Zomato’s mobile app is reorganizing restaurants lists, and even dishes in a menu according to an algorithm that studies user behavior on the app. Changes are being determined by tracking cuisine preferences, average order value, and even previous items in an order, etc.
It will do this by rolling out an anti-bias algorithm that it claims will help clean up biased reviews even retroactively. Deleting only the most biased reviews will refrain from alerting biased review providers, which would otherwise help in detecting what kind of reviews are flagged and deleted. The algorithm will also consider a credibility score based on the user’ behavioral patterns on Zomato over time.
Swiggy raised $35 Mn in January, and possibly another $7 Mn since. Goyal highlighted issues with food delivery, saying that it’s loss-making to run an operation where the restaurant isn’t delivering. Zomato reported Rs 492 Cr of losses on revenues of Rs 185 Cr for the financial year ended March 2016.
The company is no longer physically present in the countries where it is not a market leader, which includes US and Canada, UK, Italy, Sri Lanka, Ireland, Chile. The company will remotely continue to operate in the markets from India headquarters. To gain market share in the US, the company had earlier acquired Urban Spoon for $60 Mn.
In the previous year, the company witnessed a loss of Rs 136 Cr. But, the company attained operating revenues of Rs 184.97 Cr which increased from Rs 96.7 Cr in the previous year. Zomato had earlier claimed that it has achieved operational break even in six countries including India, the UAE, Lebanon, Qatar, the Philippines and Indonesia.
This is about half the valuation at which it raised $60 Mn in its last round of funding. Zomato said that the investors do not understand the business model and will become profitable very soon. The company has also claimed that it is profitable in eight countries and its ad business in various countries has up to 93% gross margin.
The startup has launched a 12,000 sq ft kitchen to serve the customers in NCR region. It also claims that their orders and revenue have doubled in the past three weeks. Yumist was founded in 2014 by Alok Jain, former CMO at Zomato and Abhimanyu Maheshwari, a seasoned F&B entrepreneur. The startup is backed by Ronnie Screwvala’s fund Unilazer Ventures and Orios Venture Partners.
It has launched “Zomato Base” an Android POS system for restaurants. The cloud-based system is built on top of MaplePOS, which Zomato acquired last year. Zomato Base is already being used in 35 outlets of The Beer Cafe in India.
Tanmay Saksena, chief product officer of Zomato has quit the company, reports Mint. Zomato confirmed the development to MediaNama and issued a statement, It is unclear where Saksena is joining next. Saksena worked on Zomato’s online ordering for about a month, before managing CPO duties, as Mint indicated before which he worked at Disney as the VP of studio operations for 2 years and executive producer for about a year.
Online food ordering and restaurant guide Zomato has announced that it is now profitable in its high priority markets: India, Philippines, Indonesia and UAE, Lebanon and Qatar in the Middle East. In a press statement, Deepinder Goyal, founder & CEO of Zomato, said, “.. We have more than doubled our revenue year-on-year for the last few years, and we are going to post some great growth numbers this year as well,” echoing the sentiments of Sanjeev Bikhchandani from InfoEdge’s analysts call in December.