“Cracking the Code: A Complete Guide to Zomato’s Business Model and Revenue Streams”

Zomato business model

The foundation of Zomato’s business strategy is its platform, which links customers and restaurants. Its sources of income include commission fees, shipping fees, advertising revenue, and money from subscriptions. Zomato has been able to hold onto its market share in the very competitive food-tech sector by consistently growing its offers and offering users value-added services. Because of the variety of its revenue streams, the business may rely on a number of different revenue streams.



1.Restaurant Discovery and Online Ordering:

Restaurant search and online ordering are the foundation of Zomato’s primary business strategy. Based on geography, cuisine, and price range, users may search for and find restaurants. Via the Zomato platform, they may also purchase from these eateries online. Zomato makes money in this market by charging a commission to restaurant owners for each order placed through its platform. Depending on the restaurant and location, the commission fee normally varies from 15 to 25 percent of the order value.

2.Food Delivery:

The company’s food delivery service is another source of income. Depending on how far the restaurant is from the user’s location, the delivery price for customers who choose its meal delivery services normally ranges from 10 to 20% of the order value. In this market, Zomato makes money by charging consumers a delivery fee and restaurant owners a commission for each order that is fulfilled through their network.

3.Advertising Revenue:

Zomato makes money by letting restaurants place ads on their website. Restaurants can pay to advertise their menus or special deals to a specific audience or to showcase their listings at the top of the search results. Zomato makes money in this market by charging restaurants for platform advertising.

4.Subscription-based Revenue:

Zomato Gold, the company’s loyalty programme, is a subscription-based source of income. By purchasing a Zomato Gold subscription, users can receive special discounts and deals at partner restaurants. Zomato makes money in this market area by charging users a subscription fee.


Zomato’s revenue streams

1.Commission fees:

The commission fees that Zomato charges restaurant owners for each order placed through its platform are its main source of income. Depending on the business and region, Zomato charges a commission fee that normally varies from 15 to 25 percent of the order value. Zomato gives the restaurants a platform to reach a larger audience, and the restaurants benefit by receiving more orders and business. This is a win-win situation for both Zomato and the restaurants.

2.Delivery fees:

The company’s food delivery service is another source of income. Depending on how far the restaurant is from the user’s location, the delivery price for customers who choose its meal delivery services normally ranges from 10 to 20% of the order value. Due to its effective logistics and delivery network, Zomato has been able to capture a considerable portion of the very competitive meal delivery business.

3.Advertising revenue:

Zomato makes money by letting restaurants place ads on their website. Restaurants can pay to promote their menus and special deals to a specific audience or showcase their listings at the top of search results. This gives Zomato an extra source of income and gives eateries a platform to connect with potential consumers.

4.Subscription-based revenue:

Zomato Gold, the company’s loyalty programme, is a subscription-based source of income. By purchasing a Zomato Gold subscription, users can take advantage of special deals and discounts at partner restaurants. Zomato receives an additional cash stream from this while also offering its users value-added services.

In conclusion, commission fees, delivery fees, advertising revenue, and subscription-based revenue make up Zomato’s revenue strategy. Zomato has been able to hold onto its market share in the fiercely competitive food-tech sector by giving a one-stop shop for all of your food needs and steadily growing its services. Because of the variety of its revenue streams, the business may rely on a number of different revenue streams.

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Welcome to my webpage. I'm a college student, trader, and startup enthusiast by the name of Varun Raj.

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