Skip to main content

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. 

Comments

Post a Comment

Popular posts from this blog

Can money buy happiness?

This is the question which has been very famous lately. This is used by poor people who want to mock their hard working friends by proving how worthless money is. But is that really the case ?check here                          we are going to find that out today. FREEDOM- we won’t talk how to make a certain amount of money, which you can check here if you want to. Let’s be true to ourselves, we all know money can bring absolute freedom in our lives. Freedom is being able to what you want to do when you want to and the way you want to do. Money opens up the vault of variety. Making you available a lot of options to choose from. Who doesn’t love that? Also you are no more bound to make any compromises when you have a significant amount of money. Suppose you want to impress your wife because she fought with you last night, you just make an online order of a Gucci bag and she is yours. PEACE- Alth...
2 comments
Read more

Why school isn’t made for entrepreneurs?

                                          Every parent in this world wants their ward to be excellent in academic performance and get good grades at school. Because it would mean that they will graduate from a recognized college and get a high paying secured job. Most of the people in this world think that school provides you with ample knowledge about this world and by doing well at school will make them successful in the near future. But the reality is a lot different, indeed it is bitterer. In school, students are just taught to repeat the same facts which would never be applied in their practical life. Their skills are judged by the results of the test. The school never creates a learning environment for teaching potential entrepreneurs, financial skills. It just focuses on making students work for money in the future after they pass out. But  don’t get my words, ...
Post a Comment
Read more

1 million views and $0? How much a YouTuber earns?

Whenever we think of earning money online, YouTube strikes in our mind. But how much a YouTuber earns? This is the most frequently asked and searched for the question. So here in this post, I will eliminate all myths in your mind and you will get an answer to all of your questions. Here  is how revenue on YouTube  works, Every country or region has different advertisement criteria. You will be paid more if your video is watched in a developed country like the USA whereas you will be paid lesser by approximately 6 th time if your viewers are from developing countries. The second aspect is the peak or lean period. In peak season your revenue shots up because more and more businesses invest in an advertisement on YouTube whereas lean season is not that much good. Two common Myths about YouTube Earnings 1. More subscribers result in more earnings. This is the half-truth. Subscribers do contribute to revenue indirectly. It is an advertisement on video wh...
Post a Comment
Read more