variety of food door step delivery if any issue money refund and 24 7 huge discount
on food items having all these customer friendly features have you ever wondered how somato still
stands on the first position of food delivery business and how zamato makes money hi guys
this is aranya and in this video i am going to discuss some interesting facts about zumato
and tell you how zomato makes money well like food is the basic necessity of human being it has taken
food industry to next level and zumato being a leading brand has flourished in 10 000 cities
with 24 countries and this growth is huge have you ever wondered that after giving such good
discount and food item how is zumatos still one of the leading brand in business and to understand
house motto earns it is very important to look into their business model and revenue model
where zumato has inspired number of entrepreneur and businessmen to start a food delivery business
let's understand how zumato exactly earns money now zumato has three main stakeholders which are
the customers the restaurant and the delivery partners now did you know that zumato has more
than 32 million active users 14 million registered restaurants and more than 1 lakh 62 000 delivery
partners no doubt tomato is a huge family now let's discuss the chain of three in detail first
is the customer now these customers are the people who want to get food delivered at their
doorsteps now how does tomato attract these customers so that they stay and keep using
tomato services and the biggest way to do that is the offers matter run on their application
whereas when you buy that food directly from the restaurant or by anywhere else you don't
get that price what zumato is offering you so in case just imagine that zomato stops giving you
any offer on your food will you still use zumato well few might but that might decrease their sales
so the sales they give on the app and the offers they offer are one way they attract their
customers and help them stick to them so this is how zamata is attracting all the customers by
giving them food on a cheaper rate now second is the restaurant the restaurant who are registered
under zumato are the restaurants who want to get their food delivered to their desired customers
now you should understand this thing very clear that rather than a walk-in customer
restaurant is more benefited when there is an order placed because directly or displaced
packed and delivered whereas when you have a walk-in customer the table is occupied you have
a specific waiter to attend them the utensils are being used time is being occupied so all together
it's a very good deal for the restaurant if the person is directly ordering food
in this scenario where we have so much competition food industry itself zumato is a platform for
all these restaurants which help them get better business and more customers so these restaurants
get themselves registered to zumato and want to work under the chain for better recognition
for better offers for better customer value and profit now third in the chain are the delivery
partners now zamato comparatively pays more to the delivery partners for example like if a person is
working somewhere for 24 000 zumata will offer him 30 000 and this is one place where zumato ends up
spending because getting the food delivered to the doorstep is the main ways matter works
so this is how they attract more and more delivery partners giving stability of job
and better salary now this is the chain of three how the matter clone totally works
now i hope you are clear with this chain and let's move forward with the most interesting
part that how zamato earns money now the first and the most important way where zumato makes
money is through advertising and priority listing now let me tell you something did you know that 72
percent of zumato revenue comes from advertising and nothing related to food isn't this amazing
now how does this work like i shared before zumato has 1.4 million registered restaurants under them
so somehow it's a raise that the customer will order from where
to filter this zumato has a option of advertising and try to listing where they charge advertising
fees from a particular restaurant to come on the home page maybe or come up with more offers
now when the restaurant pays that advertising fees to the company like zumato they run offers and do
priority listing like they will prioritize you on the top whenever the customer will open the
app your restaurant will come on the top now for getting recognition amongst 1.4 other restaurant
no businessman or restaurant doesn't wants to invest on advertising and everyone comes up
with advertising fees where zumato makes a lot of money from so in this where the restaurant is
paying the advertising fees they are also getting recognition and increase in sales
now for example i own a ice cream parlor and my 60 percent of business comes from zumato
so apparently when i know the analytics i won't hesitate to pay zumato more for the advertising
fees because it's giving me business it's giving no customers so like this many restaurant offer
a huge amount of advertising fees to zamato and prior to listing fees so that they can
get better recognition and more customers now the second way how somato earns money
is through delivery commissions it was noted that in the financial year 2019
75 percent of zumatos revenue came from delivery commissions now having a huge bank of customers
somato is charging delivery commission on every order placed and this is one important way
house matter is earning money now if you remember the chain of three i explained
so zamato is charging commission from the customers advertising fees from the restaurants
and with the both in place the food gets delivered by the delivery partners the delivery partners
also have scope of earning extra money on delivery commission by the customer itself
now the third is the subscription fees now this is house motto has very smartly placed the idea
of subscription for a friendly approach they have different subscription plans for customers and
restaurants you must have heard about the plan of smart of gold which is now changed into zomato pro
now for example i'm a customer who doesn't order food online but on weekends i do step out of my
house and go for a walk-in dinette so in this case the motto gets registered with dine in restaurants
where they run offers again offers like buy two pay for one or buy this amount and you get
a drink free so this is how zumato is charging the customer for that particular subscription
which is zamato gold or zamato pro and taking you to the restaurant where they have partnered with
to give them better engagement with the customer and more sales so this is a chain where zumato is
earning from the both parties the customers and the restaurant through subscription and somehow
making business in the entire circle now on the other hand how they earn from the restaurant from
this fees now zamato also has different plan where they share their information with an entrepreneur
or a businessman to set up a new business now as we know zumato is a big change and working from so
many years with so many partners and a big family they have a huge data bank where they exactly know
in a particular location which cuisine is ordered the most what should be a nominal rate for any
cuisine and what kind of customer are eating what kind of food now if an entrepreneur or businessman
wants to start a food delivery business such information is very beneficial for him because
he'll already have a ground where he wants to showcase his business so this is where zomato
charges the businessman or the entrepreneur to share these information for their growth and later
get the restaurant registered under them for its growth so now this is a very smart change matter
follows where they share the information and by the shared information they also extract their own
value by registering that particular restaurant with themselves now the next is the matteo kitchen
now this is the infrastructure service offered by zumato two businessmen who want
to expand their service or their business to other location in very nominal price
now zomato helps that particular business to expand themselves like getting back to the
previous example if i have ice cream parlor at a particular location zumato gives me an offer to
expand my business in two more locations with minimum cost now as i told you initially that
zomato has a good data bank and they exactly know that ice cream parlor will work where the best
so they somehow use their information to expand my business and from my business that is expanded
by them they are benefited because people are ordering to zuma my offers are going in sumatra
my advertising piece is going into the matter so this is also one way how zamato is earning
more money now the next is through organizing events now zamato being a big food chain
keep organizing events on specific occasions like christmas new year and other festivals where
it can be a food event or it can be any event sponsored by zuma now in this event there are many
companies who want to be a part why because people will be visiting they'll get better recognition
they can get their food tested and get more customers to them and many other things so
this is where zumato is earning through organizing events because whenever they are organizing events
they have so many restaurant to sponsor the even that somehow they earn a lot of profit out of this
well out of all the other ways these are the main ways that help zomato earn a very smart revenue
and flourish their business now if you are interested in starting a food delivery business
let me tell you initially it might be little tough because we already have so much competition
but no doubt that there is a very wide scope in this field itself and if you want to start your
online business i'm confused about how will it go i'm adding a link in the description
which will help you with free sample business plan and free revenue generation plan till then
keep bringing new ideas and we will be back with more videos soon