Zomato Swiggy Earning : Food delivery apps have become very famous in the last few years. The simple reason behind this is that you just have to order from your mobile and the food comes straight to your doorstep. Zomato and Swiggy are good players of this game. Both these apps allow their customers to order food from a wide range of restaurants and cuisines. Many times it happens that the food in the restaurant is expensive, but on ordering from these apps, the food becomes cheaper by applying coupons. Now the question is, how do these apps make money, especially when they offer such huge discounts to customers?
commission
The primary way food delivery apps make money is through commission. If the restaurant receives an order through the apps, then these apps charge a commission for each order from the restaurant. Explained in simple language, if you place an order from Zomato or Swiggy, then the restaurant from which you ordered has to pay Zomato or Swiggy as commission. This fee is usually a percentage of the order value. However, it may also vary depending on the agreement between the restaurant and the App.
For example, Zomato charges around 20-25% commission from restaurants for each order placed through their app, while Swiggy charges around 15-25% commission. However, for restaurants that get more orders from apps, their charges may increase.
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Apart from commission, food delivery apps also earn money through advertisements, sponsored listings and premium service. These apps can charge restaurants for providing placement of a particular restaurant in search. Along with this, premium subscription can be offered to customers for benefits like free delivery or exclusive discounts.
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For example, Zomato has a premium subscription service called Zomato Gold, which offers customers benefits such as free drinks or discounted food at Particuar restaurants. This service is available for a monthly or annual fee. On the other hand, Swiggy also has a similar service.
Yes, food delivery apps offer many coupons to attract customers, but their business model is mainly to earn money through commission and other fees. The purpose of these coupons and discounts is to increase order volume and customer loyalty.
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