Zomato Gold: Platform Overreach
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Publication Date:
February 01, 2020
Industry:
Food & Beverage
Source:
Indian Institute of Management-Bangalore
This case discusses the hyperlocal food delivery business firm ZomatoTM and its business model. The case outlines how the firm went ahead and enhanced its business model to launch their new loyalty programme called Zomato Gold. It focuses on the sustainability of the hyperlocal business delivery model and the challenges faced by it to succeed and deliver against competition. This case outlines how Zomato put to disadvantage one of the platform participants and how this turned out for the platform as a whole. It also delves into an analysis of the loyalty programme to review the critical aspects of platform overreach and how it altered the network effects of this multi-sided platform business. The case can be used to teach the downsides of multi-sided platform business model – how an overreach on any one aspect of the platform sides can threaten the fine balance of the platform participants, remedial measures that need to be undertaken to restore confidence, and how platforms need to deal with the new normal that emerges after these confidence lowering incidents.
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Zomato Gold: Platform Overreach
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