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Gaurav Attrii
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September 3, 2025
Why Zomato Product Strategy Will Fail in the Long Term. 5 Product Strategy Mistakes That Will Kill Zomato 5️. Trying to be the Amazon of food. Added grocery delivery, dining reservations, event tickets, and gold membership. Users come to Zomato for food delivery, not lifestyle management. 4️. Expanding to low-density areas where delivery costs ₹80 but the order value is ₹200—burning cash to show GMV growth while margins deteriorate in tier-2/3 cities. 3️.  Commission rates of 20-25% are killing restaurant profitability. Partners are establishing direct channels and reducing their dependency on Zomato. Platform power is weakening. 2️. Swiggy copies every Zomato feature within 60 days. No proprietary technology, exclusive partnerships, or unique value proposition. Pure commodity competition on discounts and delivery speed. 1️. Prioritising new market expansion over profitability in existing markets. Classic startup mistake is trying to be everywhere instead of being dominant in one area. Zomato is trying to solve distribution for every local business. However, they struggle to make food delivery profitable. Zomato is saying "yes" to everything and mastering nothing. 𝗜𝗳 𝘆𝗼𝘂 𝗻𝗲𝗲𝗱 𝗵𝗲𝗹𝗽 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗮 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗠𝗮𝗻𝗮𝗴𝗲𝗿, 𝗳𝗲𝗲𝗹 𝗳𝗿𝗲𝗲 𝘁𝗼 𝗺𝗲𝘀𝘀𝗮𝗴𝗲 𝗺𝗲. 𝗜’𝗱 𝗹𝗼𝘃𝗲 𝘁𝗼 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂 𝗼𝗻 𝘆𝗼𝘂𝗿 𝗷𝗼𝘂𝗿𝗻𝗲𝘆.
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September 3, 2025
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Profile picture of Abhishek Verma
Abhishek Verma
Product Analyst at IQ-Line Pvt Ltd
2 months ago
RISHI Mishra