Zomato is using the "Business Analyst" profile (who are freshers or people with little experience | they call themselves ZOMAN too) to take Zomato to tier-2 and tier-3 cities. Now there are two things you should know first:
- Their commission percentage is fixed at 28.13% with the restaurant owners in small towns. (could be higher)
- They are charging an extra 5% as GST and some variable delivery charges as extra pay from the customers (Delivery charges apply after 3 Months of Launch).
What can you do differently?
- Offer commissions to restaurant partners anywhere near 15%-20%.
- Offer delivery partners flat 5% (3%+2%) on every order + Rs. 2/km fueling & maintenance.
- Decide minimum support for delivery partners to keep them happy. (Eg. 3k-5k/Month which can be paid in case business is down). THIS DEPENDS ON THE CITY YOU ARE IN.
- Find a way to keep the menu prices of outlets lower than that in ZOMATO and market your brand as a pocket-friendly delivery service.
- Try to avoid GST if possible. (Instant 5% saved for customers)
- CONTACT LOCAL PERSONALITIES (Social Media Influencer or Politician or Anyone with good name) and start your own VOCAL for LOCAL campaigns.
- SMART PEOPLE HERE ------ GET IN TOUCH WITH ZOMAN (that Business Analyst who brought ZOMATO to your city) AND DO YOUR MAGIC. (No more comments)
- AND KEEP YOUR DELIVERY FREE.
Most probably, ZOMATO can't offer HUGE discounts anymore since it is public and finances are to be taken care of. They need to turn a profit asap. BUT here's a little suggestion if you like:
DO NOT TRY TO FIGHT THE BRAND, TRY TO CO-EXIST. KEEP YOUR EXPENSES UNDER CONTROL AT ALL TIMES. DO PROPER ACCOUNTING FROM DAY-1 AND ALWAYS HAVE A WAY TO BRING DOWN YOUR EXPENSES ASAP. IF ZOMATO HAS JUST ENTERED THE MARKET, TRY TO AVOID ANY FIXED EXPENSE AT ALL (Eg. Rent, Unnecessary Staffing). MAKE EVERYONE(Restaurant Partner + Delivery Partner) YOUR PARTNER and LOWER DOWN YOUR LIABILITIES TO WATCH THE MARKET RESPONSE. THEN REACT ACCORDINGLY.
Anyone with more ideas, PLEASE SHARE.
