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How does zomato make money?

How does zomato make money?

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Ever wondered how Zomato manages to keep our cravings satisfied while also raking in the dough? Well, you’re in luck because today, we’re diving into the juicy details of Zomato’s business model. Understanding how Zomato makes money isn’t just about satisfying our curiosity—it’s about appreciating the genius behind this food tech giant and maybe even learning a thing or two for our own ventures.

In this blog, We’ll take a peek behind the scenes to explore how Zomato’s business model works and how it brings in the cash. From its humble beginnings to its global domination, we’ll cover it all. Let’s dive in!

What is Zomato?

In 2008, Deepinder Goyal and Pankaj Chaddah had a game-changing idea: transform paper menus into digital formats. Thus, Zomato was born. Originally named Foodiebay, the platform quickly gained popularity in India and expanded internationally. By 2010, recognizing its global reach, the company rebranded as Zomato. From its humble beginnings to its status as a household name, Zomato’s journey showcases the power of innovation in the food industry.

How Did Zomato Become a Food Delivery Powerhouse?

Zomato’s journey from a restaurant directory to a global food delivery service has been swift and transformative. What started as a restaurant exploration platform has become a go-to destination for online food ordering. With a presence in 10,000 cities across 25 countries, Zomato offers unparalleled convenience and choice to users worldwide. Whether craving local favorites or exotic cuisines,

Zomato delivers with just a few taps. Continuously evolving to meet changing needs, Zomato’s commitment to quality and innovation remains unwavering. As it continues to expand its reach and enhance its services, the future looks bright for this food tech giant.

How Does Zomato Make Money?

Alright, let’s get down to business – how exactly does Zomato make money? Here’s a breakdown of their key revenue streams:

1. Food Delivery Services

The core of Zomato’s revenue comes from its food delivery operations. Here’s a breakdown of how this works:

  • Commission from Restaurants: Zomato charges restaurants a commission on each order placed through its platform. This commission typically ranges from 15% to 30% of the order value, depending on the terms negotiated with each restaurant.
  • Delivery Charges: Customers are often charged a delivery fee, which varies based on factors such as distance, demand, and the delivery partner’s availability. This fee helps cover the logistics of getting the food from the restaurant to the customer’s doorstep.
2. Restaurant Advertising

Zomato offers restaurants the opportunity to advertise on its platform. Here’s how advertising works:

  • Promoted Listings: Restaurants can pay to appear at the top of search results or in designated “featured” sections within the app. This increases their visibility and can drive more orders.
  • Banner Ads: Zomato also sells banner ad space within the app, allowing restaurants to run promotional campaigns targeting specific user segments.
3. Subscription Services

Zomato has developed subscription services for both customers and restaurants, adding another layer to its revenue model:

  • Zomato Gold/Zomato Pro: For a monthly or annual fee, customers can subscribe to Zomato Gold (now rebranded as Zomato Pro), which offers benefits such as discounts on dining out and delivery, priority access during peak times, and exclusive deals.
  • Hyperpure: This is a subscription service for restaurants, providing them with high-quality ingredients and kitchen supplies. By offering a reliable supply chain, Zomato helps restaurants maintain consistency in their offerings.
4. B2B Services

Zomato has diversified its portfolio by entering the B2B space:

  • Zomato Whitelabel: This service provides restaurants with end-to-end technology solutions to manage online orders, inventory, and customer data. It’s essentially a white-label software-as-a-service (SaaS) offering, helping restaurants streamline their operations.
5. Event Partnerships and Promotions

Zomato also organizes and partners with various food festivals, events, and promotional activities. These events not only boost brand visibility but also bring in revenue through sponsorships and ticket sales. Examples include the Zomato Food Carnival and various regional food festivals.

6. Zomato Market

During the COVID-19 pandemic, Zomato expanded into grocery delivery with Zomato Market. Although this was initially a response to the increased demand for home delivery services, it has continued to be a supplementary revenue stream. Zomato charges a commission on each order, similar to its food delivery model.

Conclusion:

And there you have it – the details of how Zomato makes money. From commission from restaurants to advertising and everything in between, Zomato has built a robust revenue model that allows them to provide value to customers while generating revenue for themselves. So the next time you order your favorite meal or snag a sweet deal with Zomato Gold, remember that it’s all part of their grand revenue plan. Now go ahead, order that extra side of fries – you’re supporting Zomato’s bottom line!

Hope you enjoyed this little journey into the world of Zomato’s finances. Until next time, happy eating!

Author Details

Bharat Koriya

CEO and Founder of the firm

Mr. Bharat Koriya is the founder and CEO of Raindrops Infotech. He is a very disciplined, soft spoken and enthusiastic person. Being the founder of the company, he takes care of business development activities and maintains relations with clients.

His charismatic and result driven approach has benefited the company to grow and achieve this height where the company stands right now. His vision, long term planning and sharp knowledge on latest technologies made this organization so successful and profitable in such a short period of time. Bharat ensures that the company gets up-to-date & latest knowledge on different technologies and trends in this competitive market. His problem solving skills and co- ordination abilities makes him favorable among clients and team members.

View all posts Bharat Koriya

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