How Zomato Works: A Complete Guide to the Business Model and Revenue Insights

Today, Zomato is the most-demanded food delivery service in the world, delivering food right to your door. You might be wondering why Zomato makes such a significant income from food delivery at this point. Let’s get into the specifics of how Zomato works, Zomato startup story and how it generates revenue insights.

What is Zomato and How Does It Work?

Zomato is a most extensive and user-friendly app for locating nearby eateries where they can eat in person or place an online food order. It provides reviews, menus and ratings to gather factual information on restaurants. You can place orders and savor delicious food in the comfort of your home using this information. Zomato provides prompt delivery to customers’ doorsteps, which is wonderful for foodies. Even seasoned business owners and entrepreneurs are intrigued by how it runs and generates significant profits despite providing alluring discounts. Zomato’s main job is to give you recommendations for nearby restaurants and take your orders. You can place orders at your chosen restaurant based on ratings and reviews from previous customers. It offers convenience to you and helps proprietors expand their small local food industry.
  • You can browse different restaurants on the Zomato app or website and place food orders.
  • Specific restaurant owners accept orders and prepare meals.
  • Once the meal is prepared for delivery, it will be given to the delivery companies.
  • Deliveries are made to the customer’s preferred location.
  • You can make payments using available payment choices and then evaluate them based on their experiences.
  • This ease of use encourages foodies to place online food orders. If you already work in the food industry and want to increase your reach, Zomato will provide a return on investment over time.

Zomato Foundation: What is the Success Story Behind the Idea

Zomato, established in 2008, has quickly expanded with successful startups worldwide. Deepinder Goyal and Pankaj Chaddah, graduates of Delhi IIT, launched Zomato in 2008. In the history of Zomato, prior to November 2010, Zomato was known as “Foodiebay”. They noticed their coworkers looking through menus from several eateries to place an order. At that point, they had the bright idea to create digital versions of these manual menus. Zomato started to display the number of restaurants available in the market after expanding its reach around the globe. Before UrbanSpoon entered the market, Zomato’s success story already had a strong presence there. Today, it operates in 22 nations and has more than a million restaurants. Zomato has a group of food soldiers visit each restaurant to ensure that their data is secured. You can write stories based on their eating experiences, express their thoughts and offer reviews. Zomato is a user-friendly app to purchase food online and become more social. Zomato makes it simple for you to order food on your mobile device and have it delivered right to their location.

What is the Zomato Business & Revenue Model?

Zomato’s business strategy is to offer consumers an all-inclusive and practical web platform. This platform can be used to look up restaurants, view menus, read reviews and make reservations. Advertising and restaurant subscription fees are how the business makes money. Zomato, one of the top websites for ordering meals online, is currently used in roughly 22 nations worldwide. Restaurant owners add themselves to the Zomato app to raise their internet presence. Business model of Zomato explains in detail how Zomato works:

Discovering New Restaurants

You may find new restaurants using the Zomato platform depending on your location, culinary interests and other factors. On the platform, restaurants can make free listings, but they can also pay to have their listings listed more prominently. It is an important source of income for Zomato.

Online Ordering and Delivery

Zomato lets you order food from participating restaurants through online ordering and delivery services. Zomato charges a commission fee, which is between 10% and 15% of the total transaction amount for each order. Zomato has been extending its delivery services recently, and this is another key source of revenue for the business.


Restaurants can purchase banner ads and sponsored listings on Zomato’s platform to promote their establishments. Zomato employs tailored advertising to connect with specialized audiences, including consumers drawn to a certain cuisine or restaurant style. This is another significant source of income for the business.

Premium Subscription Services

Zomato provides restaurants with premium subscription services that come with extra features and advantages, including improved visibility and analytics. Restaurants might pay a monthly or annual fee for access to these services. This is also a source of income, but its popularity has increased as more eateries want to enhance their online visibility.

Data Insights

Zomato gathers and examines performance and user behavior data to offer insights to restaurants and other industry stakeholders. Restaurants can use this information to improve their prices, menus and marketing tactics, making it important to them. Zomato uses this information to enhance both its platform and services.

Zomato Revenue Model

Zomato has expanded its global presence in the food industry since it first began. Its revenue model explains how Zomato makes money. To help you understand how Zomato produces such a sizable profit through its business model and diversity, some of the sources of Zomato revenue model are:

Restaurant Advertising

Zomato provides restaurants with an advertising policy to increase their revenue and customer base. Advertisements are the company’s most reliable and important revenue source. More than 70% of its revenue comes from this source. Advertisements enable restaurant owners to post their banners on their websites to boost their visibility.

Live Events

Zomato organizes various events, such as Christmas Eve and New Year’s Eve, in partnership with specific restaurants to increase sales. To attend these events, you have to purchase tickets.

Zomato Subscription

Zomato predicts user behavior, such as what people look for, what dishes will be popular, etc., using cutting-edge technologies and algorithms. Restaurant operators must pay Zomato in exchange for this information. They may improve their offers and please customers on the basis of that information. zomato subscription

Zomato Food Delivery Services

Zomato takes 20-25% commission on each order from the particular restaurant. In different places, the commission rate may range from 5 to 7 percent.

Zomato Kitchen

Zomato helps some restaurant owners who want to grow their business into new markets by providing a kitchen infrastructure solution. It implies that business owners can easily open a restaurant in an ideal location with low fixed and running costs.


In conclusion, Zomato is an approachable platform that gives you access to various services. It is dedicated to offering a secure and trustworthy service to its users through its safety precautions and customer assistance. You were able to create the largest food-ordering network as Zomato’s effective business and revenue model. Zomato has been dominating this sector for many years and is still expanding. If you are looking for a mobile app development company to develop an application like Zomato, we are always available to assist you.

Frequently Asked Questions

What are the Main Strategies of Zomato?

Zomato follows different strategies for their marketing purposes, including SEO strategy, social media marketing, paid advertising campaigns, email marketing and visual advertising.

Why is Zomato Better than Swiggy?

Both Zomato and Swiggy are online food delivery platforms that offer an exceptional and similar range of services. They allow us to order food online from a wide selection of restaurants and have it delivered to our doorstep. Zomato is in a superior position in terms of marketing, innovation, market share and acquisition. It has expanded its services to include restaurant discovery and reviews, online ordering, table reservations and delivery of groceries. On the other hand, Swiggy has primarily focused on food delivery services.

What is the Concept of Zomato?

Zomato is a food technology company that provides restaurant discovery, food delivery services and online ordering. This platform includes information about restaurants that helps you make informed decisions about where to eat. Zomato also offers online ordering and table reservation services, as well as food delivery through its network of delivery partners. Zomato has also expanded into other areas, such as online payments and event management.

Why is Zomato’s Marketing So Good?

Zomato’s marketing is considered good for several reasons. First and foremost, the company has built a strong brand image and reputation by consistently delivering high-quality services and experiences to its customers. This has resulted in a loyal customer base that actively promotes the brand through word-of-mouth marketing. Additionally, Zomato has been able to effectively leverage social media platforms to connect with its target audience and create engaging content that resonates with them. The company has a strong presence on various social media channels, such as Facebook, Twitter and Instagram, where it regularly shares updates about its services, promotions, and events.
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