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  • 15 Mar 2022

  • 15 Mar 2022

Business Model of Zomato

Initial Business Model

Initial, business, mode, Zomato

Zomato aims to connect a wide range of customers with different restaurants on one platform.

The company was launched in 2008 and is keeping the customers engaged for 14 years.

In their initial phase they served customers with a fruitful platform, which enabled them to search and discover restaurants, and also read and write customer-generated reviews.

One can also upload the photos, and order the food delivery with the payment after delivery option.

The main business model running currently is collecting data of restaurant food menu, contacts, and other relevant information and providing it to their customers.

The company charges the restaurants on the basis of the commission of orders.

While users pay a delivery fee to the delivery boy, it earns through restaurants that pay a commission for each delivery boy, which is ultimately split among the delivery partner and the company.

Mission and Vision

Mission, vision, Zomato

Its mission statement is - better food for more people.

Earlier, the people used to make themselves happy with the dining system, in which they used to visit the restaurants to have their favorite dish.

But today, people can directly order the food from their favorite restaurant online.

The main mission of the company is to serve the people with convenience, by connecting them with various restaurants on the application, where they order their favorite food conveniently.

The vision indicates the aim of the company to serve food to maximum people which would traipse their interest with the delicious food.

Zomato deals with restaurant partners with industry-specific marketing tools, that bring them to engage and acquire customers to grow their business with more productivity.

All these features associated with the company keep the customers engaged with the business.

Main Business Model

Main, business, model, Zomato

Zomato acts as a bridge between customers and restaurants. When the customer wants to order food from the restaurants or cloud kitchen, then they first open the application.

They explore the restaurants from where they want to order their favorite dish. After completing this process, they move on to surfing the menu of various restaurants.

They select their favorite menu and place the order. The order asks for all the information of the person, like contact information and address.

It shows modes of payment, i.e. cash on delivery and immediate payment. One can choose any of the options as per the requirement.

The app also shows the distance of the restaurant from the person who has placed the order. It also shows that the food is getting prepared, then it assigns a delivery partner of the company for the delivery, who calls the order placing person to confirm the address.

Then ultimately the food is delivered to the main person on time, which also shows the punctuality of the business nature.

Zomato Value Proposition

The company marks its importance in providing the clients with a selection of values. The company has its main focus on the QAAA model, which promises and serves with quality, and accessibility.

It also works to maintain the services on time. It has extended its hand to a wide extent, like to more number of houses in the cities and towns. Their punctuality describes them well and also helps their services to grow high.

They also serve the customers with the reservations for the tables, cater to companies, and feed India. This also describes the efficiency of services in several ways, which keeps the customers associated with it. It keeps its customers happy.

When the industries keep the consumers happy and satisfied, then they become brand ambassadors who spread the word about the business, which helps the industries to get new potential consumers.

Giving priority to customers not only increases their value but also promotes new value, which keeps them satisfied all the time.

Zomato Customer Segment

The company founds the bridge between the customers and the restaurants. It is a bypass that enables the customers to find the restaurants as per their budget, locality, and desired tastes. One can get access to find different restaurants and a menu of numerous restaurants in their locality. It benefits the local eateries, which requires promotional or medium-sized tools for a broad audience.

Zomato Target Audience

It has grabbed the attention of the customers in a positive manner, which has helped them in growing the business and sales in the market. It helps to make the people get fixed on its order decision.

It has occupied a trust for itself in the minds of the clients, which places it at the topmost position in the market. It got a lot of things right from past experiences, and the driving force behind its success is customer-centricity.

Its core consumers are young people between the age of 18 to 35 years of age. It takes steps to target the clients that frequently refer to ratings and reviews and decide whether their location is good.

It offers a delightful experience to the customers along with the services, which has maintained its place at the top in the market. It has created a food chain that brings the attention of the customers towards it and delivers a more significant customer experience.

It has brought authenticity to the minds of people about the inner content. It speaks about the reliability of the content and asks the people to come towards it.

It helps in bringing new potential customers increases the leadership quality of the industry. This helps in creating a positive image of the brand, product, or services to help escalate its position in the market. It conveys to the consumers and competitors about the dynamic strategy of the business.

Zomato Revenue Model

Zomato, Revenue, Model, Zomato

When any company deals with the interest of the people and provides support, then this ultimately results in improving productivity. The business improves their sales when they get engaged with the needs and requirements of the consumers.

Focusing on the benefits of clients, it is mandatory to review the competitors in the market, like how they are positioning themselves. It also includes asking for their feedback and listening to what they are saying about the services and products offered by the company. The company has increased its global position in the business, by producing many streams of income, which helps it to make a profit in hundredfold.

It is spread its hands in small towns, villages, as well as to the cities in large numbers. It is not only a food business but also considered an advertising business.

All sources of revenue are given below:

Restaurant Advertising

The company has placed a platform for many users that help people to promote their restaurants in the market. Advertising is the major source of revenue for Zomato. Pay Per Click is considered as the online way of advertising, which helps the company to earn income each time a reader clicks on the banner of the advertisement. Restaurants can promote their menu whole restaurant to get more visibility from the zomato audience. These online advertising platforms have helped the target customers to get the best services. It constitutes around 72% of the revenue model.

Food Delivery

Charges commission to the restaurants on the basis of orders. Restaurants pay commissions for each delivery which is then distributed to the company and delivery partner. The company pays the commission to the food delivery boy after he does the work. The delivery boys are not offered a fixed salary, but the company pays according to the food that they deliver. It means that the delivery boys get a part-time job salary according to the number of deliveries. Hence, they get the opportunity to earn more if you do more deliveries. It constitutes around 2% of the revenue model.

Subscription Model

Zomato moves forward and explores the need of its users. It has a huge database that knows what customers like to eat what consumers searching most knows the information and on that basis, it runs discount offers. Like what they are interested in? What are they searching for? Which dish is trending? Which food is in more demand? The owner of the restaurant pays a certain amount to the Zomato in exchange for this information. This helps them to meet up new modifications with the services. Based on this relevant information, the company improves their services and meet the expectations. It constitutes around 7% of the revenue model.

Live Event

The company entered into the events area by partnering with restaurants and creating limited events by which they made a sale through the price of the tickets. It constitutes around 12% of the revenue model.

White Label Access

Zomato has brought the launch of its White label Platform, which is a suite of technologies for restaurants that helps to run their business on the internet. The key feature on the platform shows the ability for restaurants to come up with the launch of custom-branded native mobile apps to help them connect with and engage their customers.

White label Apps is nothing but a plug-and-play platform that powers the digital identity of restaurants, ultimately enabling them to spend more time focusing on their core business of food. These White label apps also offer features such as targeted push notifications, real-time information, and menu management, along with marketing tools to merchants. They also provide consultancy services. It constitutes around 3% of the revenue model.

Zomato Kitchens

Its kitchen marks its importance in providing kitchen infrastructure services to select restaurant operators. It also works with entrepreneurs to set up and operate the kitchen under other labels, which helps the restaurants in the right location.

Zomato Gold

The company find a restaurant and get order some steaming and delicious food which is delivered to the doorstep. The foodie people get engaged themselves with the Zomato Gold Membership.

It offers great amazing dining options, and the membership allows the consumers to place their hands on complimentary dishes and drinks across partner restaurants. One can also enjoy one free dish in the online order. It upgrades its subscription package Zomato Gold.

On this platform, the consumers can avail of some exclusive deals at Gold-tagged restaurants, bars, lounges across the country, which keeps them engaged with the services in hundredfold. It constitutes around 7% of the revenue model.