Zomato Business Model: What is the business model of zomato - Quotesily

 Hyyy welcome back again so today we are sharing about information one of the biggest food delivery startup known as Zomato. So we are sharing "Business model of zomato"   Zomato is the big brand of India to find online best restaurants, cafes and bars and it  available in 24 countries 10 languages.


Zomato Business Model: What is the business model of zomato - Quotesily



Just like the Zomato business model, strategy, pricing model...

Swiggy, Uber Eats the rest of them have almost the same business model & ways of working but they have different area operations. So now lets "How does Zomato make money?"


Zomato Business Model: What is the business model of zomato - Quotesily


 How Zomato Started.?


Zomato Business Model: What is the business model of zomato - Quotesily

 Zomato was founded by two IIT alumni Deepinder Goyal and Pankaj Chaddah, in 2008 as a known as “Foodiebay.” In 2010 they change Foodiebay to zomato because they said it's look like similar to Ebay so finally they change Foodiebay to Zoamto. Once they saw their colleagues who were seeking menus of different restaurants to order food. 

That’s when the idea took birth, and they thought of converting these manual menus into a digital format so in2012, Zomato had spread its wings across the globe and started to list out the number of restaurants in the food segment.


In 2021 zomato is planning to take IPO around and it rased approx 1 bilion dollar and currently its valuation around 5.4 billion dollar so let's see what happened so if you get a slot so you invest or not please share you opinion on comments so let's back on the track..


Business Model of zomato.?


Here is the revenue breakdown of each of these main three segments in 2018 and 2019..

 Zomato in itself does not offer the products to customers but the revenue is massive. Zomato add many different kinds of things to be a profitable.. Zomato is not just a food business, as it also into the advertising business. Zomato business has three parts, one is the delivery business and two is that they are in the advertising business and other one is dinout Today, Zomato has multiple revenue channels besides online ordering so let's discuss all of them one by one


Food Delivery

Through the food delivery business Zomato charges a commission to the restaurants on the basis of per order. The company earns through restaurants who pay a commission for each delivery, which is then spilt among the delivery partners and the company. However, the online food delivery only contributes a low percentage of income compared to other revenue streams because of the huge competition and the need to provide deep discounts so Zomato charge around 25% commision as per order.


Restaurant Listings and Advertising 

 Zomato first started out as a restaurant search and rating services but now they are operating in many segments so advertisment also one of theme and Zomato earn good revenue form advertising resturant on their platform. They further extended this feature to food delivery and restaurant reservations, for this Zomato charges commissions from restaurants that want to be placed on the feed. Advertising is the major source of revenue for Zomato. 

"The restaurants can promote their banner on the site in order to get better visibility and appeal to a large section of the audience via Zomato."


Subscription Programs 

The next major source of revenue for Zomato is a subscription fee. Restaurants pay a certain amount of fee monthly and in return, Zomato offers them the analytical tools. Zomato has huge amount of databases that knows what a customer wants to eat, where he/she wants to eat, what the consumers is searching for and knows all this information through the cookies. So it's help resturent to find perfect audience what they wanna eat. It has a tool called Zomato order and is given to restaurants, which helps them know about the consumers interest. The restaurants then use this tool to flash their discount offers on food and provide right information to resturant what most of they user order daily basis.


Zomato Gold

Zomato Gold is a premium subscription based program which is offered by Zomato so It's a started in 2018 and is a paid service that allows customers with Gold memberships get complimentary food and drinks at the time of ordering form partner bars or restaurants. 

But the Gold service is only applicable to dine in orders and not available for deliveries and can be used only once at each partner restaurant in a day. Zomato Gold offers either 1 + 1 on food or 2 + 2 on drinks when the customers visit their partner restaurants so here zomato also earn good amount of money form this program and it's a good revenue source of Zomato.



So i hope your all doubts are cleared if you have any query please comment below I'll help you.. Thanks for reading..!!

Thanks for giving your valuable time.


(I apologise for the bad English but still I'm trying to improving it.)