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.
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