A new 'Day Zero', says Zomato Co-founder Deepinder Goyal on listing
"Today is a big day for us. A new Day Zero. But we couldn’t
have gotten here without the incredible efforts of India’s entire internet
ecosystem," said Zomato Co-founder
Deepinder Goyal ahead of the day the company got listed.
In a blog post titled "Letter from Deepi," he praised
his colleagues and investors, and said Zomato will
not alter the firm's focus for short term profits at the cost of the long term
success of the company.
"India is a tough market to operate in, but if you are
building to succeed in India, you are already exceptional. I say that because I
believe Zomato and Swiggy are two of the best food
delivery apps in the world today. We have a long way to go
before we can call ourselves world class by our customers’ standards, but we
are determined to get there," Goyal said.
Food delivery in India is largely a
duopoly with Zomato and Swiggy being the players. Zomato had made a foray into
international markets earlier, but is now focusing on its home market.
Co-founder Gaurav Gupta had told Business Standard earlier that the firm is
very focused on India, and the IPO will not change how it operates as a
business.
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In a note in May, Anand Rathi Research said that in 2019 food
consumption in India was about $670 billion, mostly driven by home-cooked food.
Food Services, defined as non-home-cooked food or restaurant food, now
contributes only around 10 per cent to the food consumption market. This is
substantially lower than in global economies such as the US and China where
food services contribute respectively about 54 per cent and about 58 per cent
of total food consumption.
Hence, the scope for growth is big. In his post, Goyal said
several times that it takes time to build a good product and that the company
would remain focused on its long-term objectives.
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