Zomato Business Model - How Is Zomato Making Millions?

Whether you are having midnight cravings or hunger pangs at the oddest hours, Zomato is here to your rescue. It offers finger-licking delights from the best restaurants. You can find the top-rated hangout places in the city through this app. That is not all, you can also book a table at any restaurant through it. Essentially, Zomato is a one-stop platform for all your hangout searches and hunger pangs.

Zomato has been pioneering the food tech market since its launch. But do you know how Zomato makes money? Let’s discover the answer here.

What is Zomato?

Zomato is a leading online food/restaurant search and delivery app and website launched in the year 2008. It gathers data from restaurants across India and 25+ international destinations to keep the user updated. It started its food delivery operations in the year 2015 and has now become one of India’s largest food delivery app and websites. It has spread its wings across various other business dimensions like Booking a Table, Gold Membership, Meals for One, and more.

How Does Zomato Make Money?

Zomato was facing a few challenges in its recent past. But in the year 2018, Zomato scaled its revenue to 40% at Rs.466 crore, while the losses dipped to 73%. It is now heading towards the direction of profitability and we are equally amused with its revenue model. Here are the three major ways by which Zomato is making millions:

Online Food Ordering

Zomato started its food delivery services 8 years after its establishment. This food tech giant now serves over 34 million orders in a month. An approximate 2% of the total revenue of Zomato is generated through its food delivery services. It also charges 10-15% on food delivery from restaurants and a service charge from customers as well.

Zomato Events

Zomato recently hosted a food festival named Zomaland in Delhi. This carnival was an assortment of lip-smacking dishes, musical performances, stand up comedy acts, fun activities, Ferris wheel, photo booths and more. The early bird tickets were available for Rs. 350, while the Zomato Gold Members could access it at a discounted price of Rs. 250.

Consultation To Restaurants

Zomato offers consultation to various restaurants across India and the globe. It is said many restaurants often end up in losses in the first year of their launch. Hence, Zomato provides consulting to restaurants and charges a service fee from them. This service is not limited to established restaurants or food joints. If you are someone who is planning to open a food space, Zomato can help you find a preferred location along with the most popular food to offer in that particular area.

If you are ready to order via Zomato and get some discounts, then simply check out Zomato Coupons to save more.

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An ideator, a wanderer and a compulsive connoisseur of food, Nishtha aims to become a globe trotter someday. Acclaimed as a silent ninja on her work desk, she loves to live wild and free outside of work. A perfect paradigm of the rarely spotted ambiverts, she loves weaving magic by penning down her thoughts.


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