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How Zomato earns after giving 50% discount?

You might have ordered from Zomato food delivery app several times for availing 50% off on food items. The most amazing thing is you get a chance to order from your favorite restaurants. You may have opened this post wondering how zomato earns after giving such big discounts.

Well, there is only one strong reason why zomato offers such a discount. It wants to grab the whole Indian market and beat its competitor Swiggy (which too is offering big discounts). Now how Zomato actually earns after this. Zomato gets some agreed percentage of commission from the food provider in return to boosts its sales. For instance, if you buy a product @Rs.100  then Zomato will get 10 or 20 % commission as agreed upon the terms.  It serves as a common platform for buyers and sellers and making both the parties comfortable.

So with their commission and delivery charges, they are able to cover the costs of huge discounts. And as many of you may have noticed that the price on the menu on zomato is more of the same restaurant that you pay on a walk in. So they are probably covering all the costs and even earning profits, the margin may be small. So it is their marketing strategy that they offer discounts to promote sales of various restaurants and in return getting an impressive commission.

I hope you find this article helpful. Do comment below how many times you prefer Zomato?


Note: The above points are based on my perspective and understanding. Actual facts may differ. 

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