~5% of Zomato users (incl some who order 100+ times a yr!) account for ~45% (could be higher too) of its total orders, & v likely >50% of total value.
This is 2.7m users (~5% of its 58m annual, 15% of its 17m monthly users).
The power law in Indian consumer internet is brutal.
This is 2.7m users (~5% of its 58m annual, 15% of its 17m monthly users).
The power law in Indian consumer internet is brutal.
Why I think these 5% users account for >50% of order value. Because their AOV (avg order values) are higher than the infrequent orderers.
From the Q1FY23 transcript.
From the Q1FY23 transcript.
I am not surprised. This is much the same at ecommerce plays too.
If anything Zomato go a bit easy on the new customers they are acquiring. 23m customers acquired in CY22 (and they ~₹300crs on the same), given how much the power law operates, seems a bit of an overkill. Most new users will be lower AOV customers as well.
Calc link here - you can see how i derived and my assumptions
drive.google.com
drive.google.com
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