How could Zomato become Profitable? : Understanding the future of Foodtech in India 

Hey Everyone, This video is a representation of how you could cross reference different events happening across the world and make a calculative projection about a company's performance. So, try doing this for other start-ups and find out their potential threats and opportunities! This will help you develop your business acumen :) And most importantly, this video is not an investment advice for the IPO but a blueprint for you to STUDY start ups and businesses. Personal opinion - Always wait for atleast 1 year after the pivoting has begun before you invest. Keep learning Keep growing 🔥 Lots of love Ganeshprasad Correction : June story date is 2016 not 2013 (It was conceptualised in 2013) Edited : Many people have assumed Zomato kitchen to be a Zomato venture selling it's own dishes. That's not what it is guys. Zomato knows that in the food business loyalty is important unlike product/tech and taste cannot be copied That's why ZOMATO kitchen is a PLATFORM for the best restaurants to scale up and not a full fledged kitchen of its own. (Clearly mentioned in the video) So, please watch the video completely before drawing conclusions :) Hope you understand.

100 years ago - if you have gold, u r rich Now - if you have customer data, u r going to become rich This is a data driven era

When you watching Zomato @gold mine and you get Zomato advertisement! 😂😂 Le Zomato :- this is business 😂

I can't believe we have MBA grade case studies available for free today thanks to such hard working people.Thank you Think School.

The gold mine has turned into a COal mine 😂 might as well become a landmine soon

Zomato Management watching the video be like : Chillah Chillahke scheme bata de sabko !!! 😂😂😂

"Data is the new oil" -Mukesh Ambani

The title of this video has been changed from "Why Zomato is a Gold Mine" to "How could Zomato become Profitable? : Understanding the future of Foodtech in India". I remember seeing this analysis before the IPO of Zomato. They must have changed the title after its share price tanked. I don't want to criticize because honestly I love the work this channel does but you should have the 'balls' to stay with your analysis even if its goes south. The title changes the entire picture!

I really appreciate this guy's efforts to educate and spread awareness on this platform! This is the kind of information our generation needs.

Plot twist: Amazon is venturing into cloud kitchen too

I don't know if zomato is a gold mine or not, but believe me your channel is a diamond in making.

Unlike copying products, copying food dishes is completely different. Even with the same recipes, the same food can taste very different from place to place.

Did I just hear someone explaining cloud kitchen benefits when we have street food all these years?

I feel RU-vid/Prime/Netflix are also doing something similar, with their respective original contents!!😉

Zomato is a GOLD MINE and Think School is a Gem 💎

Great video as always! But food businesses are far more volatile than Amazon’s products analogy. Zomato and Swiggy are in such huge losses that selling food just doesn’t seem to be able to cut it. Also, a very important fact that’s being overlooked is Amazon didn’t need June or such products to turn hopes of profitability. It was just an additional source which isn’t the case with zomato or swiggy. And while the cloud kitchens might sound like a great futuristic idea. Remember Freshmenu? Indian taste buds are much harder to please than the rest of the world. We get bored of even the tastiest foods very soon and a cloud kitchen cannot make top notch recipes that’ll become best sellers just by knowing what to make.

Amazon was also cash rich and profitable by the time they started leveraging data while zomato is still taking up debt for operations . Great content though , the parallels with kitopi was perfect.

His energy is far more than zomato's greatness.

This channel will soon cross 1M. Getting inspired 🙌🥳

I'm a learning entrepreneur, I have managed to start one company already, I'm 18. This channel is a goldmine for me. THANK YOU

I so want to believe in the Zomato growth story. For the past few weeks I am up-skilling so that I can contribute to Zomato's journey. But the very fact that the promoters hold 0% shares makes me feel it as a landmine. Do you have any take on this?

You told the story behind the numbers, which even well known business analyst didn't know or doesnt want us to know. This video was very informative

6:32 Not only Behroz, but the parent company Rebel Foods had 10-11 such brands, and legends say that they share data with these giants! Edit: Commented before seeing 🤦‍♂️

An important thing you missed in case of food tech is "Customer taste and preferences" Even if what you are saying happens, local dhaba and small restaurants will be still taking order over calls and delivering themselves

7 months later, where’s the gold mine?

I am waiting for my zomato order to be arrived😆😆 watching this premiere at the same time

Amazon is facing a huge anti-competitive lawsuit for using sellers' data and coming up with its own similar product. I feel like behaviour like this is only going to get scrutinized more and more in every sector where a tech company is taking an unfair advantage!

Who is here after losing 130% in zomato

Zomato & swiggy "Write that down, write that down"

Same is the case with CRED. They have the customer data of the financially best 1% population of India. It is about time when they leverage this into a multi-billion dollar business.

That was such a detailed explanation. Glad that I discovered this channel!

Man, your videos are so interesting even to common people(non-business) like me.. These detailed case studies are taught only in highly priced business schools but you are giving to us for free.. thanks a lot for your work and passion 👍👍 it's really interesting to know how the world of Corporate giants work and the brilliant strategies they employ..

When the market is up and IPOs are lisiting on a daily basis.. Be fearful 😉We need to control the FOMO

I add food items in the cart, see the final amount I have to pay, delete the items in the cart. Make my own Maggie . Sleep 🙂

Wow. I was not ready for how high quality content this is. Amazing work. More power to you!

You, buddy simply the presentation to such an extent, that's it's pleasure to watch your offering even for a "non-business minded" individual till the end. Thank you

If think school was a university... I would be the first to enroll

Your theory is correct if applied to products that specialise in tech. At the end of the day its a service being provided by a product. The fundamental flaw in your theory Food is based on Emotions, there's no way to cut, copy paste emotions.

By watching your videos now i am more inclined towards gaining info regarding the different business case studies 🤩 Thanks for providing such a valuable info🙂

One more advantage that Amazon has that you didn't discuss is its using "loss leader pricing model" (learned this from your Netflix video). Basically, why June failed can be attributed to many things like Amazon having the customer data and having digital real estate but the major reason was the price difference. Amazon can afford to sell that oven cheaply because it doesn't care about making profits through that particular sale. It just wants to have market share. Now comparing Amazon to Zomato won't be right because zomato can't afford to price their dishes 30-40% lower than the competition. Agreed that zomato kitchen will cut down the production cost but I then everything needs to be perfect. From integration with Hyper pure to market competition. I think a lot of this depends on implementation and execution. And with Amazon entering the market, it might not be a cakewalk for Zomato.

One thing I've noticed. Whenever there are too many IPOs, it indicates it's time to get out of the market. Cause every such IPO boom is always followed by a huge slump in a year or two.

I'm impressed the way you explained the context with real examples.. This is first video I watched. Kudos to your research 👏

The concept of cloud kitchen and the customer data and its effective use are the key attributes for the success of an enterprise.

The thing that differentiates restaurants from other products is that every restaurant is selling a unique product (taste-wise) which has its own following. The same is not the case with other stuff say, a mixer or television which is not an emotion-driven purchase. Restaurants bring people together and it is an entire experience that people pay for - ambience, music, service etc. Online food delivery is just a means to fill-up your tummy when it's not possible to go out and eat. Saying this as a 5-year-old cafe owner.

There is a fundamental difference though, manufactured products can easily be copy pasted, however it is very difficult to copy paste food because of the uniqueness of its recipes.

This is mind boggling. Never thought about Zomato like this. Once in Gurgaon I did saw one such cloud kitchen hidden behind a mall, and identified it when I saw fassos behrouz and box8 packaging materials stacked up there..

Thank You for introducing me to this side of zomato and way of business. It's really apprciating your efforts ❤️❤️

Food is an emotion, personally i would go extra mile to go get my favorite biriyani even if it higher price. Also going to restaurant dine-in is another kind of recreational activity.. we cannot forever stuck at home.

I can't even imagine the amount of effort you put in to research and come up with a detailed , well-structured narrative video🤯!!Hats off 🔥🔥🔥

Bro, this one has to be the best depth analysis of yours till now, Absolutely loved it. Working for swiggy, I know about the cloud kitchen concept and how multiple brands work in the same space. It was mind-blowing to see that. Keep the content coming. Need more such in-depth analysis.

This is best video on youtube about case study of any company.

Just found your link on one forum and became your subscriber in first 5 minute. Amazing work bro. Keep it up..👍🏻

Just amazing man this is just great the energy and enthusiasm people get by watching your videos just cannot be described

*Zomato CEO is watching Your Video* I repeat *Deepinder Goyal is watching your Video*

Cloud Kitchen concept is also adapted by Foodpanda here in Karachi, Pakistan. BTW I love the way how you explain each and every case study.

I am lucky I found this channel. Too much knowledge in just one video.

You’re the teacher we never had...but always wanted

1 week ago I was doing same kind of analysis on remote kitchen, and thought would be a revolutionary in India.. well loved to see it in more depth ❤️

All your videos are simple, yet very easily conveys the story. Brilliant job guys!!!

Very good case study and I am from UAE and I witness the profit public kitchen making

Great video! The background music, overall editing, and content are just best. Best wishes for 1 Million..

When you don’t realise how 18 mins passed ❤️‍🔥

Kya bat hain bhai you are doing a lot of research, Great! Watching you for the first time today!

i am just fan of your channel..I just came across it today only and have watched 2-3 videos..thankyou so much for such good content..

This one was epic. Useful as well. I really appreciate your consistency, narration and your awesome voice bro. Tons of love n support. (:

Dude, you are amazing ! You got a new fan man! Keep going on !

Very insightful. Something the Indian market needs to learn from global markets. The way you are explaining the same is making it even more interesting and noteworthy.

Bhai how do you even undergo such an extensive and thoughtful research? This is really really commendable!

Plot twist: amazon is secretly watching this video to launch it's food chain app😂

The underrated channel producing some Gold Content.💯

You always explain everything practically and even very smoothly which makes us easy to understand. But this video is far more than that! You crucified the analysis of so called "one sided analysts" on Zomato and gave us too much(tooooo!) knowledge on even very very small things which makes an 🌊🌊🌊 of knowledge together! THANK YOU very much for creating awareness among us and making us understand this world🙏🙏🙏.

This channel is a brainstorming gold mine for upcoming generations ..Keep it up 👍

Zomato will have a very tough competition from Reliance and Amazon who are preparing to enter in this sector and when such giants will enter they will invest heavily in costumer aquisitions, since they have a strong trust brand they will give some pretty tough time to zomato or swiggy, they will have to come up with something out of the box to contain their costumers. Zomato as a stock should not be considered for the long run. It's just an opinion. 🙏

Dude, your analysis is absolutely incredible. It's a gold mine, no pun intended.

Man.. saw your videos today for the 1st time today n regret y m i late.. loving it. Keep up the good work 😀

This channel enhanced my business understanding more than any MBA course ever would.

Well talking about the business, i don't see any revolutionary in future, wait for secondary market, market will show the real place of zomato ❤️

how are you researching so much ? this guy himself gonna be the next case study in few years with this trajectory

Zomato is watching Think School to make their strategy.. Really very good content...

Such an amazing video! Just like the book Think & Grow rich, where Peter Lynch said that to find the next multibagger just keep your eyes open, look at what's trending and you won't need anything but common sense to invest in a gold mine. Brilliantly presented Think School 💙

You are absolutely amazing 🔥🔥🔥 The amount of research and effort that you put in every video is really commendable 🔥🔥 Big Fan🙋🏻‍♂️

Thanks a lot Sir 🙏 Today after so much fundamental analysis I now understand the story behind those numbers. And now my mind is clear. 😃

I wish 2-3 years trajectory of your channel would hit 1M+

Genius, You just changed my perspective again. Beautiful!

Whenever I see the notification of your channel, I know I will learn something new today

After charging 28% & forcing vendors 15 to 20% as marketing expenses to push an outlet to go up the list, takes no participation in promos, no accountability in failed deliveries, no investments in delivery vehicles, no salaries to delivery ppl, push vendors to offer massive discounts whereby the vendors are actually making a loss on food cost. They still manage to post a loss of 1500 cr. All the money goes towards corporate rent, massive salaries, business class flights at the cost of the vendors.

Hi, I am going to highlight a thing at which nobody so far has noticed. It’s about ethical turned unethical practices of a Indian reputed firm so called “Zomato”. The era of food delivery at home started around a decade ago which soon started becoming popular among one an all eventually and now almost is a name on each and everybody’s mouth. Myself, also being a very big foodie started availing Zomato’s delivery service sitting home which was an awesome experience in starting years. Food delivery those days was costing not much expensive. Zomato’s surcharges from their partner restaurant which usually includes commission, tax on commission, and other minor charges which cumulatively summed up t0 17-19 % in till the years of 2019-20. Then pandemic changed everything and spared not business / person however It’s Zomato who fed every needy individual while sitting at home. This model was very much appreciated during those days and it was hugely considered by everyone that Zomato is the future of the outside food but nobody then knew the dark truth to be come in time to come. Before all this story I would like to introduce myself briefly. I’m 36 years old individual qualified as a Chemical Engineer with working experience of 10+ years. My last jobs were with reputed companies i.e. JSW group, Toranagallu, Karnataka (Epsilon Carbon) and Tata Chemicals, Mithapur Salt plant (through third party) and my last drawn salary was 9.36 Lakh per annum. After a long span of living a family life in these remote areas and meanwhile pandemic effects on job market made me awake to enter into cloud kitchen business which used to be my passion. I took a huge risk leaving my job aside and started a cloud kitchen after trying for around 8-9 months. I had no lack of passion and was not at all scared of hard work. I was very much confident about my abilities and experience which I assumed will help me grow in the business. Zomato for me then was just you, I or anyone else know about. My online food selling business started in May 2022 after documental formalities. Till that date, Zomato’s commission (including everything) officially was rose to 27% which is a lion’s share in profit. When we talk about eateries (restaurants, food stalls, street food stalls, Thelewala), 70% of the business even don’t manage to earn (say take home wages) this much amount to their home (27%). Now the story comes to Zomato. Earlier we used to go outside physically at restaurant to have our food whenever we wanted to do. Zomato eventually changed the picture and made things easy. Although, people merely experienced when their meal plate became costlier like anything in very short time span. Due to this Zomato’s huge commission restaurants started hiking their price by 30-35% which was substantial amount in this short period. A person who was getting average meal for say i.e. at INR 150 + taxes + delivery charge) which may be approximate INR 175, he started getting the same food Rs. 250 or even more. If restaurant tries to maintain the hiked price to make sale balanced, he falls in great loss. 27% commission and taxes too just a myth. Restaurant encourages or simply speaking blackmails restaurants to do participate in promotional programmes which are chargeable schemes. It means if restaurants don’t participate in programmes, their visibility on Zomato app will be as poor as that restaurant will hardly get a couple of orders in a day. Now the actual expenditure on Zomato ad comes into picture. They have customized many plans and schemes to be opted by restaurant partners. Big daddys in restaurant business can afford and select high package schemes whereas even a ordinary package is costlier for a common food service provider though no option left but to go with ad scheme. It indirectly adds an additional average 5% load of 27% discount summing it to 33%. The story doesn’t even end here. Unethical practices from Zomato leave the businessmen in no way unturned to earn his bread and butter. Every now and then, Zomato sends a mail to their restaurant partners that they are starting a campaign where restaurant’s visibility will be made higher on Zomato food delivery app for which they have to opt for their scheme in which restaurant has to provide a discount to customer. This discounted amount is completely borne by restaurant however Zomato never highlights the same and takes all the credit of discount by Zomato itself from customers. A dirty reality is that customer always thinks that the discount being offered is by Zomato but not by restaurant. I some case if under-priced food, any complaint is raised by customer which comes in the form of review / ratings which directly affect restaurant’s overall image and rating. However up to this it’s fine but in some cases spam ratings also take place for which Zomato never let restaurant speak directly to customer due to which their probability of making the repeated mistake can be nullified. As mentioned above, these promotional campaign sometimes are imposed without authorization of restaurant. Restaurant comes to know on this when a lot of orders are already gone. These discount promos are operated by Zomato itself hence can’t be stopped by self. It takes 2-3 days after your complaint to get the promo offer stopped. Till the same time, you have no other option left with you to do. First is to turning the restaurant off on Zomato (which negatively impacts the image of restaurant on customers) and other is to bear the losses of unauthorized discounts (unwillingly but only to show the restaurant open). Due to policies made by Zomato, if we reject the order in this case, visibility of restaurant becomes so poor that restaurant may not receive new customer orders for couple of days. This thing has been experienced by me 4-5 times in last few months, and subsequently Zomato has not compensated for losses anytime or eben not bothered to revert on raised tickets. Next point is that Zomato is so unethical that many restaurant which are getting continuous negative rating however managed to maintain the restaurant rating as 4+ on app. It doesn’t apply for common restaurants who are not capable to pay heft ransom in form of paid ads. Zomato doesn’t share its algorithm methodology (confidential as per Zomato) which they use for restaurant’s overall rating calculation and on the basis of same they are not all bothered to answer your restaurant’s rating improvement. Overall rating on Zomato is a main factor depending upon which the sales is dependant. I tried no stone unturned to improve my retuarant’s rating by getting maximum 5 stars however failed to improve because Zomato is not all bothered to answer. Each and every query is raised in form of tickets to Zomato. Its replied with customized and computerized mails and tickets are closed furher. There is no direct telephonic link to talk to Zomato anytime in need.In this case we feel nothing but helpless. 8 out of 10 restaurants are being closing every year but now I came to know that 4 of them are deserving but are victims of business based corruption say monopolization / duopolization. Surprisingly, there is no proper authority is controlling these firm. This is directly affecting consumers. The days are not far when food will not be in plates. It will be in small bowls. The above content is a brief article that I would like to convey to you in hope that it will be highlighted and brought to consumers. The time is not far when Zomato will be a modern franchise version of EAST INDIA COMPANY. I’m already at the verge of closing my kitchen but before that I want to let the reality come in everybody’s knowledge. Many more things are there which I’m not highlighting in this short mail. Support data on my mails can be produced if any action is likely to be taken from your end. Lastly, I would only like to say, SAVE YOUR PLATE.

wow this channel will inspire more students to do research then school and government together:)

please make video on "How Startups survive from these big giants " like in case of june and amazon

Liked video before watching itself. Bcz this guy is a gem I know his videos can't disappoint me

" you know what guys " is most awaited part of video A Fan form Haryana ❤️

Nice explanation. this video is one of a kind backed with solid information. 5 years down the line the picture is going to be completely different.

I never thought it this way! Very valuable insight!

I was following Think school until this video. Zomato is a gold mine??? They dont have P/E ratio closer to even high risk stocks. Biased video

Quality content bhai. Aise hi high quality videos banate raho. Best of luck for the future endeavor.

One thing I want to say, Rise of Indian startups. I don't know but i feel so satisfied when I hear Indian startups prosper😌 Hope so mine will too! I want to create my own city! Can we create our own city? Like nearly a 100 km square city?

Love the content on this channel.. although for Zomato I felt you covered only the positive side. Negative side is Amazon entering the industry and secondly there isn't a strong moat with Zomato. Business model looks really good but in terms of the valuation, very tricky to tell.

What an amazing video… everything is just perfect 👍🏻👍🏻

its great to see these types of energetic young guys good luck brother

Damn my man! If only business analysts/finance enthusiasts knew what they are missing out on. Bless you, and I hope you succeed with every frame that you record. lots of love