should Zomato venture into subscription based food delivery

should Zomato venture into subscription based food delivery

1. ZOMATO’S
SUBSCRIPTION
MEAL PLAN
BRM Presentation
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2. ZOMATO
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Decision ProblemObjective
Evaluating the feasibility of
Zomato launching a meal
subscription model
Can Zomato increase revenue
by 10% through a
subscription-based meal plan?
INTRODUCTION
Solution
Zomato Must Pivot: Expand the ‘Healthy’ Meal Segment
Instead of Launching a ‘Subscription Model’

3. INDUSTRY OVERVIEW & MARKET OPPORTUNITY
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Size & Growth: Indian food delivery market presents an emerging potential, currently
valued at $33.36B and is expected to grow at 19.81% CAGR
Changing Consumer Preferences: Primary and secondary research reveal a growing shift
toward convenience, health-conscious choices, and affordability
Rise of Cloud Kitchens: Key enabler for food subscription models
ZOMATO
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Zomato & Swiggy Growth Trends: Stagnation in metro markets, slow 1.6% user base
growth. Platform fees hiked by 400%, making food delivery 25% costlier.
Subscription-based models emerging with niche players like:
Mealawe (affordable, home-cooked), Tatva Greens (premium, health conscious customers)
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4. 4
Pain Point Customer Concern
Lack of Variety Fixed menus cause boredom; rotational meal plans needed.
Affordability
Customers are price sensitive. ₹150-200 per meal is the sweet
spot; premium pricing may face resistance.
Flexibility
Consumers prefer pay per meal or weekly plans instead of
long-term lock-ins.
Customisation
High-protein, low-carb, keto, or balanced meal preferences
vary significantly.
Trust in
Zomato
Mixed views- while many trust Zomato, some prefer
established third-party meal providers.
FGD AND INTERVIEW INSIGHTS

5. 5
Healthy Crunch Interview Insights
Business Model:
Healthy Crunch operates on a cloud kitchen-based model with subscription meal plans
(monthly, bi weekly, weekly and pay per meal) focused on health-conscious consumers.
Plans range from ₹183 to ₹216 per salad, depending on the subscription plan.
Key Insights:
Their current audience is very price sensitive and won’t pay a premium for customisation.
They don’t plan to partner with Zomato as their current partnership model leads to a
massive hit on the margins.
The main challenge that they anticipate after moving out of the campus is the logistic issue
(meal delivering).
While they are planning to expand into other products, they do not want to offer
customisation to maintain consistency and quality.

6. ZOMATO
Price Sensitive Customers
Most customers are price sensitive and are promo-centric.
Variety and flexibility
Customer behaviour data indicated that they switch between atleast 2-3
cuisines in rotation. Consumers often cancel subscriptions due to lack of
variety, rigid plans, and unpredictable eating habits.
Subscription models demand strict delivery reliability
Unlike one-time orders, meal plans require scheduled, recurring deliveries.
Potential restaurant conflict
If Zomato creates its own meal service, partner restaurants may see it as direct
competition.
Data ethics concerns
If Zomato uses restaurant data to create its own meal plans, it could face legal
challenges and loss of restaurant trust.
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Zomato Manager Interview Insights

7. 7Price Sensitivity Analysis
Van Westendorp Price Sensitivity
Analysis
Acceptable price range: ₹117-₹161 per
meal.
Optimal price point: ₹140 per meal.
Indifferent Price Point: ₹150.05
(Consumers don’t perceive a difference
above/below this).
Price Elasticity:
A narrow range indicates high price
sensitivity.
Consumers prefer affordable meals over
premium customization.
Strategic Implications for Zomato:
Avoid over-reliance on discounts; focus on
long-term incentives (loyalty rewards, free
trials, referral bonuses).

8. 8
Ordering frequency strongly predicts subscription likelihood (coefficient: +0.3010, p-value: 0.000).
Meal quality influences customer retention the most.
Discount-oriented users are less likely to subscribe → Heavy discount seekers prioritize
promotions over loyalty.
Insights from Regression analysis
Factor 1: Health/Nutrition Priority (Strongest Factor – 0.94 correlation)
Consumers prioritizing health/nutrition are more likely to subscribe. Meal
quality, fresh ingredients, and nutritional value are key decision drivers.
Factor 2: Price & Taste Sensitivity (Moderate Influence- 0.48 & 0.40)
Taste and affordability remain important but are secondary to health-
conscious users. Many consumers see meal subscriptions as expensive,
making cost control essential.
Factor 3: Discounts & Convenience (Weak Influence – -0.39 correlation)
Heavy discount seekers are less likely to subscribe long-term. Convenience
matters, but it is not a decisive factor in subscription adoption.
Insights from Factor analysis

9. ZOMATO
9Key Recommendations (Based on Findings)
Instead of launching a meal subscription, Zomato should expand its
"Healthy" section within the app.
Why?
Reduces operational complexity & legal concerns.
Leverages existing restaurant partnerships without competing with
them.
Allows variety & flexibility without long-term commitments.
Proposed Execution Strategy:
Expand the number of meal options in the ‘Healthy’ section.
Integrate customization features (ingredient selection, portion sizes).
Partner with cloud kitchens & home chefs to diversify offerings.
Target health-conscious consumers through app banners, social media
ads & public transport campaigns.

10. THANK YOU
ANUBHAV SAINI
ASHMI JAIN
ISHIKA GUPTA
KR DINESH KUMAR
SAKSHAM GUPTA
TRIDIBESH NAIK
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