Zomato और Swiggy कैसे कमाते है पैसा ? Amazing Business Plan & Case Study in Hindi

pranjal kamra

19 Sept 201913:19

Summary

TLDRThe video explains why companies like Swiggy and Zomato offer heavy discounts despite not making profits. The primary reason is investor funding, but the core business strategy is deeper. Discounts attract users, but the real goal is to collect data on consumer behavior. This data helps restaurants optimize their menus, pricing, and promotions. Additionally, Zomato and Swiggy charge restaurants for visibility and may potentially launch their own food brands. Investors are betting on the long-term value of this data-driven strategy, which gives these companies a competitive edge.

Takeaways

📊 Investors are funding Swiggy and Zomato despite their lack of profits because of their long-term business potential.
💰 Discounts are partially covered by restaurants through overpricing, where restaurants inflate prices and then offer discounts.
🍽️ Restaurants are willing to give discounts on delivery orders as it saves them costs associated with dine-in services.
🏢 Swiggy and Zomato earn through commissions on restaurant sales, even when offering discounts to users.
💡 These platforms also generate revenue by offering priority listings and ads to restaurants, charging for better visibility.
📈 Both companies have vast amounts of data on customer preferences and can provide insights to restaurants for a fee.
🍕 This data could allow Swiggy and Zomato to launch their own food brands based on the popularity of specific cuisines in different areas.
📉 The long-term strategy for these companies involves leveraging data, not just acquiring users through discounts.
🧑‍🍳 Restaurants become increasingly dependent on these platforms as they bring in more sales, especially in urban areas.
📈 Investors are primarily interested in the data and future potential of Swiggy and Zomato, which could dominate the market using their insights.

Q & A

Why do companies like Swiggy and Zomato offer heavy discounts despite not being profitable?
-Swiggy and Zomato use investor funding to offer discounts in order to acquire more users and establish a habit of using their services. The goal is to build a large user base and increase dependency on their platforms.
How are restaurants able to offer discounts through Swiggy and Zomato?
-Restaurants are willing to offer discounts because it reduces the cost of serving customers in-house. By delivering food, they save on staff, table space, and other operational costs, making it more economical to offer discounts through Swiggy and Zomato.
What is the business model of Swiggy and Zomato beyond offering discounts?
-Apart from discounts, Swiggy and Zomato earn revenue through commissions from restaurants, premium listings, and advertisements. They charge restaurants for priority visibility on the platform and for running ads to promote their businesses.
How do Swiggy and Zomato collect and use data for their business advantage?
-Swiggy and Zomato collect data on user preferences, food habits, and restaurant performance. They use this data to provide services like consulting new restaurant owners on the best business strategies, including ideal pricing and menu offerings.
Why are investors so bullish on Swiggy and Zomato despite their losses?
-Investors see the potential in the vast amount of data Swiggy and Zomato collect. This data gives the companies a strong competitive advantage in the future, as they can use it to make strategic decisions or even launch their own restaurants.
How do Swiggy and Zomato charge restaurants for additional visibility on their platform?
-Swiggy and Zomato charge restaurants for priority listings and advertisements. Restaurants pay a fee to appear at the top of search results or to run sponsored promotions, increasing their visibility and sales on the platform.
What future business opportunities do Swiggy and Zomato have using their collected data?
-With the vast amount of data they possess, Swiggy and Zomato could potentially open their own branded restaurants in the future, tailored to the preferences of specific locations based on the data they have gathered.
How do Swiggy and Zomato benefit from restaurant dependency on their platforms?
-As restaurants become more dependent on Swiggy and Zomato for sales, they are likely to offer deeper discounts and pay higher commissions to the platforms. This increasing reliance strengthens Swiggy and Zomato’s position in the market.
What challenges might Swiggy and Zomato face if they reduce or eliminate discounts?
-If Swiggy and Zomato reduce or eliminate discounts, they risk losing price-sensitive customers. However, their plan isn’t just to make customers reliant on discounts but to build a strong ecosystem of convenience and data-driven offerings.
How do Swiggy and Zomato plan to expand their revenue streams in the future?
-In addition to commissions and ads, Swiggy and Zomato plan to offer data-driven consulting services to help new restaurant owners set up businesses. They could also expand by using their data to launch their own branded restaurants.

Outlines

00:00

💰 Why Investors Back Loss-Making Startups

This paragraph explores why companies like Swiggy and Zomato, despite making huge losses and offering heavy discounts, attract substantial investor funding. The common misconception is that these companies are burning investor money for discounts to acquire users and make them habitual. However, the real business plan is more complex, involving restaurant partnerships where increased pricing helps cover some of the discounts. The strategy isn't simply to habituate customers but to create a sustainable business model where both the platform and restaurant partners benefit.

05:03

📈 Monetization Beyond Food Delivery

This section delves into Swiggy and Zomato's monetization strategies beyond food delivery. They earn by promoting restaurants through advertisements, priority listings, and sponsored searches on their platforms. This makes these platforms crucial for restaurant visibility, driving their dependence on these apps for a significant portion of sales. With vast amounts of consumer data, these companies provide insights on what kind of restaurant or cuisine would succeed in a particular area, making them indispensable to restaurant owners. This data is valuable and shows a potential revenue stream through consultation and strategic guidance.

10:03

🚀 Data Power and Future Growth Plans

This paragraph discusses the potential future moves Swiggy and Zomato could make using their extensive data on consumer preferences. The companies could launch their own restaurant brands tailored to specific regional tastes, effectively monopolizing the market by leveraging the data they've collected. This strategy explains why investors are so bullish on these companies despite current losses—there’s immense potential in the data they hold. The narrator hints at some of these strategies already being implemented and suggests that these companies might have hidden growth plans that are not immediately apparent.

Mindmap

Keywords

💡Discounts

Discounts refer to the reduced prices offered by companies like Swiggy and Zomato to attract customers. The video discusses how these platforms use investor funds to provide discounts as a strategy to acquire and retain users. The key message is that discounts are not just about customer acquisition but part of a broader business plan.

💡Investors

Investors are individuals or entities that provide capital to companies in exchange for equity or potential returns. In the video, it is explained that investors fund platforms like Swiggy and Zomato despite them not being profitable, highlighting the importance of data and market potential that these companies possess.

💡User Acquisition

User acquisition is the process of gaining new customers or users. The video emphasizes how discounts are a method for food delivery platforms to acquire users, making them habitual users of services like Swiggy and Zomato. The long-term goal is to build a large user base for future profitability.

💡Valuation

Valuation refers to the estimated worth of a company. The video discusses how Swiggy and Zomato have high valuations (around ₹25,000 crore) despite not being profitable, which raises questions about why investors continue to fund them. The explanation ties this to their potential and the value of their data.

💡Overpricing

Overpricing is when restaurants inflate the cost of food items. The video mentions how restaurants increase prices by 15-20% to cover the discounts offered through platforms like Swiggy and Zomato. This helps explain how these platforms sustain their discount offers while still maintaining relationships with restaurants.

💡Commission

Commission is the fee that Swiggy and Zomato charge restaurants for being listed on their platforms. The video explains that restaurants offer discounts because they save costs when customers order delivery rather than dine-in. In return, the platforms take a commission from the restaurant's earnings.

💡Restaurant Promotion

Restaurant promotion refers to the visibility that Swiggy and Zomato offer to restaurants in exchange for fees. The video discusses how restaurants pay to appear higher in search results or run ads on these platforms, thereby gaining better visibility and more orders.

💡Data

Data in this context refers to the vast amount of information that Swiggy and Zomato collect about customer preferences, order habits, and restaurant performance. The video highlights how this data is valuable to investors and can be used to open new restaurants or predict successful business strategies.

💡Business Model

The business model is the overarching strategy a company uses to make money. In the video, Swiggy and Zomato's business model is discussed in detail, showing that it's not just about offering food delivery but also leveraging data, running promotions, and potentially launching their own food brands in the future.

💡Dependency

Dependency refers to the increasing reliance of restaurants on food delivery platforms for their sales. The video explains that as restaurants become more dependent on Swiggy and Zomato for a large percentage of their revenue, they are more willing to offer deeper discounts and pay higher commissions, further fueling the platforms' growth.

Highlights

Investors fund companies like Swiggy and Zomato despite their losses because of high valuations and future business potential.

Swiggy and Zomato provide discounts using funds from investors, but this is part of a bigger business plan beyond just gaining user loyalty.

Restaurants often overprice their dishes by 15-20%, which helps cover part of the discounts provided by delivery platforms.

Delivery-based restaurant orders save costs for restaurants compared to in-dining, allowing them to give additional discounts.

Swiggy and Zomato collect a commission or discount from restaurants, often 10-15%, as part of their business model.

Zomato and Swiggy earn revenue from restaurants by charging fees for priority listings and advertisement opportunities.

Swiggy and Zomato can analyze food habits and preferences using extensive user data, allowing them to offer business insights to restaurants.

Delivery platforms can guide restaurant owners on what types of food to offer, pricing, and even locations to optimize their business.

In the future, Zomato and Swiggy might leverage their data to open their own branded restaurants, further reducing competition.

The extensive user data collected by these platforms gives them a competitive edge, making investors confident about future growth.

Investors are betting on Zomato and Swiggy’s data power and potential for new business models beyond just food delivery.

Zomato and Swiggy may introduce services like business consultancy for restaurants based on their data analytics.

The business model includes attracting restaurant partners by offering a platform that provides significant customer traffic.

Zomato is already listed on the stock exchange, and future growth is likely to make them stronger in the competitive market.

Investors focus on the long-term potential of these platforms due to their ability to control and influence food consumption patterns.