Rainy days call for hot pakoras; hot days call for popsicles or smoothies (if you are into clean eating.) We never know when that gourmet in us comes unleashing, only to leave our stomachs rumbling! Can’t stop thinking about that mouth-watering dish from a joint in your locality? No worries, that’s where online food delivery systems like Zomato come to our rescue. With a few taps, we can relish that dish in no time.
Food delivery apps cater to the needs of users who need to order food and ensure prompt delivery. They have revolutionized ordering food to a great extent and offer increased convenience. It has led to more people depending on online food delivery services to have food delivered to their doorsteps. Zomato is a leading food delivery service provider that lets users enjoy food from their favorite restaurants while offering the best user experience. With the success of Zomato, there has been a steady increase in more Zomato-like apps flooding the market.
If you are also interested in taking the giant leap and venturing into the food delivery business, this article is for you. We cover all the crucial aspects, including the Zomato business model, how it works, revenue streams, and more, to help you gain more information.
Here is a detailed study of the Zomato business model and its features.
What is Zomato?
Zomato is an online food delivery system that caters to our needs and ensures prompt delivery. It was launched in 2008 and has been on a mission to ease the process of food delivery. Zomato is now well-known across the country. It has also been venturing into international markets and currently serves 25 countries.
Growth over the years
Zomato, formerly known as Foodiebay, was launched in 2008. The idea to start a food delivery app occurred to them when they saw their colleagues wait for an infinite time to get hold of the menu card. Thus, the idea was born to enable people to go through menus from restaurants nearby and order online.
Over the years, Zomato raised several funding rounds, with the company growing and expanding further and further with every funding. It has raised over $2.1 billion. Chinese investors, including Alipay, play a significant role in the growth of Zomato. Zomato currently has a market capitalization of $11.18 billion. Also, Zomato continues to enjoy a larger share of the Indian food delivery market.
Zomato currently operates in 24 countries. The Zomato business model, with the right strategizing and implementation, has resulted in profitability. The average monthly active users reached 14.7 billion in 2022.
How Zomato Works?
Zomato makes it pretty easy for customers to order food from restaurants. Let’s see how it works:
Step 1: The user looking to order food goes through the list of restaurants on the app and selects the food from the outlet that interests them.
Step 2: Upon receiving a request from the user, the restaurant begins to prepare the meal.
Step 3: The food is then ready to be delivered. The assigned delivery partner takes it to the customer.
Step 4: The user then makes a payment through any of the options provided on the app.
Step 5: Based on the quality of service, the user leaves behind a review.
Zomato Business Model
Customer Segment
The customer segment of Zomato constitutes the following groups:
- Users: The online food delivery system intends to serve its customers by enabling them to order food from outlets in their locality through the food delivery application system.
- Local outlets: Local food businesses get listed on the app for the users to navigate through the list.
- Delivery Partners: Delivery partners are paid handsomely by the food delivery platform.
1) Users
The online food delivery system intends to serve its customers by enabling them to order food from outlets in their locality through the food delivery application system.
2) Restaurants
Restaurants partnering with Zomato can enjoy greater visibility. Customers can order from the restaurants listed on the app.
3) Delivery Partners
The delivery partners receive delivery requests upon which they deliver food to customers. They can choose to work full-time or part-time and can earn accordingly.
Zomato Value Proposition
Zomato has carved a niche for itself by striving to offer uncompromising services. It promises quality, accessibility, affordability, and range.
Zomato provides Gold Membership- an excellent marketing strategy that has reaped benefits. The membership unlocks dining privileges for the users. With this privilege, Zomato claims to get the orders delivered 15-20% faster. Pro members can also enjoy offers across a wide selection of restaurants.
Partners
Zomato’s business model saw enhancement through partnerships with leading giants like Uber Taxi, Visa, and PayPal. Such alliances have undeniably improved the business model of Zomato.
Revenue Streams
Zomato has amassed a considerable income over the years. Following are some of the food delivery giant’s sources of income:
Listings and Advertising
Zomato partners with restaurants to promote them. Restaurants that partner with Zomato experience increased visibility by getting listed. Naturally, this enables them to attract a wide audience range.
Zomato doesn’t just promote restaurants without charging. So this is how this food delivery system manages to make the most of its profit.
Food Delivery
Restaurants are mandated to pay a fee for the orders placed through Zomato. Users also pay for the delivery through its food delivery system.
Zomato manages to make only small margins due to the competing nature of the food delivery business and the inclination to offer discounts.
White Label Access
Under Zomato Whitelabel, Zomato enables restaurants to develop a customized food delivery app. The service is available to restaurants in all the countries where it operates, helping people interact directly with the restaurants they frequently dine in.
Zomato Subscription
Zomato’s algorithm enables the food delivery system to presume customer needs. This data can be valuable for restaurant owners looking to make their food business more profitable. In exchange for this valuable data, restaurateurs get subscribed.
Zomato Kitchens
Zomato brought forth the concept of Zomato kitchens to offer kitchen infrastructure services to businesses that look forward to expanding with minimum cost.
Hyperpure- Initiative to Improve Food Quality
Zomato is committed to aiding restaurants to maintain and improve the food quality. This way, restaurants can offer the best experience to customers. Zomato makes this possible with Hyperpure. Hyperpure delivers the best-quality food ingredients to the restaurant partners. The intent is to make it easier for them to access quality ingredients from one place.
Increased Accessibility
Since its inception, Zomato has been taking steady steps toward expanding and reaching new markets. By doing so, Zomato provides easy food ordering solutions to people. Zomato has also ventured into providing other services like table reservations, corporate catering, etc.
Affordability
Zomato comes up with exciting plans and offers for the customers so that they can find the prices reasonable. Zomato came up with Zomato Gold, which was an instant success. It enables customers to enjoy complimentary dishes and drinks.
Assistance
Zomato actively takes steps to help customers get the best experience out of ordering from the app. By keeping them informed about the offerings, it assists them with making the best choice.
Notable Features of Zomato Clone
1) Ratings & Reviews
It is an essential feature for a food delivery app like Zomato. Customers can rate and review restaurants. They can also rate the delivery partners based on their experience. Feedback helps with taking the necessary steps to improve the user experience.
2) Easy Payment Options
Providing straightforward payment solutions is vital to enhance the user experience. Zomato offers many payment options for its users. Incorporating multiple payment gateways enables customers to pick one of their choice.
3) Favorites
This feature lets users mark their favorite dishes and restaurants. So now they do not have to go through menus every time they make an order to search for their favorite food. They can also manage this list effectively by adding and removing items
4) Order History
Zomato lets users view their previous orders. If users can not remember the name of a specific food from one of their earlier orders and wish to order again, they can easily find the name from this section. Also, they can view other details of their previous orders.
5) In-App Messaging
The in-app messaging feature serves as an effective way of communication among customers, restaurants, and delivery partners. It is helpful when customers want to clarify their order or if a delivery partner or restaurant wants to update the order status.
6) Real-Time GPS Tracking
For a food delivery app like Zomato, real-time GPS tracking is an essential feature that enables users to track their orders. Similarly, it also helps delivery partners find the location of customers to deliver their orders.
Wrapping Up
Zomato has witnessed steady growth since its inception. Its initial success has driven this food delivery platform to expand globally. One can’t deny how big of a household name it has emerged to be. With a few taps, if one can relish their favorite pizza in the comfort of their home, what more can one ask for?
The success of the Zomato business model has been truly inspiring, motivating many to try something similar. There is a steady increase in entrepreneurs stepping into the food delivery business. Our Zomato clone provides a comprehensive solution that helps you see a higher return on investment.
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