How does Zomato make money?
Founded by Deepinder Goyal and Pankaj Chaddah in 2008, Zomato is a restaurant search and discovery platform providing information for over 1.4 million restaurants across 24 countries and serves more than 50 million users every month.
In addition to restaurant search and discovery, Zomato has expanded its offering to Online Ordering (Food Delivery), Take Away Services (Zomato Pickup), Table Reservations,(Food at Work) and subscription-based programs like Zomato Gold and Zomato Piggybank, creating cutting-edge technology to connect restaurant businesses and customers. In addition to these services, Zomato is also used by consumers to discover, rate, and review restaurants, as well as create their own personal networks of fellow food enthusiasts for trusted recommendations.
Mainly food ordering apps earn from 4 streams
1) Restaurant advertising: this is when they place banner ads for restaurants on the website. This accounts for ~75% of Zomato’s revenue.
2) Event advertising: this is when specific events promote an event on Zomato – this revenue primarily comes from restaurant based advertisers. Typically, tickets for these events are also sold on Zomato. This accounts for ~5% of their revenue
3) Event ticket sales: commissions on ticket sales through Zomato; primarily for restaurant venues; accounts for ~15% of their revenue.
4) Consulting services: Restaurant chains ask them for advice on where to open their next outlet/branch. Zomato digs through terabytes of data to tell them where the demand lies and what’s the competition like.