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Zomato Business Model – Revenue Model and How to Build an App Like Zomato?

Whether you are looking for shahi biryani to feed your desi longings, soul-soothing pizzas and burgers, or anything else that makes you feel happy, Zomato is the only on-demand app that you need in order to get the fastest doorstep delivery of your favorite food. 

With 90 million monthly visitors, more than 800k customers, and a presence in more than 24 countries, Zomato is one of the highly used on-demand mobile apps around the globe.

Talk about Zomato revenue, $68 million in 2018, 206 million in 2019, and over $394 million in the fiscal year 2020. These figures are effective enough to define the call of on-demand food ordering apps like Zomato.

What do you think might be the reason behind the extensive growth of Zomato? Its business model, right? Yes, absolutely! A business is nothing but an idea; there is no doubt about it. In this post, we will talk about the Zomato business model and its other building blocks. So, if you are looking to develop an on-demand food ordering app like Zomato for your business, this writeup will work as a crowning accomplishment for your business.

How Does Zomato Work

Zomato Business Model – All You Need to Know About

No doubt, the robust business model of Zomato is the root cause behind its current market position. Before proceeding to the Zomato business model, do you know what the term business model means? 

Well, a business model describes how a company works to succeed in its goals. If we talk about the Zomato business model, it aims at offering on-demand quality food services and other information related to partner restaurants, such as their menu and user reviews. This unique business model of Zomato helps the customers to get what they want to have at their doorstep. 

Furthermore, Zomato has created a revolution in the food industry by incorporating tons of restaurants and facilitating potential users to look for restaurants more conveniently. No doubt, it gives wings to the competition, which leads the restaurants to offer the best services, but it improves their customer reach and provides value to their business.  

So, if you want to be the next big thing; don’t miss the components of the Zomato business model. Also, you need the best mobile app development company that can build an on-demand app food ordering app like Zomato for your business. Get a free consultation now!

Zomato Business Model – The Value of Proposition 

Zomato business model aims to provide unique values to its customers. Zomato’s business model concentrates on offering new and add-ons services that customers can not receive anywhere except Zomato. Moreover, we have listed some of the scenarios where Zomato provides unique value to its customers. 

First of all, it offers a one-stop-shop experience to the customers where they can order anything, whether it’s a pizza, burger, or anything else. On the other hand, it helps the restaurants with a wide range of customers. 

Secondly, Zomato’s business model is more tech-savvy. Zomato app is a feature-rich app developed using the latest technology. All this makes the app faster and more responsive, which helps customers get their food delivered in less time. 

Business Model of Zomato

Zomato’s business model offers dual services. For example, you can search for restaurants using the Zomato app, go out to dine, and choose for the doorstep delivery. 

Zomato paid membership services are beneficial for restaurant owners to get a potential customer base. Moreover, it provides several valuable services to the restaurants, such as event management, targeted advertising, online presence management, and more. 

On the other hand, if we talk about users, it offers up to 40% discount on dining and 30% on delivery for the pro members. 

Note: If you want to develop an on-demand app based on the Zomato business model, then you should read the on-demand app development guide. Along with this, an experienced mobile app development company can also guide you on all the ins and outs for your on-demand food delivery app inspired by the Zomato business model

Customer Segments 

The prime source of revenue for all the service-based businesses is customers, right. If we talk about Zomato, both users and restaurants are its customers. Zomato has three customer segments:

Customers

Zomato is a perfect fit for customers who prefer home delivery. It allows the users to find and locate restaurants offering different foods according to their budget. 

Local Business

Zomato is an excellent platform for local establishments looking for exposure and promotion. It has a large pool of customers, and restaurants can use the Zomato business model to improve their online presence. Also, it helps the restaurants to enhance their customer reach and visibility. 

Reviewers

Reviewers are also known as content contributors. They are active reviewers who share relevant information regarding the quality of food and other services provided by the restaurants. Along with reviews, they also share photos of local restaurants using the Zomato app. 

Zomato Revenue Model – How Do Zomato Make Money?

Restaurant Listings / Advertising

Advertising is the major source of revenue for Zomato. In the initial stage, Zomato was only a listing platform and a restaurant directory. Later, Zomato launched food delivery and restaurant reservations, and it proved to be an ace of rhyme for Zomato. This step gave wings to the growth of Zomato, and that is why Zomato is at the top of the market today.

Nowadays, plenty of restaurants use Zomato as a promotional tool. It not only give exposure to their business but also enhances their customer reach. On the other hand, Zomato charges commissions from restaurants to place them exquisitely on the feed. Also, restaurants pay Zomato to promote their offers and events, which bring them more exposure and visibility. 

Food Delivery

Presently, Zomato is known as an on-demand food delivery app. Zomato is a platform that connects restaurants and customers. Also, it helps the customers with the doorstep delivery of their food. A majority of people think about Zomato that it works like this. So, how do Zomato make money?

Zomato charges a commission to the restaurants based on the orders they received, which is then divided between the delivery partner and the company. On the other hand, the commission rate depends upon delivery. If Zomato makes the delivery of the orders, then the commission rate would be high. Contrarily, if restaurants make the food delivery, then the commission rate would be comparatively low. 

Subscription Programs

Another source of revenue for Zomato is its subscription fee. Zomato offers a paid analytical tool to the restaurants by making the use of which they can get information on the interest of their customers. Also, it helps the restaurants to manage their menus according to the preference of customers to highlight food discount offers. 

Along with this, it offers a “Zomato Book” tool to the restaurants to deal with the customers who book their tables in advance. This paid tool aids the restaurants to know the vacant table and manage staff.

On the other hand, it offers Zomato Gold for consumers and users. Using Zomato Gold, the customers can get up to 40% discount on dining and 30% on delivery orders. 

How Zomato Makes Money?

Zomato Business Model – Crux  

No doubt, Zomato’s business model has changed the functioning of the food and restaurant industry. The business model of Zomato offers universal visibility to restaurants. On the other hand, if we talk about customers, it has made the food ordering process effective and smooth by providing on-demand food delivery services. The business model of Zomato is well-organized, and it focuses on all the factors that generate revenue, such as event organization, restaurant advertisement, subscription programs, and much more. 

So, if you are planning to develop an on-demand app food ordering app like Zomato, you can adhere to the Zomato business model. Apart from this, you have to keep pace with the latest trends and technology. According to experts, if you implement the Zomato business model in your business, it can boost your business with a five times increase in revenue.

What is the Business Model of Zomato

Do you know how to create an on-demand food ordering app like Zomato? Don’t worry! In this ultimate guide, we’ve shared everything that will help you build an on-demand food ordering app like Zomato inspired by the Zomato business model.

How is Zomato different from other food ordering apps?

Before we proceed to the guide to create an on-demand app like Zomato, do you know how Zomato is different from other food ordering apps? Well, several features make Zomato different from others. 

Table Booking

First of all, Zomato allows its users to book a table of their choice in their favorite restaurant. If you have noticed, this feature is not available in its competitors, like Swiggy, Doordash, Grubhub, Seamless, Postmates, and UberEats.

Explore Nearby Restaurants

Secondly, Zomato’s business model enables its users to explore the nearby restaurants available along with pictures and locations. 

These are some of the features that make Zomato different from other on-demand food delivery apps

Note: If you are looking to create an on-demand food delivery app based on the Zomato business model, we recommend you trust the best mobile app development company. Get in touch!

How to Create an On-demand App Like Zomato – A Complete Guide

Before you take any step to create an on-demand app like Zomato, you need to understand your target audience. You can do this by conducting a detailed market analysis. Also, you need to understand the demands and expectations of the customers. 

Furthermore, developing an app like Zomato is not a piece of cake; you need to choose the best mobile app development company that can help you with advanced features and the latest technology in regard to your Zomato business model-based mobile app.

On-demand Food Ordering App Like Zomato – Components 

If you want to plan the features of your on-demand food delivery app inspired by the Zomato business model, here is a list of features for all four stakeholders:

  1. Customer App
  2. Delivery App
  3. Restaurant App
  4. Admin App

Customer App

It refers to the front-end of the application, the UI/UX design of this section should be the best one as it attracts the customers. Secondly, the app should be user-friendly that match the expectations of your target audience. Third, the app must include all the important features, such as search bars, booking, payments, and many more. 

We have listed some of the features you can integrate into your on-demand app inspired by the Zomato business model

Social Media Account Integration: This feature enables the users to log in or signup with their social media accounts or email ids. 

Search Bar: It is one of the most important features of the application. It facilitates the users to search for their favorite food and restaurant. 

Call Restaurant/Driver: It is an inevitable feature if you want to give the best experience to customers. This feature helps the customers give clear instructions to the restaurants regarding the food and drivers regarding their location. 

Multiple Payment Options: Try to offer flexible payment methods to your customers. Nowadays, many payment modes are available, like Google pay, Paytm, Mobile Wallets, Debit/Credit cards, Internet Banking, and many more. So, try to include the maximum payment options for your customers. 

Notifications: Push notification is one of the best ways to attract your customers and keep them updated about ongoing offers and discounts. 

GPS Tracking: The GPS tracking feature not only helps the customers to know the real-time location of the driver but also track the status of their food.

Note: For better clarity on the features of your on-demand app inspired by the Zomato business model, you can go through with an on-demand app development guide

Delivery App

It is one of the most vital sections of your application. As order delivery is a building block of your application, this feature will help you deliver the ordered food items. Following are some of the features that you can not ignore in this section of the application:

Check Recent Orders: This feature allows the delivery persons to keep an eye on the recent orders so that they can manage their time to complete the order deliveries within the time frame. 

Accept or Reject Orders: It allows the delivery persons to accept and reject the orders. In case of any emergency, they can reject the order so that another person can make the delivery of the order without making any delay. 

Note: Read this to know how to make money with delivery apps

Trip Info: This feature provides clear information about the trip, like how many miles he has driven or how many miles he has to drive to deliver the order. 

Navigation: It helps the delivery persons to reach the customers with the shortest route possible.

Contact: This feature allows the delivery staff to contact the customer if they have any doubts regarding the location. 

E-sign Page: Once the delivery person delivers the order to the customer, he can ask the customer to sign on the E-sign page. It works as a confirmation receipt.

Restaurant App

The restaurant app should include features to track their customer rates and business pulse. However, most of the features are similar to the customer’s app. Following are the restaurant panel features of the application:

Manage Restaurant Information and Offers: Using this feature, restaurant owners can edit the information and post photos of their restaurant. Also, it allows the restaurant owners to manage all the orders, whether it is dispatched, ongoing, or delivered. Along with this, they can also add offers to grab the attention of their customers. 

Analytics: It helps restaurant owners to feel the pulse of their restaurant. Along with this, it helps them to keep a track of their performance and revenue generation so that they can take the necessary actions. 

Note: If you have any confusion regarding the features of functionalities of your on-demand app, feel free to book a free consultation with the best mobile app development company. 

Admin App

Using the admin panel, you can perform all the functions within the applications. We will recommend you to go with an experienced team of developers if you want to develop an on-demand food ordering app inspired by the Zomato business model. It will not only influx your sales but also turn your business into a brand. We have jotted down some of the important features of the admin panel:

Admin Dashboard: Using this, you will be able to control the overall functionality of all the stakeholders. Moreover, this feature allows you to add and delete the outlets from the list. Apart from this, here you can view the total number of customers of an outlet and the number of deliveries in a month. Also, the admin dashboard includes payment management accounts to make and receive the payments in a hassle-free manner. 

Analytics and Reporting: Under this section, the admin can manage the data insights and metrics of the bookings. This section allows you to fetch the profit and loss measures of all the listed restaurants and delivery staff. Moreover, you can check all these figures on a weekly and monthly basis. Additionally, this section is designed to determine the revenue generated. 

Note: Read this to know how to manage the food and delivery business from the admin panel

Revenue Generation Model of Zomato

Final Words

Nowadays, there is a huge demand for on-demand food ordering apps like Zomato that focuses on the Zomato business model; there is no doubt about it. If you want to stand out from the rest and take your business to the next level, make sure that your app must have a clean UI/UX, a 24/7 helpline for all the stakeholders, easy navigation for all the pages, and a safe payment gateway. 

Hope you enjoyed reading the post and if you have any doubts, whether it is regarding the cost to develop an on-demand app like Zomato or anything else, feel free to get in touch with us. 

August 19, 2021
Author

Aashish Sharma

An enthusiastic content writer and marketer who loves to write on the latest trends and updates of the digital world. Always looking forward to creating and sharing quality content that can withstand the competition.

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