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Zomato™ Gold: Platform Overreach

In: Platform Business Models

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  • R. Srinivasan

    (Indian Institute of Management Bangalore)

Abstract

This case discusses the hyperlocal food delivery business firm Zomato and its business model. It outlines how it went ahead and enhanced its business model to launch their new loyalty program 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 program to review the critical aspects of platform overreach and how it altered the network effects of this multi-sided platform business. The case highlights 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 and remedial measures that need to be undertaken to restore confidence and how platforms need to deal with the new normal that emergence post these confidence lowering incidents.

Suggested Citation

  • R. Srinivasan, 2021. "Zomato™ Gold: Platform Overreach," Management for Professionals, in: Platform Business Models, chapter 0, pages 153-161, Springer.
    • Handle: RePEc:spr:mgmchp:978-981-16-2838-2_12
    DOI: 10.1007/978-981-16-2838-2_12
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