Zomato didn’t just change how people eat — it rewired the entire food delivery ecosystem in India and beyond. What started as a simple restaurant discovery platform is now a multi-channel revenue machine with food, logistics, subscriptions, advertising, and more.
And here’s the kicker: Zomato makes money whether you’re ordering a ₹100 chai or a ₹1200 biryani — all because of a cleverly layered business model.
In this blog, we’ll break down exactly how Zomato earns in 2025, the core features powering it, and what startup founders should know if they’re planning to build a similar on-demand food delivery app. If you’re exploring the Zomato Clone path, this is the roadmap you’ll want to follow.
What is Zomato & How It Works
Zomato is a food delivery and restaurant discovery platform that connects users with local eateries, cloud kitchens, and quick-service restaurants. While it began as a digital menu aggregator, the app has evolved into a full-stack food tech platform.
At its core, Zomato offers a three-sided marketplace:
- Customers use the app to browse menus, place orders, and track deliveries.
- Restaurants partner with Zomato for online visibility, order fulfillment, and targeted marketing.
- Delivery partners act as the logistics backbone, picking up and delivering orders across cities in under 30 minutes.
The simplicity of Zomato’s user experience masks a highly optimized engine of data, logistics, and monetization models. Whether you’re ordering breakfast, booking a table, or subscribing to Zomato Gold, each tap generates revenue somewhere in the chain.
Who Uses Zomato (Target Audience)
Zomato serves a broad and dynamic user base, making its business model remarkably adaptable across demographics and geographies. Its audience includes:
1. Urban Millennials and Gen Z Users
These are frequent users who rely on Zomato for convenience, speed, and variety. They are most active during peak meal hours, festivals, or late-night cravings.
2. Busy Professionals and Office-Goers
This segment values speed, reliability, and scheduled delivery. They often use Zomato for lunch orders, corporate meal programs, and group deals.
3. Restaurants and Cloud Kitchens
Zomato isn’t just consumer-facing. Thousands of food outlets use the platform to access customers, manage delivery logistics, run ads, and analyze sales data.
4. Delivery Partners
While not “customers” in the traditional sense, delivery agents are a critical part of the ecosystem. Zomato’s business model includes cost optimization, incentive structures, and dynamic routing for this segment.
5. Zomato Gold/Pro Members
These are high-LTV (lifetime value) users who pay for premium features like free deliveries, discounts, and early access to offers. They form a key part of Zomato’s subscription-led monetization.
This diversity in users allows Zomato to operate multiple revenue streams simultaneously while maintaining high daily app engagement.
Core Features that Power the Business Model
Zomato’s success is deeply tied to the features that enhance user experience while supporting monetization across all touchpoints. Each function in the app isn’t just for convenience — it plays a direct or indirect role in revenue generation, operational efficiency, or user retention.
1. Real-Time Order Tracking
Allows users to see the status of their food order from kitchen to doorstep. This feature improves trust and reduces support queries, improving operational efficiency.
2. AI-Powered Recommendations
Based on past orders, time of day, and popular trends, Zomato recommends dishes and restaurants that drive higher average order values.
3. Dynamic Search and Filters
Advanced filtering by cuisine, delivery time, ratings, and pricing ensures users can quickly find what they want, improving conversion rates.
4. Integrated Payment and Wallets
Fast, seamless payments using cards, wallets, UPI, or Zomato credits create a smooth checkout experience, which reduces cart abandonment.
5. Zomato Gold/Pro Subscription Access
Exclusive benefits such as free delivery or discounts encourage repeat usage and higher monthly spend.
6. Restaurant Dashboard for Partners
Vendors get access to order analytics, customer behavior insights, and ad campaign management — making the platform sticky for B2B users.
7. Scheduled and Group Orders
These features are especially useful for office lunches or planned meals, increasing average ticket size and delivery efficiency.
Together, these features ensure that Zomato isn’t just an app for food delivery — it’s a complete food-tech ecosystem.
Revenue Streams of Zomato
Zomato operates a multi-channel revenue model that generates income from both users and businesses on its platform. The beauty of its structure lies in its ability to earn from every order, every listing, and every upgrade.
Here’s a breakdown of how Zomato makes money in 2025:
Revenue Stream | Description |
---|---|
Delivery Commissions | Zomato charges restaurants a commission (15–35%) on each order placed through the platform. |
Advertising & Sponsored Listings | Restaurants pay to appear in top results or banner ads, increasing visibility and sales. |
Subscription Revenue (Zomato Gold/Pro) | Users pay a monthly/annual fee for benefits like free delivery and exclusive offers. |
Platform Fees | A nominal fee is charged on each order from users to cover delivery logistics and tech. |
Restaurant SaaS Tools | CRM dashboards, order analytics, inventory tools, and ad campaign management tools offered as premium services to partners. |
Hyperpure (B2B Ingredient Supply) | Zomato supplies fresh ingredients and packaging material directly to restaurants via its B2B service Hyperpure. |
Dining Out Services | Table reservation partnerships and event-based monetization in high-footfall restaurants. |
Intercity Delivery (Zomato Legends) | Premium pricing for delivering iconic food items across cities, monetized through shipping and service charges. |
Zomato’s diversified revenue mix makes it less dependent on any one stream and more resilient to seasonal or market fluctuations. This also provides multiple monetization paths for any founder building a similar app.
Cost Structure
While Zomato has built multiple revenue streams, maintaining a hyperlocal food delivery platform comes with significant costs. Understanding these expenses is crucial for founders planning to replicate the model through a clone app.
1. Delivery Logistics
A major cost center. This includes payments to delivery partners, incentives for peak-hour operations, route optimization tools, and fleet support. As Zomato scales into smaller cities and intercity delivery, logistics costs vary widely by region.
2. Customer Acquisition & Retention
Zomato spends heavily on app install campaigns, first-order discounts, referral bonuses, and retargeting to maintain user growth and retention. Subscription discounts (Gold/Pro) also fall under this cost category.
3. Technology & Infrastructure
App development, server costs, uptime monitoring, AI systems for recommendations, and real-time tracking require ongoing investment. Ensuring fast, secure, and scalable infrastructure is non-negotiable in this space.
4. Restaurant Partner Support
This includes onboarding, dashboard training, account management, and grievance redressal teams — all crucial to keeping the supply side active and loyal.
5. Content & Media Operations
From menu curation and restaurant photography to user-generated content moderation and support chat operations, content costs are an ongoing operational layer.
6. Regulatory & Compliance Costs
Zomato also bears costs for food safety compliance, local delivery laws, tax filings, and international expansion where applicable.
By maintaining tight control over variable costs while scaling fixed investments in tech and brand, Zomato achieves unit profitability in high-density zones — a learning opportunity for anyone looking to build and scale a similar app.
Recent Innovations in 2024–2025
Zomato continues to evolve its business model to adapt to changing consumer behavior, competition, and technology shifts. In 2024–2025, the platform introduced several innovations that strengthened its revenue streams and user engagement.
1. Intercity Food Delivery (Zomato Legends)
Zomato now enables users to order iconic food from different cities — like biryani from Hyderabad or sweets from Kolkata — delivered across India. This premium service opens new revenue through higher delivery fees and niche audience targeting.
2. AI-Powered Dynamic Pricing
To optimize profit margins and improve delivery efficiency, Zomato introduced machine-learning algorithms that adjust platform fees and delivery charges based on real-time demand, weather, traffic, and availability of riders.
3. Sustainability-Focused Packaging Program
Partnering with restaurants, Zomato launched a campaign to reduce single-use plastic and offer eco-friendly packaging as a paid opt-in service — aligning with brand ethics and unlocking B2B upselling.
4. Creator-Led Content & Food Reviews
Short-form video reviews by food creators have been integrated into restaurant listings, giving users authentic feedback and increasing time spent on the app — which also benefits ad monetization.
5. Expansion of Hyperpure
Zomato scaled its B2B grocery and ingredient supply chain to more tier-2 and tier-3 cities, improving vendor dependency and reducing churn from the restaurant side.
6. Enhanced Partner Analytics Dashboard
Restaurants now receive deeper insights into customer ordering patterns, review heatmaps, ad performance, and competitor benchmarks. This SaaS-like feature is a premium upsell for high-performing partners.
These innovations are not just product upgrades — they directly tie into user retention, revenue diversification, and platform stickiness. For founders building a Zomato-like app, these updates set the benchmark for what modern food delivery platforms need to offer.
Takeaways for Founders Who Want to Clone Zomato
Zomato’s business model isn’t just about food delivery — it’s about building a high-frequency, multi-sided ecosystem where every stakeholder benefits. For founders looking to build a Zomato-like app, there are several key insights to absorb before jumping into development.
1. Multi-Channel Monetization Is Essential
Relying on commissions alone isn’t sustainable. Zomato’s real strength lies in combining subscriptions, ads, SaaS tools, and logistics partnerships. Your clone app should be designed to handle multiple revenue streams from day one.
2. Logistics Is a Tech Business, Not Just Delivery
Efficient order fulfillment requires more than riders — it needs algorithmic route planning, real-time location updates, surge-based incentives, and dynamic support systems. If you plan to handle delivery in-house, invest in this early.
3. B2B Relationships Drive Retention
Restaurants are more than vendors — they’re strategic partners. Providing them with dashboards, data, marketing tools, and fulfillment support improves loyalty and boosts your lifetime revenue per partner.
4. Invest in Personalization and AI Early
User experience is what keeps the orders coming. Build recommendation engines, smart filters, and customized offers based on behavior patterns. These features reduce friction and increase average order value.
5. Scaling Requires Localization
Menu listings, delivery logistics, and user behavior vary by city or region. If you plan to expand quickly, architect your app to handle hyperlocal operations — different cities may need different strategies.
6. Clone Is Just the Starting Point
Zomato’s model can be cloned, but its success lies in continuous evolution. Think of the clone as the launchpad — your job is to localize, optimize, and innovate beyond that base.
Miracuves helps startups and agencies launch powerful Zomato clone apps that are scalable, customizable, and built with growth in mind. Whether you’re solving delivery in a single city or building the next national brand, having the right tech foundation can make all the difference.
Conclusion
Zomato’s business model is a masterclass in platform thinking. It monetizes every interaction — from a user placing an order to a restaurant boosting its visibility. Its strength lies not just in food delivery, but in creating a network of value across consumers, partners, and technology.
For startup founders, the key lesson is simple: success in this space isn’t about building a delivery app — it’s about engineering a business engine that works across multiple fronts.
If you’re considering launching a food delivery app inspired by Zomato, the opportunity is strong — especially in local and niche markets. But success depends on speed, execution, and a partner who understands both the tech and the business behind it.
At Miracuves, we help you build and launch a Zomato-like app tailored to your market — complete with essential features, scalable infrastructure, and monetization flexibility. Whether you’re targeting one city or going nationwide, we’ll help you go from idea to launch, faster and smarter.
Get in touch with Miracuves to start building your Zomato Clone today.
FAQs
How does Zomato make money?
Zomato earns revenue through delivery commissions from restaurants, advertising placements, subscription plans like Zomato Gold/Pro, platform fees, and its B2B supply chain (Hyperpure). Each order on the platform triggers multiple income streams.
Can I build an app like Zomato for my city or region?
Yes, it’s possible to build a Zomato-like app tailored to your market. Many startups successfully launch hyperlocal delivery apps by focusing on regional cuisines, underserved areas, or faster delivery promises. Platforms like Miracuves offer ready-made Zomato Clone solutions you can customize and scale.
What’s the difference between Zomato and Swiggy’s business model?
While both platforms share core revenue streams like delivery commissions and advertising, Swiggy places stronger emphasis on logistics and dark stores (Instamart), whereas Zomato has diversified through restaurant supplies (Hyperpure) and intercity food delivery. The models overlap but have different growth strategies.
Is Zomato profitable?
Zomato has achieved profitability in high-density zones and continues to optimize its cost structure to scale profitability nationally. Recent innovations like AI-powered pricing and logistics automation have helped reduce operational expenses.
How much does it cost to build a Zomato Clone app?
Costs vary based on features, scale, and tech stack. A basic MVP may start at $10,000–$20,000, while a full-scale version with partner dashboards, AI recommendations, and Hyperpure-like modules can go beyond $50,000. Miracuves offers scalable Zomato Clone solutions tailored to different startup stages.