How Does Zomato Makes Money?

Zomato is one of the largest food delivery service providers in India. Zomato has built various channels of income from which they earn revenue. They offer subscription services, events and ticketing services etc. You can read the article below to understand how Zomato is earning money from various streams of Income. Here’s a breakdown:

Commissions from Food Delivery

The order food delivery service is a major revenue earner for Zomato. Restaurant partners of Zomato pay a commission to Zomato every time an order is placed through the application. The commission ranges from 20%-30% of the total amount of the order. If the order is large, profits are more. For instance, for every ₹1,000 worth of food a customer purchases, Zomato could earn anything between ₹200-₹ 400.

However, the commission structure varies from business to business.

Zomato Gold and Subscription Services

Another income stream of Zomato is the Zomato Gold program now called the Zomato Pro which consists of subscription services. Zomato allows its users to get subscription and avail special benefits like better offers and discounts. Restaurants can also buy these services to boost their profile.

Zomato makes money from Hyperpure

Zomato makes money from it’s Hyperpure as well. Zomato’s Hyperpure is a dedicated end-to-end supply chain service that delivers perishable products and other requirements for partners’ kitchens. This service contributes to 27% of the overall total revenue of Zomato as on August 2024. Hyperpure is one of the rapidly flourishing segments for the company. Besides, Hyperpure enhances the scale of Zomato’s business cooperation with restaurants and offers a stable regular income.

Events and Ticketing

To diversify, the company has recently dived into hosting live events through Zomaland. Zomato conducts these events and it sells tickets for entry to these events. They attract huge people and so they have now added a new stream of income. These events help Zomato establish brand image outside delivery of food.

White Label and Cloud Kitchen Services

Zomato also provides White Label services. It helps restaurants start their food delivery applications and make them in partnership with Zomato. Besides these, Zomato offers consultancy services and helps cloud kitchen growth. In some locations, such as Delhi alone, Zomato goes ahead and establishes its kitchen through the ‘Zomato Kitchens’. This can help attract new restaurant entrants who are willing to invest in providing infrastructure to Zomato.

Conclusion

Zomato makes money through various revenue streams. This sort of multi-channel approach has helped Zomato establish itself against other competitors in the food and service industries. The startup has started moving towards its profitable quarter.

Resources:

1. How does Zomato make money- Brut India
2. Source Link 1
3. Source Link 2