How does swiggy and zomato pay restaurant? How swiggy and zomato works? How they pay salary? Business model of swiggy

 In today's world online ordering of food has become necessity. So, the question arises how does this online food delivery services earn money. The most common online food delivery service is known to us are Zomato and swiggy . So, let's see what's their pattern of earning.

While we order food, we pay the delivery fee, Zomato  earns through restaurant who pays commission for each delivery.Now, speaking about Zomato,it is an Indian restaurant aggregator and food delivery start-up founded by Deepinder Goyal and Pankaj Chaddah in 2008.To make it more clear let us understand their business technique.

They follow 3 business techniques- 

1. Food delivery service

2. Advertising service

3. Business consultancy services

1. In food delivery service if you ask the owner of a restaurant that what is more profitable, to make the costumer make sit in the restaurant or delivering the food to their location. Well, the owner will say food delivery service because when customers sit and enjoy their food then the whole staffs, the waiter , the cook,  all become busy into that one customer but if they deliver food then they can deliver it in lum sum amount. By taking practical example , let's understand it more clearly. When a costumer sits in the restaurant and orders a food , say for example he ordered biriyani of Rs. 150 but when it is to be delivered then the restaurant increase their price they'll make it at Rs. 170 or 180 plus delivery charges , here comes the point when they earn extra money in common language, profit. 

2. In advertising service, they contact with Zomato. Let's make it more clear. If someone search's a specific food ,say biriyani on Zomato , then they will show the name of the restaurant from where Zomato earns maximum profit. In this policy , the primary money of the restaurant comes from Zomato . If the restaurant already earns 1.5lakhs in a day, then 50000 rupees comes from Zomato. If someone have opened a new restaurant then they will join hands with Zomato and they can advertise about their restaurant in the app, this helps them to gain popularity.

3. In business consultancy service, Zomato has the whole data of each and every corner of the town,  about each and every restaurant.  They know which dish is served at what price, which area wants what dish and what type of dish a restaurant provides. Suppose you want to open a restaurant then Zomato provides the service that you go and contact with it and they will say you which type of restaurant will work in your area and earn more profit, like Italian or Indian or any kind of food  will be best for the area you're going to open your restaurant . They will provide each and every detail and help you to establish your restaurant about what food should be provided, how much price should be kept , will it work on low price or high price , they will provide you every single details about it. For this they charge a fee from you.

So, this are the 3 main strategies they follow. 

As for now in the pandemic, Zomato has also started grocery delivery amid the Covid-19.

Here, the only example used  is Zomato but the same goes for swigggy also .

Here, the examples and situations used are for only reference purpose. Just an idea or say estimate made. It might be proportionately correct , it was just used to give a rough idea about how it works, rather than this the business is too large and have more other aspects also. For more updates click this link http://mudrainvest.com