Business Model

This article is on Business Model of LinkedIn – How Does Linked Make Money? 

When there is a conversation about businesses that are able to deliver some of the best services to customers in the best way possible, we can assume that LinkedIn is one of the channels that comes to people’s minds. The Business Model of LinkedIn is based on four pillars of talent solutions, marketing solutions, learning and development solutions, and premium subscriptions.

To be honest, the platform is known to ensure that professionals from all over the world are able to connect in the best way possible. Without a doubt, this can be said that LinkedIn Company has definitely positioned itself as one of the best professional and business communities.

LinkedIn was founded in 2002 and is one of its kind of business and employment-oriented services that channel its functions through websites and mobile apps. The Business Model of LinkedIn focuses on technical networking services.

There are about 500 million people on the LinkedIn platform, and the amazing platform is being adopted in about 200 countries.

LinkedIn is a Popular business and jobs-oriented digital service that runs on websites and smartphone devices. LinkedIn has started its services on 5 May 2003. LinkedIn is a professional network for employers and job seekers to build professional relationships. LinkedIn generates revenue from the sale of its members’ access to information to employers. LinkedIn was acquired by Microsoft in December 2016. LinkedIn has more than 690 million users in 150 countries.

LinkedIn enables participants (both employees and employers) to build profiles and “contacts” with each other in an online social network that can reflect real-world professional relationships. Members can invite others to join LinkedIn.

The Business Model of LinkedIn has managed, with the aid of the experts out there, to deliver the best of the services to the users. In this post, we will understand the Business Model of LinkedIn and how it is possible to make some money.

Introducing the LinkedIn Platform in Business Model of LinkedIn

The LinkedIn platform is essentially a forum where people can do much of their professional work. The LinkedIn Business Model can be said to be a technical culture for sure.

LinkedIn Business Model’s main partners are colleges, businesses, influencers, content providers, marketing, and sales application partners. With the help of its partners, LinkedIn Business Model canalizes various activities such as platform development, marketing and sales, advertising, and administrative activities.

LinkedIn is definitely a freemium business model. This means that the services will be given to the customer in a free manner.

Nevertheless, with each of the premium functionality, the company charges a fixed sum of money from consumers who wish to enjoy the premium benefits. So, there are some other great features that can be used and that people need to pay the price for sure. With the support of the services given to the people and the rates they pay for the services, the business can make money without any trouble.

The Business Model of LinkedIn would also be an aid to people who want to learn the right things.

The key activities channeled by LinkedIn Business Model include the creation of apps, the recruitment, and retention of employees, the protection of valuable user data and the establishment of a strong relationship with universities and companies.

Value Propositions Or Value Offerings Of The Linkedin Business Model

The effectiveness of the LinkedIn Business Model actually depends on its value proposals, some of which are as follows:

For Recruiters/Businesses

• Resumes with References
• Powerful Tool
• Easy to Use
• Running ads
• Identifying the Right Talent
• Creating Business Pages for productive branding

For Users

• Using it for self-branding
• Building new contacts
• SlideShare
• Free of charge

For third Part Developers

• Supporting Customers
• Providing Software Tools and Apps by using LinkedIn APIs

The platform of LinkedIn is basically just like Facebook; the only difference being is that it is going to be helpful to the professionals in the best way.

The people who are the users of LinkedIn are the ones who will be able to send some requests to the people as well as the companies too.

There will be some business profiles which are made by the people and these are the ones that will be able to have some access to other business profiles in the best way.

But before learning all about the Business Model of LinkedIn, it is important to know about the company. To be honest, the LinkedIn Company is something that was founded to provide some professionals with the chance to make their business shine in the best way.

Hence, this can be said without a doubt that the company is able to provide all the important services to the people for sure. The main motive of the company is to provide a proper community to the people who want the professionals to connect without any trouble for sure.

There are about 630 million users that are provided on the platform of LinkedIn. The number of users is constantly increasing for LinkedIn because of its effectiveness in adeptly channelizing B2B activities to help professionals, businesses and advertisers.

Key Aspects of the LinkedIn Business Model

When it comes to understanding the Business Model of LinkedIn, there are some important things that people need to know about it. This will be able to provide an idea of the fact that the company is able to make the money instead of being a platform that is free.

With the help of LinkedIn, users will not only be able to connect in the best way with the professionals but will also be able to make sure that they are able to get some proper connections with the recruiters and the companies as well.

The company of LinkedIn has managed to position itself on the top with the help of the awesome services which are provided to the people. Professional networking is one of the most common reasons why people from all over the world want to use the platform of LinkedIn in the best way.

So, it can be said that the Business Model of LinkedIn is something that will be considered as pretty reliable and dependable as well.

Professional networking of the LinkedIn Business Model enables employers to post jobs while job seekers can post their CVS. They both can easily connect over the platform and let me tell you here that connections at LinkedIn turn out quite productive in the time of need.

From December 2016, LinkedIn is an absolutely Microsoft owned subsidiary.

Here we are going to talk about the different methods with which the company of LinkedIn is able to make the money without any troubles.

How Exactly Is LinkedIn Able To Make Money?

The services that are provided by the Business Model of LinkedIn are clearly free but there are some companies and people who are willing to put their money into the amazing creation of services that go far and beyond the normal help that the platform is able to provide the people.

The immense accumulation of user database makes LinkedIn highly powerful in widening the reach of different types of businesses that are using this platform for optimizing their reach in their target audiences. So, like other basic social media networking site, LinkedIn also makes the money with the help of some amazing advertising facilities on the platform.

There are so many ads that are created on the platform of LinkedIn and with the help of these amazing advertisement options, the people are able to provide some of the business opportunities to those who are in the need for it.

Revenue Model – How Does LinkedIn Earn Money?

In much simpler fashion, revenue streams of the Business Model of LinkedIn can be understood in three different categories and they are-

1) Talent Solutions

Hiring Talent Solution of LinkedIn enables businesses in finding the right candidates. These solutions include job posting, referrals, career pages, recruitment media, etc.

For these benefits, businesses pay a fixed amount to LinkedIn. Lynda.com is another Talent Solution of LinkedIn that lets users learn about different things important for their careers. This is a subscription model and hence, it enables LinkedIn to earn good money.

2) Marketing Solutions

As discussed above, LinkedIn lets businesses and advertisers run ads on the platform to generate leads and boost conversions. LinkedIn lets its users run sponsored content, sponsored InMails, Text Ads, Ads API, etc for the exchange of some money.

3) Premium Subscriptions

Premium users of LinkedIn enjoy some special features and for those facilities, they need to pay some money to LinkedIn. With the help of the services right here, the people will be able to make sure that most companies see them.

Hence they need to provide a certain fee to the company of LinkedIn and that is exactly how the Business Model of LinkedIn is able to generate the revenue and make some money as well. Some of the key features that LinkedIn users get in its premium version are-

• Who have Viewed Your Profile
• Direct messaging to Recruiter
• How You Rank
• Online video courses
• InMail messages
• Sales Navigator that enables sales professionals in finding and qualifying prospects
• Profinder – hire freelancer service
• Salary insight

Conclusion

Also, the platform is really famous for providing some of the best talent solutions, business solutions, career solutions in the Business Model of LinkedIn.

Hence, the company is able to make some profits with the help of these services because people are more than willing to pay for these amazing services.

What are your thoughts about a professional business model like LinkedIn? Have you used it and do you find it productive in offering the betterment in the lives of professionals? Share your views with us in the comments below.

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This Article is on the Business Model of Makemytrip.com and the Revenue Model of Makemytrip.com. MakeMyTrip.com is an online travel and hotel reservation service founded by Deep Kalra in 2000 providing online airline tickets, rail tickets, bus tickets, hotel reservations to their customers. They sell over 12,000 flight tickets, 1,000 hotel room nights, and more than 100-holiday packages every day. They come under the B2C business model in which they provide their customers with online ticket bookings as their goods and a wide range of services around the clock with a single click of the mouse. They also provide their customers with a range of holiday packages that save people’s time planning their vacations. MakeMyTrip is expected to represent 23 percent of India’s total travel market by 2010. MakeMyTrip has also opened offline retail outlets to advertise their holiday packages and to create a brand picture of them. MakeMyTrip is currently launching a US-based service, IndiaAhoy, a B2B platform that sells packages to India tours through travel agents and tour operators.

Values

MakeMyTrip is a combination of a variety of values such as:-

• Customer-Centric Approach: they focus on their customers both internally and externally.
• Integrity: MakeMyTrip ensures continuity between words and behavior. They ‘re still maintaining.
• Innovation: MakeMyTrip combines innovation in both business and technology to deliver the best products and services to its customers.
• Teamwork: MakeMyTrip believes in teamwork to achieve the goals of providing the best service to its customers.
• Transparency: MakeMyTrip feels the duty and transparency that it owes to its consumers and stakeholders.
• Passion for Winning: MakeMyTrip believes in a “do” attitude and believes that nothing is impossible.

Revenue Model – How Does MakeMyTrip Make Money?

The turnover of MakeMyTrip for the fiscal year 2010 was Rs 1000 crore, which increased to Rs 1500 crore in 2009. 66% of MakeMyTrip busiess were airborne and 34% non-airborne. One of the sources of revenue for MakeMyTrip is the fee charge they pay for online bookings. MakeMyTrip provides the cheapest airline tickets available. Corporation purchases tickets from private airlines on a wide scale, thereby reducing the cost and selling these tickets to its customers at an extra commission fee. The amount of profit is the highest in the case of airline tickets, while it is very small in the case of train tickets because of only one manufacturer. MakeMyTrip has about 5 to 10,000 in hotels, and about 1,000 busses.

A major portion of their revenue comes from marketing of various companies such as Kingfisher, Tata, Spicejet on MakeMyTrip website by displaying e-banners of various deals, items, etc which these companies sell.

Many hotels in India have teamed up with my trip to advertise their holiday packages on the MakeMyTrip website. Some revenue is also earned in this area. Yet online hotel booking is not a major market in India, as Indians tend to call the hotel directly for booking rather than MMT bookings, which would charge a 10-15% fee. 15-20 percent of their revenues also come from out-of-line retail outlets across India.

Customer Offerings in Business Model of MakemyTrip.com

MakeMyTrip’s main Offerings to the consumer is ideally suited to customer comfort. MakeMyTrip is a reliable, productive company that uses the latest technology for its business. MakeMyTrip believes that it is not cheaper air tickets that will bring customers to them. MakeMyTrip believes in building a consumer experience. The advantage that the customer gets when visiting MakeMyTrip.com is that it lists all the options available in a glance, saving precious time.

Booking is also very flexible through MakeMyTrip, which allows customers to make changes and cancel at any time. MakeMyTrip also provides various payment facilities, ranging from net banking, debit cards, and credit cards to almost every bank. In the event of any refund money, it is automatically transferred back to the same account in e-transaction.

In addition to all these advantages, MakeMyTrip also offers many value-added services to customers, such as various discounts and different booking offers.

MarketPlace

MakeMyTrip began its business from the US-India travel sector in 2000. Following its success in the US, MakeMyTrip started operating in India in 2005 and, within five years, accounting for nearly 50 percent of all online travel industry revenues in India. While MakeMyTrip initially operates exclusively on the Internet, in 2008 they decided to open their offline retail stores in India in order to promote their holiday packages and build brand awareness. There are officially 20 offline stores in major cities in India. Business Model of Makemytrip.com makes it a no.1 online travel booking company in India.

Major Competitors

Yatra.com

The biggest competitor of MakeMyTrip is yatra.com, which launched in 2006 in India. Their marketing strategy was to target the market through television and online. Yatra.com has more than 1 million registered users selling more than 1,100 Crores. Yatra.com has 10 offline offices in 10 major Indian cities. Yatra.com was declared the “Best Online Travel Agency” of the year 2008 at the Galileo Express Travel Awards and was also awarded the “Top 100 start-ups in Asia” award by Red Herring. Yatra.com has a market share of 30%.

Cleartrip.com

Another big competitor of MakeMyTrip is cleartrip.com, which began with Hrush Bhatt in 2006. It has a unique feature in both air and train travel, i.e. the air and train calendar, which shows fares between destinations up to 3-6 months ahead.

Competitive Advantage in the Business Model of MakeMyTrip.com

MakeMyTrip’s key competitive advantage is to think beyond customer service and create an unforgettable user experience. MakeMyTrip has customer testimonials that provide very strong feedback on their customer service managers. All other online travel agencies offer simple booking services, but the customer’s experience gives MakeMyTrip a favorable environment.

Another innovative advantage that MakeMyTrip possesses is the technology that they incorporate in their products. They are making constant improvements to their customer experience in their systems. Advanced technology gives them an extra advantage over other rivals in the online travel agency industry.

MakeMyTrip focuses not only on building value for its clients but also on its suppliers. MakeMyTrip focuses on providing its suppliers with the best and most suitable venue to showcase their goods.

Business Model of MakeMyTrip.com

The business model of MakeMyTrip.com focuses on providing a customer-centric approach and helps its customers to Book Tickets and plan their journey. With an annual growth rate of 40%, India is a fast-growing online travel agency. MakeMyTrip marketing strategy focuses on making MakeMyTrip an elite brand rather than a product. To achieve this goal, they focus on all four marketing P’s, i.e. Name, Price, Location, Promotion.

Their commodity, i.e. online tickets, is widely embraced by customers and their value-added services provide customer satisfaction. As far as Price is concerned, they are offering their customers online tickets at an affordable price. MakeMyTrip uses e-market as a place of business that is open to customers from anywhere. While internet penetration in India is only 7%, MakeMyTrip takes it as a challenge or opportunity for their company. As far as promotion is concerned, MakeMyTrip communicates and informs people about their products and services through electronic banners on websites, television commercials, and also through their offline retail stores. Online advertisements are meant to drive transactions while offline transactions, i.e. through television, help MakeMyTrip to emerge as a brand. MakeMyTrip ‘s justification for offline marketing is that creating a brand online is very difficult. A person, while online, is busy browsing information and checking emails. Consumers sometimes turn a blind eye to web advertising.

Organizational Structure

MakeMyTrip is a service organization with more than 700 employees from the travel, tourism, technical, and hospitality industries. MakeMyTrip believes in the policy of empowerment. This means that they give their workers the ability and freedom to think and behave in ways that will encourage them to do their job and still be consistent with their services.

The information of senior management shall be as follows:

• Deep Kalra (Founder & Chief Executive Officer)
• Keyur Joshi (Founder and Chief Operating Officer)
• Mohit Gupta (Chief Marketing Officer)
• Rajesh Magow (Co-Founder and Chief Financial Officer)
• Amit Somani (Chief Product Officer)
• Mukesh Singh (Senior Vice-President, Technology Development)

Investors of MakeMyTrip are :

• Ravi Adusumalli and Vibhor Mehra, SAIF Partner
• Sanjeev Aggarwal (Managing Director), Helion Venture Partners.
• Tim Guleri (Managing Director of Sierra Ventures)

MakeMyTrip APP in Business Model of MakeMyTrip.com

MakeMyTrip app is available on Google play store with 4.5 stars.

MakeMyTrip Facilities:

• Hotel booking
• Flight booking
• Holiday booking
• IRCTC Authorized Rail booking
• Bus booking
• PNR status
• Outstation Cabs
• Fast, safe, secure
• Manage trip
• Exclusive Deals
• Flight status

Future Outlook in the Business Model MakeMyTrip.com

MakeMyTrip focuses on domestic travel tickets, with a growth rate of over 100 percent over the last three years. MakeMyTrip expects higher growth in the outbound travel market on a broader scale. Many more Indians are seeking to go overseas for holidays and vacations. MakeMyTrip is thinking of converting domestic travelers into international holidaymakers by offering them holiday packages at an affordable price. MakeMyTrip is reportedly expected to raise up to $ 100 million in an initial public offering on the US stock exchange Nasdaq. MakeMyTrip plans to expand its operations by selling its share and by investing in strategic assets.

Conclusion

Makemytrip.com is a perfect example of a B2C Online Business model. This is a great example of how to sell a service online and offline. The online travel industry has a growth rate of 40% in India and with many players entering the market, MakeMyTrip’s market share shows that its marketing strategy is efficient and effective. They concentrate on creating user experience than on offering a product at a lower price. Thus we can say that the Business Model of MakeMyTrip.com is good and the company is generating good revenue from this Business Model.

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This article is on the Business Model of OYO Rooms. We will discuss in OYO Rooms Business Model in this article and how it can offer so many benefits to people who need it.

First of all, it is important to determine that accommodation is one of the most important things people continue to talk about these days.

So, this is where OYO Rooms seem to be a great help for sure.

Well, these OYO Rooms are the ones that people tend to use most of the time to make their stay bookings and so much more.

Let us now look at the introduction to the OYO Rooms Business Model –

Introduction to the Business Model of OYO Rooms

Established in the year 2013, Oyo Rooms is one of the third largest hospitality chains. The Business Model of OYO Rooms revolves around leased and franchise hotels, living spaces, and houses.

The full form of OYO Rooms is Your Own Rooms. The company was founded by Ritesh Agarwal and at the beginning; it consisted only of budget hotels, but now, in the next six years, the company enjoys a global expansion with multiple holiday homes, hotels, and rooms in different cities in countries such as-

• India’s
• Malaysia’s
• UAE
• Nepal
• Philippine Islands
• China’s
• UK
• Indonesia’s
• Japan’s
• Arabia of Saudi Arabia
• Vietnam, Vietnam
• The United States, and so on

Know More About OYO Rooms

When we speak about the branded networks that are currently offering services to people, there is no question that Oyo Rooms is one of the names that comes to mind for sure.

There are more than 450000 listings in OYO App.

The site and also the company’s branches are located in a total of 5000 cities. It can be said, therefore, that the organization has been delivering much of the services to the people who need it, and so much more.

During the past, the organization was responsible for coordinating some of the people with the hotels and even providing certain rooms for those who made the bookings. However, for sure, the brand was their own.

The process remains the same at present, but the Business Model of OYO Rooms has changed a little. That’s why we’re going to have a little chat about it in the best way.

This article will definitely help you understand the Business Model of OYO Rooms and how it provides the same quality of services to people.

You’ll also get to learn how the company can make the money while preserving the reputation of the brand that it has among the people. There are partners in the company who are helping to provide some services, and we’re going to know a lot about them, too.

Oyo Business Model ‘s customers are business travelers, family travelers, leisure travelers as well as adventure travelers.

Let us now look at the products and services of the OYO Rooms Business Model- 

OYO Rooms Business Model

1) Townhouse of OYO:

This is advanced as a neighborhood hotel in the mid-scale segment that is used to target millennial travelers looking for premium economy accommodation.

2) Home OYO:

This is understood as India’s first home management system that provides OYO-managed private homes and is available in a wide variety of locations.

3) OYO Holiday Homes:

It is considered to be the 3rd largest holiday home brand, which is very close to the world’s top holiday rental management companies.

4) Silvery:

This one is useful in meeting the specific requirements of corporate travelers on business trips of a specific duration.

5) OYO capital:

This one deals with luxury hotels, which are also located in prime locations. Such hotels offer OYO quality-assured experience at the most reasonable prices.

6) Palette:

This one belongs to the category of top-of-the-line leisure resorts and is best suited to those who are looking for an intuitive experience at the right prices.

7) Collection O:

If business travelers are looking for accommodation tailored to their needs, this section of the Oyo Business Model is designed to cater to their needs.

8) OYO LIFE:

It is designed to target millennials and young professionals looking for well-managed homes at affordable long-term rental rates.

Working of the Business Model of OYO Rooms

Before you have any idea about the Business Model of OYO Rooms, it is important to know what it is in the first place. Here we’re going to talk a little bit about that, so you can appreciate it.

We need to know whether it’s a franchise or an aggregator, too. That’s why we’re having a gentle talk about it in the best way possible.

It can be said that the Business Model of OYO Rooms is something that can be considered a proper hotel aggregator.

The identification of some of the investors, as well as hotels, is not really the primary focus of the business as a whole. There is absolutely no chance, therefore, that the Business Model of OYO Rooms is fundamentally a little different from the rest.

Customers are in a position to buy the facilities they have and they will definitely be the ones that contribute to the OYO Rooms Business Model.

So, when it comes to understanding the Business Model of OYO Rooms, it can be said that the concept is essentially a franchise model, along with the aggregator model.

The brand value of the company here at OYO Rooms is something that is developed with the franchise option and hence it can be said that the Business Model of OYO Rooms is a blend of both business models.

It is one of the most important things people really need to bear in mind so that they can get a clearer understanding of it.

A mix of Aggregator and Franchise Business Model of OYO Rooms

To describe the Business Model of OYO Rooms, we’re going to talk a little bit about it, so you can have an idea for sure. This is something that can be called an aggregator model as well as a franchise model. There are certain approaches that are definitely included in the business model.

Their people will be able to lease some of the inventory provided to the users by the hotel. There are also several organizations that would be able to deliver coordinating services to people in the best way to be sure of that. There are also other partner hotels where people can stay during their vacation.

When it comes to making bookings, they are essentially made with the official application or the website of the OYO Rooms, which is an important information to remember for the people.

Channels used for channeling OYO Rooms Business Model are both a company platform and a web application.

Partnership Model for OYO Rooms

As far as the relationship model of the OYO Rooms is concerned, it can be said that certain hotels and other franchises are included in the OYO Rooms lists. There are several hotel rooms that people can quickly book so they can live there.

The business is able to make some money with the aid of the booking fees that people choose to pay when they stay in the OYO Rooms hotel listings.

This is one of the most important aspects of the OYO Rooms Business Model that people need to learn about. Some discounts and other offers are also given to the customers. With the support of a range of other facilities, such as OYO House stays, OYO Flagships, OYO Wizard and more, the company is in a position to earn revenue.

Let us now understand How does OYO Make Money?

How Does OYO Make Money?

The key revenue generation of OYO Rooms is based on the 22 percent commission it receives from its hotel partners.

In addition to the commission, the OYO Rooms are making money from-

1) Fee for Reservation  of Rooms:

Users pay the reservation fee to OYO Rooms, from which a fixed percentage of the total fee is paid to OYO Rooms as a commission to help them make good money.

2) Fees Membership:

OYO wizard subscribers are paying a fixed amount of money for premium services that also act as a revenue line for OYO Rooms.

3) Advertising:

The advertising fee is charged to OYO rooms for running ads from different companies and businesses on their platform.

4) Sponsors And Partnerships:

In order to support its sponsors and partners, OYO charges a fixed amount of money that plays a key role in generating revenue.

5) Consulting services: 

Specific clients of OYO rooms, such as companies, clubs, hotels, etc., take advantage of the business consulting and data analysis services of OYO rooms and pay OYO rooms in exchange.

Conclusion

So, these are some important information that you need to know about the OYO Rooms Business Model. We hope this article has been helpful to you.

OYO Rooms Business Model has certainly reformed the hotel industry in India by offering highly personalized, fast, mesh-free, affordable, and well-organized services to allow travelers to enjoy their stay away from home.

So, how successful are you finding the OYO Rooms Business Model? Have we skipped some main feature of the OYO Rooms Business Model? Share with us in your email.

Oyo Rooms are Well Santaized and cleaned to make it Virus Free and People can have safe stay with OYO Rooms. The business Models of OYO Rooms are ready to work best after the COVID Period.

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Business Model of Swiggy and How Does Swiggy Makes Money is elaborately explained in this article. Every food lover’s dream is to get their favorite recipes delivered from their most adored restaurants in town that can be personalized in a limited time. Well, this might be too much to ask for, but it was just before Swiggy came into the frame. Established in 2014, Swiggy is considered India’s most popular and largest online food ordering and delivery company. Business Model of Swiggy focuses on providing online ordering, restaurant quest, and table reservation services.

In this post, we will look at the Business Model of Swiggy and try to understand the reasons for its success. We ‘re also going to dive deep into Swiggy’s revenue generation streams to find out how Swiggy makes money.

So, you ‘re interested to learn more about the Swiggy Business Model to get some inspiration? So let’s get started. Let us see how Swiggy is trying to fulfill every food lover ‘s dream with a well-organized, highly personalized, efficient, and adept business model.

Founded by three friends Trio — Nandan Reddy, Rahul Jaimini,  and Sriharsha Majety — Swiggy is an online food ordering service and food delivery service.

It helps customers to order their favorite dishes from their favorite restaurants and deliver the food to their doorstep in just 30 minutes. Unlike other food ordering companies and suppliers, they have their delivery fleet and this is the most important reason for their fast-paced success.

Within five years of its establishment, Swiggy became the unicorn and the fastest Indian company to do so.

Main activities channeled by the Swiggy business model include partnering with different food shops and retail stores, managing delivery and payment options, and hiring delivery providers and suppliers.

Channels that help Swiggy channel its business model are mobile phones, websites, and digital marketing. The different value proposals of its framework include efficient delivery of food with no restrictions on orders, no minimum order requirements, and an easy online payment system with different payment options and personalized user experience.

Customers who are the main target in the Business Model of Swiggy

Business Model of Swiggy focuses mainly on those people who are not willing to visit restaurants but want to get the food at their convenience. Swiggy also targets users who enjoy ordering food online and getting it delivered to their doorstep.

Plus, all those people who are willing to consume some tasty food at any specific place without going through the restaurant procedures are customers of the Swiggy business model.

Business Model of Swiggy: How does Swiggy work?

Everyone is curious to know to analyze the Swiggy Business Model and the working of Swiggy. Well, we fully understand that every company’s Business Model serves as the heart of the organization. The same is true of Swiggy. Swiggy entered the market late, but the Business Model of Swiggy is so sustainable that it has emerged from the top.

The business model of Swiggy is focused on hyperlocal on-demand food delivery services. It helps users to order any food and send the recipe to their doorstep.

They can do this by choosing from a range of food/restaurants and menus along with the prices listed in the Swiggy app. But the most exciting feature of the Business Model of Swiggy is that they have their delivery agent convoy. The delivery partners can pick up and deliver food in less than half an hour.

Swiggy Business Model is focused on a dual-partnership arrangement. The main partners are:

1) Partner Restaurants

Restaurants are Swiggy’s first allies. Swiggy features these restaurants on its app, and these restaurants choose to deliver food to their customers. This partnership is open to three parties.

First, customers get orders and get food from their favorite restaurants. Second, restaurants have a chance to increase their sales and customer base. Third, Swiggy receives money by paying the customer’s delivery fee and the restaurant share.

(2) Delivery Partners:

The delivery partners form the second part of the Swiggy partnership. After the restaurants have packed the order, the delivery guy collects the order and delivers it to the customer’s desired location.

Companies such as Zomato have outsourced their delivery services, but Swiggy has its delivery fleet. The ship is known to produce food in 30 minutes. The success of Swiggy can be attributed to its excellent delivery services.

Now let’s unfold how the Business Model of Swiggy works:

Working Processes  of Swiggy Business Model

1) Search:

After signing in to the app, the customer enters the location where he wants food to be shipped. After entering the site, he can browse a number of restaurants and choose his favorite food.

(2) Order:

The customer is now completing the transaction. To complete the sale, you must enter a delivery address; you can enter a new address or choose from the saved addresses.

After selecting the address, different discounts provided by Swiggy can be applied. Then he wants a method of payment and orders.

3) Process:

After the customer confirms the order, Swiggy forwards the request to the restaurant. The restaurant accepts the order and begins to prepare and pack it for delivery.

4) Delivery:

All drivers receive a signal when they are in the range. The driver accepts the order and, after collecting it from the restaurants, delivers it to the customer.

Note: After the restaurant accepts the order, the customer can monitor the order using the Swiggy app.

Cost Structure in the Swiggy Business Model

The main factors that play a key role in deciding the cost structure of the Swiggy Business Model are:

• Expenditures on the salaries of its staff and distribution partners.
• Maintenance and running costs of the Swiggy Business Model.
• Developing apps, Developing websites, and other costs associated with the business framework.
• Advertising, Marketing, and administration costs
• These are the main elements of the Swiggy Business Model and how it operates.

Now let’s move on to the revenue model.

Revenue Model of Swiggy: How does Swiggy Make Money?

To decipher Swiggy’s revenue model, we need to look at all the revenue models used by Swiggy to generate revenue.

1) Charges for delivery

This is the type of income that Swiggy generates from customers. All orders below Rs.250 are subject to a delivery fee. The amount of delivery charges depends on the distance of delivery, order demand, and weather conditions.

2) Advertising

Advertising revenue is generated in two ways:

Priority listing of restaurants: Swiggy has a list of restaurants on display. Restaurants are tasked with giving them priority in the list. The food shop has to incur as high as it wants to be displayed at the top of the list.

Banner Promotions: Swiggy charges restaurants to display their banner ad on the web. Promotion by banner advertising means greater exposure of the app and a high probability of receiving orders.

3) Commission

The Commission is Swiggy’s primary source of revenue. It charges a commission from restaurants to generate sales and deliver food through its fleet. This commission depends on the value of the restaurant’s order, location and popularity. It generally varies from 15 % to 25%.

4) Swiggy Access

Swiggy offers ready-made kitchens in restaurants. It enables eateries to set up and operate in areas where they usually do not operate and to bring food closer to customers.

5) Super Swiggy

It’s a Swiggy membership program. Swiggy Super Members do not have to pay delivery charges on orders above Rs.99 and also customers are not required to pay extra during the price increase.

6) Affiliate revenue

It’s a relatively new revenue stream for Swiggy. It has collaborated with a number of financial institutions to issue credit cards. Customers can get offers from these financial institutions if they purchase and use their credit cards.

7) Groceries and Genie

Groceries and Genie are two services from which Swiggy is making money. These two services are recently added to the Business Model of Swiggy. These two services are added in Swiggy Business Model during COVID-19. This has led to increasing the revenue of Swiggy.

This was all about the Business Model of Swiggy. Now, let’s have a final word.

Main Highlights

Despite starting late, Swiggy is giving its competitors such as Zomato and FoodPanda a run for their money. It has emerged as the leading food ordering company as well as the delivery company.

The Business Model of Swiggy is highly innovative and sustainable. Fast deliveries, complemented by techniques such as live order tracking and no limitation on the order bill, make life easier and tastier for every food lover.

Business Model of Swiggy is certainly capable of bringing a significant part of India’s food industry under its umbrella.

What is the most inspiring feature of the Business Model of Swiggy? Feel free to share your views with us in the comments.

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Paytm was established in 2010 by Vijay Shekhar Sharma. Paytm is India’s largest e-commerce, payment, and e-wallet network. The Business Model of Paytm consists of a variety of services related to Online Shopping, Payment System, Digital Wallets, Mobile Payments, as well as various products such as Paytm Mall, Paytm Payment Banks, Paytm Money, Paytm Smart Retail and Gamepad.

In this article, we ‘re going to dive deep into the Paytm Business Model and understand what makes it such a successful Indian startup. We’ll also dig deep into the company’s cost structure and revenue sources to know how Paytm makes money.

So, ready to get deeper into the Paytm Business Model? So let’s get started.

Introduction to the Paytm Business Model

Paytm was introduced with the concept of a cashless transaction.
Accessible in 11 Indian languages, it operates on both the website and the application. Paytm is the first Indian company to raise funding from the Chinese e-commerce giant, Alibaba.

Users are using Paytm for :

• Mobile Recharge
• Payment of utility bills
• Bookings of flights, movies & events
• In-store payments like grocery stores, fruit and vegetable shops, tolls, restaurants, pharmacies, parking, and educational institutions with Paytm QR code.

Business Model of Paytm: How does it work?

The Paytm Business Model comes from its name only.
Paytm stands for Pay Through Mobile and allows consumers to make cashless payments. Initially, it began as an online recharge platform. Later, however, this model was transformed into a virtual bank and marketplace model. It’s also working on the cashback business model.

Paytm operates as a payment system and marketplace. It deals with services such as mobile charges, movies, flights, utility bill payments, and event bookings. In-store payments in grocery stores, fruit and vegetable shops, parking lots, tolls, hospitals, restaurants, and educational institutions are also protected by the Paytm QR code.

Now let’s look at Paytm’s revenue model to see how it makes money.

Customer segments targeted by the Business Model of Paytm are those who want to enjoy the comfort of e-wallets, plus those who tend to use mobile and tablet apps to channel their day-to-day activities.

The main activities carried out by Paytm include the transfer of funds, fraud prevention, and top-notch security. Paytm wallet, together with e-commerce verticals and Digital Gold, are some of the value offerings of the Paytm Business Model.

Channels used by the Business Model of Paytm to run its operations include the Paytm website, the vendor pages, the company pages, and the Paytm App.

Let us now look at the cost structure of the Paytm Business Model-

Business Model of Paytm: Cost structure in the Business Model of Paytm

The various factors on which the cost structure of Paytm is based include:

• Big expenditures for expert channeling of the Paytm network
• Customer retention
• Salaries for employees

Now, after learning all about the expert channeling of the Business Model of Paytm, the next thing you can pay attention to is the revenue generation sources of the Paytm-

Revenue Model of Paytm: How does Paytm make money?
Paytm was initially launched as a mobile recharge and payment platform for bills.
Later, it came up with the concept of a payment bank and an online marketplace.

In order to understand the Business Model of Paytm, we need to look at the different activities responsible for generating revenue for the company.

Paytm is using direct and indirect channels for earning money, which is given below:

1) Paytm Mall
Paytm was the first company to start mobile-only shopping. It helps sellers to list and sell their goods through the Paytm portal. For this reason, it charges a fee on the part of the sellers, which varies for different categories of goods.

2) Price of listing and convenience
Paytm charges the listing and convenience fees of sellers to sell their goods on their site.

3) Recharge Services
Paytm’s initial goal was to act as an online payment service. However, the Business Model of Paytm involves a range of activities; the online recharge service remains one of the core activities. Recharge is applicable to all providers of telecommunications services. Paytm charges a fee of 2-3 percent for each recharge. The services are effective and outstanding, which has helped Paytm develop and grow exponentially.

4) Bill Payments

In addition to the charging service, Paytm allows customers to pay their bills, such as water, rent, electricity, telephone bills. It also has agreements with educational and financial institutions and collects fees on their behalf.

Like any other operations, they demand a fee from these service providers.

5) Options for payment
Paytm provides payment solutions to online companies. It enables them to collect payment via Paytm. For this reason, the Commission charges the sum of the transaction.

6) Digital Gold
Gold is India’s best savings. Paytm capitalized on this by partnering with the MMTC-PAMP gold refiner. It has launched Digital Gold, which enables customers to digitally purchase, sell, and store gold.

Customers can also have the gold shipped by paying a minimum shipping fee.

7) Paytm Payment Bank
A payment bank is a bank that can accept deposits and offer interest to customers but can not offer credit services. Paytm lets the customer open a zero deposit digital current and savings bank account.

It gives a 4 percent interest in deposits on the savings account and gives an overdraft facility to the current account.

You have to wonder how Paytm earns money from payment banks because it can not carry out lending activities. Let’s see how:

Cross-Selling: Paytm markets on its platform the goods and services of other financial institutions. It charges a commission on the basis of an agreement between the parties.

Internet Arbitration: Paytm deposits money with another bank that provides a higher interest rate than the interest paid by Paytm Bank on its deposits. The difference between the two benefits becomes a profit.

8) Paytm Wallets
Paytm wallet helps customers to store their currency in digital form. It is a semi-closed wallet that allows consumers to buy products and services and pay for them digitally.

Customers are charged 2.5% to 5% for adding money from credit cards and moving money from Paytm Wallets to Bank account is also possible but they are also charged from 2.5% to 5%.

9) Paytm POS Machine

Paytm is also charging monthly rental for POS machines and Transaction Charges on POS Machines.

10) Bookings for OTA

Paytm has recently joined the online travel agency platform (OTA). This part of the Business Model of Paytm helps customers to book rail, air or bus tickets. It also offers facilities for hotel bookings.

Paytm charges a certain percentage of the total booking commission. The commission rate depends on the form of booking. Now that we have grasped the Business Model of Paytm along with its revenue model, let us look at the marketing strategies adopted by Paytm to promote its services.

Paytm Company Innovative Marketing Strategy

Paytm has used a variety of innovative marketing strategies to support its business model. Let us think about some of those ideas:

1) Soldier Mobile Game
In this war, Spartan Paytm Soldiers battle the army of fraud.
This idea of starting a game attracts both tech-savvy people and game lovers. Not only this, but it also makes people aware that Paytm protects the accounts of their customers.

2) Automated updates
Paytm sends prompt payment notifications to its customers.
It reminds customers to pay their bills and, at the same time, says it is easier to make payments via Paytm.

3) The competitions
Paytm is sponsoring competitions and organizing free internships for MBA Students.

4) Pocket Dance
This is an ad campaign that has illustrated the pain of pulling out the wallet and looking for money to make some payment.

It showed how easy it was to get the mobile and Paytm out of the number.

5) Indian Cricket Sponsorship
Paytm has signed an agreement with BCCI and has maintained the title sponsorship of the Indian Cricket Team for five years.

In a country where cricket is nothing less than a religion, supporting the cricket team for such a long time might prove to be a deal-breaker in keeping and attracting new customers.

Conclusion

With India on the verge of becoming a digital and cashless economy, the Paytm Business Model has been popular in the Indian financial and service sector.

If these diverse and innovative marketing strategies continue to sustain the Business Model of Paytm, Paytm will expand at such a rapid pace that it will reinforce the growth of the Indian economy.

Maybe other Indian startups will take one or two lessons from the Paytm Business Model.

Paytm is making revenue from Paytm Malls, Paytm Gold, and Paytm Payments Bank. Customers are charged 2.5% to 5% for adding money from credit cards and moving money from Paytm Wallets to Bank account is also possible but they are also charged from 2.5% to 5%.

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This Article Focuses on the Business Model of Instagram. Instagram was launched in October 2010, Facebook Instagram is a social networking platform for sharing photos and videos. The business Model of Instagram allows users to upload images and videos which can also be uploaded through different filters, organized using tags, location data, etc.

In this post, we will dig deeply into Business Model of Instagram and explain how this Social Media Site is increasing its reach and relevance in the field of online marketing and advertisement. We’ll also find out how Instagram makes money by using its revenue sources. So, let ‘s start unraveling the mystery right away –

Introduction to Business Model of Instagram

Created by Kevin Systrom and Mike Krieger, Instagram is a giant in online social networking. Okay, it wasn’t supposed to be a giant when it started. It was made out of a lot of fun without any intention to make money. It only allowed one thing, i.e., to allow users to click and share pictures.

Now, it’s a go-to platform for over 1 billion users not only to share videos and images but also to advertise their goods and services to brands.

In this post, we’ll look at Business Model of Instagram to see how the fun-filled app became a $100 billion business.

Business Model of Instagram: How does Instagram work?

Instagram is a social networking program that allows users to post videos and photographs from their lives. An individual can use such a wide range of features that it is enough to overwhelm himself and his followers.

Main activities undertaken by the Business Model of Instagram include improving user experience as users use the Instagram app, increasing and maintaining the user base, and providing customized advertisement services.

The business model of Instagram is focused on the number of tools and services it provides.

Let us look at the following methods and features:

1. Photos

Clicking and uploading photos across various channels is the core feature of Instagram. People may use filters and other photo enhancement features to boost their images.

2. Videos

Originally, Instagram was just a photo-sharing device. Later, users were allowed to share videos for up to 60 seconds. Brands are also using this feature to advertise their products.

3. Stories:

Users can share videos and images 24 hours a day using this app. The shared content disappears after 24 hours. Users can go live by using this function as well. In addition , companies can also post full-page ads to market their products.

4. Instagram Direct

Instagram Direct enables users to post videos and photographs and chat with their followers. Users may even send messages to those they don’t follow. You can also share Instagram posts by using this app.

5. Explore

Through using this app, users of Instagram can find anything and everything. They can use hashtags and usernames to figure out what they’re searching for. Apart from this, they will explore the content of the featured page by clicking on the link. You can also see the latest actions of the people you are watching.

6. Filters

Instagram offers a variety of filters that allow users to enhance their images.

The Business Model of Instagram is composed of the key features listed above. Now let’s see how these apps help Instagram make money.

Instagram Revenue Model: How does Instagram make money?

Now, after hearing about Business Model of Instagram, let ‘s move on to its sales model. Instagram receives nearly all of its revenue from advertisements. Instagram Advertisements come in different forms, which are provided below:

1. Photo Advertising

Promoters will advertise their goods by sharing persuasive images on Instagram. These pictures can be in a square or a landscape format. Such images include the Call to Action (CTA) button. The user is taken to the correct page on the company website of the promoter.

2. Video Advertisements

Promoters may also use videos to advertise their products. With the power of sound, motion and sight, videos add an extra attractive quality. Such videos also have a Call to Action (CTA) button to take the user to the respective page of the promoter ‘s website.

3. Carousel Advertisements

It’s the most common way to advertise items. Promoters market their products using a sequence of images or videos. These videos or pictures are taken by Call to Action (CTA) to take you to the promoter ‘s website. Such advertisements are ideal for brands wishing to show the flexibility of their products.

4. Stories Advertisements

These are full-page ads that pop up when a user sees Stories from the people he follows. Within these Stories, there is a Call to Action (CTA) click. This button is available as a swipe-up option that brings the user directly to the promoter ‘s site.

5. Facebook Advertisements

Instagram is a crucial component of Facebook’s business model due to its increasing user base. Facebook Ad allows the Promoter to put ads on Instagram through Facebook, even if it doesn’t have an Instagram account.

6. Sponsored Posts

These posts are just like daily Instagram posts. They’ve got a sponsored tag and a call to action (CTA) button. Like Facebook, supported advertisements receive much of Instagram ‘s revenue.

7. Selling Information for Users

Instagram’s user agreement notes that “you accept that a company or other organization can pay us to show your username, resemblance, photographs and possible moves you make, in conjunction with paid or supported content or promotions, without any compensation to you.”

Sure, this means that you can sell your data to Instagram, and it definitely does. Since compliance with GDPR, it has been updated, but there is still no assurance that the data will not be sold.

Instagram uses this collection of ads and allows users to monetize their presence on the site. It not only helps businesses raise brand recognition but also helps to increase website visits and sales.

Now that we know about the Business Model of Instagram, let us find out the main reasons for its success.

Other Notable features in the Business Model of Instagram

The Business Model of Instagram is unique and changing. Let’s look at key takeaways and see how Instagram has reached more than 1,000 million users.

1. Customer-centered approach

Instagram provides easy-to-use features on the web. This addresses three major issues: select stunning images by adding filters, easily combining them, and uploading and sharing them through various platforms.

This process is so easy that it gives users a smooth experience, creating real value for photographers and photo lovers. It is the primary explanation for the ever-increasing Instagram user base.

2. USPs Defined

Businesses need to create Specific Selling Points (USP) for their performance. Instagram USP is improving images by choosing several filters. Organizations need to be specific on their approach to the creation of software and what they intend to do about the application.

3. Start simple and grow slowly

Instagram was launched in 2010 but did not receive any revenue until late 2013. It began as a free image sharing application, and this aspect of the Business Model of Instagram is still the same.

This has grown is the use of algorithms to monetize consumer interest. Instagram launched straight away and then added enriching features to the software. This strategy has helped Instagram grow remarkably.

4. Build a network

Instagram has built the framework instead of using other social channels. Instagram’s network has expanded so quickly that it has been the biggest reason for Facebook to buy it.

Instagram and Facebook frameworks complement each other incredibly well. And that’s what led to their exponential growth.

Conclusion

Business Model of Instagram has revolutionized the social media network.

A website that began as a simple photo-sharing application has now become a forum for brand promotions. It currently serves two purposes: a primary social media site for people to communicate and a forum for companies to reach out to their customers.

The cost structure of the Business Model of Instagram covers the set-up, production, and promotion of technology that is designed to ensure improved user service. All of this allows Instagram to have a loyal and continually enthralled user base that eventually plays a key role in maximizing Instagram ‘s revenue.

With its customer-centric approach and over 1 billion users, Instagram is expected to continue to expand at a rapid rate. Along the way, many social media firms will learn a few things about how to be a giant that Instagram is now.

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How successful are you finding the business model of Instagram? Would you have any ideas that could be useful for any company that is trying to follow an Instagram-like business model? Feel free to share your thoughts with us.

Business Model of Zomato focuses on providing good quality food delivered to customers home, provide information, partner restaurants, and customer reviews, and revenue generation.

Business Model of Zomato has revolutionized the food business industry by integrating a variety of restaurants and making it easy for customers to locate restaurants, provide reviews, search listings, and make available according to their choice of cuisine.

This food platform is available in 24 countries around the world, providing insightful analytics to various restaurants. These analytics help restaurants improvise and enhance their business.

In this post, we will unravel the key idiosyncrasies of the Business Model of Zomato and understand how it manages all of its operations and generates revenue. So, let’s get started right away :

Introduction to the Business Model of Zomato

Zomato is an Indian food-based application that offers a number of services, such as restaurant search & discovery, a large number of different dishes to choose from, depending on the price range and online delivery.

The success and applications of Zomato have increased over the last few years, making people curious about the real business model of Zomato.

In the next few sections, we’ll be going through the different verticals of the Business Model of Zomato, but first, let’s look at its creation and some other related historical aspects:

History of Zomato

It’s easier to read a little about the past of Zomato than to test the business model of Zomato. Zomato was founded in 2008 by Indian IIT students, Pankaj Chadda and Deepinder Goyal.

Originally known as FoodieBay, the concept of Zomato emerged when Deepinder noticed his roommates searching for menu leaflets to order food. When integrating the menus of multiple restaurants into a single application, the process of selecting a restaurant and ordering food can be greatly eased.

This has led to the creation of the Zomato.

Zomato has grown tremendously from a simple home project to one of the most widely used online food-based platforms in the world. It includes a list of restaurants and cafes belonging to different price ranges and kitchens.

But the main aspect that makes Zomato so popular is the stable and reliable business model that was initially introduced. The different services offered by the Business Model of Zomato are-

• Search & Discovery of Restaurant
• Ordering online
• Reservations & Management of Table
• subscription Services
• The POS system

The different segments of the Business Model of Zomato

Zomato’s business model is completely different from its predecessors Swiggy and Foodpanda. This application was a leader in online food-based applications and thus it was a big challenge for Zomato to make the market accept the idea of “online restaurant search.”

The Business Model of Zomato is a well-organized strategy, consisting of numerous aspects for the smooth running of the application. Here are some of the critical elements of the Zomato-

1) Customer Segment

Zomato consists of three main segments, i.e. users, local businesses, and reviewers.

Users – Zomato offers a forum for people to search and find restaurants according to their budget, place, and preference. This also offers a secure online food delivery service.

Local businesses – Zomato also offers a forum for restaurants and local cafes to advertise their businesses and meet target markets, generating revenue for different outlets.

Reviewers – Reviewers or content contributors are those who have constructive reviews and feedback. Such remarks are often associated with the quality of the food and service offered by restaurants.

2) Zomato Provisions

Zomato provides customers with information about restaurants and cafes based on their choice of cuisine their location, and their budget.

This also builds a bridge and promotes contact between partner restaurants and customers.

Zomato also has an integrated and well-defined pricing model for the online distribution services they provide.

Our level of service has also been improved by the addition of Zomato Gold and Piggy Bank.

3) Zomato Alliances

In recent years, Zomato has also collaborated with numerous companies such as Uber Taxi, London & Partners as well as internet and digital payment firms such as Visa and PayPal.

These partnerships have also played a significant role in enhancing the Business Model of Zomato.

Having partnered with London & Partners, the company helped Zomato in various ways. Some of them are given below-

Finding a place to set up an office

Assistance in recruitment and management procedures

Job placements and market research

Providing useful advice on policies, legal systems, management of accounts, etc.

Now, after going through the various facets of the Business Model of Zomato, the time has come to look at its revenue generation strategies-

How Does Zomato Make Money?

Zomato’s revenue jumped dramatically in the year 2019 as its value rose from $68 million in the 2018 financial year (FY18) to $206 million in the 2019 financial year (FY19).  In 2020 due to COVID-19 their income is highly affected so they have started delivering essentials during the COVID-19 Lockdown Period.

Various factors contributing to revenue generation for Zomato are :

The commission earned on the basis of delivery services accounted for about 75 % of the total revenue generated in the year 2019. This is equivalent to an estimated $155 M, nearly four times more than $8 M last year.

The newly introduced Zomato Gold system provided complimentary food and beverage services to gold-member customers. This service alone generated about $30 million in 2018 and $49 million in 2019.

Ticket sales for various events organized by restaurants in association with Zomato produce a certain amount of revenue in the form of commissions. Around the same time, the consultation is given by Zomato to various restaurants to boost their business often adds to the business model of Zomato.

In comparison to the past few years, Zomato is now seeking to manage and manage all its sources of revenue by not prioritizing advertisement revenue more than other sources. Again, this was a contributing factor to Zomato ‘s efficient business model.

Zomato is considered to have generated huge revenue due to its various business activities, but most people still have questions about the actual revenue-generating Zomato program.

The business model of Zomato consists of various sources of revenue generated by the application. The following are some of the operations carried out by the app.

Sources which play an important role in helping Zomato make money

Nowadays, Zomato has multiple revenue channels besides online ordering, which most consumers would be familiar with.

Restaurant Listing

In his first avatar, Zomato was just a listing platform and a restaurant directory. It has earned advertisement sales from restaurants that have entered the network. Broadening this further after the emergence of food delivery and restaurant reservations, Zomato is now paying commissions from restaurants to feed prominently. Restaurants can pay for their promotions or events, as well as for their banner, which enhances the visibility and conversion of Zomato users.

Food Delivery

Initially, through its food delivery business, Zomato charges the restaurant commission on the basis of orders. Although users pay a delivery fee, Zomato earns by restaurants that pay a commission for each delivery, which is then divided between the delivery partner and the business. The restaurant commissions vary depending on whether Zomato delivers or whether the restaurant uses its own riders. It is said to contribute in a limited way to the overall sales of the company due to massive competition and the need for deep discounts, etc.

Subscription Programmes

Through Zomato Gold for customers and businesses and restaurant subscription options, Zomato has opened up a steady stream of revenue. Although users pay a subscription fee to join the Zomato Gold Loyalty Program, which provides exclusive deals, restaurants also pay a monthly fee to be part of the Zomato bouquet of deals. Restaurants also pay a monthly charge to Zomato for a range of services such as live monitoring, Zomato-branded tamper-proof packaging, and more. Started in April 2018, Zomato Gold provides membership-based premium services.

At the facility, gold customers receive complimentary food and drinks from partner restaurants.

Live Events

Zomato entered the branded live event market last year with Zealand. Zomato charges users an entry fee for attending Zealand, where they can experience live musical performances and other activities besides food. In 2018, the entertainment carnival was held in Delhi, Pune, and Bengaluru, where Zomato claimed more than 100 K people had taken part. Zealand is going to Pune, Bangalore, Delhi, Hyderabad, Mumbai, Chandigarh, Jaipur, and Kolkata this year.

With The Label Access

Zomato also enables services such as the Zomato Whitelabel, under which restaurants are offered, to develop a customized food delivery app. The also partners with cloud kitchens and restaurants for consulting services. Zomato works with selected restaurant operators to help identify expansion locations at a minimum fixed cost, but with increased options for users. It shall include the necessary licenses and operating authorizations for these restaurant partners.

Zomato Kitchens

In order to offer kitchen infrastructure services to selected restaurant operators, Zomato partners with entrepreneurs to set up and run Zomato Kitchens under different labels. This helps entrepreneurs to fund restaurants in the right location with an investment of INR 35 Lakh and more. Zomato says that it provides returns to investors within the range of INR 2 Lakh to INR 4 Lakh per month, with 180 + affiliate kitchens already up and running.

Zomato Essentials

Zomato has recently started the delivery of essentials. From this service Zomato is also earning delivery revenue.

Statistical analysis of Zomato’s sources of revenue

As stated earlier, the Business Model of Zomato is highly effective, involving a variety of sources that play an important role in revenue generation.

Here are some of the important statistics for understanding the business model of the Zomato:

• Restaurant Advertising and marketing accounts for about 72% of total revenue.
• Event advertising contributes around 4 percent of the revenue generated.
• 12% revenue from tickets sold in events organized by Zomato.
• Consulting services and online food delivery services represent about 3% and 2% respectively.
• Zomato Gold and other developed services generate 7 % of the total revenue for customers.

Conclusion

Zomato has fully changed the working of the food and restaurant industry by implementing the idea of providing universal access to different restaurants and cafes.

Zomato makes available outlets on the basis of the venue, the option of the kitchen, and the budget defined by the clients. It also provides online delivery services to customers that make the food ordering process smooth and secure.

Zomato also proves that it helps to improve the business models of different restaurants, bistros, and cafes by providing them with advice as well as an opportunity to promote their business by uploading photos and posters to the Zomato application. In collaboration with a variety of restaurants, Zomato also organizes numerous events and festivals to generate revenue not just for themselves but also for the restaurants involved.

The business model of Zomato is well-organized and well-organized, covering the various aspects that act as sources of revenue for the company.

Restaurant advertising, ticket sales during organized events, event advertising as well as services such as Zomato Gold is the main revenue sources of Zomato. The food-based framework not only tends to focus on advertising but also provides equal importance to other sources, which are the main reason why Zomato has received five times the revenue generated in the year 2019 as compared to the previous financial year.

With a view to enhancing the revenue-generating system as well as developing the services provided, Zomato has also partnered with various companies this year, creating useful and beneficial alliances.

This includes Uber Taxi, PayPal, and Visa. Thus we can say today Zomato is one of the best Food Ordering App.

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