How Does Zomato Earn Money ? Zomato Business Model

In this blog, I will tell you how does zomato earn money and And I will also explain the Zomato Business Model  in-depth

Zomato is a restaurant aggregator and food delivery startup and was started by Deepinder Goyal and Pankaj Chaddah in 2008.

Its services in 24 countries and more than 10000 cities.

their website has over 16,337,917 monthly visitors.

14 lakh restaurants listed on its platform.

They receive 37 million orders every month.

It has over 80 million monthly active users.

they have received $ 914.6M funding so far.

How Zomato got its Idea?

Deepinder Goyal and Pankaj Chaddah were both friends and both are pass out through IIT.
And both later worked in the same company called Bain & Company Which was a management consulting company.

When he got to know about a problem and it was a problem in the restaurant people used to spend more time looking at the menu.
Then he came up with an idea that why not make a website that people can see the menu of any restaurant sitting at home and also see the rating of that restaurant, after that he started Foodiebay, Foodiebay was a website in which people can see the menu of any restaurant And can also see the rating of that restaurant, later the foodiebay was named Zomato.

How does Zomato earn Money? Business Model of zomato.

I divided Zomato’s business model into 4 parts –

1. Online Order Services

Whenever someone orders from zomato, they get a commission on every order from that restaurant, the average commission is around 17% to 25%, around 30% of their total revenue comes through this model.

2. Advertisements

So if a restaurant wants that its restaurant’s listing comes to the top, then it has to advertise it on Zomato,
for which the advertised cost has to be paid, it is like Google ads. Almost 62% of Zomato’s revenue comes from advertisements.

3. Events

Zomato offers events on occasions throughout the year like New Year, Valentine Day, Christmas or other festivals.
The sale of tickets for these events also is a revenue model of zomato .

4. Zomato Gold

Zomato Gold services provide customers with membership at a very low price and provide them with additional benefits whenever they order a meal or order from a restaurant, about 12% of monthly revenue comes from zomato gold.

Acquisitions

They acquired 14 companies some are Uber eats, TechEagle Innovations, TongueStun, Runner, Sparse Labs, NexTable, Inc., MapleGraph Solutions Private Limited, Mekanist, Urbanspoon, Cibando .

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