley Remedies, and Antara Senior Living all have Rohit on their boards.
Rohit Kapoor – Journey So Far
Rohit Kapoor is now all set to guide one of the leading food delivery enterprises, Swiggy. After serving the hospitality unicorn for 3.6 years, Kapoor announced his resignation.
He joined the Gurugram-based firm, OYO in December 2018 as the new real estate company’s chief executive officer (CEO), and was promoted to that position a year later to become the Global Chief Marketing Officer of India and South Asia.
Reports suggest Rohit Kapoor will be in charge of expanding Swiggy’s meal delivery services in his new position.
In addition, the startup’s organisational structure has been altered. The reason for the change was that it started they were strong but subsequently lost market share to meal delivery rival, Zomato. Swiggy hasn’t debuted on the stock market yet, but Zomato did so last year.
According to Rohit, the young people of today need more than simply sitting in a room of four walls. They want accommodations with higher levels of comfort and luxuries so they may enjoy life more and pursue their passions without worrying about regular daily-life problems.
This is what led him to create co-living spaces that will suit young people and students in today’s times. These spaces will give them the freedom to do whatever while reducing the headaches associated with brokers, properties with few or no amenities, maintenance fees, housekeeping services, security deposits, and other such issues that cost them extra bucks.
Rohit Kapoor – Investments
Rohit Kapoor is the angel investor at OFB Tech Pvt. Ltd. [Ofbusiness]. It is a technology-driven financing platform for SMEs.
Rohit Kapoor – Awards & Achievements
The following are some of the awards Rohit Kapoor has won:
Merit List for core terms.
Came 4th out of 349 on the Dean’s List.
Featured in the ISB Portraits for being one of the talented graduates.
Rohit Kapoor – Unknown Facts
Few interesting facts about Rohit Kapoor
He cycled from Manali to Leh in 2018.
He loves travelling and photography.
He loves designing.
FAQs
Who is Rohit Kapoor?
Rohit Kapoor is currently CEO of Swiggy for its food delivery business and formerly was the Chief Marketing Officer of OYO.
What was the previous role of Rohit Kapoor?
Rohit Kapoor was the Chief Marketing Officer of OYO.
Kinnary Nensee
