In this growing world of modern dining, one platform which arises and countless food, delivery, and restaurant discovery is Zomato.
Some foodies to entrepreneurs, investors to information seekers, everything wants to know about the success of Zomato.
Zomato was Founded by Deepinder Goyal and Pankaj Chaddah in July 2008. These two people were former employees of Bain & Company.
Working in the consulting industry, they both got this idea when they realized that people need a platform to update them with their city’s best restaurants, food, cuisine, and ambiance places.
So first, it was started by creating a simple website named Foodiebay, which gained popularity quickly and expanded into other cities in India. Then in 2010, zomato founders renamed it as Zomato.
It was all because Zomato saw the future requirements and made their strategy as per the customer’s requirement.
Everything About Zomato Business Model
In this blog, we will learn about Zomato business model, the latest Zomato blinkit deal, and how in the run of swiggy vs zomato, people and investors choose Zomato.
Zomato’s innovative and customer-oriented approach earned it a top spot in the tech-food industry. Do you sometimes wonder what it takes to build a business strategy like Zomato?
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For all those planning to develop a business plan like Zomato, Mr. Rahul Malodia will help you with the details.
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What is Zomato?
Zomato is an online app that delivers food with its online app platform, now working in more than 25 countries.
Founded in 2008 by Deepinder Goyal and Pankaj Chaddah, who wanted to connect restaurants, cafes, and luxury dining with the people of India.
From reviews to menus, prices to discounts, it has collected everything from different places in India and other cities worldwide, where people can browse and order food from their desired restaurants.
Zomato’s hyperpure business model has connected many customers, restaurants, cafes, and local Street food. From popular places to hidden gems, you can find anything on Zomato.
It provides detailed and authentic information about restaurants, including photos, ratings, reviews, recommended dishes, and even table reservation features, allowing people to make informed decisions and order desired as per their preferences.
With years and profits, Zomato business model changed regularly, which led to the start of cloud kitchens and online grocery delivery, helping a different class of people.
The Idea Behind Zomato Business Model
The idea behind Zomato business model was to provide its users with a platform to order their favourite food from the restaurant or get a genuine review about a restaurant before visiting it.
Zomato founders made it easier and more attractive to customers by providing Zomato Gold membership or Zomato pro plus membership, which gives people additional discounts, cashback, free dessert, and many other perks.
This made Zomato way ahead of its competitor Swiggy. Moreover, you can also track your order or pay to Zomato with various online payment options like Google Pay, Paytm, UPI, and bank transactions.
This business model of Zomato allows people to go wherever and whenever they want. So if you still need to register on Zomato, it’s time to do it.
Who are Zomato’s Customers?
1. College and University Students
With the hectic course of action, students living in PG hostels need more time to cook their food. With that, Zomato becomes their saviour to order food at any time of the day.
2. Families
Whether you are hosting a dinner or craving a good dessert, Zomato has something for everyone.
3. Office-Goers
Adding Home Kitchen to the platform list has provided an affordable and convenient option to people who can’t cook because of their job hours.
4. People on Diet
Zomato also has gluten-free food for people who want to balance their daily diet with healthy food. From wraps to salads, smoothies to air-fried food, it has everything.
5. Late Night Cravers
For people who want to eat late at night and avoid cooking alone, tomato is the best and most affordable option for anyone.
6. Food Bloggers and Travellers
Many food bloggers and travellers take Zomato’s help while ordering food at a restaurant. Not only this but because of Zomato, many people have profited.
Zomato’s Value Proposition
1. Collaboration With Unlimited Restaurants
Zomato has tied up with many small and big restaurants, cafes, food shops, bakeries, and home kitchens to provide people with the Best of their preferences.
2. Various Payment Options
Zomato provides its users multiple payment options to make payment easy and secure. Some available options are cash on delivery, UPI, Paytm wallet, David or credit card, and bank transactions.
3. Quick and Prompt Delivery
Zomato and its delivery partners will give live updates about your food and order it in the exact condition and temperature.
4. Live Order Tracking
The feature of live order tracking of your food has gained the trust of many users in the Zomato app.
5. User-Friendly and Secure App
Zomato is a complete, user-friendly app where anyone can easily browse their favourite food, add it to their cart, customise it, and pay via multiple options.
6. Anytime Delivery
You can order from the Zomato app anytime and anywhere. It shows the actual time of opening and closing of a restaurant and takes orders accordingly.
But it has tied up with many restaurants that can provide food round-the-clock. Zomato intercity delivery has also profited them much.
7. Customer Support
Zomato’s easy Customer support service has again gained the trust of its users. So if anyone’s food is late or a wrong order is delivered, all you have to do is call Zomato’s customer service expert, who will solve your query immediately or within 24 hours.
8. Offers, Discounts, and Cashback
With referral codes or ongoing discounts, Zomato offers its users their favourite food at a lower price than the restaurants. This helps people to order more and more food on the app.
How Does Zomato Operate?
Zomato’s registration is just as easy as reading this blog. All you want to do is register on the app and log in to the account. You can find many restaurants there, so add your current location to the top and get the best restaurants and cafes nearby.
- Browse through your favourite restaurant, check its prices, customize your food, add it to the cart, and pay for it.
- Zomato gives you various options and facilities like any extra addition, cutlery options, and other benefits.
- It also tells you when your food will be delivered to your location.
- Once the order is placed, you are given the number of a delivery partner, notifications of arrival, and other information about your order.
- The process works with easy steps: they call the delivery partner to collect your order, which can be tracked on the app.
- Zomato ensures the delivery partner’s safety and provides them with the fastest and less traffic route so that the user’s order reaches them at the correct time.
- Once the phone arrives at your location, the delivery partner rings your doorbell or calls you to collect your order. If you have chosen the COD option, pay at that time, and you can also tip the partner to bring your food there.
Zomato Market Valuation And Funding
1. Funding Rounds
Zomato has raised $2.6 billion in funding across 22 rounds. Camas Investment was the lead investor in its latest funding on Nov 30, 2022, in which Zomato was able to raise ₹6.1B.
2. Investors
Zomato’s latest investors are Kamas Investments and Kora. Other prominent names include Tiger Global Management, Baillie Gifford, Ant Group, Naspers, Delivery Hero, and many more.
3. Valuation
Zomato’s net worth has been on an upward-inward trajectory since its inception. Because of the latest Zomato Blinkit deal and its competitor, Swiggy, Zomato’s valuation has been highly affected.
4. Revenue Model
Zomato’s primary source of income comes from restaurant commissions on order value and delivery fees. Advertising, in-app purchases, and other services are some additional sources of income. Additionally, it once acquired apps like Blinkit and others, which has increased its overall revenue.
5. Growth Potential
Zomato has huge potential because of the growing culture of food delivery, parties, get together, and will definitely need a food delivery app like this. And by bringing multiple changes in its business strategy, it can surely beat its competitor in the run of Zomato swiggy outage.
Zomato Revenue Model
1. Commission Taken From Restaurants
Zomato takes a percentage of the commission for orders listing their restaurant and its food options on its app.
2. Advertisement
Many restaurants and other apps pay Zomato to advertise the brand company on its platform. It also helps zomato make the app look more attractive and trustworthy.
Encryption service that offers exclusive discounts and benefits to users. The subscription fees contribute to Zomato’s revenue.
3. Zomato Pro and Gold Memberships
Zomato provides its users With these memberships, which are chargeable. But in return, people get additional discounts, like free delivery or 1+1 om drinks and other services.
4. Delivery Charges
If you are ordering from a restaurant far from your place, Zomato charges a delivery fee, which adds to the company’s revenue.
5. Zomato Events
You may have gone to at least one Zomato event, where restaurants and brands come together and showcase their services. Zomato earns commission in these events through partners and sponsors.
Conclusion
In conclusion, if you are starting to invest in Zomato apps or shares or just thinking of starting a similar platform like this, you have to know that once you make your platform customer-specific, you can achieve success.
Zomato can only become successful in this continuously developing tech-world because it keeps adding features, discounts, and other facilities for its users.
If you are still confused about it, you can contact Rahul Malodia. He is a leading business coach and expert who can evaluate your business idea in terms of profit, loss, growth, hurdles, and even comparing with competitors.
Because of his tactics, strategies, business insights, and knowledge, many businesses have taken advantage of changing trends by updating their business plans and strategies.
Frequently Asked Questions
CA Rahul Malodia is the founder and CEO of Malodia Business Coaching Pvt. Ltd. He is a Business Coach, Mentor & Investor. He has trained over 25,000+ Businessmen across India.
