Reading about #ZomatoIPO surprised me by how perfectly Zomato fits in the Amazon Flywheel that Jeff Bezos infamously drew on a napkin in 2001.

A thread🧵👇 (1/10) ImageImage
Sometimes referred to as the "Virtuous Cycle," this diagram explains that success starts with customer experience.

A good customer experience will attract more customers.

More customers will bring more 3rd party sellers. More sellers give more offerings to customers. (2/10)
This process will create a positive cycle that will provide growth, ultimately lowering the price of products and boosting innovation.

So, how does well does Zomato fit into this flywheel?

Let's start with Customer Experience. (3/10)
Zomato has a great platform that provides restaurant listing and doorstep food delivery to its users (us). (4/10)
So, as users start to flock, Zomato will attract more restaurants to their platform because they will get higher visibility and a last-mile delivery service. (5/10)
This will create a cycle as user logs onto Zomato because they have more restaurants in their list and restaurants will need to be on Zomato because they need to reach a user base which is growing every day. (6/10)
This can also be referred to as 'The Network Effect,' where each additional participant(restaurant/user) increases the value of the network for all existing participants.

(h/t @naval for explaining this) (7/10)
Coming back to Zomato, so as they grow, they can re-invest their capital into improving the customer experience.

For example, optimizing the delivery route algorithm for more efficient deliveries, which will reduce costs for Zomato as well as the user. (8/10)
This whole cycle will keep iterating and create a natural monopoly (duopoly in this case - Swiggy).

In the end, both the users and restaurants will have to use Zomato to buy & sell biryanis. (9/10)
So, let me know your thoughts about this thread.

And more importantly, whether or not you'll be applying for much-hyped #ZomatoIPO. (10/10)

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More from @ohhhhhhhthatguy

17 Jul
My thoughts on the big E word - Empathy.

(A thread 👇)
Empathy isn't just something that you practice in your personal life.

The idea of putting yourself in someone else's shoes and looking at a situation from their perspective can be applied to all areas of life - personal & professional.
Designing products & experiences with a user-centric approach is practising empathy.
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