How does Zomato make money : Business Model

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In the shaky startup Indian ecosystem, Zomato has been a steady player, continuously growing and expanding.

They are now present in over 23 countries

Zomato’s products add a lot of value to the users and restaurants alike. Users look for variety and options based on pricing, cuisine, location and sometimes offers. The restaurants get a steady stream of users looking at their menu. 

So how does Zomato make money?

Zomato Business Model

Zomato have a host of revenue options and they are as follows.

Advertising on their website and app

Zomato’s advertising is very specific, when people search for specific keywords, ads of restaurants are shown for that specific keyword. This makes it highly targeted. This is also hyper local.

Consulting services with data

98% of restaurants fail within the first year and Zomato can help! Zomato sits on a pile of data and information. They have an in-built analytics platform that run a lot of queries and get valuable information out. Say if a person wants to open a new restaurant, they can connect with Zomato and find out the success rate of opening a restaurant in a particular location. Restaurant owners can also find out what is the most popular type of food in the area, understand the needs of the users and provide a complimenting service that will help build their business.

Zomato Events

Zomato has forayed into the events space by partnering with restaurants and creating exclusive events. They make a sale through the price of the tickets. A lot of Zomato hosted new-year parties were held.

Online Food Ordering

Very late to the game, Zomato started their online delivery service. Different from other players like Swiggy, Zomato does not have their own delivery system, they let users place the order through the website or the app and the restaurant fulfill that order through by their own.

How does Zomato make money

Zomato Whitelabel

Zomato business model

The  Zomato Whitelabel is platform that lets restaurants create their own custom native apps that are plug and play. This application from the restaurant lets users book a table through the mobile application. This way the restaurants directly send a notification to the user. Zomato is looking to expand it’s power over the restaurants and keep control.

Zomato revenue source

Zomato Book

Zomato business model

Zomato book is the table and reservation management service for restaurants. It makes it very simple for users to reserve a table after they see it on Zomato. This also helps the restaurant maintain their reservations and have a structured process.

Zomato revenue sources

Zomato Base

How zomato collects data

Zomato base is a service for restaurants that help them manage their POS systems. With an access of over 250,000 listings of restaurants, Zomato knows that controlling the POS system of restaurants will give them a stronger hold in the restaurant business.

Zomato revenue source

Zomato Restaurant Guide: Discontinued

Zomato released a restaurant guide for the top cities in India. They tied up with  the e-commerce behemoth, Flipkart and hoped to sell around 100,000 copies. The last of this restaurant guide was created in 2012 and has not been updated since.

Zomato Business model

From the outside, Zomato may seem like a simple company with a simple product unlike other businesses, for example, Paytm.

If you look deeper, they are building strong roots to get a strong hold of the restaurant business, not only in India but also all over the world. Yelp made revenues of $232 Million and Zomato was just at 3% of this amount. At the rate they are growing and building a strong eco system, Zomato looks like, they will take a huge chunk of Yelp’s business.

Were you guys surprised with Zomato’s array of business models? We were too!

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Kishen is a serial entrepreneur and marketer. He started his entrepreneurial journey with a Web Development company called Vanadium. He also has written multiple books on Marketing, Conversion optimization, Facebook marketing and More.

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