Zomato Business Model Explained: How Zomato Works & Makes Money

With the rising demand for food delivery and dining services, Zomato has emerged as a key player in the global food-tech space. From helping users discover restaurants to enabling contactless delivery, Zomato has created a robust ecosystem that benefits customers, restaurants, and delivery partners alike.
In this blog, we’ll break down the Zomato business model, understand how Zomato works, and explore the Zomato revenue model to see exactly how Zomato makes money.
What is Zomato?
Founded in 2008, Zomato began as a restaurant discovery platform and has since evolved into a full-stack food services company. Operating in over 20 countries at its peak, Zomato connects customers with restaurants through its website and mobile app. Today, it offers services like food delivery, restaurant reservations, dine-out deals, and even grocery delivery in select areas.
Zomato Business Model: A Two-Sided Marketplace
The Zomato business model operates as a two-sided marketplace that connects:
- Consumers looking to discover and order from restaurants.
- Restaurants aiming to reach more customers and optimize operations.
- Delivery partners who facilitate last-mile delivery.
This multi-layered model ensures that all stakeholders derive value from Zomato’s platform.
How Zomato Works
Here’s a step-by-step breakdown of how Zomato works:
- User Interaction: A customer logs in to the Zomato app or website to browse restaurants, menus, and user reviews.
- Order Placement: The user places an order from their preferred restaurant.
- Order Processing: The restaurant receives the order and starts preparation.
- Delivery Allocation: Zomato assigns a delivery partner to pick up and deliver the food.
- Tracking & Delivery: Users can track the order in real-time until it’s delivered to their doorstep.
- Feedback Loop: Customers can rate their experience, helping others and providing feedback to restaurants.
Zomato Revenue Model: How Zomato Makes Money
Let’s explore the key revenue streams in the Zomato revenue model to understand how Zomato makes money:
1. Food Delivery Commissions
Restaurants pay a commission (typically 15%–30%) on each order processed through Zomato. This is one of the largest contributors to Zomato’s revenue.
2. Advertisement & Listing Fees
Restaurants can pay Zomato to promote their listings on the app. Higher visibility translates to more orders. Sponsored ads are a major component of the Zomato business model.
3. Zomato Gold / Zomato Pro
Zomato offers subscription-based loyalty programs like Zomato Pro (formerly Zomato Gold), which provide exclusive discounts to customers. Restaurants participating in the program pay a fee.
4. Delivery Charges
Although Zomato subsidizes delivery, users often pay a nominal delivery fee. During high-demand periods, surge pricing boosts this revenue stream.
5. B2B Services (Hyperpure)
Zomato’s Hyperpure service delivers fresh ingredients and kitchen supplies to partner restaurants, streamlining their supply chain. This vertical supports operational efficiency for restaurants while earning Zomato additional income.
6. Zomato Live & Events
Occasionally, Zomato hosts large-scale food festivals and events. Ticket sales and brand partnerships during these events add to their earnings.
Conclusion
The Zomato business model is a great example of how digital platforms can disrupt traditional industries by creating value for all parties involved. By combining food delivery, restaurant listings, subscriptions, and B2B services, Zomato has built a diversified and scalable business.
Whether you’re a budding entrepreneur, an investor, or just a curious foodie, understanding how Zomato works and how Zomato makes money gives deep insights into the evolving landscape of on-demand services.
Want to Launch an App Like Zomato?
If you’re inspired by Zomato’s success and want to build your own food delivery platform, choosing the right tech partner is crucial. Goteso is one of the best food delivery app development companies that can help you turn your idea into a reality. With customizable solutions, cutting-edge technology, and end-to-end support, Goteso provides everything you need to create a powerful food delivery app just like Zomato. Whether you’re targeting a local market or planning to scale globally, Goteso ensures your platform is fast, secure, and user-friendly.