Zomato Business Model: Have Insight into Success Story, Working & Revenue

 

Zomato business model spins around providing meal ordering as well as delivery services. Besides this, the platform makes it easier for users to have quick access to information, menus of partner restaurants, and user reviews. It has transformed the food business industry by incorporating various restaurants and makes it convenient for food lovers to search for restaurants, check listenings, provide feedback, and availability according to a variety of cuisine.

 

The food platform allows its service across 24 countries globally and offers insight analytics to various restaurants. The analytics helps restaurants to improvise and improve their business. In 2008, Zomato started a restaurant listing directory; the meals delivery company has come a long way then ventured into multiple business segments. Let's have a look at what is Zomato? How does the delivery platform work? Business and revenue model, and how the business giant makes a profit.

 

What is Zomato?

Zomato is an Indian meal ordering and delivery platform and multinational restaurant aggregator founded in 2008 by Pankaj Chaddah and Deepinder Goyal. The delivery provider menus, information, and user review of restaurant and meal delivery options from partner restaurants in selected cities. In 2019, the service offered its delivery service in 24 countries and 10,000 cities.

 

Zomato Success Story, Investment & Acquisitions Details

In 2008: Zomato was founded as Foodiebay;

In 2011: Expands service across India;

In 2012: Expands operations internationally;

In 2013: Expands service to New Zealand;

In 2010 and 2013: Raised US$16.7 million from Info Edge India;

In November 2013: Raised US$37 million from Sequoia Capital and Info Edge India;

In November 2014: Zomato another round of funding of US$60 million;

In April 2015: Raised funds of US$50 million;

In February 2021: Zomato raised US$250 million;

In July 2014: Zomato acquired Menu-mania for an undisclosed sum;

In 2015: Seattle-based food portal for $60 million;

In 2016: Zomato acquired Sparse Labs;

In 2020: Zomato successfully acquired its rival Uber Eats' business;

In 2021: the meal delivery company signed a deal with Grofers.

 

In 2021, Zomato IPO raised almost 9,375 crores; it was the most talked-about experience as the Indian startup went public. All this was just after COVID when many things became uncertain; this means Zomato was performing all the things correctly. And looking to its success, it becomes more crucial to have insight into Zomato revenue and business model.

 

Zomato focuses on online food ordering and delivery; the food-search engine has partnered with many restaurants and establishments to provide improved services to customers on their demand. Zomato is considered the world's largest meal delivery aggregator, which connects hungry people with food. The online ordering and delivery platform collaborates with local restaurants to make a sustainable ecosystem possible.

 

Zomato Business Model: How the Delivery Platform Works?

Zomato's operational model is very effective. The platform makes it easier for customers to use websites or apps to search, discover, and find different restaurants to order foods, book tables to dine out and perform other activities. The local restaurant receives the order and prepares the meal; later, the proprietor platform algorithm chooses the delivery provider and assigns delivery. 

 

Delivery personnel aren't employees but partners to the company; they have the right to accept or reject the order. Once the job is accepted, the provider delivers it to the mentioned location. Most customers can make payments at the time of delivery or through digital methods. Customers can check reviews, ensuring to help Zomato to enhance its services and make smart choices while placing orders.

 

Zomato delivery model is divided into three steps:

·         Customers use a delivery app like Zomato to order from existing food joints, and restaurants have partnered with it;

·         The company pings the nearest apt delivery partner to deliver the order to a customer;

·         Delivery partners deliver the order;

·         Delivery partners and Zomato get commissions.

 

The dine-out operating model, Zomato, differs from the usual delivery service, depending on the subscription-based Zomato pro offering. The premium subscription-based service provides its members additional discounts and advantages on delivery services and dining out.

 

Key Activities of Zomato to Have Insight into!

Before tapping into other business segments, the online delivery platform focuses on the online restaurant directory. It partners with eateries joining the platform to improve visibility and charges them a commission for prominently on the feed. They pay for the promotion and offer amplified conversions from Zomato users. The primary activities of Zomato are divided into seven categories, includes:

·         Restaurant Listings;

·         Food Delivery;

·         Live Events;

·         White Label Access;

·         Zomato kitchens;

·         Hyperpure;

·         Consultancy

 

The Zomato business model is undoubtedly a well-orchestrated plan that consists of different factors that smoother the functioning of the delivery platform. You can even start offering the same service and experience to customers with an app like Zomato. You can have a quick look at delivery platform to provide your ideal customers with top services - https://whitelabelfox.com/delivery-anything-app

 

Key Partners of Zomato: How the Digital Platform Attracts Investors

Zomato business model can be categorized as follows:

 

Local Restaurants

The online ordering and delivery platform partners with restaurants to increase online presence and visibility to draw the ideal customers and tap into potential customer bases.

Users

The digital platform acts as a panacea for its users by rendering them a platform where they can discover, explore different restaurants, eateries, and book a table, dine out or order food.

 

Delivery Personnel

The online ordering and delivery platform provides doorstep delivery services to customers—Zomato partners with delivery providers who complete the entire chain by providing part or full-time delivery services.

 

Reviewers

Customers can review cafes, other food places, restaurants and provide relevant details about cuisine and other details in graphical or texture format.

 

An app like Zomato has partnered with many businesses such as Paypal, Visa, and Uber Taxi. The online food ordering app had a tie-up with Uber taxi to provide customers with quick access to ride booking. It helps us eliminate the requirement of using two different apps, that brings together a combo solution to book ride and search nearby restaurants, everything from one place. The different alliances assist in getting set-up locations, market research, handling political and legal issues, hiring and other procedures, accounting, and so on.

 

How Does Zomato Make Money?

Zomato has undoubtedly become a big name in the meal ordering and delivery industry since its inception. In 2021 the brand had revenue of $394 million, while there has been a steady increase in hyperpure revenue from 2020 to 2021, as it was measured around $1.8 million & $14.7 million, respectively. 

 

The diversified collection of activities that plays a crucial role in making its revenue are:

·         Advertisements

·         Subscriptions

·         Consultancy And Data Monetisation

·         Food Delivery Services

·         Live Events

·         Zomato Kitchens

 

Advertisements

Restaurants that wish to improve their visibility and online presence can advertise their business through the platform. A good source of revenue comes through promoting and advertising the restaurants that pay for the same.

 

Zomato Subscriptions

The subscription-based freemium model of Zomato, "Zomato Pro," provides customers with different discounts and offers on food delivery and dining out services. Zomato Pro offers 1+1 on meals while 2+2 on drinks for Zomato Pro users; the subscription also helps customers get their deliveries faster than ever before. It provides a 3-month membership at 200 and annual pro membership at 750 in India only.

 

Consultancy & Data Monetisation

Zomato can quickly analyze users' behavior based on data repositories. It gives an insight into which food is trending, what kind of meal is in demand, what people are more likely to search and order, and so on. Restaurant owners have to pay Zomato to get the information and optimize and improve their services as per growing requirements.

 

Food Delivery Services

Meal delivery is an integral part of the link chain between restaurants, delivery partners, and customers. The customers pay fees to eateries, which in turn give commission to the delivery platform.

 

Live Events

The online ordering and delivery platform like Zomato charges an entry fee for live events and carnivals organized in collaboration with different restaurants. The purchase of tickets becomes a source of revenue for the meal delivery platform.

 

Zomato Kitchens

Zomato offers a kitchen infrastructure service to eateries and local outlets that want to expand their business at different locations without spending more. It helps to get more restaurant partners and generate revenue at the same time.

 

What Does The Future Hold For Zomato?

Zomato's compelling business model has helped the platform make its name the largest aggregator globally, and aspiring entrepreneurs have a lot to learn. Many food owners are also thinking of developing a platform similar to Zomato. It offers a combined solution to their ideal customers' requirements and takes care of the entire process until the order reaches its doors.

 

If you are also looking for a Zomato clone and wonder how much it costs to develop an app like Zomato, then you need to understand that the development price might differ and depend on various aspects like features added, platform & technology used, and much more.

 

Zomato is always working on different business endeavors while improvising the existing applications and services it offers. Zomato has far more heights to attain and has a bright future. You can also grab better results by choosing to develop an excellent solution similar to Zomato. If you have any queries about the development process, features, and more, don't hesitate to contact us at sales@whitelabelfox.com.

Postmates Business Model - Revenu Insight: Check How Does Postmates Work?

 

Smart devices have become a vital part of our day-to-day lives. Believe it or not, most people use their smart devices all day long. Starting from cab booking to shopping for clothes to ordering food, mobile apps are used for almost everything, and one such most used app is Postmates. 

 

Looking at the growing success and growth of the delivery company, most businesses want to follow Postmates' business model. They want to know how Postmates works and generates money?

 

The digital age has transformed time into a crucial asset that people can leverage. Hence business vendors and organizations are searching for conventional ways that help them to manage their routines and reduce time wastage at the same time. There is no surprise that on-demand services are becoming a big thing in the field of consumerism and technology.

 

Changing customers' preferences and trends has boosted the popularity of delivery app development to a great extent. People these days don't have time to buy groceries or cook food these days; hence they are more likely to use an app similar to Postmates. And this is one of the primary reasons for the massive boost in the number of delivery apps on the Play Store.

 

What are Postmates? Why Develop Apps Similar to Postmates?

Owned by Uber, Postmates is an American food delivery and quick commerce delivery service that provides local delivery of prepared meals and other essentials as well. Founded in 2011 by Sam Street, Bastian Lehmann, and Sean Plaice, Postmated is headquartered in San Francisco, California.

 

Postmates provides its delivery service in more than 2,940 U.S. cities. In 2020, Uber announced that it had bought Postmates for $2.65 billion. The delivery players deal was one of the largest in the industry; however, the Postmates app continues to be available after the significant consolidation.

 

The service relies on mobile apps to match investors' and customers' demands. Postmates competed with DoorDash, GrubHub, and UberEats. Postmates opened its app programming interface to merchants to enable businesses to compete for the delivery of goods with larger companies.

 

Postmates is the most preferred food delivery service in the U.S.; it has the highest sales share in Los Angeles, it has around 29% sales in this U.S. city. It has great sales in cities including Boston, New York, Dallas-fort, Philadelphia, and more.

In 2018, food delivery company Postmates held eight percent of the total food delivery market in the U.S. The company's share is predicted to rise to nine percent by 2022.

 

More than half of U.S. people use meal delivery, which results in increased sales. The number has jumped from 44%, which was measured during the past year. Postmates customers spend around $145.

 

Postmates Business Model Explained: Explore the Whole Here!

The innovative and dynamic business model of Postmates has gained a significant volume of investment funding. The Postmates business model has helped the company to build a customer base. Launched in 2011, the delivery platform has achieved immense success shortly. It has tied up with McDonald's, Walgreens, Chipotle, and many other prominent businesses.

 

Postmates business model consists of 3 segment, which includes:

·         Customers

·         Merchants

·         Delivery provider

 

Customers

Postmates customers are those who are ready to spend more to get their ordered things delivered to their doorsteps without hassle.

 

Merchants

Postmates have tied up with local stores and restaurants to provide them with an opportunity to reach more customers who aim to get their goods delivered at their location. The merchants need to pay a specific amount to Postmates to leverage the company's delivery service. Hiring a delivery staff can be costlier than paying the delivery charges to Postmates.

 

Delivery Provider

Postmates delivery providers are those individuals who want to earn money by their schedule. An individual who delivers the goods, food, as well as other essentials, are known as Postmates. A driver who partners with Postmates can earn around 80% delivery fees while the rest 20% is credited to the company's account. According to the company, each delivery person can earn around $25 per hour.

 

Value Propositions

Impressive Postmate business model provides customers, local partners, and delivery providers with great value propositions. If you are looking to develop a food delivery app to take your business online, you can follow Postmates' business model to leverage great value.

 

Users:

·         Users are allowed to order from a nearby store

·         Provides all-time service

·         Get things delivered quickly and speedily

 

Merchants:

·         Local retailers who partner with Postmates are provided with a great customer base

·         Helps to provide a doorstep delivery

·         Increase online visibility

 

Delivery Persons:

·         Allows delivery provider to work at their convenience

·         Helps to earn more

 

There is much more value you can provide to customers, delivery providers, and local stores by choosing to invest in an app similar to Postmates.

 

How Postmates Work: Step-by-Step Process Explained

Postmates flow an easy yet effective business model. Have a look over the process to know how Postmates work and provides impressive service to customers. Postmates business model can be further divided into significant steps like:

 

Searching

It is the initial step of Postmates. The platform has been developed for local stores and customers, connecting them with each other. It makes it easier for customers to search for needed things to get them delivered to their place.

 

Make Payments

Payments can easily be made at the time of delivery. Depending on the distance that needs to be covered from the store to customers' doorsteps, the delivery fees will be added to the total amount.

 

Matching

Once customers place the request, the nearby local store is notified about the same. The knowledge is balanced by the recipient when the product is ordered to meet the exact customers' requirements. The order is purchased and shipped within hours at the customer's doorstep.

 

Tracking & Feedback

The impressive features of Postmates make it easier for users to search, order, and get their essentials delivered as soon as possible. Once goods are delivered to customers' doorstep, they can submit their feedback as a review. Users can choose the delivery provider at their convenience; this is how postmen can make money for the suppliers.

 

Postmates Pickup Model: Have a Quick Look Over it!

Postmates launched the pickup feature to tackle the competition. The primary idea behind the takeover is to boost the partner merchants' retail experience. It makes it easier for customers to order before they physically reach the store. Discuss below is a different stage model that explains Postmates' functioning.

 

Order

Customers buy the meal as well as other items on the platform when they arrive at the store. However, additional fees are not charged when they choose to pick up the order on their own.

 

Track

Customers can track their order in real-time just after the local store accepts their order. They can check the real-time status like accepted, packed, ready-to-pickup, and more.

 

Reach

Customers reach the store once their order is ready. Postmates makes it easier for customers to reduce the time-wasting and avoid missing their line.

 

Understanding Postmates' business model helps you know how it operates; let's get into what features it consists of and Postmates' revenue model to know how it makes money. It is designed to recover the cost you need to pay for meal delivery services in the delivery cycle.

 

Postmates' Features: Know Which Are Essential One for Delivery App?

There are various modules and features that are critical for developing an app similar to Postmates. These modules and features are as follows:

 

Store App

·         Category and Subcategory management

·         Push notification

·         Manage rating and reviews

·         Add / Remove Item

·         Manage Delivery Provider

 

Customer App and Panel

·         Search Menu

·         Add Favorite

·         Contactless Delivery

·         Order History

·         Store address

·         Order tracking

 

Provider App

·         Submit Document

·         Referral Code

·         Earnings

·         Route Optimization

·         Calling and Messaging

·         Order Management

 

Admin Panel

·         Add countries

·         Manage Earning

·         Promote Store

·         Draw Zone

·         Discount offers and coupons

 

Postmates Revenue Model: Check How Postmates Make Money?

Postmates has raised around $225 million, which increased the company value by around $2.4 billion. The on-demand delivery app, Postmates has raised around $140 million, giving Postmates nearly a $600 million post-money valuation. Postmates' business model and revenue model are the company's backbone and have led the company on the path to success. Let's check how Postmates make money.

 

Delivery Fee

The delivery giant charges nominal delivery fees for every order processed on the platform. Postmates delivery fees start from $5; however, the specific ongoing offers where the company provides around $3 or lesser. Moreover, 80% of total delivery fees go to delivery providers and the rest 20% to the company's revenue.

 

Convenience Fee

Apart from the delivery fee, Postmates charges 9% convenience fees over the order. People can pay these convenience fees as it's more convenient to get goods at the doorstep without spending fuel and time.

 

Merchant Programme

The merchant program of Postmates has made it easier for merchants to sign the official agreement. The primary purpose of the official agreement is that the store pays a specific percentage of total bills to the company for the service adding up to the company's revenue.

 

Postmates follow effective ways to generate money. The Postmates business and revenue model is the best one to choose and follow when you are choosing to start a similar business.

 

Postmates Have a Bright Future Ahead!

Postmates, spin-off services robotics, has successfully raised around $13M, which has increased its sidewalk delivery fleet. Uber and the delivery giant Postmates are thinking that drivers will grab orders on the same system in the near future. It has separate apps for customers. Postmates have a lot to offer as it follows a simple yet effective business model.

 

On-demand delivery apps provide you with great opportunities and make a unique presence in the market. Looking at the growing market, if you want to develop an app similar to Postmates, White Label Fox can help you with it. The feature-rich app helps you satisfy the growing demand and customers' requirements efficiently. Get in touch to know more about development cost, demo, and more right at sales@whitelabelfox.com.