If you like to order food online, you must know about Zomato. Yes! Zomato, today I am going to share some interesting facts and revenue model of Zomato. I will tell you how does Zomato work and how does Zomato make money over the Internet. This article will clear the confusion about the earning model of Zomato while the first order is 100% free.
Covered Topics
What is Zomato and How Does Zomato Work?
Zomato is an India based startup founded by Deepinder Goyal and Pankaj Chaddah in 2008. Zomato helps to search and discover restaurants over the internet. Zomato was started in India in 2008 and now it is running more than 23 countries.
How Does Zomato Work
You know about Facebook, Instagram, and Google. All these apps look like a free and entertaining service to the user end. But, all these are earning revenue by advertising mode. In the same way, Zomato is also in the field of Advertising and you know the value of advertising. So, Zomato is earning money from advertisers.
Zomato’s Working Model of Business
Zomato has two parts of its business: Delivery Business and the other one is Advertising business. As you know about the delivery business, it helps restaurants to deliver the food to the customers without any charges. On the other end, Zomato takes money from the business to advertising the restaurants on Zomato website and Zomato Apps.
How Does Zomato Make Money
Zomato delivers the food from the restaurant for free and it doesn’t charge any customer but sometimes, it charges a bit low around Rs. 10. Zomato also offers various cashback coupons and free food meals to the customers to get new orders. After all, everyone wants to know how does Zomato make money by giving free food and delivery.
So, I am here to share the business model of Zomato. There are various methods how does Zomato make money online, some of them are as follows:
Various Business Modules in Zomato
- Business Listing on Zomato Portal (Website and Apps)
- Advertisement Banners
- Online Ordering
- Zomato POS
- Table Booking
- Event Advertising
- Ticket Sales
- Consulting Services
- Subscription For Restaurants
- Gold Membership
How Does Zomato Earn Money
As I wrote a lot of methods above, Zomato earns money by giving free service to customers. Let’s know in details about each method of making money online.
1. Business Listing on Zomato Portal (Website and Apps)
When you open a Zomato website or Android/iOS app on your device, you get a lot of restaurants and hotels on your screens. Actually, those are listed restaurants that were added by Zomato team and Zomato charges some bucks for this service. To register a restaurant on Zomato, you need some official government approved documents and FSSAI certificate and menu in hard copy.
You know Zomato is doing business in more than 22 countries and it has 90 million hits per month on its online portal (Website+Apps). Zomato has 1.4 million listed restaurants in its database. You can download the Zomato business app from the official website.
2. Advertisement Banners
You have signed up on Zomato portal and you open the official website or app, you get a few restaurants on your screen that doesn’t relate your current searches. But, they were charged by Zomato to show the business to the customers to get more orders.
Basically, when a restaurant wants to get some extra orders, Zomato offers ‘advertisement banners’ offer and take some extra money to show the same restaurant at the top in search results to the customers. This type of Advertisement banner may be for 1 day, 2 days, 1 week, 1 month or more; it totally depends on the money the restaurant owner spent with Zomato.
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3. Online Ordering
You know Zomato allows you to order online on the go and a delivery boy from Zomato will reach you with the ordered food. This is also a paid service from Zomato. Some business pays money to get listed on Zomato portal but they don’t want to get orders online. So, they don’t give money for this service.
But, if you want to get order online through Zomato, you also need to pay some money to Zomato and then your restaurant will start getting orders online.
4. Zomato POS
Zomato POS is an automated POS (Point of Sale) software that helps restaurant owners to handle billing, inventory management, orders, customer information, and history. So, this is another paid service from Zomato in the form of POS.
5. Table Booking
If a restaurant has sitting offline in the restaurant premises and they want to get bookings for tables. To help the restaurant, Zomato has another paid service. To this service from Zomato, Restaurant owner needs to verify the tablespace and all things with Zomato and then Zomato shows 1 extra option with the same restaurant listing on portal ‘Book a Table‘ online.
6. Event Advertising
When a restaurant organizes an event on any occasion, they have an option to promote the event on Zomato. Zomato shows the same events to all the nearby customers by banners and sometimes it sends an email to all the customers who live in the same city or town. In this service, Zomato promotes the business only and they don’t guarantee for any ticket sales because ‘ticket sales’ is another paid service from Zomato. LoL 🙂
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7. Ticket Sales
So, this is another paid services for the event organizers who want to sell tickets online through Zomato. There may be a fixed amount for all the tickets sold or an amount for each ticket sold. SO, it depends on the Zomato and restaurant owner how they deal with each other.
8. Consulting Service
If you are planning to open a restaurant in your city or anywhere across the country, Zomato helps you to choose the best location and food according to the customers of the locations. Actually, Zomato charges for these consulting services and analyzes the data of customers and orders made in the past in a particular location.
So, it helps you to find the best location and you can find which type of food gets high orders. And, I recommend you to go for this service because the location matters the most in the case of a restaurant.
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9. Subscription Product
Zomato has a subscription app for restaurants, a lot of restaurants pay an amount per month per outlet for that app and They can put up real-time deals on Zomato through the same app. You can get a custom Zomato Application through this link. So, by this method also, Zomato make money online.
10. Gold Membership
Gold membership is another paid service from Zomato to its partners and customers too. But, both the parties have different access and features to avail exciting offers and rights.
So, it was all about Zomato business model and how does Zomato make money even it is giving first food free. After reading this article, you got the answer to your query that was how does Zomato earn money online. If you have any other information or query, do write in the comment section.
