During the pandemic, when the entire world was globally quarantined, the on-demand business model like the onvdemand food delivery business model, for instance, observed its popularity growing manifold. As restaurants had their shutters pulled down during this period, people had to limit themselves to ordering meals online from online food delivery app like Zomato. This led to the prominence of the solution growing manifold, first, and its dominance growing as well, at the same time.
Talking about the platform, it came into creation in the year 2008 as Foodiebay which made menus of multiple restaurants accessible to users so that they could easily order meals and get them delivered thereafter. This is made possible courtesy of its business model.
We have articulated this in detail in the article here. Upon reading it, you will know how the app has spearheaded the food delivery app revolution transforming the entire meal delivery experience.
So let us not waste any more time and let us delve deep into the article to get a comprehensive view into the unique food delivery business model of the platform here.
Zomato – Its Background
Launched in 2008, Zomato is an Indian online food delivery app that makes it easy for customers living in places like India, USA, Australia, etc., to name a few to get access to quick meal delivery services.
Through the partnership it has done with over a million restaurants globally, the platform makes it easy for customers to get access to a diverse range of meals, and food joints so that they can enjoy a sumptuous meal experience when they order meals through it.
The app is particularly known for its easy operations and some of the most diverse set of features some of which are listed by us below.
- Inventory tracking to assist the restaurant in tracking the items they have purchased and be aware of their status.
- Customer/delivery driver/restaurant profile management to make it easy to manage restaurant, customer, and delivery driver details.
- Customize meals to support the user prepare them as per their preference and enjoy a sumptuous food experience
- Earning history to aid the delivery drivers in having awareness of the earnings that they have made through the meal deliveries.
- Reports and analytics to give aid to the restaurant business in monitoring their performance and getting an insight into the areas for improvement.
What Does This Entail?
Courtesy of the online food delivery app possessing some of the best set of features and functionality, its popularity has gone up. We have outlined this below.
Facts and Figures about Zomato
Check out these amazing facts about this online food delivery app to get a perspective on its popularity and prominent nature.
- Earned profits of ₨ 1024 Crores in 2022.
- Has over 32.1 million users.
- Has made its presence in over 24 countries and 3200+ cities
- Zomato’s website received over 19.10 million viewership
- Possesses over 1.4 million restaurants listed and 12,000 restaurant partners
- The average order value was ₨ 395.4 in FY 2021
Image Source – b.zmtcdn.com
What Does the Figure Depict?
The figure is enough to provide testimony of the app’s popularity. We will now discuss the food delivery business model of the online food delivery app. This will give you clarity on the easy operations and how it streamlines the way food delivery service is done.
Food Delivery Business Model of Zomato
Image Source – www.apptunix.com
The image above illustrates the food delivery business model of the online food delivery app. We explain this model in the lines below.
1. Customer Segments
Zomato has three main customer segments namely the user, the restaurants, and the delivery providers. Each of these segments has its respective platforms to make it easy for seamless connection and meal delivery.
2. Value Proposition
Zomato is a popular online food delivery app that helps users easily order meals online upon selecting a relevant restaurant that is nearby and making successful payment so that the delivery gets done flawlessly.
Alongside the support it delivers to customers, it also aids the restaurants to get their services its much-deserved visibility, and most importantly it supports the delivery drivers to earn through the meals they deliver.
3. Key Functions
With an idea that you have gauged of the value proposition that Zomato stands for, alongside identifying their different customer segments, you must know about their key activities.
They include the following-
- Managing different delivery networks
- Keeping a check on the different advertising and sponsored contents
- Improving the way customer service is provided to users
- Boosting the overall brand image of the online food delivery app
What is Next?
It is important to get perspective on the revenue model of the online food delivery platform to understand how it generates profits.
Zomato Revenue Model
Zomato is known for adopting unique revenue channels so that it can boost its profits seamlessly and smoothly.
- Advertisement charges where restaurant owners get charged a particular amount for banners they display on the platform.
- Subscription fees to restaurant owners wherein they have to pay extra to get details of the customer’s purchase behaviour so that they can be served better.
- Commissions to restaurants on the order value which goes between the range of 5 to 7%.
Gain Competitive Edge with Food Delivery App like Zomato
The business and revenue model of Zomato is enough to suggest why you need to dive and embrace food delivery app development services. You can also gain insight into why Zomato app development is accomplishing such fruition in the first place among foodopreneurs. If you are among one of them, keep these pointers in mind.
- Research the needs and issues that the target market faces. Try to identify methods through which you can address them flawlessly and smoothly.
- Ideate an appropriate design strategy that makes it easy for user engagement to get boosted and ensure more downloads alongside smooth meal ordering and delivery experiences.
- Take advantage of the Zomato clone app, the readymade food delivery clone to address customer and business concerns as they arrive in the future alongside getting the ability to make quick modifications within as per future needs.
- Benefits of the Food Delivery Clone
- Courtesy of the online food delivery app like Zomato, the way meals get delivered to customers has gotten transformed and has observed a revolution as well. This is why foodopreneurs are getting their heads rolling towards building something similar to this food delivery giant while keeping costs constant. This is a major reason they are getting the food delivery clone integrated and embracing food delivery app development services.
Here are its benefits-
- Provides quick business visibility to food delivery venture.
- Supports the food delivery enterprise to make quick modifications based on future business and customer needs.
- Assists in boosting visibility for the restaurants.
- Aids customers to get access to meal delivery services that are quick and smooth.
- Points to Remember before Getting the Zomato Clone App
Albeit these advantages that the Zomato clone app has, you need to remember that there are many such solutions in the market. Hence, before getting its access, assess how much percent will you be its owner. Next, assess its open-source nature so that you have an idea of the modification capabilities you will receive.
Once you corroborate these aspects, connect with a food delivery app development company specializing in the task of food delivery clone app development upon examining their portfolio and client reviews and being sure they are competent to handle your project. Thereafter observe your food delivery app like Zomato bringing in profits like never before.
How Much Does It Cost to Develop Zomato App?
With this, we have reached the end of the article. In the article we have articulated the business, and revenue model, explaining how the platform streamlines meal delivery services. We have also discussed how the platform has become a source of inspiration for foodopreneurs in their pursuit to develop food delivery app like Zomato thereby encouraging them to integrate the food delivery clone app to keep their budget in check.
Since food delivery startup owners have to keep their finances in line when they are performing this, features, functionalities, etc must be relevant and simple.
However, if we have to yet provide a rough figure for the cost to develop Zomato app, it will be around $18,000 to $25,000.
Zomato is a shining example of how you can revolutionize the way you serve meals to your customers. Courtesy of its possession of a unique business, and revenue model, followed by its ownership of easy operations and the best line of features, it has attracted the attention of foodopreneurs globally. It has encouraged them to develop food delivery app like Zomato while keeping costs in check thereby giving them a pry for the food delivery clone app solutions.
In case you are among one of them, get in touch with a dedicated partner specializing in custom food delivery app development services, alongside developing the Zomato clone app. Share your app requirements thereafter with their team of developers and designers to observe your app idea getting shape and you obtaining exuberant success through the meal delivery services you provide.
Annie Walker, Enthusiastic writer & blogger. I work for XLfoodies. I love to write articles and blogs about new technology, mobile apps, and trends.