Nowadays, you can order food anytime, anywhere, and getting food right at your doorstep is a doodle, thanks to the rise of on-demand food ordering apps. If we talk about on-demand food ordering apps, plenty of apps are available that you can use to satisfy your taste buds, such as Zomato, UberEats, FoodPanda, Swiggy, and many more. So, which on-demand food ordering app do you have? Just-Jesting! Zomato is the commonly used on-demand food ordering app, credit goes to its exciting offers, fast service, and wide range of restaurants. 

How To Build An App Like Zomato

According to the economic times, Zomato has 32.1 million active users in FY2021, down from 41.5 million in FY20. Still, Zomato is one of the highly used on-demand food ordering apps around the globe. What do you think – Why do so many people use Zomato? Of course its services, but what else? Well, Zomato’s business model is the root cause of its current position at the top of the market. Have you ever thought about how Zomato makes money? Don’t worry! 

In this post, you will get all your answers concerning Zomato’s business revenue model. Also, you come to know how Zomato makes money and how to build an app like Zomato. So, let’s get started; 

Zomato Business Revenue Model – In-depth Analysis 

Before we proceed to the Zomato business model, do you know how Zomato became so popular in such a short time? Instead of what people eat, Zomato aims at how they eat. In this busy life, nobody has the time to stand in a never-ending restaurant or food outlet queues. Zomato makes the availability of restaurants and food outlets easy for customers. They created such a platform where users can easily order their favourite food from the restaurants they want. Now, it becomes easy for users to order their favourite food without standing in queues and get it at their doorstep. 

Zomato Business Model 

The success of every business depends upon its customers, which bring revenue to them. Both restaurants and users are customers of Zomato. Moreover, Zomato’s business model covers food delivery services, information related to restaurants, user reviews, and menus of the associate restaurants. The following are the critical elements of the Zomato business model:

Local Restaurants

Zomato is a superb platform for local restaurants to improve their visibility and customer reach. Also, it helps them improve their online presence. 

Customers

Zomato’s business model is a perfect fit for customers who are fond of home delivery. Moreover, it allows users to find a variety of restaurants under the same roof, where they can order what they want. 

Reviewers

They are also known as the content contributors of Zomato. They actively review the restaurants and food to share appropriate information with the users. 

How does Zomato Make Money?

Zomato works as a connecting bridge between restaurants and customers. To understand how Zomato makes money, you need to understand the following factors:

Commission on Delivery Services

Zomato charges a commission to the restaurants on delivery orders that they receive via Zomato. Moreover, the commission rate depends upon delivery. If Zomato delivers the order, the commission rate would be high and vice versa. 

Furthermore, Zomato offers “Zomato Book” to restaurants. It is also a paid tool that helps them deal with customers who book their tables in advance. On the flip side, it provides Zomato Gold to customers. Using this paid subscription, customers can avail of discounts on dining and delivery orders. 

Promotions

Zomato charges commissions from restaurants to place them exquisitely on the feed. Also, restaurants pay Zomato a commission fee to promote their offers and events, which brings them more exposure and visibility. 

How To Create An On-Demand Food Delivery App Like Zomato?

Before you proceed to build an on-demand food delivery app like Zomato, you need to understand two things:

  • First of all, you need to understand your target audience. 
  • Secondly, you need to know the demand and expectations of the customers. 

Moreover, you can conduct a detailed market analysis to understand your target audience, demand, and expectations. The following are some of the things that you need to do before creating your own food delivery app:

  • Firstly, you need to be aware of your target audience and competitors. 
  • Secondly, you need to find out the loopholes and hurdles that the customers are facing while using your competitor’s app.
  • Next, once you are done with that, now you can start building your own on-demand food delivery app like Zomato and make sure to provide all the features and facilities to the customers that your competitors are failing to provide them.

 

Furthermore, developing an on-demand food delivery app like Zomato is a tough row to hoe. Therefore, it would be great to hire the best mobile app development company to build a feature-packed and latest technology on-demand food delivery app based on the Zomato business model.

The functionality of On-Demand Food Delivery App Like Zomato

If you want to build an on-demand food delivery app like Zomato, there are three main stakeholders except for the Admin panel. Apart from this, here is a list of features for all four stakeholders:

  1. Customer App
  2. Delivery App
  3. Restaurant App
  4. Admin App

Customer App

It belongs to the front end of the application. As this panel is for the customers, the UI/UX design of the customer panel should be user-friendly and easy to operate. Moreover, the customer panel must include all the essential features to provide maximum convenience to the users. Additionally, the following are some of the features you can integrate into your on-demand app inspired by the Zomato business model: 

  • Social Media Account Integration: It allows the customers to log in or sign up for the app with their social media accounts or email ids.
  • Search Bar: The search feature allows the customers to search for their favourite food and restaurant.
  • Call Restaurant/Driver: It enables the customers to call the delivery driver or restaurant in case of additional order instructions.
  • Multiple Payment Options: If you want to build an on-demand food delivery app like Zomato with an extensive customer base, don’t forget to provide your customers with a variety of payment options, such as Google Pay, Paytm, Mobile Wallets, Debit/Credit cards, Internet Banking, and more.
  • Notifications: It would help notify your customer about the ongoing discount offers.
  • GPS Tracking: Nobody likes to wait for his/her favourite food. The GPS tracking feature helps the customers fetch the real-time status of their orders.

 

Delivery Driver App 

After the Customer app, the Driver app is also one of the most indispensable sections of the app. Following are some of the must-have features that you can not overlook while building your on-demand food delivery app like Zomato:

  • Check Recent Orders: It allows the delivery drivers to check the most recent orders placed by the customers. 
  • Accept or Reject Orders: It helps delivery drivers to accept or reject the orders depending upon their availability. 
  • Trip Info: Using this feature, the delivery driver can fetch each and every piece of information about the order, such as distance. 
  • Navigation: It helps the delivery drivers to find the shortest route to deliver the order to the customer’s location. 
  • Contact: This feature enables the delivery driver to contact the customer if they have any concerns regarding the location. 
  • E-Sign Page: Once the delivery driver is done with the order delivery, they can ask the customer to sign on the E-sign page. It works as a confirmation receipt.

 

Restaurant App

If we talk about the Restaurant app, it should include features to manage its customers, finances, and other business modules. Besides, most of the features are similar to the customer’s app. Following are some of the main features of the restaurant app:

  • Manage Restaurant Information and Offers: Using this feature, restaurant owners can manage restaurant information and post photos of their restaurant. Additionally, it allows the restaurant owners to manage all the orders, whether it is dispatched, ongoing, or delivered. Apart from this, using this feature, restaurant owners can also promote offers to grab the attention of their customers.
  • Analytics: This feature helps restaurant owners to feel the pulse of their restaurant. Moreover, it helps them to keep a track of their performance and revenue generation so that they can take the required actions to enhance the sales of their restaurant.

 

Admin App

Using the admin panel, you can execute all the functions within the applications. Following are some of the most important features of the Admin panel:

  • Admin Dashboard: It helps the Admin to manage the overall functionality of all the stakeholders. Besides, this feature enables the Admin to add and delete the outlets from the list. Moreover, in this section, you can view the total number of customers of a restaurant and the number of deliveries in a month. Furthermore, the admin dashboard includes payment management accounts to make and receive payments in a hassle-free manner. 
  • Analytics and Reporting: Under this section, the Admin can control the data insights and metrics of all the bookings. Moreover, this section allows you to fetch the profit and loss ratios of all the registered restaurants and delivery agents. Furthermore, you can also check all the figures on a weekly and monthly basis to find the overall collection. 

 

Final Words 

We hope now you can understand Zomato’s business model, how Zomato makes money, and how to build an on-demand food delivery app like Zomato. Decoro Software Solutions is a team of professionals with hands-on experience in building on-demand apps. Therefore, if you are planning to build an on-demand food delivery app like Zomato, choose Decoro Software Solutions to build a full-featured on-demand app for your business. Still, if you have any doubts or concerns, feel free to share your queries in the comment section. Get in touch!