Zomato - More that just food delivery

Why I’m Bullish on Zomato: More Than Just Food Delivery

Zomato is more than just a food delivery app; it’s a portfolio of habit-forming luxury apps.
Think about it: getting hot food delivered to your doorstep in 30 minutes and groceries in 10 is an absolute luxury.
We’ve become accustomed to this level of convenience, and it’s hard to imagine going back.

Yes, there’s been grumbling about platform fees and delivery charges.
You see it all the time on social media. People complain, but they still order. And this speaks volumes.
The truth is, people are willing to pay, even potentially 10x the current platform fee, because luxury is essentially priceless.
Convenience trumps cost, especially when it becomes ingrained in our daily routines.

This echoes a key insight from startup guru Paul Graham: “Finding the right price post product-market-fit is the price where your customers complain and still use the service.” Zomato seems to have found that sweet spot. The complaints, ironically, reinforce the product-market fit and validate the price point.
People are annoyed, sure, but they’re still hooked. That’s a powerful position to be in.

Moreover, Zomato’s CEO, Deepinder Goyal, is a master of public relations. He understands the power of narrative and keeps Zomato in the headlines for all the right reasons.
Post-IPO, he’s consistently generated positive buzz, whether it’s through initiatives like the all-vegetarian delivery fleet or the much-discussed 20 lakh rupee salary for the Chief of Staff role.
This kind of savvy media presence keeps Zomato top-of-mind and strengthens the brand’s connection with consumers. He’s playing the long game, building a brand that resonates with a broad audience.

This strategic use of media reminds me of another highly successful CEO, Anand Mahindra of the Mahindra Group.
Mahindra is a prolific and engaging presence on social media, using it to build brand loyalty and connect with customers on a personal level.
Deepinder seems to be following a similar playbook, and it’s clearly paying off.

Zomato isn’t just delivering food; it’s delivering a lifestyle. It’s tapping into a fundamental human desire for convenience and instant gratification.
And as long as they continue to innovate and adapt to the evolving needs of their customer base, I believe Zomato’s future is bright. The current complaints about pricing are simply growing pains on the path to becoming an even more integral part of our daily lives.
This is why I’m bullish on Zomato.