Business Model of Zomato | History, Revenue, and Competitors

Business Model of Zomato | History, Revenue, and Competitors

2005 Views | 5 min | October 26, 2021
Business model of Zomato

This is surprising how a perfect business model of Zomato made them so popular among users and helped them in generating great revenues. With a great strategy and business model, every business can reach the heights of success. 

There are 24 popular food delivery apps. Still, Zomato has managed to win the heart of the users and deliver the best to the customers and generate great revenues. They have got control over the market very firmly because of their mind-blowing services and business model.

In this blog, we will be telling you about how you can give speed to your food delivery app with great business strategies as Zomato has. Let us start with a little introduction of Zomato, later we will dive into the business model of Zomato and its marketing strategy.

create an app like zomato

What Is Zomato?

We all know Zomato is an on-demand food delivery app providing services in various cities. The app not just delivers the best food but also lets you know about the best nearby restaurants and all the necessary information related to food. It is very user-friendly and offers all the possible services that can provide convenience to their customers. For people who live away from their family, Zomato is the best option for them to get home-like food.

zomato users globally

Zomato has provided several coupons and offers to attract more and more customers every year. However, they have adapted to many changes in recent years, especially after the covid-19. That’s all we will discuss in the blog further, about the business model of the Zomato and other important strategies. 

History of Zomato

Let us know a bit about the history of Zomato. This amazing food delivery app was founded by two students of Delhi IIT, Deepender Goyal, and Pankaj Chaddah. Back in 2010, Zomato was known as Foodiebay. 

history of Zomato

They got their inspiration from one of their colleagues. When they realize, people get so puzzled while searching for restaurants through manual booklets. It is very time-consuming while searching for hotels or restaurants manually. At that moment they decided to develop a food delivery app that will fulfill all the needs of the foodie customers. 

Zomato has spread its branches in different countries once they successfully launched the app in India. Currently, Zomato is operational in 22 countries, has more than 1 million listed restaurants globally, and receives more than 1.25 million orders daily

Zomato exercises many activities to make its users comfortable and happy. This increases their social reach and makes them stand out from other food delivery apps. Zomato very well knows how to impress their users and get the best out of them.

How Does Zomato Make Money?

Now let us discuss how Zomato makes money with its great marketing strategies. Below we have mentioned a few points that are adopted by Zomato to earn money through their food delivery app. The different business model of Zomato and diversification they use to earn money are:

revenue generated by zomato

1. Zomato Advertisements

Advertisement is one of the most trusted and useful strategies for many apps to earn money. Zomato also uses this strategy to earn revenues from restaurants and users. It offers advertising policies to restaurants that want to increase their customer reach and market involvement. 

It is noted that Zomato earns more than 70% of its revenue through this channel. The business model of Zomato allows restaurants to display their banners on the Zomato’ website and app.

2. Zomato Subscription

Zomato’s advanced software and modern tech enabled them to understand the behavior of the customer. They can get the data of their users like and dislike, what their users are interested in, what food or restaurants they are browsing through the app, what is the current behavior of the customers, and much more. And all this information can be retrieved from Zomato by the restaurants through this subscription business model. In exchange for this information, Zomato takes a subscription fee from the restaurants and generates revenues.

3. Zomato Food Delivery Services

Again a very important strategy to earn revenue. Under this business model of Zomato, they charge or take a commission from every restaurant on every order the user places. Usually, Zomato charges 20 – 25% commission on every order but in some places, it ranges from 5 – 7%. 

4. Zomato Event Organization

This is the new strategy adopted by Zomato to increase their customer reach and revenue even more. Under this channel. Zomato collaborates with the different restaurants and organizes various events on the occasion of Christmas, New Year, and other special days to boost their revenue. People have to buy tickets through the Zomato app or other online channels. This helps both the restaurants and Zomato to build better connections with the customers and their users. 

5. Zomato Kitchen

Another trending marketing strategy offered by Zomato. This model allows Zomato to provide initial help to the entrepreneurs for establishing their Food delivery business. Here Zomato helps certain restaurant owners to flourish their service in a maximum location with minimum investment. This is again a collaborative business model of Zomato to deliver the best to their users.  

Zomato knows very well how to keep their customers engaged and researched very deeply to build such a strong business model. If you are willing to develop an app like Zomato with a great business strategy and affordable rate click here.

Competitors of Zomato

Zomato is the best food delivery app with a great user base but there are other popular food delivery apps too. There is huge competition in the market between these popular food delivery apps. Nevertheless, Zomato is acquiring one of the best places among these food delivery apps. Let us discuss these apps in this section a bit:

competitors of zomato

UberEats

The food delivery platform launched in 2014. Users can browse through food menus, different restaurants, etc. Users can download the app easily through the play store on Android phones and iOS. 

DoorDash

This food delivery branch is based in San Francisco, California, US. Doordash is the largest food delivery and food ordering app in the US. It captures 56% of the market share.  

Swiggy

Swiggy is highly popular in India. It is one of the best food delivery apps in India founded in July 2014. The company is located in Bangalore and has been serving in 100 different cities of India. 

GrubHub

This is an America-based food delivery app, launched in 2004 and primarily situated in Chicago, Illinois. It has been owned by Just Eat Takeaways. Grubhub connects users with the other local restaurants in their area. 

Conclusion

Above you must have understood, everything has to start with something small. Later, with a good business model and strategy, you can grow your business as per your wish. Zomato itself started with Foodiebay and now it is ruling the food delivery business. 

A great vision for the future and positive dedication will always lead to your success goals. No doubt there is huge competition in the food delivery market. But with an amazing app and unique business model you can achieve and conquer this huge market war. 

The business model of Zomato is unique and they always aimed for user-friendly features. So you must also develop an app with unique user-friendly features with the advanced and latest tech. Contact experts for developing an app like Zomato. It will help you in getting the market quickly. 

build an app like zomato

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