Zomato Business Revenue Model — How Does Zomato Make Money?

Nowadays, you can order food anytime, anywhere, and getting food right at your doorstep is a doodle, thanks to the rise of on-demand food orderings apps. If we talk about on-demand food ordering apps, plenty of apps are available that you can use to satisfy your taste buds, such as Zomato, UberEats, FoodPanda, Swiggy, and many more. So, which on-demand food ordering app do you have? Just-Jesting! Zomato is the commonly used on-demand food ordering app, credit goes to its exciting offers, fast service, and wide range of restaurants.

According to economic times, Zomato has 32.1 million active users in FY2021, down from 41.5 million in FY20. Still, Zomato is one of the highly used on-demand food ordering apps around the globe. What do you think — Why do so many people use Zomato? Of course its services, but what else? Well, Zomato’s business model is the root cause of its current position at the top of the market. Have you ever thought about how Zomato makes money? Don’t worry! In this post, you will get all your answers concerning Zomato’s business revenue model. Also, you come to know how Zomato makes money. So, let’s get started;

Zomato Business Revenue Model — In-depth Analysis

Before we proceed to the Zomato business model, do you know how Zomato became so popular in such a short time? Instead of what people eat, Zomato aims at how they eat. In this busy life, nobody has the time to stand in never-ending restaurant or food outlet queues. Zomato makes the availability of restaurants and food outlets easy for the customers. They created such a platform where users can easily order their favorite food from the restaurants they want. Now, it becomes easy for the users to order their favorite food without standing in queues and get it at their doorstep.

Zomato Business Model

The success of every business depends upon its customers, which bring revenue to them. Both restaurants and users are the customers of Zomato. Moreover, Zomato’s business model covers food delivery services, information related to restaurants, user reviews, and menus of the associate restaurants. Following are the critical elements of the Zomato business model:

Local Restaurants

Zomato is a superb platform for local restaurants to improve their visibility and customer reach. Also, it helps them improve their online presence.

Customers

Zomato’s business model is a perfect fit for customers who are fond of home delivery. Moreover, it allows the users to find a variety of restaurants under the same roof, where they can order what they want.

Reviewers

They are also known as the content contributors of Zomato. They actively review the restaurants and food to share appropriate information with the users.

How do Zomato Make Money?

Zomato works as a connecting bridge between restaurants and customers. To understand how do Zomato make money, you need to understand the following factors:

Commission on Delivery Services

Zomato charges a commission to the restaurants on delivery orders which they receive via Zomato. Moreover, the commission rate depends upon delivery. If Zomato delivers the order, the commission rate would be high and vice versa.

Furthermore, Zomato offers “Zomato Book” to the restaurants. It is also a paid tool that helps them deal with the customers who book their tables in advance. On the flip side, it provides Zomato Gold to the customers. Using this paid subscription, the customers can avail of discounts on dining and delivery orders.

Promotions

Zomato charges commissions from restaurants to place them exquisitely on the feed. Also, restaurants pay Zomato to promote their offers and events, which bring them more exposure and visibility

Final Words

It is all about Zomato’s business revenue model and how Zomato makes money. Moreover, this article can also help you understand the on-demand business model. If you are planning to develop an on-demand food delivery app like Zomato, choose an experienced team of mobile app developers that can build a full-featured on-demand app for your business. Stiff, if you have any doubts related to the Zomato business model, feel free to share your queries in the comment section. Get in touch!